Why Branding is Important

by Joe Pelissier on July 25, 2010

Examples of famous brands

Famous Brands

Branding is an integral part of the way you communicate who you are and how you differentiate yourself from your competitors.

Whatever your type of business, your brand and your attitude towards it can have a huge impact on how you are perceived and your business a success.

Attitudes to Branding

Many senior managers look upon branding as a cosmetic. They prefer to concentrate on the ‘more important’ issues of sales, cost-cutting, or restructuring etc. The brand is treated as a superficial trifle as opposed to a reflection of what the business is about and how it will deliver a competitive advantage.

Public opinion is also fairly negative.

When brand consultants reveal the new look for a high profile organization, for example the 2012 Olympics or BP, the focus is on the £1 million fee that’s paid to the design company. The long-term potential of the brand and the additional million in fees paid to advisers, lawyers and accountants is ignored. This is because until a brand is established we do not consider branding a good investment of time and resource.

The internet challenges these attitudes.

The speed with which your product or service is found means that your branding must be visually strong and convey a strong value proposition. Often, your website is where customers receive their first impression of who you are and what you stand for.

Good Branding is Durable

Branding is all about perception. If the brand is seen to innovate and add value it is considered to a good thing – it delivers more return for less risk. If the brand appears to take its market for granted, negative thoughts and attitudes appear. Once these set in they are hard to remove.

This sense of perception applies equally to large corporates as it does to political parties and not-for profit organizations. For quoted companies, brand perception can influence share-price, for political parties electivity, donations and subscriptions.

Many large businesses consider their brand as an intangible asset that can be listed on their balance sheet. For Coca-Cola, the brand alone accounts for 51% of the company’s stock market value.

In 1900, John Stuart, the Chairman of Quaker, said

“If this business were split up, I would give you the land and bricks and mortar, and I would take the brands and trade marks, and I would fare better than you.”

This is because he knew that the brand he had created was the most durable part of the business.

Branding the Owner or Managing Director

Some successful companies use branding as their central organizing principle and use their founder or Chief Executive as its central driver and promoter. The obvious example is Richard Branson who seeks to give the everyday man a fair deal whether it is train travel, flying, financial services, media or music. Others may be custodians of the brand, such as Willie Walsh the Chief Executive of British Airways.

Whether you are the owner of your company or a manager, there is huge benefit to be gained when you promote yourself as part of your brand. It is a growing part of our culture to develop people as a brands via the internet, magazines or social networking. Those that do it effectively use multiple forms of media in order to ensure that they, as part of the brand, are more prominent than their competitors.

Don’t confuse this type of branding with self-promotion, which is about seeking personal reward. Personal branding is about having the confidence to use yourself as the USP to deliver better value.

If the benefit to your business is increased turnover, the boost in self-esteem becomes self-evident.

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{ 1 comment… read it below or add one }

Casino Club September 27, 2010 at 5:44 am

I should digg your article therefore other folks are able to see it, very useful, I had a tough time finding the results searching on the web, thanks.

– Norman

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