What Is Branding

What Is Branding And Why Is It So Important?

What is branding?

Branding is the name given to the process of creating a unique identity for a particular product, service, or business.

Branding explained

As an entrepreneur, you probably know how important it is to develop your own type of branding for your business.  However, do you really know what goes into effective branding?

When it comes to small businesses, most would say branding is essential to create a unique identity for their company. They also equate creating a brand by creating an attractive logo and color scheme and giving the company a catchy name.

However, branding doesn’t start with just creating an external image for your business. It starts with identifying who you are as a company internally, then working that out externally.

Branding doesn't start with just creating an external image for your business. It starts with identifying who you are as a company internally! #branding Click To Tweet

The importance of branding

Stand out

Branding is important because it’s the only way to differentiate your business from others. In today’s competitive market, having a unique selling point (USP) isn’t enough anymore. If no one knows about your USP. Or what makes you different from other companies in your line of work, you’ll never stand out.

Don't know you

If the public doesn’t know about your company, they can’t buy your products or services. Therefore, branding is essential in distinguishing your business from others in your line of work and bringing in sales. Branding helps solidify a company’s identity by building trust among customers. Trust helps people relate to your business and feel comfortable buying from you.

How to create a brand identity

To create an effective brand image, you must know what your company is about and identify its USP. The first step in creating a compelling brand is to gain a thorough understanding of who you are as a business.

Your business may be new or it could have been running for some time now. If you don’t know where to begin, ask yourself these questions:

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  • What are my core values?
  • What is my mission statement?
  • Who are my target customers?
  • How do I reach them?
  • How will this business benefits society as a whole?

Once you have these questions answered, move on to the next step of branding your company.  First, determine what kind of image you want to create for your company. This should be an image that will help you achieve your goals and make the best impression on consumers.

Company's core values

Your brand identity can be tailored according to different people’s needs and wants. However, it must always stay true to yourself and your company’s core values and mission statement. Also, think about the best way to present your company. Consider whether you should create a slogan, logo, or color scheme first before deciding on the physical aspects of your brand identity.

Developing your brand identity is an ongoing process that requires trial and error. You can network with other companies in your industry to see how they market themselves and what works for them. Just remember to always stay true to yourself and your core values.

Brand identity

You can customize your brand to fit different products or services you offer, but the brand should remain consistent across all your company’s materials.  

It’s important that people who come in contact with your business immediately know what it is about. Solely by looking at color schemes, logos, or slogans. When they have the same reaction every time they see your company’s name or image. It’s a strong indicator that you’ve created a powerful brand identity.


The Four Ms of branding: a guide for entrepreneurs

The 4M’s are Market, Message, Money, and Meaning. When you have all four, you can create a unique and powerful brand identity that will help your business stand out in the market.


Target audience

Know who your target market is and learn everything you can about it. Determine who would benefit most from what you’re offering, why they should buy it, and what kind of image they’ll respond to.


Stand out ad

You must have a clear message that will appeal to your target market. It needs to be bold, simple, and something that stands out from other messages you’ll hear throughout the day.


Money growth

Only spend money on what is necessary for building your brand. Your first priority should be focusing on creating the foundation of your brand at an affordable price.


Stand out lamp

Your brand identity should be differentiated and convey a sense of meaning or purpose unique to your company. It should tie in with the overall message you’re trying to get across and give customers a reason to continue supporting your business.

Branding is about attracting and retaining loyal customers, and that requires that people feel like they know your business on a personal level. When you create a brand identity that people can relate to, they’ll feel confident about doing business with you, and repeatedly buying your products or services over competitive ones in the market.

Friendly greeting

Branding is all about building customer trust, and it’s essential to any successful business venture. All of your company’s marketing materials should tie into your brand so that customers can easily recognize your business when they’re presented with opportunities to buy.

By creating a strong brand identity, you’re going to increase the value of your business and set it apart from others in the market. Once you’ve established a great reputation for yourself and your company, there’s nothing stopping you from becoming the industry leader.

By creating a strong brand identity, you're going to increase the value of your business and set it apart from others in the market. #brandidentity Click To Tweet
Industry leader

Why branding is essential to business success

Creating a brand for your business isn’t just about aesthetics. Developing a strong brand identity ensures that people will remember and trust your company.

Your brand will help you stand out in the competitive market and build customer loyalty. Remember that branding is an ongoing process; it’s not something that can be created overnight or slapped on your business materials across the board.

With the right branding strategy, you know that people will remember your company name and what it represents long after they’ve left your store or website. They’ll also be more likely to tell other people about your business because their experience with you was memorable enough for them to share with others.

Before you can begin marketing your product or service, you must first create a brand identity that will draw people to your business and encourage them to buy what you’re selling. As your company succeeds and grows, so does your brand.

When done properly, branding is the key to opening doors of potential for any new business.

Branding vs Marketing, what’s the difference?

Branding vs marketing

Many people think that branding and marketing are the same things. They’re not. There are some very important differences between these two elements of your business life, because if you don’t know what makes them different, then you won’t be able to effectively establish or maintain a brand for your company or product. Keep reading to discover the important distinctions between branding and marketing.

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Marketing makes you known in a market.

When you market, you’re introducing your product or service to consumers who may not know about it yet and letting them know why they should buy from you instead of another company. Marketing is also what gets people talking about your product or service. Once people know about it, they may tell a few of their friends and family members about it – which is still marketing, even if the people hearing the news don’t necessarily pay for your product or service.

Branding makes you known as a top performer in a market.

Your brand is what sets you apart from your competitors. Branding is so powerful because it’s based on the emotional relationship consumers have with your company or product. It takes time to develop a brand, but when you do, people associate positive feelings with what you sell and they are more likely to buy from you instead of looking elsewhere for similar products or services.

Branding vs marketing - You know me

Marketing says, “buy me.” / branding says, “you know me.”

Your marketing is all about getting people to buy your product or service right now – it persuades them to choose you over others in the market who are selling similar products or services. On the other hand, branding is about gaining loyalty and creating a bond with consumers who choose to buy from you again and again.

Branding vs marketing - Long term

Marketing is short-term. / branding is long-term.

Marketing seeks to convince people to purchase your product or service right now, but it doesn’t take into account what happens after that initial sale. On the other hand, branding is about establishing a relationship with consumers that builds over time, and it doesn’t simply focus on the initial purchase.

Marketing vs branding - Emotion

Marketing appeals to logic. / branding appeals to emotion.

If you’re like most people, then your decision to buy something is based on facts and logic. You want to think through and find the best possible value for your money. But did you know that people make buying decisions with their emotions, not their logic? People are more likely to buy based on how they feel about a company or product than what their brains tell them. If you’ve ever bought something because it “felt right,” then you know what we’re talking about here.

Marketing is often one-sided – with advertisements and promotions that only talk about your business and its products or services.

Branding, on the other hand, is about developing a two-way conversation between company and consumer.

If you think about marketing as “getting the word out” about your company or product, then branding is all about listening to what people say in return. People will tell you what they like and don’t like, and you can use that information to improve your products and services. Even if nobody complains about your products on social media or consumer reviews, you can never assume everything is perfect. Listening to what consumers have to say will help you make the right changes and give your business a personality that people can relate to.

Marketing vs branding - Preference

Marketing creates interest. / branding creates preference.

Marketing gets people interested in what it is that you’re selling or offering. It’s the spark that starts the fire of interest. On the other hand, branding is what turns that interest into preference. People may be interested in your product or service today, but if you don’t have a strong brand behind it, they won’t buy from you again tomorrow.

Branding vs marketing - Time

Marketing requires spending money. / branding requires spending time.

If you’re a new business, then marketing your products or services will require some money on advertisements and promotions. On the other hand, branding takes a lot more time before you start seeing results – but it doesn’t require any special advertising budgets. In fact, you can develop a strong brand without breaking the bank.

Branding vs marketing - We do to somebody

Marketing is something that you do to somebody. / branding is something somebody does with you.

Marketing tries to sell people your products or services, but it often fails the consumer because they feel like they’re being sold to rather than listened to. On the other hand, branding is about building a relationship between your company and consumers – making them an active part of the process. In a strong brand, consumers feel they have a voice and that their opinions matter to you.

Marketing is about what you say. / branding is about what people say.

You may have some idea of who your target audience is and how they talk, but it’s impossible to guess what they’re saying at any given moment. That’s why branding is about letting the consumer be heard in whatever way they choose to communicate, whether it’s through social media or word-of-mouth.

Marketing vs branding - Speak to the masses

Marketing appeals to the masses. / branding speaks to individuals.

People want to be different, and they want to look for value in everything they buy. That’s why marketing is so focused on appealing to the masses, but branding makes your business unique by offering something that stands out from the crowd. When branding is done right, people will feel like you’re speaking directly to them when you market your products or services.

The branding process – Steps in the branding cycle

There are many steps that you’ll go through when branding your business, but the most important step is always listening to what consumers have to say.

The Branding Cycle

1. Listen for clues about your brand.

Focus groups, surveys, and social media monitoring are all tools you can use to learn more about what consumers think of your company or product. They will give you insight into their likes and dislikes, which helps you create a platform for your messaging.

2. Create a messaging platform.

During this step, you’re implementing the feedback you received during the listening process. Your messaging platform is a combination of visual assets and written content that makes it clear to consumers who you are, what you do, and why they should care about your business.

3. Be consistent in voice and messaging.

It’s important to stay consistent with your core messaging throughout all your visual presentations, business collateral, marketing campaigns, and more. Your message platform should help you stay focused on what matters most to consumers.

4. Bring it to life with visuals.

Once you have the visual components of your brand in place (colors, logo, etc.), you can bring it to life with marketing materials that speak to your ideal customers.

5. Testing Your Brand

Before you roll out your branding strategy, test it on a small group of consumers. They will tell you whether the messages you’re using resonate with them and how they respond to your visual voice.

6. Refine and Grow

Once you have feedback from your first round of testing, it’s time to make adjustments and improve on the branding strategy you developed. Your goals are to stay consistent with messaging while making sure consumers understand it the way you intended them to.

The Most Valuable Brands In The World

According to the Kantar BrandZ Most Valuable Global Brands 2021 ranking, the world’s most valuable brands have experienced record growth with a total worth reaching $7.1 trillion.

Brand Brand Value 2021 ($Mil)
Source: kantar.com
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Nike’s Branding Strategy Explained

Channel Source: Behind the brands


Branding is one of the most important steps in the business process. It will help consumers understand your business and connect with you, but it’s only effective when you’re actually listening to what they have to say. The good news is that you don’t have to listen in person, but by using social media monitoring tools or running focus groups. Once you get the information that you need, your branding strategy will be rooted in what consumers actually care about and it will help you establish a strong foundation for future business growth.

To Your Success! 🥂