This One or That? Why Branding is Essential!

It can be a company’s worst nightmare when a consumer is indifferent with respect to their product. If there’s nothing compelling to convince consumers to choose between one product over another, price or possibly the flip of a coin may decide the purchase. Branding instills confidence, manages expectations and is the foundation for establishing loyalty. Consumers seek out established brands, which in turn motivates retailers to seek out these brands to sell in their stores.

What is Brand?

Every business is a brand whether they choose to embrace the notion or not. Most people associate brand with the name of a company. However, brand is much more than a name. Brand encompasses everything about the company and its products, including associated attributes and values perceived by consumers. Established brands stand for something clear and are consistent over time. Brand perception evolves into brand loyalty and brand loyalty is the foundation for building a sustainable and growing business.

Brand is an intangible asset, arguably the most valuable asset a company can possess. It instills confidence regarding the expected performance and quality of a product, as well as emotional encouragement when the brand has been established as a status symbol. Consider, for example, children’s footwear. According to Zappos.com, a shoe shopping Web site, some of the most popular children’s brands include: Nike, Ugg and Stride Rite. The mere mention of these names will incite perceptions and expectations because they’ve continuously communicated a consistent message. As such, it’s easy to presume the level of performance and quality each company is offering.

How is an Established Brand Created?

Consistency: Companies that stand out are those that have taken the time to thoughtfully develop their brand. Every touch point with the company needs to reinforce a consistent message. Over and over this article mentions “consistent message,” but what exactly does it mean? In terms of branding, consistency must be maintained between the context the company operates within and its communication efforts.

The context the company operates within refers to the positioning of the brand and its product offering in relation to pricing, product portfolio and distribution. Essentially, there should be no disconnects between the consumers’ perception of a brand and what they find in the marketplace. Examples of disconnects are: Walmart selling a $10 Prada bag or Prada selling printer ink. Immediately you question these because Prada has done an excellent job communicating their luxury position within the apparel and accessories category. As such, perception dictates where the brand is expected to be sold, its price range, and acceptable products to be introduced within the portfolio. Always be mindful to coordinate product development, pricing and distribution with the company’s positioning and communication efforts.

Communication: Communication efforts include: advertisements, catalogs, Web sites, and anything where a company intentionally seeks to inform the public about its positioning and products. It is here that perceptions are created and maintained via the consistent message that is delivered. This message needs to communicate the essence of the company, its DNA if you will. It describes who the company is, what product or service it sells and how it differentiates itself from its competition.

A common mistake occurs when a company tries to communicate too many messages too soon. An analogy to this would be if you were at a gathering and wanted to introduce yourself; you would only share your name and one or two pieces of information dependent upon the type of gathering. The same is true for a brand. Don’t overwhelm strangers to your brand with more than they can reasonably digest in the few seconds it takes them to make an impression.

How Does Branding Impact the Bottom Line?

Marketing is communication. Businesses must communicate (i.e. market) their products or services to survive, if not thrive. Branding is a consistent message presented throughout every communicative (marketing) effort, in coordination with the context the company operates within. When executed successfully, this can translate into revenue for the business in three ways: increased sales, increased distribution and higher margins.

Increased Sales – Consumers need about a dozen impressions, more or less, before prompted to act. If all the impressions are consistent, the message will be internalized sooner, increasing demand more efficiently.

Increased Distribution – Retailers want to offer products that are in demand. Therefore, retailers are more inclined to sell products from established and well-known brands.

Higher Margins – Brand-name products can command higher prices. People are willing to pay premium prices because they believe these to be quality products with relatable and identifiable value and image.

Similar to celebrity, successful branding can reap the perks of recognition, status and riches. A well-branded company can instill confidence, manage expectations and foster consumer loyalty through a consistent message communicated via every touch point with a company. Consistent messages translate into meaningful impressions which in turn lead to greater product demand and a growing company. Don’t let your success be dependent upon the flip of a coin! Brand your company and its products.

About Insights Discovered
Penny Redlin of Insights Discovered is a guest expert on The Giggle Guide™. She is a regular contributor to the “Business Sense” feature, sharing insights about business planning and marketing strategies. To read more articles by Penny Redlin, see http://thegiggleguide.com/biz/features/business-sense.

Based in Las Vegas, Nevada, Insights Discovered was founded by Penny Redlin in an effort to share her professional expertise within the children’s product category. The company’s mission is to give every mompreneur an opportunity for success. Insights Discovered exclusively services children’s products brands. The specific industry focus demonstrates a strong dedication to the unique needs of children’s products companies. Insights Discovered offers strategic planning, market research and traditional marketing services.

For more information, visit www.insightsdiscovered.com or call 702.218.5707