The Oxford Dictionary defines the word ‘brand’ in a number of ways. But when it comes to the big bad world of marketing, here are the two definitions that come out as truly pertinent: ‘a type of product manufactured by a particular company under a particular name’ or ‘a particular identity or image regarded as an asset’. Merge these two definitions together and you’ve got the perfect understanding of what a ‘brand’ is in terms of branding and advertising as related to marketing.
Take one look around the world today and the presence and importance of ‘the brand’ is undeniable. But, if you don’t quite know the inner psychological workings of the impact of a brand –assuming not everyone’s a pro at brand management courses, then you might be wondering just why a brand is so very important. Well, read on to find out why branding is important:
• Recognition: Ask yourselves, what is the primary purpose behind the whole idea of branding and advertising? It’s to spread recognition and awareness, am I right? Now, unless your target audience even knows who you are, how would you expect them to engage with you by purchasing your products or services? That’s why branding is important to establish recognition.
• Sets you apart from the competition: Say, you’re a shoe manufacturer. Now, you’d obviously want to differentiate your product from that of other shoe manufacturers, right? That’s where branding steps into the picture! To differentiate you and set you apart from the herd, i.e. the competition!
• Credibility: A strong brand identity establishes a sense of credibility amongst customers and consumers. Establishing a solid brand is akin to making a promise to consumers, assuring quality products and services.
• Referrals: “Oh, you should really go to XYZ, their winter collection is fabulous.” You often hear such things, don’t you? That’s the power of the brand –a solid brand tends to generate referrals.