What is branding and what are its benefits?

The growth of your business, or of any project, depends to a large extent on a successful brand-building strategy. Of course, the vast majority of people do not realise this (perhaps not even you), because a brand is something intangible and taken for granted. Perhaps even dispensable? No, it is not.

Various studies show that consistent brand building can increase a company’s revenue by up to a third, which shows that a strong brand can and does directly affect a company’s profits and economic development.

Contrary to popular belief, companies do not sell products. They sell experiences, feelings and ideas. Companies such as Apple or Coca-Cola know exactly what experience and feeling they want customers to have when they buy or enjoy their product. The ability to control the buying experience at this level is the power of branding in practice.

“Branding” may be the name of a format in various advertising systems, but that is a distribution format. Using this format does not automatically mean you are working on something meaningful and building a brand.

Branding includes a logo, but unfortunately many people think only of a logo when they hear the word branding. A consultant asks whether they are working on their brand, and the client says they have had a logo made. When asked to capture the word branding , ChatGPT only produces the logos of the TOP 10 most valuable companies. That image is the preview image for this article.

Branding is more about the associations with your brand than about a logo.

Definition of a brand

I find the first definition of both brand and branding the most apt and striking.

“A brand is a company’s identity and story that sets it apart from competitors selling similar products or services. The aim of brand building is to gain space in the minds of the target audience through consistent communication and to become its preferred option at the right moment.”

“A brand is a name, term, design, symbol or any other feature that identifies one seller’s goods or services as distinct from those of other sellers.”

American Marketing Association

Definition of branding

“Branding is the process of creating and managing brand awareness, which includes creating the name, logo, design and other elements that represent the brand. The aim is to differentiate the brand from the competition and build a strong, positive relationship with customers. Branding covers both visual identity and the values, emotions and perceptions the brand evokes. An important part of it is consistency in communication and in the customer experience at every point of contact with the brand. Good branding increases customer trust and loyalty.”

“Branding is establishing and building a relationship with people and the public.”

“Branding is the process of creating a company’s brand identity. This process also produces materials that support the brand, such as a logo, slogan, visual design or tone of voice.”

The main task of branding is to secure for a company or organisation, and the brand it represents, the necessary position in the market, a foundation for sales and a positive attitude from potential customers.”

“Branding is endowing products and services with the power of a brand.”

Kotler & Keller

What is branding?

Branding is a process that gives meaning to a particular organisation, company, product or service by creating and shaping a brand in the minds of consumers, and often also of owners and employees. It is essentially a brand strategy that organisations and strategists design and put into practice so that people can quickly identify and categorise their brand. We can see branding as a process or activity that stems from the brand strategy and applies and develops this document and set of rules.

A brand gives people a reason to choose product A over competing products by making clear what this particular brand is, what it is not and what it stands for.

The result of branding is the feelings and associations a customer experiences and that come to mind when they see the brand’s logo, product or any other symbol the brand represents. It is also extremely important that the symbol is clearly linked to the brand. In the first logo, you can clearly see that no text is needed; the visual design alone is enough.

A recognisable logo, character, mascot, packaging, product, icons, slogan, audio, style, colours and typography can also be clear brand symbols.

The aim is to attract and retain loyal customers and other stakeholders by delivering a product that is always consistent with what the brand promises and declares. A brand gives consumers a decision-making shortcut when they are undecided between the same product from different companies.

A brand can be achieved by defining the following elements:

• The brand essence and core attributes, such as the brand purpose, vision, mission, brand values and brand principles.
• Brand identity
• Brand positioning
• Brand promise

Although it is easy to merge branding and marketing into one discipline, they are different fields. We also often hear branding and marketing compared in terms of priorities. And we often see branding described as pushing the brand’s logo and marketing as pure selling. The truth is that both are essential for a successful business and must work in harmony for the company to grow.

Put simply, branding is the company’s identity, and marketing covers the tactics and strategies that communicate this vision correctly and also aim to maximise sales. In brand building, these steps usually support the company’s story and identity. In marketing, these actions usually promote products, customers or other company initiatives in order to drive sales.

Your brand is probably one of your organisation’s most important assets. It gives your organisation an identity, makes your company memorable, encourages consumers to buy from you, supports your marketing and advertising and even makes your employees proud. Some people simply tell everyone they meet where they work, and others never mention it.

Brand communication

Many companies in the Czech Republic and abroad have all of the above, several times over and sometimes brilliantly prepared. So why are they not successful? They simply never put these documents into practice. Through execution and integration into the communication strategy, a company enables different target groups to perceive it. The brand also needs to be aligned with every aspect of the company to ensure its coherence and strength. This part of branding, which covers brand implementation, often overlaps with marketing strategies. Branding should run through every aspect of the company and of customer communication.

Setup and consistency

A marketing strategist or brand manager sets and manages the brand and its direction together with the company’s key people. The best brands and brand symbols usually come about quite innocently from the founders, and when the company grows, marketing and brand managers take over the brand. Having the brand set by external parties is risky, because the organisation may not accept it.

The marketing strategist or brand manager then works on new campaigns and tries to oversee and guide all of the brand’s steps and outputs so that the brand develops predictably and remains consistent. Branding must run from digital marketing all the way to the shops. You cannot focus on just one part. It should influence all aspects of the marketing mix, not only promotion, as sometimes happens.

Benefits of branding

1. It creates your company’s identity. A brand goes beyond a company’s product or service. A brand gives your company an identity. It gives consumers something to relate to and connect with beyond the product or service they actually buy.
2. It influences purchasing decisions. The funny thing is that most people do not admit it, but it is the plain truth. A brand can be, and is, a deciding factor for consumers when making a purchase. It is a shortcut for consumers. Mercedes = luxury and quality craftsmanship, and Volvo = safety. In fact, a study found that 82% of surveyed consumers buy from brands that commit to a higher mission or purpose. They simply do not communicate only in a BUY IT! style.
3. It improves advertising and marketing results. A brand supports your marketing and advertising efforts. It helps your promotion achieve greater impact, lower cost and higher conversion. Read a few studies on this and you will be amazed.
4. It helps customers remember and distinguish. Thanks to your brand, people remember your company. It is the face of your company and helps customers distinguish your business across all media.
5. Employer branding. A brand makes employees proud. When you brand your company, you not only give it an identity but also create a reputable and highly valued workplace. A strong brand attracts capable and loyal employees, and you pay them less than your unknown competitors do.
6. It creates loyal customers. People form a relationship with a brand, make it their own and buy from it regularly. Strong brands earn far more money from their customers than weak brands. As a result, they have a very good CLV, or customer lifetime value.

Brands even have a quantified value. Take a look at the list of the best-known and most valuable ones.

How is branding measured?

Compared with performance marketing, quite poorly, and it also costs money. A social media specialist, a PPC specialist or an SEO consultant can get you various metrics almost for free. All the marketing specialists on a project should be aware of the brand positioning, take it on as their own and reflect it in their work.

• Mentions in search
• Mentions on social media
• Brand search volume
• Share of Voice
• Share of Market
• Associations in search
• Ad reach and interactions

Using surveys, which is the more expensive route, you can measure:

• Brand awareness
• Brand salience
• Emotions evoked by the brand
• Brand associations

Brand building should be an essential part of the strategy of every large and medium-sized company. If a small brand recognises the power of branding, it has a huge advantage, because its similarly sized competitors will most likely not be addressing this aspect of marketing.

One final note. Branding is extremely important for all classic product brands, but it has the same effect for e-shops and B2B companies with a broader potential customer base.