When we think about branding we often think of big organizations with massive billboards and a big budget for advertising. Resigned to a self-imposed small-fish status, the owners of small businesses often end up doing nothing. Thankfully branding is important for businesses of all sizes because it increases their value, gives employees direction and motivation, and makes acquiring new customers easier.
Branding, by definition, is a marketing practice in which a company creates a name, symbol, or design that is easily identifiable as belonging to the company. It is who you present yourself or your organization to be i.e. the identity of the entity. Branding is important because it allows your customers and clients to know what to expect from your company. It is a way of distinguishing yourself from the competitors and clarifying what it is you offer that makes you the better choice.
Here are some reasons why branding is important:
Creates Trust Within The Marketplace: A professional appearance and a well-thought-out brand will help to build trust with potential clients, investors, and other interested parties. People are more likely to do business with a company that has a well-defined and professional image.
Branding Grows Your Business: Branding is important when trying to generate future business. A strongly established brand can increase company leverage within the industry. A good brand will have no trouble drumming up the referral business.
Tips on Branding and Marketing
Be strategic: there are so many different brands internationally that are doing something similar and your strategy could be what sets you apart in a market. One way could be to possibly partner with a larger brand. An example of this is the Revive beverage in Zimbabwe. They were able to breakthrough in the beverage industry by successfully partnering with the Simbisa brand. This allowed the smaller business to grow and breakthrough into the market successfully. Another way is with your brand name. This is important as it speaks to what the client can expect when interacting with your brand.
Market Segmentation: this is when you find a niche within the market and maximize on it. Market segmentation in line with branding means you cater to a specific demographic. An example of market segmentation is AirBnB, this company allows people to offer their homes to others on their terms and also allows its clients to choose the accommodation that best suits their needs.
Overall Branding is a very important aspect of marketing and helps you to turn ideas into sales.
This is part of our financial wellness series. For more information click here for related posts.
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