Basics of brand & branding

What you’ll explore:

Looking to build a successful business from your hands? Then, in this blog, we’ll cover everything you need to know about brands and branding, from their definitions to their importance, benefits, and characteristics of brands. So, without any second thought, let’s dive into the overview of the brand!

1. What is a brand?

A brand is much more than just a name or a logo. It represents the identity and essence of a company, product, or service. It’s the story a business tells about who they are, what they stand for, and what makes them different. A brand encompasses everything from how a company communicates with its customers to the design of its products and packaging. It’s the emotional connection people have with a business and the trust and loyalty they feel towards it. A strong brand can be a powerful asset for a business, helping it to differentiate itself from competitors, build credibility and trust with customers, and ultimately drive growth and success. It’s the foundation upon which businesses are built, and the key to building lasting relationships with customers.

a. Why it matters?
b. Benefits of building a strong brand
c. Characteristics of a good brand
d. What are brand elements and their example?

a. Why it matters?

The brand is not only a matter of business, but it has other aspects as well, which include:

a. Business
b. Customer
c. Employees

i. Why brand matters to business:

1. Differentiation – A strong brand helps a business stand out from its competitors and communicate its unique value proposition. This can be achieved through distinctive brand identity, messaging, and positioning. As Seth Godin, a marketing expert, said, “A brand is the set of expectations, memories, stories, and relationships that, taken together, account for a consumer’s decision to choose one product or service over another.” Example: Apple is known for its sleek and innovative design, which sets it apart from other computer and smartphone manufacturers. Its brand promise of simplicity and user-friendliness is embodied in its iconic logo and tagline, “Think Different.”
2. Trust – A strong brand that consistently delivers on its promises and meets customer expectations builds trust and credibility with its audience. As Simon Sinek, a leadership expert, said, “People don’t buy what you do; they buy why you do it.” Example: Patagonia, an outdoor clothing and gear company, has built a reputation for being environmentally and socially responsible. Its brand promise of sustainable and ethical practices is demonstrated through its products, messaging, and actions, which has earned it the trust and loyalty of its customers.
3. Recognition – A strong brand with a clear and consistent identity can be easily recognized by customers. As Jeff Bezos, founder of Amazon, said, “Your brand is what other people say about you when you’re not in the room.” Example: Coca-Cola has one of the most recognizable logos in the world, which has become a symbol of happiness, togetherness, and refreshment. Its branding has evolved over the years but has maintained a consistent visual identity and messaging that is instantly recognizable.
4. Perceived value – A well-established brand can command a higher price point and be perceived as having a higher value than generic or unbranded products or services. As branding expert David Aaker said, “Brand equity is the sum of all attitudes, feelings, and beliefs that consumers associate with a brand.” Example: Rolex, a luxury watch brand, has built a reputation for precision, quality, and exclusivity. Its brand promise of excellence and status is reflected in its premium pricing and advertising that highlights its craftsmanship and heritage.
5. Competitive advantage – A strong brand can provide a competitive advantage by creating barriers to entry for new competitors and making it more difficult for existing competitors to replicate the unique value proposition and emotional connection of the brand. As branding expert Marty Neumeier said, “A brand is not what you say it is, it’s what they say it is.” Example: Nike, a sportswear and athletic shoe brand, has built a strong emotional connection with its audience through its brand promise of inspiration and empowerment. Its iconic “Just Do It” tagline and swoosh logo have become synonymous with the brand and difficult for competitors to replicate.

ii. Why brand matters to customers:

1. Trust – A strong brand that consistently delivers on its promises and meets customer expectations builds trust and credibility with its audience. As Steve Jobs, co-founder of Apple, said, “Innovation distinguishes between a leader and a follower.” Example: Zappos, an online shoe and clothing retailer, has built a reputation for exceptional customer service and free shipping and returns. Its brand promise of hassle-free shopping and satisfaction has earned it a loyal customer base.
2. Emotional connection – Brands that create emotional connections with their audience can build lasting relationships that go beyond just a transactional exchange. As branding expert Bernadette Jiwa said, “A brand is a story that is always being told.” Example: Airbnb, an online marketplace for lodging, has built a brand that is centred on the idea of belonging and connecting people from different backgrounds and cultures. Its brand promise of unique and authentic travel experiences has created an emotional connection with its customers, who feel a sense of community and adventure when they use the service.
3. Recognition – A strong brand that is easily recognized can help customers make quick and confident purchasing decisions. As branding expert Alina Wheeler said, “Design creates culture. Culture shapes values. Values determine the future.” Example: McDonald’s, a fast-food restaurant chain, has built a brand that is instantly recognizable through its iconic golden arches logo and bright red and yellow color scheme. Its branding emphasizes convenience, affordability, and consistency, which appeals to customers who want a quick and easy meal.
4. Perceived value – A strong brand that is associated with quality and prestige can make customers feel like they are getting more than just a product or service. As branding expert Kevin Keller said, “A brand is a promise to deliver a specific set of features, benefits, services, and experiences consistently to the buyers.” Example: Mercedes-Benz, a luxury car brand, has built a reputation for engineering excellence, innovation, and refinement. Its brand promise of sophistication and exclusivity is reflected in its high-end pricing and marketing that emphasizes its craftsmanship and performance.

iii. Why brand matters to employees:

1. Employee engagement – A strong brand that aligns with the values and culture of a company can inspire and motivate employees to deliver their best work. As a branding expert, Denise Lee Yohn said, “Your brand is the single most important investment you can make in your business.” Example: Google, a technology company, has built a brand that is centred on innovation, creativity, and fun. Its brand promise of making the world’s information accessible and useful is reflected in its employee culture, which emphasizes collaboration, experimentation, and work-life balance.
2. Differentiation – A strong brand that sets a company apart from its competitors can make employees feel proud and invested in their work. As branding expert Marty Neumeier said, “The purpose of branding is to make your product or service stand out from the crowd.” Example: Airbnb, as mentioned earlier, has built a brand that is centred on the idea of belonging and connecting people. Its brand promise of unique and authentic travel experiences is reflected in its employee culture, which emphasizes diversity, inclusion, and hospitality.
3. Competitive advantage – A strong brand can attract and retain top talent by creating a desirable employer brand. As branding expert Simon Mainwaring said, “The best brands are built on great stories.” Example: Apple, as mentioned earlier, has built a brand that is centred on design, innovation, and simplicity. Its brand promise of transforming the way people work, communicate and create is reflected in its employee culture, which emphasizes creativity, excellence, and teamwork.

In conclusion, branding matters to businesses, customers, and employees because it creates differentiation, trust, recognition, perceived value, and competitive advantage, and can create emotional and mental connections that go beyond just a transactional exchange. By understanding the power and impact of branding, companies can create compelling brand identities and stories that resonate with their audience and create lasting value for their stakeholders.

b. Benefits of building a strong brand

Building a strong brand can bring numerous benefits to a business, including

1. Recognition and loyalty: A strong brand is easily recognizable and memorable, which can help establish customer loyalty and trust. Customers are more likely to choose a brand they recognize and trust over a lesser-known or unknown brand.
2. Increased revenue: A strong brand can command premium prices and higher profit margins. Customers are often willing to pay more for a product or service from a well-established and reputable brand.
3. Competitive advantage: A strong brand can help a business stand out in a crowded marketplace and differentiate itself from its competitors. This can give the business a competitive advantage and help it capture more market share.
4. Better marketing effectiveness: A strong brand can make marketing efforts more effective by providing a clear message and target audience. This can help a business focus its marketing efforts and make them more efficient and effective.
5. Employee pride and satisfaction: A strong brand can inspire pride and satisfaction among employees, who feel like they are part of a successful and respected organization. This can improve employee morale, productivity, and retention.
6. Opportunities for expansion: A strong brand can open up opportunities for expansion into new markets, products, and services. A well-established brand can help a business leverage its reputation and credibility to expand into new areas.

Overall, building a strong brand is an important investment for any business, and the benefits can be significant and long-lasting.

c. Characteristics of a good brand

A good brand has several key characteristics that set it apart from its competitors and make it more attractive to customers. These characteristics include:

1. Consistency: A good brand is consistent in its messaging, tone, and visual identity across all channels and touchpoints. This helps establish brand recognition and builds trust with customers.
2. Relevance: A good brand is relevant to its target audience and speaks to their needs, wants, and values. It understands its customers and is able to provide them with products or services that meet their needs and desires.
3. Differentiation: A good brand stands out from its competitors and has a unique value proposition that sets it apart. It has a clear and compelling message that differentiates it from other brands in the same space.
4. Authenticity: A good brand is authentic and true to its values and mission. It is transparent about its operations and practices and builds trust with customers by being genuine and honest.
5. Emotional appeal: A good brand has an emotional appeal that resonates with customers and creates a connection with them. It understands the emotional drivers of its customers and is able to tap into these emotions to build brand loyalty and advocacy.
6. Longevity: A good brand has longevity and is able to withstand changes in the market and the competitive landscape. It has a strong and enduring brand identity that can evolve and adapt over time without losing its core essence.

Overall, a good brand is able to establish a strong and lasting relationship with its customers by being consistent, relevant, differentiated, authentic, emotionally appealing, and long-lasting.

d. What are brand elements and their example?

1. Brand identity – The visual and verbal representation of a brand that includes its logo, typography, color scheme, tone of voice, and other visual and verbal elements. Example: Apple Inc.’s brand identity includes its iconic logo, minimalist design aesthetic, and distinctive tone of voice in its advertising and marketing materials.
2. Brand personality – The human characteristics and traits that a brand portrays to its audience, such as friendliness, reliability, or innovation. Example: The brand personality of Coca-Cola is friendly, approachable, and nostalgic, as seen in its advertising campaigns featuring Santa Claus and other cultural icons.
3. Brand promise – The value proposition or unique selling point that a brand offers to its customers, which sets it apart from its competitors. Example: The brand promise of the fitness apparel brand Lululemon is high-quality, stylish clothing that performs well during athletic activities.
4. Brand positioning – The way that a brand is positioned in the minds of its target audience, based on factors such as its products, values, and messaging. Example: The brand positioning of the luxury car brand Mercedes-Benz is as a high-end, premium vehicle that emphasizes performance, luxury, and innovation.
5. Brand equity – The value that a brand has beyond its tangible assets, based on factors such as its reputation, customer loyalty, and market share. Example: The brand equity of the technology company Apple is extremely high, due to its reputation for innovation, design, and quality, and its strong customer loyalty.
6. Brand recognition – The ability of consumers to identify a brand based on its visual or verbal cues, such as its logo, slogan, or product packaging. Example: The brand recognition of the fast-food chain McDonald’s is extremely high, due to its iconic golden arches logo and distinctive red and yellow color scheme.
7. Brand experience – The overall experience that a customer has with a brand, based on factors such as its products, customer service, and marketing materials. Example: The brand experience of the hotel chain Marriott includes its high-quality accommodations, friendly and attentive staff, and user-friendly website and mobile app.
8. Brand extension – The process of expanding a brand into new product categories or markets, based on its existing brand equity and customer base. Example: The brand extension of the food and beverage company Nestle includes products such as coffee, baby food, and pet food, all based on its strong brand reputation and customer loyalty.
9. Brand authenticity – The degree to which a brand is perceived as genuine, trustworthy, and true to its values and identity. Example: The brand authenticity of the outdoor apparel brand Patagonia is high, due to its strong commitment to environmental sustainability and ethical business practices.
10. Brand story – The narrative or history behind a brand, which can be used to create emotional connections with customers and build brand loyalty. Example: The brand story of the sports apparel company Nike includes its origins as a running shoe company and its long history of sponsoring famous athletes and sports teams.
11. Brand messaging – The language and tone used by a brand in its advertising, marketing, and other communications, which is designed to convey its values, personality, and brand promise. Example: The brand messaging of the cosmetics company L’Oreal emphasizes its commitment to diversity, inclusivity, and empowerment, with slogans such as “Because you’re worth it” and “I’m worth it.”
12. Brand strategy – The overall plan and approach used by a brand to achieve its goals, including its marketing, advertising, and business tactics. Example: The brand strategy of the retail giant Walmart includes its focus on low prices and convenience, its extensive network of physical stores, and its online marketplace.
13. Brand differentiation – The unique features or qualities that set a brand apart from its competitors, and that can be used to create a competitive advantage. Example: The brand differentiation of the car company Tesla includes its focus on electric, sustainable technology, its sleek, modern design, and its reputation for innovation and quality.
14. Brand loyalty – The degree to which customers are committed to a brand, based on factors such as its reputation, product quality, and customer service.Example: The brand loyalty of the sports apparel company Adidas is high among its customers, who are passionate about its products and its long history of sponsoring famous athletes.
15. Brand image – The overall perception and reputation of a brand among its target audience, which can be influenced by factors such as its marketing, advertising, and product quality. Example: The brand image of the fast-food chain Subway has been influenced by its successful “Eat Fresh” marketing campaign, which emphasizes its focus on fresh, healthy ingredients and customizable sandwich options.
16. Brand association – The mental connections or associations that consumers make with a brand, based on its image, messaging, and other factors. Example: The brand association of the technology company Microsoft includes its reputation for innovation, quality, and reliability, as well as its connection to its founder, Bill Gates.
17. Brand perception – The way that a brand is perceived by its target audience, based on factors such as its messaging, marketing, and overall reputation. Example: The brand perception of the fashion company Gucci is that it is a high-end, luxury brand that emphasizes glamour, fashion, and style.
18. Brand extension failure – A situation where a brand’s attempt to enter a new product category or market is unsuccessful, either due to a lack of customer interest, poor execution, or other factors. Example: The brand extension of the soda company Coca-Cola into the wine market in the 1980s was a failure, due to a lack of interest from consumers and poor execution.
19. Brand reputation – The overall perception and opinion of a brand among its target audience and the wider public, based on factors such as its products, customer service, and overall behavior. Example: The brand reputation of the airline company Delta is influenced by factors such as its safety record, on-time performance, and customer service.
20. Brand awareness – The degree to which consumers are aware of a brand and its products or services, based on factors such as its advertising, marketing, and other promotional activities. Example: The brand awareness of the coffee company Starbucks is extremely high, due to its extensive network of physical stores and strong social media and digital marketing presence.

Not only brand elements but being aware of brand terminologies is a crucial part of being a successful brand manager.

2. What is branding?

Branding is a complex and multifaceted concept that encompasses a range of psychological processes. At its core, branding involves creating a unique and recognizable identity for a product, service, or organization that sets it apart from competitors in the minds of consumers. From a psychological perspective, branding is closely tied to concepts such as perception, memory, emotion, and motivation. Through branding, companies seek to establish a positive emotional connection with consumers that will encourage loyalty, repeat purchases, and positive word-of-mouth. Effective branding requires a deep understanding of consumer psychology, including their values, attitudes, beliefs, and behaviours. By leveraging psychological principles such as cognitive dissonance, social proof, and emotional appeal, brands can create a powerful and enduring relationship with consumers that extends far beyond the functional benefits of their products or services. Ultimately, successful branding depends on the ability to communicate a compelling and coherent brand story that resonates with consumers at a deep psychological level.

a. Concepts
b. Responsibility
c. Functions

a. Concepts of branding

Branding is a term that is widely used in marketing to describe the process of creating a unique identity for a product, service, or company. It is a crucial element of any successful marketing strategy as it helps to distinguish one offering from another, builds brand awareness and loyalty, and ultimately drives sales. In this blog post, we will explore some of the fundamental concepts of branding.

1. Brand identity: It refers to the visual and tangible elements that make up a brand, such as a logo, color scheme, font, packaging, and messaging. A strong brand identity should be consistent across all channels, creating a clear and recognizable image that customers can identify with. The brand identity should also be aligned with the brand’s values, personality, and positioning in the market.
2. Brand equity: It is the value that a brand adds to a product or service beyond its functional benefits. It is the result of the brand’s perceived quality, reliability, trustworthiness, and emotional connection with consumers. Brands with high equity are often able to charge premium prices, enjoy greater customer loyalty, and have a competitive advantage over other offerings in the market. 
3. Brand positioning: It is the process of creating a unique place for a brand in the minds of consumers. It involves identifying the target audience, understanding their needs and desires, and positioning the brand as the solution to their problems. A well-defined brand positioning strategy helps to differentiate the brand from competitors and build a strong emotional connection with customers.
4. Brand awareness: It refers to the extent to which consumers are aware of a brand and its products or services. It is a critical metric in assessing the effectiveness of branding efforts. Brands with high awareness are more likely to be considered by consumers and are top of mind when they are in the market for a particular product or service.
5. Brand personality: It is the human characteristics and traits associated with a brand. It helps to humanize the brand, making it more relatable and engaging to customers. A well-defined brand personality can create an emotional connection with consumers, fostering brand loyalty and advocacy.

In conclusion, branding is an essential aspect of any marketing strategy. By creating a unique identity, building brand equity, positioning the brand in the minds of consumers, generating brand awareness, and developing a brand personality, companies can differentiate themselves from competitors and build strong relationships with their customers.

b. Who is responsible for branding

Branding is a collaborative effort involving various individuals and departments within an organization. The following parties typically play key roles in branding:

1. Business Owners/Executives: The ultimate responsibility for branding lies with the business owners or executives who provide the vision, mission, and core values of the company. They set the overall direction and goals for the brand.
2. Marketing team: The marketing team plays a crucial role in developing and implementing the brand strategy. They conduct market research, identify target audiences, create marketing campaigns, and ensure consistent brand messaging across different channels.
3. Brand managers: Brand managers are responsible for overseeing and maintaining the brand’s integrity. They work closely with the marketing team to develop brand guidelines, monitor brand perception, and coordinate branding activities across departments.
4. Designers/Creative Team: Designers and the creative team are responsible for visual elements of branding, including the logo, typography, color schemes, and overall aesthetics. They translate the brand’s identity into tangible visual assets.
5. Communication/PR team: The communication or public relations team manages external and internal communications for the brand. They ensure that the brand’s messaging is consistent, handle media relations, and manage any potential crises that may affect the brand’s reputation.
6. Employees: All employees play a role in representing the brand. Their actions, behaviour, and customer interactions contribute to shaping the brand’s perception. Internal branding efforts are essential to align employees with the brand values and provide them with a clear understanding of how to deliver the brand promise.
7. Customers and Stakeholders: While not directly responsible for branding, customers and stakeholders play a vital role in shaping the perception and reputation of a brand. Their experiences, feedback, and word-of-mouth recommendations significantly impact the brand’s success.

It’s important to note that the specific individuals and departments involved in branding can vary depending on the size and structure of the organization.

c. Functions of Branding

Branding serves several important functions for an organization. Here are some key functions of branding:

1. Differentiation: In a competitive marketplace, branding helps a company differentiate its products or services from those of its competitors. It creates a unique identity and positioning that sets it apart and makes it recognizable to consumers. Effective branding helps customers understand what makes a particular brand special or different, leading to a competitive advantage.
2. Identity and recognition: A strong brand creates a visual and verbal identity that customers can easily recognize and remember. This includes elements such as logos, colors, typography, and taglines. Consistent use of these brand elements across various touchpoints helps build brand recognition and familiarity, making it easier for customers to identify and choose the brand in the future.
3. Trust and credibility: Branding plays a crucial role in establishing trust and credibility with customers. A well-known and respected brand is often perceived as more reliable, trustworthy, and of higher quality. Through consistent delivery of positive customer experiences and adherence to brand values, branding helps build a strong reputation that instils confidence in consumers.
4. Emotional connection: Brands have the power to create emotional connections with customers. Effective branding evokes specific emotions, values, and aspirations that resonate with the target audience. By aligning with customer desires and aspirations, brands can create a loyal customer base and foster long-term relationships.
5. Consistency: Branding ensures consistency in how a company presents itself across different channels and touchpoints. This consistency helps customers develop a clear understanding of what the brand represents and what they can expect from its products or services. Consistent branding also reinforces brand recall and reinforces the brand’s core messages.
6. Brand loyalty and advocacy: Strong branding fosters customer loyalty, leading to repeat purchases and brand advocacy. Customers who have positive experiences with a brand and develop an emotional connection are more likely to become loyal customers and brand advocates who recommend the brand to others. Brand loyalty can result in increased customer retention and positive word-of-mouth marketing.
7. Price premium: A well-established and reputable brand often commands a price premium compared to generic or lesser-known alternatives. Customers are willing to pay more for products or services from brands they trust and perceive as valuable. Branding helps create perceived value, allowing organizations to charge premium prices and increase profitability.

These functions highlight the importance of branding in shaping customer perceptions, influencing purchase decisions, and driving business success.

3. Differentiate b/w Branding & Marketing

	Branding	Marketing
Goal	To create a unique identity for a brand that distinguishes it	To promote a product or service to generate sales or increase awareness
Focus	Creating a brand identity and personality	Promoting and advertising products or services
Scope	Long-term strategic approach to establish a brand identity	Short-term tactical approach to generate sales or awareness
Activities	Establishing brand guidelines, creating brand messaging and visual identity, building brand awareness	Conducting market research, developing marketing strategies, executing campaigns, tracking and analyzing results
Target	Building brand recognition and loyalty among target audience	Attracting potential customers, driving sales, increasing market share
Outcome	Strong brand recognition and awareness, customer loyalty, ability to charge premium prices	Increased sales, customer acquisition, increased brand visibility and recognition

Now let’s dive deeper into branding and marketing to provide a more detailed explanation of these concepts.

Branding:

Branding is the process of creating a unique identity for a product, service, or company that distinguishes it from its competitors. This identity is usually built around a name, logo, visual identity, and messaging that communicates the values, mission, and personality of the brand.

Branding is important because it creates an emotional connection with customers that goes beyond the product or service itself. A strong brand can increase customer loyalty and advocacy, drive sales, and help a company stand out in a crowded market.

The branding process typically involves several steps:

1. Defining the brand’s purpose, values, and personality: This involves identifying what the brand stands for, what it believes in, and what kind of personality it wants to convey.
2. Conducting market research: This involves researching the market, competitors, and target audience to identify opportunities and challenges.
3. Developing the brand identity: This involves creating a name, logo, visual identity, and messaging that reflects the brand’s purpose, values, and personality.
4. Launching the brand: This involves introducing the brand to the market through advertising, public relations, and other promotional activities.

Marketing:

Marketing is the process of promoting a product or service to potential customers in order to generate sales or increase awareness. Marketing involves a range of activities such as market research, advertising, public relations, sales promotions, and direct marketing.

Marketing is important because it helps a company reach its target audience and persuade them to take a specific action, such as purchasing a product, signing up for a service, or attending an event.

The marketing process typically involves several steps:

1. Conducting market research: This involves researching the market, competitors, and target audience to identify opportunities and challenges.
2. Developing the marketing strategy: This involves defining the target audience, positioning the product or service, and developing a messaging strategy.
3. Implementing the marketing tactics: This involves executing the marketing plan through advertising, public relations, sales promotions, and direct marketing.
4. Measuring the results: This involves tracking the success of the marketing campaign and making adjustments as needed.

The main difference between branding and marketing is that branding is focused on creating a unique identity and building a positive perception of a product or company, while marketing is focused on promoting that product or company to drive sales and awareness.

In summary, both branding and marketing are critical components of a successful business strategy. Branding helps companies establish a unique identity that sets them apart from their competitors, while marketing helps companies reach their target audience and drive sales.

Did you learn something new or want to share your thoughts, mention us on Threads or on Twitter at @darklionstudio