Content
- What is branding?
- Why is branding necessary for business?
- Levels of brand awareness
- Advantages of branding
What is branding?
Branding is a crucial marketing process that not only creates but also actively develops a brand. The main objective of this process is to form the right image that fully meets the demands of the target audience. Successful branding contributes to building long-term and strong relationships with consumers, increasing their loyalty and interest in the product.
A vivid example of successful branding is the Coca-Cola company, which has managed to establish a clear association of its products with the New Year. Every time you see a Coca-Cola advertisement in the lead-up to the holidays, you understand that the time for fun and joy is approaching.
Why is branding necessary for business?
Branding is not just a logo and a website designed in corporate colors. It is a whole set of associations and thoughts that arise in people regarding your company. It is important that when asked about your brand, a person can quickly and clearly respond, rather than only recalling competitors.
Advantages of a strong brand
- The ability for automatic selection of your product on the store shelf.
- Formation of a positive company image.
- Simplification of the search for new investors and partners.
Levels of brand awareness
There are three key levels of brand awareness that are important to consider:
- Top-of-mind: This is the dream of all marketers. When a respondent names your brand first when asked about brands in a certain category.
- Unaided recall: The consumer can name your brand among the first three to five competitors, which is a good indicator.
- Prompted awareness: The brand becomes known only when the packaging, logo, or advertising slogan is shown.
If your brand is at the first level, it increases the chances of automatic selection of your product, which in turn positively impacts sales.
Advantages of branding
Branding addresses a number of tasks that are critically important for market promotion:
- Formation of recognition: Visual elements such as logo, color scheme, and packaging create images and associations.
- Creation of meaningful associations: The brand can be associated with certain characteristics, values, or authority in the market.
- Ensuring belonging: Products from well-known brands allow consumers to feel like part of an exclusive group.
- Increasing value: Brand popularity increases its market value and makes it easier to find investors.
For example, the brand "Dodo Pizza" stands out due to its unique color and mascot, while Volvo is associated with reliability and safety. In turn, Netflix has achieved a stock growth of 7371% over ten years, vividly demonstrating how a strong brand can change the perception of a company in the market.
It is important to remember that if you are not working on your branding, you are losing control over the perception of your product. Consumers will form their opinion about your company regardless of how actively you participate in this process. It is better to actively shape your image and engage with your audience.