Your brand is your identity, the way your customers, shareholders, government entities, and any other interested parties perceive your business. Branding is not all about your logo, but it is far beyond that. When we mention branding, many people think of a logo, which is just part of branding.
Why is it important to brand your business? First, it sets you apart from others, including your competition. Think about your corporate color, your logo, your corporate fonts, your website, your promotional materials, and the entire customer experience.
Branding will provide a competitive advantage for you: In whichever industry that you business falls, you will need to compete for resources, funding, talent, audience and attention. You will therefore need to come up with strategy, or roadmap that details out specific ations and measures to attain your goals. When done correctly, your organization’s brand will mirror your strategic plan and will help promote strategic areas and initiatives that will move your organization forward.
Brands provide a stable asset: Products might fail, companies are bought and sold, technologies change on a daily basis, but strong brands carry on through all these changes. Brands are the most sustainable asset of any organization, and when aligned with the overall strategy of the organization they can function as the central organizing principle for the organization’s decision making. Consider that the Coca-Cola brand has been around for more than 120 years, while most corporations last for only 25 years.
Brands provide economic value: The value of organizations is divided into two areas: intangible and tangible assets—brands being intangible assets. The magazine Businessweek has concluded that brands account for more than one-third of shareholder value. This leaves us with the conclusion that the value of most businesses comes from intangible assets, brands being the most prominent of these assets.
Brands set expectations: We live in a world based on promises. The airline mechanic promises to do a thorough job, checking and rechecking the aircraft to make sure it’s safe. Restaurants promise to provide fresh food made in clean environments. Our teachers promise to educate and protect our children during the school day. Often there are legal repercussions that bind people to fulfill these promises, but more often than not promises and vows are maintained based on the individual’s own moral and ethical code. We have an unspoken contract with the people we live and work with, that they will do what they say they’ll do. We have similar agreements with companies, products and services.
In brief, branding tells your clientele who you are, what you believe in, and what unique value your provide.
Adapted from howdesign.com