What really is branding?
"Your brand is what people say about you when you are not in the room" – Jeff Bezos
To start, I have a puzzle for you. What is it?
For some, it seems like an unnecessary expense, while others can't imagine their business without it.
In the business planning phase, it’s often overlooked, although its significance can determine the future success of the company.
You can't touch it, but its influence is clearly felt in every customer interaction.
Its power lies in the emotions it evokes, building loyalty and trust.
It's not a one-time investment, but a process that evolves and modifies as the company grows.
It could be the reason why customers are willing to pay more, choosing the brand over the competition.
Yes, I’m talking about branding (well, it would've been harder if I'd titled the post differently).
In this post, you will learn what branding really is, what its components are, and its role in business. Let’s dive in!
What is branding?
In my previous post, I wrote about what a brand is and how it differs from a company. Branding is simply the process of building a brand, which involves building and promoting a unique identity in the minds of consumers.
Every business starts the same way. There's an idea and assumptions designed to monetize this idea and make money.
Somewhere around there are consumers to whom we want to reach out and attract their attention to our idea.
For this to happen, we need to take care of three things:
Appearance – This is the first eye-catching element that decides whether we will pause for a moment or walk by, ignoring it among many other stimuli. The appearance of the brand not only attracts attention but also aims to evoke specific emotions. This is the stage where the recipient decides whether they want to engage more deeply to discover:
Beliefs – It doesn't matter whether we're talking about a brand or a person we meet; our decision to interact, to trust, or to feel that vibe is governed by the beliefs the other party holds. When these values resonate with what is important to us, a deeper emotional connection is formed.
Behaviors – Appearance and beliefs are not enough if they are not accompanied by consistent and coherent actions. Would you trust someone who looks great and speaks convincingly, but acts differently? The same goes for business: without consistent actions, even the best brand presentation is hollow. Real actions build trust and turn promises into reality.
Only when these three elements — appearance, beliefs, and behaviors — work together, do we achieve authenticity, which is worth its weight in gold today.
Only then will audiences devote their attention to us, allowing us to communicate our offerings.
Only then does a company become a brand.
All these actions that lead to the building of authenticity and trust are what we call branding.
The Role of Branding in Business
Nowadays, 60-90% of purchase decisions are emotional decisions. That's because there are just too many products on the market to analyze every single one and make a rational choice.
Today, we choose products based on the brand that speaks to us, moves us, or is authentic. And this is precisely the main task of branding - to build trust and authenticity. This is the primary (but not the only) reason why companies spend tens of thousands of dollars on branding.
A well-conducted branding process provides us with valuable information about the character, values, promises, differentiators, and perceptions of the brand. With this information, we can:
Build brand recognition.
Stand out from the competition.
Enhance the brand image.
Build customer loyalty.
Support sales and marketing.
Sounds good, right? Branding brings huge benefits, no matter how big your company is or what industry you're in, but...
Here’s the catch. That’s provided we don’t reduce branding to just logos and colors. Branding is much more. Let’s then talk about the components of branding.
Components of Branding
Branding encompasses everything that influences the perception of a brand's product or service:
Brand strategy - Defines the character, values, differentiators, and beliefs that a brand wants to be associated with. It is a tool that helps a company shape and adjust thoughts, opinions, and culture to create a powerful brand. All branding activities are based on this strategy.
Tone of voice - How the brand communicates with its audience both in writing and in speech.
Naming - The process of choosing names for the company, products, or services.
Visual identification - A collection of visual elements such as logos, typography, color schemes, composition, content, sound, animations, etc. These elements allow a brand to be recognizable and stand out in the market. All elements are interconnected and together create a set of rules.
Copywriting - Creating advertising and informational texts that communicate the brand’s values and offerings.
Content creation - Photos, graphics, video, texts - everything a brand publishes on its website or social media is part of branding.
Website - Although a website is not absolutely necessary for effective branding, it plays a key role when used. As the digital business card of the brand, the website should be consistent with the overall branding strategy, reflect the visual identity, and communicate values and mission. Many brands forget this. Don’t be one of them.
Communication strategy - Defines how and where the brand communicates with its audience, which is crucial for building awareness and perception of the brand. Consistent and thoughtful communication helps build lasting relationships with customers and influences how the brand is perceived in public.
Marketing activities - Branding and marketing must work together to achieve intended goals. Branding defines the brand identity and sets the direction, while marketing implements these strategies in real life, testing and developing the brand based on market feedback. This synergy is crucial for the growth and development of the brand.
Customer service - How you serve your customers is key to their overall experience with the brand. Every email sent after a purchase, every interaction in the store or office, should be consistent and reflect the brand strategy and its communication tone.
Organizational culture - What happens inside directly translates to how the brand appears on the outside. A strong, positive organizational culture can increase employee engagement and improve their performance, which directly translates to better customer experiences and strengthens the brand.
Product or service - Ultimately, the product or service is the core of the brand's offering. The quality and innovation of the products or services a company offers have a direct impact on its image. Brands that deliver high-quality products or services are perceived as more trustworthy and valuable.
Each of these components works together, creating a cohesive and effective system that not only defines the brand but also decides its position in the market, its ability to attract and retain customers, and impacts its overall performance and success.
Final Thoughts
Branding is not just about logos or visual identification; it's primarily the process of building a deep and emotional connection with your audience. It's the art of transforming a raw business idea into a brand that lives and impacts everyone it touches.
Rethink your approach to branding and consider how you can better communicate the values your company stands for.
As an entrepreneur, you have the opportunity not just to create products or services, but more importantly, to build a valuable brand that resonates with the needs and emotions of your customers. This is your chance to stand out from the competition and build a lasting market advantage that will stand the test of time.
It's up to you whether you take this opportunity or let your competitors do it.
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Must-see
To wrap up, I have some links for you to some of the best branding studios in the world. As a source of inspiration, take a look at their work. You'll see how they've designed brandings for brands like Apple, Mastercard, and Netflix.