The Importance of Branding
Published: February 14, 2019
The put it simple Brand = Authority. Branding has always been and will always be the backbone of a business’s marketing plan. Serious enough?
By definition, branding is the marketing practice of by which a company creates a name, symbol or image that is solely identified as being the image of that particular company. For most small businesses this the logo, the colors, the customer service and the qualities a company possesses that make it unique in its industry.
I like to think of a company’s brand an interviewee looking to hopefully land a job at a large law firm. Not only does the interviewee have to act professional and say all the right things, but this interviewee also has to dress and act professional as well.
When the interviewee walks into the building, he/she is immediately being observed, judged and looked at with a critical eye. The interviewee’s outfit, personality, posture and attitude are making an impression on everyone in the room. The question is, is it a good impression or a bad one.
Branding works the same way, when someone sees your company’s logo, meets one of your employees, sees your product or the result of your service it immediately makes an impression and you get to decide whether it a good impression or bad one.
Likewise, when someone sees a billboard advertisement for your company, as Google Ad, Facebook Ad or reads a blog on your website, it immediately makes an impression and you get to decide whether it’s a good impression or a bad one.
Below are the three top reasons why Branding is important to the success of your business.
Branding = Authority
We mentioned this simple truth before, but its worth diving deeper into this concept. Authority is the amount of value your target audience puts on your company. Let’s use one of the largest authorities in the branding world as an example: Apple. Apple when run by Steve Jobs had a tremendous amount of authority over the mobile network world.
Before Apple, networks like AT&T, T-Mobile and Verizon would tell mobile phone companies what type of phones they will develop and what features will be available on those devices. Steve Jobs was the first to make a phone and then negotiate with the network (in this case AT&T) for prices, exclusivity, features, etc.
For Steve Jobs and Apple to turn the tables on how business had been running for years takes a lot of Authority, and this is due to how Steve Jobs chose to brand his company. The better your Branding, the more Authority you gain. The more Authority the gain, the more successful your company becomes.
Branding = Authority. Weak Branding = Weak Authority, Strong Branding = Strong Authority. It’s simple math.
Great Branding Increases Profit
A company with a strong branding strategy has no problem picking up referral clients because the clients of the company feel honored to work with them, not the other way around. When a company has incredible branding, and in-turn has great Authority, clients feel like they WANT to work with you, rather than feeling like they HAVE to work with you.
The title of this section is “Great Branding Increases Profit” and not “Great Branding Increases Sales” because any brand can spend a few thousand dollars on consistent advertising and make sales, however great branding increases profit because you are able to charge more and retain customers because your quality is higher.
Think back to Economics and the Supply & Demand structure. The higher the Supply, the less Demand the lower you can charge for a service. However, when Demand is higher than the Supply, prices increase. We see this in the produce section of our grocery stores every season. However, when your branding elevates you higher than the rest of your competition, it no longer matters if you have the most competitors in your field, your service elevates to a new level of Supply which with great branding is now in higher demand.
When your company has great branding, your prices increase and so does your profit. It’s simple math.
Branding Improves Your Team Culture
As humans, we have a desire to feel like we belong to a positive, fruitful community. A company cannot have great branding without leaving customers and employees satisfied at the end of the day.
Southwest has an interesting saying “We Put Our Employees First”. Interesting right!? In business we have always heard the sayings “The Customer Always Comes First” or “The Customer Is King”, however Southwest was one of the first companies to put its employees before its customers.
This was an incredible and most-likely a very profitable branding decision. Southwest’s CEO Herb Kelleher understood that if his employees loved working at Southwest, then Southwest’s customers would love doing business with Southwest. This turned out to be 100% true and elevated Southwest’s branding and Authority in the industry.
When your company has a great brand, your employees feel like they’re a part of something truly motivating and in-turn your team culture increases allowing you to keep valuable employees from leaving for the higher paycheck your competition is offering.
It’s fact, a business simply cannot be truly successful without a great brand. It’s simple math.
Sign up for Marketing With Martin for more free weekly marketing advice!