What Is Branding In Marketing and Why Is It So Important?
So you got into a heated debate with your friends about whether lions lay eggs or not…
The debate lasted for quite some time, roughly an hour – you insisted that lions lay eggs whiles your friends said the opposite. Then just for a moment, one of your friends shouted, “ Then, let’s Google for the answer!!”.
You did what your friend said and you realized that “lions give live birth, but don’t lay eggs”. After seeing that, you quickly stopped the debate!! You now got to know that your friends were right.
There are two questions I want to ask you…
Why did your friend shout “ Let’s Google”? But not “Let’s Bing”, “Let’s Yahoo”, “Let’s Yandex”, or “Let’s DuckDuckGo”? Because there are many search engines around – probably over 15 of them.
AND why did you agree with Google that it had provided you with the right answer? The foundation of the trust you and your friends had in Google started from Google as a company building its brand!
Read till the end and understand branding in marketing and why it is important.
What Is Branding In Marketing?
From Oxford Learner’s Dictionary, Branding is defined as “ the activity of giving a particular name and image to goods and services so that people will be attracted to them and want to buy them”. But this definition is yet to be completed.
Simply because name and image alone cannot get the job done when it comes to branding! If name and image alone are enough, Google and all the rest of the search engines would be on the same level.
But that is not the case here if you look at the graph below.
On October 20, 2020, the U.S. Department of Justice filed a lawsuit against Google for “ illegally maintaining a monopoly in general search services and search advertising in violation of the U.S. antitrust laws.” Their main problem for filing this lawsuit was that Google pays huge sums of money to device manufacturers, and web browser developers to make Google the default web browser on devices.
They continued that as a results, Google is not only used as a noun for the name of a company but used again as a verb, which means, ” to search the internet”. Google replied that the lawsuit was “ a deeply flawed one and would do nothing to help consumers.” They continued that “ people use Google because they choose to, not because they’re forced to, or because they can’t find alternatives.”
This clearly shows how strongly consumers can be emotionally attached to a brand. BUT how do these companies do it?
So branding is actually the process of giving a term, name, design, symbol, or any other feature that makes a product or service of a particular company unique from other companies.
What comes first branding or marketing?
Marketing on the other hand is stating the specific activities of how, when, and where a brand will promote its services and products to its targeted customers in the marketplace. Thus, without branding, there can’t be marketing. Businesses that are started today are all likely to be able to state their values and mission statements. Even though they may not know how to get their messages into the hearts of their potential customers yet. Branding, therefore, comes first, before marketing.
Why is branding important?
Tell me the truth – do you think KFC’s fried chicken is the best in the whole world? For me, I think I can fry chicken better than KFC.
In addition, I know a local restaurant that fries chicken better than KFC. Why then is KFC more successful with its chicken than both of us? Simply, branding.
Can we not get any company that produces better soft drinks than Coca-Cola? Certainly we can! Why then is Coca-Cola more successful with its soft drink? Simply, branding.
The reality in the business world is that there is no business idea a new entrepreneur would choose that nobody else among the 7.9 billion people on earth has thought about.
If there are other businesses out there who do the same thing your business does, the only way you can stand out is through branding.
Importance Of Branding.
1. Branding attracts your ideal clients. Make people clearly know what your business stands for and don’t try to deviate! Rolls Royce made it clear to the world that their cars represent luxury.
Other top-end manufacturers concentrate on maneuverability, speed, and super-lightweight supercar status. But even though Rolls Royce cars are more expensive, they still get their ideal clients because of “Luxury”.
2. Branding makes it easy for customers to accept your new products and services. If your previous products and services reflect your core values and resonate with your brand’s voice, it makes it very easy for your customers to accept your new products and services.
Because Apple Inc.’s branding message remains to deliver exceptional customer experience via superb user interface, it has made it easy for customers to accept Apple’s new products and services after the Apple 1.
3. Branding helps you stand out in a crowded market. If thousands of businesses offer the same services you offer, your unique voice( brand) is the only thing that can set you apart. Below is what someone had to say about Rolls Royce Cars.
4. Branding brings credibility. Holding onto your brand’s message for a long time makes clients have a profound trust in what your business offers. You will be regarded as an expert in your market in that case.
5. A business is more valuable with a clear brand. Nobody enters a Gucci shop and starts negotiating for a product. It’s also impossible for you to do that at a Rolls Royce car shop. It’s either you buy it or leave it. Simply because their brand is clear.
What your business can learn from the big brands: Apple, Coca-Cola, Google, Rolls Royce, etc.
- The use of emotions: These brands focus more on how their products and services experience makes you feel. For instance, Apple’s brand personality is about imagination, lifestyle, freedom, revolution, power through technology, hope, etc. The video below is one of the most iconic commercials ever; the Apple Macintosh launch in 1984. This commercial was done purposely to get people emotionally attached to Apple products.
- Use of branded items: In 2018, Kentucky Fried Chicken gave away special honey bears to 705 lucky winners in memory of their late founder, Colonel Sanders. Listening to the touching story of how Colonel Sanders founded KFC, it was a good move by the company to get people more attracted to their recipes.
- Ensuring flexibility in a changing environment: These brands are always ready to adapt to the changes. For instance, when it became known by the public that regular coke consumption contributed to the increase in blood sugar, Coca-Cola introduced Coke Life; a naturally-sweetened low-calorie option, and Coke Zero; a zero-calorie option that’s almost like the regular coke. Not only that. There are other products like Honest Tea, natural juices, and high-quality milk produced by Coca-Cola to boost health.
- Giving back to the community: The Coca-Cola Foundation has given back over $820 million to improve the sustainability of local communities globally. Again, Apple’s Employee Giving Program, since its initiation in 2011 has given away almost $600 million.
Final Words
I am glad that you have read to the end. Now that you have finally understood branding and marketing, how will you use them to grow your business? You can also leave any suggestion you have to help improve this article.
Manuelo is an entrepreneur and a personal finance nerd. He is the founder of Dollars And Freedom. An expert in side hustles, online gigs, and everything about making money. His works have been featured on major financial publications, like Business Insider, GoBankingRates, Investopedia, Entrepreneur, and more. When he’s not busy with his blog or writing for others, you’ll catch him hanging out with loved ones or reading books on stoicism and self-development.
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