Who would have thunk.
8 things you didn’t know about Branding
Here are eight fundamental things that you probably didn’t know about Branding, and it could make or break your business.
In my previous article, The Art and Science of Branding, I gave a brief overview about the knowledge and practice of building strong brands through real branding work. Although it still intrigues the minds of most executives, most executives prefer to know the ends and not just the means. There are no ends in branding as it takes ongoing effort to keep a brand relevant. To address this I’ve identified a few of the many benefits and essential knowledge on branding.
1. Branding is not a logo, just as you are more than the beauty of your face.
Experts have reiterated this enough for it to be a theme song that accompanies the word branding. Any serious brand manager knows this by heart, while being weary of agencies masquerading visual work as branding. Crafting unique brand experiences based on strategic positioning is the key to carving up a sweet spot in the market that establishes your company’s presence.
2. Brand satisfaction and loyalty stems from Brand personality and brand experience
A study by J. Josko Brakus from University of Rochester suggests that to attain optimum levels of brand satisfaction and loyalty, a company needs a brand personality and brand experience that is not just unique, but comprehensively tailored to appeal to the various senses of the customer.
3. People form emotional relationships with Brands
A separate study by Susan Fournier, suggests that people form actual relationships with brands as though they were people, and interact with it with such fanatic enthusiasm that can be observed in the never ending queues to buy the latest gadget or clothes in town. Branding invokes a sense of identity, and in most cases is a statement of the values they identify it with.
4. Brand recognition has a strong effect on consumer choice
With so many choices, imitations and new products launched every day, consumers are hard set on choosing the brands they trust and recognise over brands that they don’t. Familiarity is key and it can only be achieved through thoughtful messaging and consistency.
5. Branding paves the way for actual value in your ledger and can be quantified through analysis.
I have come across many in the market who value their branding efforts to be purely speculative at best, but the truth is far from it. Branding exercises can actually be measured, measurements that are catered to present supporting data for subsequent growth when a business is valuated financially.
6. Branding is essential for hiring and retaining talented individuals.
It wouldn’t be fair for me not to highlight the intrinsic benefits branding plays within an organisation, prompting some to even make bolds statements that “the only long term recruiting strategy is Employment Branding.” Within this article, a plethora of benefits can be seen, from an increase in employee referrals to increase in retention rates. Even from my anecdotal experience, friends were referring available positions to trusted people within their circle to join them due to the company’s impeccable culture and strong values in work ethic that stem from strong brand pillars within an organisation.
7. Internal branding increases productivity.
For a brand to deliver on its promise to its audiences, you have to take into consideration that it can only be done if there is a strong and consistent corporate communication in place, while instilling a healthy culture of behaviours, attitudes and values. Brand alignment from within the organisation is needed for the people who represent it from within to perform both in the best of their capabilities and to the standard of the brand as a whole.
8. Branding increases profitability.
Perhaps the most important ends to the means of businesses, is the sustainable profitability of businesses under any circumstance. An interesting book was written on the matter, on how to maximize profitability and sustainability of a business through branding. I would also go on to make the case that the previous point in this article on productivity, drastically quality and quantity of the work that is being produced, allowing for larger implications on profitability from multiple perspectives.
© The Action Plan
Sources:
Palotta, D. (2011, June 15). A Logo Is Not a Brand. Harvard Buiness Review. Retrieved from: https://hbr.org/2011/06/a-logo-is-not-a-brand.html
Joško Brakus, J., Schmitt, B.H., Zarantonello, L. Brand Experience: What is It? How do We Measure It? And Does It Affect Loyalty?. Retrieved from: http://www8.gsb.columbia.edu/sites/globalbrands/files/Brand_Experience.pdf
Fournier, S. (1998, March). Consumers and Their Brands: Developing Relationship Theory in Consumer Research. JOURNAL OF CONSUMER RESEARCH, Inc. Vol. 24. Retrieved from: http://bear.warrington.ufl.edu/weitz/mar7786/articles/fournier%20%281998%29.pdf
Dr Leighton, J. & Dr Bird, G. (2012). The Effect of Branding on Consumer Choice. Retrieved from: http://www.packagingfedn.co.uk/images/reports/The%20Effect%20of%20Branding%20on%20Consumer%20Choice.pdf
Branding and Celebrity Endorsements. (2014, February). Martin Roll. Retrieved from: http://martinroll.com/resources/articles/growth/branding-numbers-measuring-brand-value-equity-marketing-activity/Branding
Gunelius, S. (2015, January 3). 5 Key Benefits of Internal Brand Building. Women on Business. Retrieved from: http://www.womenonbusiness.com/5-key-benefits-internal-brand-building/
Wreden, N. (2007). Profit Brand: How To Increase The Profitability, Accountability & Sustainability Of Brands. Retrieved from: https://books.google.com.sg/books?id=JL94qlBPYVMC&lpg=PA91&ots=iXYtTAqnzV&dq=does%20branding%20increase%20profitability&pg=PP1#v=onepage&q&f=false