Branding is one of the most overlooked aspects of starting a business. However, in the long run, a strong brand that has loyal customers who are unphased by the competition, challenging times, or changes in the external environment is priceless!
When you launch your startup, you begin to craft the foundation of your brand as you choose your company name. The branding process continues as you define who you are, who you want to be, and who people perceive you to be.
A Brand is More Than a Logo
Branding is the process of translating the intangible brand into a tangible brand identity. A logo is a great starting point, but your brand also encompasses your overall:
Visual Identity (i.e. colors, fonts, imagery, etc.)
Voice Identity (i.e. tagline, tone of voice, word choice, key messages, etc.)
Attitude Identity (i.e. mission, vision, values, culture, etc.)
Physical Identity (i.e. product packaging, office design, uniforms, etc.)
All these elements play an important role in developing your brand identity and that is why many startups eventually turn to a marketing or creative agency for branding.
In the beginning stages, you can get by with a logo that was designed online from 99designs or another similar source. However, as your startup evolves and you want to attract your target audience, you will start to learn the power of branding and realize you need more than just a logo.
Most branding professionals begin by analyzing your attitude identity and who your company is. Then, a visual, voice, and physical identity is crafted around your attitude identity. Through this extensive branding process, a brand that truly revolves around your why and business’s purpose is created. This explains how there is such disparity in branding processes and costs. You can get a logo designed online for $100 dollars, but there are also corporations who spend thousands to millions on a rebrand.
How a Brand Develops in Consumers’ Minds
A strong brand resonates with your target audience and can easily be identified by consumers. When building your brand, you ultimately want to progress through four stages in the minds of your consumer:
Brand Recognition: Consumers can accurately identify your logo, product packaging, employee uniforms, etc.
Brand Awareness: Consumers can accurately recall and describe your logo, product packaging, employee uniforms, etc.
Brand Equity: Consumers describe the value of your brand in terms of their perception, rather than the product or service itself.
Brand Loyalty: Consumer have positive feelings toward your brand and are dedicated to repeat purchases now and into the future.
Consistency is essential for developing brand recognition and in turn brand awareness. In time, you can build brand equity and brand loyalty with your customers.
How Your Brand Provides Value
Branding ultimately allows you to increase the perceived value of your brand in the minds of consumers. The following are just a few more benefits of a strong brand:
Enables higher prices and greater margins for premium products.
Promotes brand awareness & word of mouth
Increases advertising effectiveness and conversions
Increases credibility, trust, and consumer confidence
Attracts and retains customers as well as employees
Insulates your brand from all the noise
Fosters a positive perception with stakeholders
Reduces vulnerability to an ever-changing external environment
Differentiates your products and services from the competition
Protects against negative exposure & makes customers more forgiving
When consumers believe in your brand, there is brand loyalty which enables you to charge higher prices and also reduces your vulnerability to changes in the external environment, like new competitors and changing regulations. As an example, despite intensified competition, changing consumer habits, and government regulations, Coca-Cola’s brand is valued at $73.1 billion (Forbes, 2017). The strength of one’s brand is typically measured in terms of the consumers’ willingness to pay.
A strong brand has positive public perception, provides credibility, encourages trust, and promotes consumer confidence. Startups with a strong brand who are first to the market will be better positioned to retain customers and encourage repeat business as new competitors emerge.
The value of your brand will continue to evolve over time. If you have a strong brand and a great brand reputation management team, your brand will only grow in value over time and deliver a great benefit year after year.