Branding can be defined as the process involved in creating a specific and unique identity, name, and an image of the company or the product in the market and in the minds of the consumers through the various marketing, advertising, and promotional campaigns having a consistent theme and a message.
The main objective of branding is to establish a significant and a distinguished presence in the market and the industry as a whole that attracts loyal customers and retains them.
Benefits of Branding
1. Competitive Advantage
When the branding is done right by the management and the marketing department of the company taking care of the detailed and intricate factors such as what is the brand positioning and brand strength of the competitors in the market, what are their unique selling propositions, frequency of their branding, marketing, and promotional activities, and the tastes and preferences of the target market along with various other related studies and research; the rational and authentic branding plan and map is designed and executed that gives a competitive advantage to the company.
2. Customer Recognition
The concept of branding involves participation in the various promotional events, exhibitions, trade shows, and various other occasions that work for the benefit of the brand and the company.
Plus the other marketing activities such as hoardings and signage’s displays, radio advertisements, print advertisements, and television commercial amongst others with a 360 degree marketing approach culminates a recall factor in the minds of the consumers with the constant and consistent messaging resulting in the fact that the consumer recognizes the brand after looking at the logo, tagline, brand colors, and other such creative elements that represent the brand and its offerings.
3. Customer Loyalty
The thumb rule of marketing says that the branding activities have to be consistent in nature and the process to mark and develop a market presence for the company and stay ahead of the competition.
And once the brand and its elements gets registered in the minds of the consumer and he or she indulges into the repeat purchases and endorses the brand to his or her friends and family and plus experiences the excellent levels of customer service and witnesses the brand ruling the market with the marketing and promotional activities, there is an elevated level of loyalty and affinity developed in his or her mind.
4. Easy to introduce the new line of products
When the brand is successful in capturing one specific market and its target audience through its branding and marketing techniques developing a name and fame in the industry with the competitive edge, it is easier for the company to launch the new line products in the same as well as the new and untapped markets as there a certain level of confidence and agility to the brand as it has now carved a niche in the industry.
5. Higher sales and profit margins
As mentioned earlier, that branding is a continuous and consistent process as it is necessary to be present in the customer’s sight as well mind and with the targeted activities and promotional tools.
The consumers are well aware of the brand, its fundamentals, values, strengths, and the USP’s that has a direct result on the consumers buying the products and services of the brand on the repeat mode thereby attaining the higher amount of sales and profit margins.
5 Main Types of Branding
1. Product Branding
The concept of product branding is quite different from the corporate branding as here the main aim of the company is to promote the newly launched product in the market in the minds of the consumers creating an emotional connection so that the weekly, monthly, quarterly, and yearly sales targets are accomplished.
The company indulges into the various marketing activities such as advertisements in the television, newspapers, magazines, periodicals, social media, hoardings, signage’s, and host of other above the line and below the line campaigns are undertaken to create awareness in the market amidst the cut-throat competition. Various FMCG and retail companies take the route of product branding to promote their products that are fast moving and have a limited shelf life.
2. Corporate Branding
The concept of corporate branding can be described as when the company is new in the industry and wants to promote itself as a corporate firm with its values, objectives, fundamentals, business ethos, and objectives to curate a distinctive identity in the market and an industry as a whole. It has a direct benefit to the sales of the products and services offered by the company as once the objectives of corporate branding are established, the consumers will definitely wish to try out the offerings by the company.
For the successful corporate branding, sponsoring various events related to the brand, social media promotions, and PR exercises are a must for the company. The concept is also applicable to the established companies as well that want to rebrand themselves in the market due to the changing business dynamics, evolving tastes of the consumers, and the growing competition.
3. Personal Branding
The concept of personal branding is usually opted and followed by the politicians, movie stars, sportsmen, socialites, and any person who has and enjoys a celebrity status in the market. Right from the presence on the social media channels such as Facebook, Instagram, Linked In, Twitter, and others along with the right measures by the PR firms is quite necessary to create a successful personal branding. Once the celebrity is successful with his or her personal branding, he or she gets signed up as a brand ambassador for the various successful brands representing their company, products, and services.
4. Cultural Branding
The theory of cultural branding is done by the travel and tourism companies when a specific culture of any city, region, or a country is to be promoted to the target market and the target audience. Similar is the case of the geographic branding, where a specific country, city, or region is marketed and promoted.
Co-branding is the case when there is a usage of two or more brands on one specific product with an objective to design a high quality and high-performance product.