What is Branding?
Branding is one of the building blocks of the marketing process, but all too often it is neglected in favor of the day-to-day work of running a business. And really, the question most people struggle with is “what is branding?”
Branding is NOT:
- The market you are in
- What your business does or sells
- Your tagline
- Your logo
All of these things should be a reflection of your brand, but your brand itself is something deeper. It is the core purpose of your organization and the promise you make to your customer.
While it may be easy to understand this concept, it can be very difficult (even painful!) to define your brand. But the risk of not doing so is significant – consistent, strategic branding leads to strong brand equity, which ultimately allows you to charge more for your brand than what identical, unbranded products or services command.
How do you go about defining your brand? You begin by drafting a purpose statement. This is a concise statement that explains why your company exists. Many companies make the mistake of creating purpose statements that focus on what service they provide or what product they sell. A more effective approach is to think about what customer needs are met by your company. When you take a customer-focused approach, you not only stay focused on the needs of the marketplace, you ensure that your brand will still be relevant as your services change, your core competencies evolve, and your products come and go.
There are plenty of examples of companies that have built their success by employing customer-focused brands. Battery maker Duracell has maintained its position at the top of the alkaline battery market with the brand promise “Quality that lasts.” Note that Duracell says nothing about batteries or powering devices. Rather, the emphasis is on the value to the customer. It is this customer focus that has created strong brand equity and made Duracell so successful.
Do you have a purpose statement? If asked, could you explain your brand and what it stands for? What is the promise that YOU make to your customers?