What is Branding?
There are thousands of definitions of “branding” or just plain old “brand.” One of the best definitions of brand I’ve seen is from the Apple. Apple Inc. uses the Apple brand to compete across several highly competitive markets. Apple’s brand has evolved as it has expanded its range of products and services. Originally starting in the late 1970s with desktop computers and then laptops in the 1990s, it took over 20 years before the company expanded into its first major new product area with the launch of the iPod in 2001, followed by iPhone in 2007, Mac Book Air in 2008, iPad in 2010, Apple Pay & Apple Watch in 2014, Siri & Apple TV in 2015 and the Mac Book Pro in 2016.
To them, a brand is “Apple’s core competence remains delivering exceptional customer experience through superb user interfaces.” That seems a good informal way to describe a company’s brand. Under that definition, many things can contribute to a brand.
Does a picture pop into your mind about a company, such as its logo or colors? Think about the logo, such as Coca Cola — recognizable the world over, executed in its distinctive curvy script in white against red. And when you see it, do you imagine the effervescence of a Coke, the dark color or how it tastes? All of those things may run fleetingly through your mind when you want something to drink.
Sometimes it’s not the logo but another visual that comes to mind — even packaging. For instance, I couldn’t tell you what the Tiffany logo looks like, but the instant I see the iconic Tiffany blue box, I know which company we’re talking about. Certain attributes immediately come to mind, such as high quality jewelry and luxury home goods — things no one actually needs, but so many desire.
So when you ask the question “what is branding” — it is something that triggers associations in our minds. Branding is about creating an identity. It’s what sets one company apart from another. In short, it tells us what we can expect from that company. It’s about the perception people have of the company.
Branding (a verb) is doing those activities and communications, large and small, that create and reinforce a brand, i.e., what a company is known for.
Your branding (a noun) is all the elements that make up a brand, whether logo, packaging, colors, reputation for customer service, reputation for customizing customer orders without complaint, speed, self-serve options, low price, high quality — whatever.
How does Branding help a business?
Branding is what helps a prospective buyer call to mind a particular company when it comes time to buy. Branding also helps with awareness. In a world of infinite choices, branding that helps people remember YOUR company is more important than ever. Today consumers have a seemingly endless choice of retailers, products and services available at their fingertips online, or at the local strip shopping centers or shopping malls.
If consumers are shopping for something, what do they do? Go to Google, where billions of Web pages and yellow page listings are available. Not only are there many choices, but some of the decision factors that traditionally separated and defined companies are today transparent and without much difference. Take, for example, pricing. Pricing is easier to discover and compare than ever before. In certain industries there may be very little price difference.
When all prices are the same, what makes the buyer choose one over another? Nuances and qualitative factors may make the difference. For small businesses, what sets apart the business may be factors such as high quality, craftsmanship, personalized customer service, superior knowledge to help customers make the proper product selections, and similar qualitative factors.
The challenge for some small businesses is how to get customers to think of them when it’s time to buy. You don’t want your company to be nonexistent in the customer’s mind. And if they see your brand name in a list of competing vendors (such as in a search engine), you want your brand to be associated with positive factors that make it stand out. Branding is not a replacement for sales or specific marketing campaigns. But branding assists and reinforces your sales and marketing efforts in important ways.
But … We Can’t Afford to Do Branding
Actually, you can’t afford not to. Sure, branding can get incredibly expensive if your idea of branding is a nationwide television and print campaign. But it doesn’t need to be. Here are 4 low-cost actions you can start on today to help your small business create, build and reinforce brand:
1) Start with clarifying what your brand stands for. What’s that “one thing” you want customers to think of, when thinking of your company?
Most knowledgeable — that is, your representatives can help the customer choose options in a complicated product environment?
Speed — such as your 10-minute lunch menu, or same-day delivery, or fastest time to create a customized solution?
High quality — especially when all the competition is low quality?
Something else? Think it through. If you or your team are confused about that “one thing” that sets your company apart, customers probably will be, too.
If you’re not sure what this is, find out. Schedule a strategy session and hash it out with your team. Do a customer survey to ask existing customers what they value most. Start asking new customers what made them choose your company or product or service.
Try to limit it to one thing or at most two things you want your brand to be known for. If you end up with a laundry list of 20 things, go back to the drawing board and narrow it down. Customers don’t choose a vendor for 20 reasons. It’s usually one or two reasons that push them over the decision edge.
2) Audit your marketing materials. This is low hanging fruit. Check over your website, your Facebook page, your brochures, your ads — every piece of marketing you have. Do you have words in them to clearly convey “that one thing” that you want to be known for?
Or are your marketing materials sending mixed messages, with brochures emphasizing lowest cost, while your website emphasizes unparalleled quality? Maybe you deliver both, but in that case the combination of both should be conveyed, not one or the other.
Is your company name abbreviated in your marketing materials with cryptic initials that customers may not understand? Just because you refer to your company internally by an abbreviated acronym doesn’t mean customers have any clue what you’re talking about. Look at sales scripts, too. Are sales reps conveying what your brand is, the way you want them to? Or are they saying something different? You may even learn something from them — they may have discovered through trial and error what customers value most and how customers perceive your company.
Make sure everything reinforces what you want customers to think about your business.
3) Demonstrate it with stories. Stories make your brand “stick.” It’s not enough just to say over and over that “we offer high quality.” Show it!
Write up case studies about how you helped a customer with your high-quality solution to solve a problem that no one else could solve. Or get a testimonial about how your product outlasted other products by five years.Write your company story in the About section of your website, and repeat that story in press releases, interviews and other communications. Create a video about your company “story.”
4) Use colors, symbols and other elements to create visual associations. Check your marketing materials for consistency. As you using an outdated logo on some materials? Do you even have a logo? Are colors consistent?
Visual elements are important clues that trigger other associations and help customers remember your business. Remember, branding isn’t just for large corporations. When customers have seemingly endless choices, branding becomes a crucial competitive edge. That’s the value of branding for small businesses.
What types of branding are there?
Different types of brands work for different marketing approaches that your business might take. Basically, there are a few general types of brands that your business could fall into:
Products (commodities) become branded products when you win awareness in the marketplace that your product has compelling characteristics that make it different and better than others in the product category.
Branding is a powerful tool that differentiates your offering in ways that create consumer preference and allow you to command premium pricing.
Services are products that people buy sight-unseen. People buy services purely based on their trust that the person or business they’re buying from will deliver as promised. If you sell a service or run a service business, you absolutely, positively need to develop and manage a strong, positive brand image.
You can brand your business, itself, in addition to or instead of branding your products or services.
If you can only build one brand — and that’s the best advice to any business that’s short on marketing expertise or dollars — make it a business brand because this brand can attract job applicants, investors, and (maybe most importantly) customers.
Whether you know it or not, you have a personal brand. If people know your name or recognize your face, they hold your brand image in their minds.
Personality brands are personal brands gone big-time. They’re individual brands that are so large and strong that they not only deliver wide-reaching personal celebrity but also create significant value when associated with products or services. Think Martha Stewart, Emeril Lagasse, or Oprah, and you’re on the right track. Sure, these are all just people, but their names are associated with a superior quality and subject expertise that speaks to their personality branding.
If you aspire to become a leader in your community or industry, keep that goal in mind as you build your personal brand. Develop a personal reputation that you can leverage into a greater good by becoming a small-scale personality brand in your own backyard or business arena.
The difference between Marketing, Advertising and Promotion.
What is the difference between marketing and advertising and promoting your business. Since I get asked from time to time, what the difference is between advertising, publicity, promotions and marketing, I want to share this definitions I came across some time ago, published by Reader’s Digest as Circus Marketing , that cleverly explains what each one is.
Advertising, Promotion, Publicity, Public Relations, Marketing, and Sales.
If the circus is coming to town and you paint a sign saying “Circus Coming to the Fairground Saturday”, that’s ADVERTISING.
If you put the sign on the back of an elephant and walk it into town, that’s PROMOTION.
If the elephant walks through the mayor’s flower bed, that’s PUBLICITY.
And if you get the mayor to laugh about it, that’s PUBLIC RELATIONS.
And if you planned the elephant’s walk, that’s MARKETING.
If the town’s citizens go the circus, you show them the many entertainment booths, explain how much fun they’ll have, answer their questions and ultimately, they spend a lot at the circus, that’s SALES