A brand is much more than just a name or a slogan. It goes beyond using logos to differentiate between companies and it’s not solely about competing with another company for a consumer’s business. Branding even goes much further than just being a name.
A brand serves as a way for consumers to understand what a business offers. A brand is meant to establish consumer loyalty, not just during the time of the purchase, but after as well. It is meant for the consumer to continue returning. When a consumer feels a sense of loyalty to a brand, they will continue coming back and giving the company their business. Branding revolves around how a customer perceives a business. This part of branding is crucial for marketers because when they are able to focus on a brand and differentiate it from other businesses, the marketing tends to be better.
For example, some of the benefits of businesses that focus on branding are increased credibility because consumers tend to have a better perception of the company because it is “big” and “brand-name.” A brand name also makes a company appear more established to the public which as a result increases the company’s credibility. In turn, this means more profits for the company. Another benefit of appearing more established is that it increases the company’s sense of stability and reliability, which makes consumers feel more secure with their purchases.
By branding themselves, a company must also follow certain guidelines of standards and expectations. When companies don’t live up to these guidelines, they can lose profits. Because companies obviously want to avoid losing profits, they follow the guidelines put forth which in turn keeps consumers happy.
A brand name with a nice logo, carefully laid out marketing materials and nice graphics tends to make a company more attractive in a buyer’s eyes. This ties in to the point made above, where a company may appear more “established.”
Branding is vital to marketers for the reasons listed above, but also for its ability to enhance experiences for the consumer. It establishes a promise to the consumer and creates images about the company in the mind of the customer. When a brand has a strong foundation, it also improves the conversions for the company because it is easier for marketers to persuade potential customers into purchasing a good or service.
Last, a good brand creates meaning for some customers. For example, think about what the Tiffany’s jewelry brand represents. For many women, receiving a piece of jewelry from this brand represents love. It is a timeless and well established brand, so it creates powerful emotions.
All in all, a quality brand should back up a company’s purpose and values, an essential step for marketers to create strategic marketing plans.