Branding is one of the important concepts in the world of business and marketing. Branding involves creating and managing brands for products, services, and companies.
Building strong and consistent branding is important for business success in an increasingly competitive business competition. But actually, what is meant by branding?
Relax, this article will discuss what branding is, the goals and benefits of branding, types of branding, to various examples of branding practices from well-known companies. Let’s see in full!
What is Branding?
Branding is a series of strategies or tactics carried out by companies to build a business brand and create a positive image in the eyes of consumers.
With branding, it will be easier for companies to create brand identities, define corporate values and missions, and develop messages and narratives that are consistent with the brand.
A strong and well-known trademark by consumers can help companies differentiate themselves from competitors, increase customer trust and loyalty, and help business growth. Therefore, branding becomes a very important aspect to be developed.
However, when doing branding, companies must pay attention to several factors such as vision, mission, target market, and brand values. That is why branding involves collaboration between the branding team, marketing team, and company management.
If the company’s branding is no longer in accordance with the values of the brand or company, then the solution is usually to do a rebranding. Rebranding is a strategy carried out to update the company’s image so that it is aligned with business development goals.
Thus, branding is an important aspect of the world of business and marketing. Branding helps companies to build strong brands that are known by consumers, differentiate themselves from competitors, and help business growth.
Functions and Purpose of Branding
In general, the purpose of branding is to form positive perceptions among the public, strengthen customer trust in the brand, and build customer loyalty to the brand.
But besides that, there are several other branding functions, such as:
1. Establishing a Strong Brand Identity
Brand identity or brand identity are visible things from a brand. With the correct branding, companies can create a strong brand identity.
Thus, the company can differentiate the brand from competitors and provide a consistent experience for consumers.
2. Increase Brand Awareness
Brand awareness is the familiar feeling that customers have for a product or service. Well, the function of branding is also to increase brand awareness in the wider community.
The more known the brand, the more likely consumers are to buy the products or services offered by the company.
3. Increase Brand Value
Brand value or brand equity is the added value that the company gets because the brand is more memorable than competitors. Branding also serves to increase brand equity. Why is that?
This is because brands that are known, respected, and relied upon have a higher value in the eyes of consumers. This can help the company achieve higher income in the future.
4. Build a corporate image
Furthermore, branding aims to build a positive image of the company. A positive company reputation shows that the quality of the product or service offered by the company is unquestionable.
That way, companies can more easily retain existing customers while attracting potential customers to try their products.
5. Increase Sales
Finally, branding indirectly aims to increase sales. Strong brands can build emotional connections and increase customer loyalty.
In the end, sales of a company’s products or services are increasing.
Branding Benefits
That said, the benefit of branding is to build customer loyalty with high quality and brand credibility. In addition, branding is also useful for:
1. Differentiate Yourself from Competitors
In an increasingly competitive business world, branding is useful for differentiating a company from its competitors. With a strong and unique identity, companies can highlight the characteristics of their products to attract consumer interest.
2. Increasing Consumer Confidence
Strong branding can help build consumer trust. When a brand is considered reliable and of good quality, consumers are more likely to choose the product or service.
Another benefit of branding is that it helps companies expand their market share. With brands that are well known and recognized in various regions and even countries, companies can reach more consumers.
4. Helps withstand market fluctuations
Finally, branding is useful for increasing a company’s resilience so that it can continue to exist and survive in the market, despite changes in the market and new competition. This is because the company is known and trusted by loyal customers.
Types of Branding
Although there are many types of branding, there are six types of branding that you need to know about, namely product branding, service branding, corporate branding, co-branding, personal branding, and employer branding.
1. Product Branding
Product branding is a type of branding that focuses on brand development for the products offered by the company. In practice, the company will create a strong brand for every product launched on the market.
The goal is to differentiate products from competitors and create consumer confidence to choose these products.
2. Service Branding
Service branding is a type of branding that focuses on building a brand for a particular service or service. The goal is not much different from product branding, which highlights service excellence to attract potential customers’ interest in the service.
An example of service branding, for example, is Xandermedia Technology, a Digital Web Agency with extraordinary service.
3. Corporate Branding
Corporate branding is a type of branding that focuses on developing business for the company as a whole. In other words, companies create a strong brand identity for one company, not just for a particular product or service.
The goal is to differentiate the company from competitors, create a positive image in the minds of consumers, and build good relationships with stakeholders.
4. Co-Branding
Co-branding is a type of branding in which two or more brands work together on a branding campaign or new product. The purpose of co-branding is to expand the market, increase brand awareness, and strengthen the company’s reputation.
One example is the collaboration between Walls and Oreo by marketing Cornetto Oreo Ice Cream.
5. Personal Branding
Personal branding is a type of branding that is used to develop a brand for individuals or individuals, not for companies. The goal is to differentiate himself from others in the same field, as well as increase career or business opportunities.
Personal branding is often done by celebrities, professionals, entrepreneurs, and public officials. One was done by Temitope Omotunmise, a well-known (Xander) on his Facebook account.
6. Employer Branding
Employer branding is a type of branding that focuses on the company’s image as a good and attractive place to work for employees. This aims to recruit the best talent, retain existing employees, and create a positive work environment.
One example of employer branding is done by Xandermedia on the following website.
Branding Is Your Business Identity!
In business, the notion of branding is a marketing strategy carried out by a company by creating an easily recognizable identity in the form of a name, symbol, or design that characterizes the business or company.
In this article, you already know what branding is, the goals and benefits of doing branding, types of branding, steps to build branding, to examples of branding activities from several well-known companies.
The hope is that by understanding branding, you can develop your business to be more successful in the market. Even so, branding is not the only determining factor for business success.
