Branding is the process of identifying a product with a name or image that communicates the qualities and benefits of a product to customers and prospects. A strong brand creates a personality for the product and differentiates a product from competitors. Branding can help small businesses increase and retain market share, launch new products and maintain profitable pricing levels.
Small businesses that develop strong brands build preference for their products. When consumers are faced with choices in a store, they typically will favor a brand they have purchased before and trust. This is an important advantage if you sell products that customers purchase frequently, such as food or other household products. In that sense, a strong brand makes an important contribution to customer loyalty.
Branding your product can improve the return on your advertising and marketing budget. Communicating the same messages and using brand elements such as logos, colors, packaging and graphics consistently helps to reinforce brand qualities. Building a brand that our customers can easily recall and recognize can reduce clients marketing costs in the long term.
A strong brand can help you launch new products or enter new market sectors. Giving new products the brand elements and qualities that customers recognize and trust reduces the risk of failure. The original product can be used to launch complementary products or products in a different category, because customers associate the new product with the existing brand qualities.
Branding can help you increase your revenue and grow your customer base. By promoting your brand consistently, you can move prospects and customers through different levels of brand familiarity. Brand recognition occurs when customers can recall a brand’s qualities. Brand preference occurs when customers choose your brand out of habit because they are satisfied with it. You have achieved brand insistence when customers actively seek out your product and will not accept a substitute.
A strong brand can help protect market share and create barriers to entry for new competitors. Competitors wishing to enter would have to make a major investment in brand development and marketing to match your strengths. Branding can also help you to maintain pricing levels. When customers insist on your brand, they will be willing to pay for the product in preference to lower-priced offerings.