What Is Branding and Why Is It Important for Your Business?

Discover how to create a brand, and find out how branding can make your business known, loved, and succeed. Find out how you can reap its benefits most effectively.

What is branding?

Branding plays a key role in all the industries known to men. Having a strong brand is essential so that you will be able to stand out from the rest and attract more customers. What a brand does is that it draws in people's attention to your business whether they are aware of what your business has to offer or not.

A brand is an overall impression created by a company or product. Strong branding can overcome a lot of problems that may arise in your business, and it's an investment for the long term: with good branding, you will be able to establish your position on the market and make yourself recognized as an authoritative source of information and advice.

An article posted on invesp.com claimed that about 59% of consumers are partial to brands that are familiar to them when buying new products. Moreover, 21% of those interviewed said that they will buy a new product because it was being sold by the brands that they like. As such, having a strong brand is something that you cannot overlook if you want to bring your business to the next level.

Benefits of branding

A male holding a umbrella on 1 side and a check mark with a shield showing the benefits of branding. It makes it easier for you to place yourself in the market.

Branding has a lot of benefits. The first one is that branding makes it easier for you to secure your place in the market without having to go through the costly process of acquiring new customers. This was concurred by an article posted in techjury.net, when they found out that 89% of marketers are prioritizing brand awareness, with building up their reputation as their top goal.

Why is this so? because once you have a strong brand, many people will be attracted to your business, as they are already familiar with your products. This is one way to be retained in people's minds and become a household name.

Another benefit of strong branding is making potential investors more confident in your business. A study conducted by Global Banking & Finance Review found out that about 82% of investors believe that name recognition is one of the factors that guide them when making their investment decisions. Through strong brand awareness, they are sure that they will get their money back. What this also means is that you can easily attract clients with good credit ratings just by having strong branding for your business.

Branding does not only mean giving your business a unique name or logo, but it is also about your company's identity and reputation. What you need to do for branding is making sure that your business is easily recognized in the market, and this can be done through essential steps like having a strong social media presence (Twitter), good website design, etc.

Advantages of branding

Strong branding yields a lot of advantages to your business. What branding does is that it allows your business to grow and reach more clients. You will not just attract any type of client, but a major advantage of strong branding for your business is attracting customers with good credit ratings and financial capabilities.

Any business which has managed to grow its brand name will have such a margin of security that it will be able to let go of any customer that is causing them problems. This is because they know that, over time, with a powerful brand name in the market and the growing popularity of their services or products, they would be able to attract customers who can become loyal.

The last point in favor of encouraging a strong branding strategy for your business is that it can be used as an advertising platform when you are promoting new products or services. The current popularity and demand for your products can be increased, which in turn will generate more revenue and profits.

Elements of branding

Branding is not just about making a mark in the market and for your company, it is also about creating a positive image or perception. And these are the elements of branding that are crucial to success. Some of them are:

Brand Name

Branding is all about having a unique or distinctive name for your company. You should not try and copy someone else's name as it would be considered "brandjacking" or stealing. You need to create a unique branding strategy for your business that will make people like you so much. You need your clients to associate your name with the best products, services, or experiences available in your industry. So if they have a good experience with your company, they will seek out other goods and services from you as well.

Brand Identity

A strong brand identity helps in this regard. What you need to do is have a single consistent message as the foundation of your branding strategy. There must be continuity with all incoming and outgoing communications. The idea here is so people know what to expect from your company, and having consistency will help in creating a strong brand image.

Brand Design

A female design thinking for her brand design. It has to be unique to convey what your brand is all about.

Just like branding is all about having a unique name to represent your company, your brand design also needs to be unique. What you want is for people to look at the logos of different businesses and instantly know that a certain business they are trying to reach is yours. What branding specialists do is create an image or icon that conveys what you are all about in a way that will make it easy for customers to recognize you.

Brand Equity

Another branding element to take note of is brand equity. It refers to the total value that a product has within its target market. It is built up over time as customers develop associations with your brand. This association is something that will be stored in their minds, and it's what will make them choose your brand over any of the others. If you can find a way to make your target market see an emotional connection with your brand, they'll get excited about what you have to offer. What you want is for customers to trust your company just as much as they trust their most trusted friend.

Brand Experience

When people associate a word with your brand, they won't just think of the product that you offer. What they'll also think about are all of the experiences that they've had with your company. Your target market always has certain expectations when it comes to dealing with your business. Your goal is for them to view each interaction as living up to their standards.

If your brand gets associated with a consistent, quality experience, people will return again and again. What you want is for customers to be able to rely on your business as a source of value for years to come.

Brand Positioning

A branding element that gives your target market something to hold onto when it comes to dealing with your business, is brand positioning. What you're doing is essentially creating a unique identity for yourself that stands out from the competition.

It all starts by identifying two or three words that best represent who you are and why customers should choose you over everyone else. What's most important is that these words must be relevant, memorable, and part of your overall branding strategy.

Brand Differentiation

Be brand unique. This is where you choose a name that will be associated with your specific business when people hear it or say it. If you already have an established brand, the most logical thing to do is make use of the name that's already out there to better communicate what kind of business you are so potential customers don't get confused. You need to be more strategic about how you use your branding.

Brand Communication

Branding is the process of understanding your target market and telling them about your company and its product. This is what branding communication is all about. It is a manner in which you can reach out and impress your target market through the use of marketing tools such as advertising, public relations, and various media platforms.

Types of branding

As if branding is not confusing enough, you still have to contend with its types. Branding is also categorized according to the type of products or services you offer. Below are some of the most common types of branding for your guide:

Personal Branding

This refers to the branding of an individual, which normally involves one's internet name and identity. It is an important form of branding, especially to those that are into the business world because it offers them a personal marketing force they can rely on, for them to reach out to more customers.

Some known entrepreneurs Tony Robbins and Neil Patel have built a lot of business reputation and are known to have effective personal branding. It is through their personal branding that they have been able to reach out to a mass audience and it works for them well.

Corporate Branding

Corporate branding, on the other hand, is attributed to the branding of a business. What is important is that by doing so, you can give your company an icon or symbol for them to represent your name and get recognized when they need products or services that you are offering. It is important to keep in mind that when branding your company a cohesive marketing strategy must be applied.

Geographical Branding

Then, there's geographical branding, which refers to the idea of branding your business in a locality and then creating a name for it. For instance, if you were to start up any type of business, you could say that other businesses give off a 'big city feel’ while yours will be an all-time favorite among people from the locality or those who work in the area.

Furthermore, basing the brand name of your business on a geographical location will make people feel that you've been there for a long time, and this is what gives you the upper hand.

What you need is something with longevity. The name or symbol of your company needs to be timeless, unique, and identifiable.

Product Branding

Another type of branding is product branding. This is when you want your customers to associate the image of your brand with the use or purpose of the product they are buying. Product branding is important for your business because it can help increase customer loyalty and retention by familiarizing your brand with a certain product or service. This way, if another company tries to come out with the same types of products sold under their name, customers would still prefer your brand over theirs because they are already loyal to your brand.

Service Branding

Service Branding is similar to product branding. What you do is give your customer an experience based on the image of your brand, not so much the product or service you are offering them. When a customer comes in contact with your business, this is how they identify what type of company you are and if they like it or not. What customers will remember about your company is your branding process, your marketing effort, and how you treat them when they visit. What makes branding important for your business is that it is a way of life and philosophy of doing business.

Online Branding

Consequently, online branding is something that is done to promote and market your business. What this does is assist you in getting a reputation for yourself or what we might call "being seen" on the internet. People and businesses can be found through search engines easily if they know exactly what they want from you and what to search for. Online branding makes it possible for your business to be found by people who have never heard of you before. The easiest way to show off your business and to get people to recognize it is through the internet and on search engines specifically.

Offline Branding

Offline Branding, on the other hand, is exactly like a business card. It serves to represent you, your company name, and all that it does for the people around you. In this sense, offline branding can be seen as the face of your company to everyone who meets you. What is essential here is that offline branding requires effort in both creating and maintaining what it is that you want people to know. What is good about offline branding is that it can be done cheaply and quickly with just a card, but what's bad about it is that you need the people around you to physically meet you to have your offline branding work for your online presence.

It is also important to note that both types of branding are equally important for businesses to ensure that their brands never become stale. What you need is thorough planning, creativity, consistency in your branding no matter if it’s online, offline, and more!

What Branding Is NOT?

A male with a page 404 not found, showing what branding is not.

With all the definitions and details of branding, there is still confusion on what branding is. Below is a list of what branding is not:

  1. Branding is not marketing.

Branding is a psychological phenomenon that creates a strong emotional bond between people and products or services they interact with. If branding was marketing, then starting a business would be as easy as buying an established brand and changing names to avoid trademarks.

  1. Branding is not a logo/a name.

You may have one or the other, but branding is about having both of them work together for you. Your business name/logo is what you would want to be synonymous to the only one in the consumers' minds. What matters though is for you to know how it works for you.

  1. Branding is not a tagline.

You have to remember that brand is about what you say and do. What defines your brand is how people experience it, not just from reading the words on a piece of paper like what happens if you look at taglines or company descriptions. What makes a company strong is less about what they say and more about how people receive it in the end.

  1. Branding is not your promotional material.

As mentioned, strong branding is not about what you say but how people receive your message. Branding is not the brochure, flyer, poster, or even your business card. These are tools to help make your brand strong, but they are not branding on their own. What is important is the way people perceive you at a glance over all else.

What is the Importance of Branding in business?

Branding is essential in business because it is the image that people receive and perceive of your business. What makes branding important to a strong business?

  1. Branding has the power to lead your product sales.

Your brand is what tells people about you, what you offer, how your products or services are different from other businesses out there. What they see, hear, and even feel about your brand affects how they choose to shop with you or not.

  1. Branding also sets you apart from competitors.

Branding is creating an identity for your company, product, or service. It's the feelings, thoughts, and images that form in someone's mind when they think of your company or products, as well as how they are different from what you offer.

  1. Branding also shows how people connect with your company and is important for consumer recognition.

It's the image that people receive and perceive of your company, product, or service. It's the overall feeling that someone gets when they think of your company or products.

Why branding is essential in marketing?

Branding is important in marketing because it is the identification of a product as being different from others. Branding is essential because it creates industry recognition and customer awareness. It is through marketing that you can show your target audience what your company does differently than other companies in the market.

Furthermore, brands are an important part of marketing because they are used to communicate how you differ from other businesses, such as offering services that other companies do not offer.

What is the Importance of Branding in eCommerce?

A male on top of a rocket startup that needs branding to generate awareness.

Branding and eCommerce are two important components of a business, which are strongly linked to each other. Branding is essential in eCommerce because it helps to generate brand awareness. To boost your sales, you need the help of branding.

Branding increases trust and loyalty between customers and businesses and makes it possible for a business to increase its market share by creating long-lasting relationships with customers. Branding also protects your business from copycats and competitors. The ability to make your brand stand out from similar brands is very important. Customers are more likely to buy something that stands out than something that blends in with the rest.

How to Avoid Branding Pitfalls?

A male business man sliding down the business graph, experiencing pitfall. These are ways how to avoid branding pitfall.

Whether you are starting up or have been in business for years, branding is never a one-time thing. It is always an evolving process that requires good strategy and effort from you and your team to ensure its success.

Addressing branding pitfalls can be difficult, but it's not impossible if you have the right mindset to develop brand awareness. Below are some branding pitfalls so you can avoid them in the future:

  1. Going for What's Trendy as Your Branding Strategy

What's trendy is a fleeting thing and chances are that it will be outmoded when you use it for your brand. Thus, you must develop a branding strategy that enhances the perception you want to create in the minds of your customers. What you do with your brand is what gets noticed first and foremost so it has to be strong. Work on creating an image that will resonate with your target market.

  1. Believing That Having a Brand Name is Enough

When you have a strong brand name, plenty of people know it. What they don't see is how the pieces work together to make up your brand or what your company stands for. What makes a brand strong and worth paying attention to is not just having a nice-sounding name but also having a clear image in the minds of customers and the public.

  1. Not Using a Consistent Message and Voice

Consistency is key to a strong brand. What customers see has to match what they hear and the two together have to be cohesive on every level. What you put out into the world about your brand will affect how customers view it in their minds so make sure it is always consistent with your image.

  1. Having No Brand Identity

What makes a brand strong and worth paying attention to is not just having a nice-sounding name but also having a clear image in the minds of customers and the public. Your brand identity is made up of many tiny details including your logos, colors, and slogans. What this boils down to is that you need a strong and consistent image to come through with everything you do for your brand.

  1. Not Using What You Already Have In Your Brand

One thing you should always think about when trying to grow a strong, positive brand for your business, is that you should always think about what you have already before going to market. What I mean by this is that when developing a new brand campaign, there's no reason to immediately the wheel and create something entirely new.

Examples of Great Brand names

Here are some examples of great brands that are memorable and have a "ring to them."

Coors Light

Coors Light is the most popular beer in Colorado and it has a memorable name. What's even better is that they have the word "light" in their brand name which gives them a benefit over their competitors.


Dubbed as the "Ultimate Driving Machine" BMW is the ultimate motor car manufacturer with great brand recognition. 


Samsung makes electronics and produces a line of televisions called Samsung TV. Samsung has recently been a brand to reckon with smartphones like the Galaxy S20. What's great about their name is that it is easy to say and remember. What makes this brand even better is how far they've expanded in recent years from simple electronics to appliances to mobile devices.


Entrepreneurs sometimes spend too much time building an app or website without having a business around it. Microsoft makes software called Windows. What's great about their name is that not only is it easy to say and remember but this software is one of the most popular in the world.


The popular home improvement store has a very memorable brand name because it is easy to pronounce and spell, unlike many other online home improvement stores. What makes Lowe's an even better brand is the amount of diversity they have, being one of the single largest retail appliance and electronics dealers in America.

Bridgestone Tires

Bridgestone tires are known for their durability and quality. What is interesting about the name of this tire brand is that the two words are very hard to put together - yet it works. What's great about this brand is that you can remember the name even if you don't know them by their product category.


It is important to note how important branding is to your business as it can help increase your sales. Furthermore, branding is the process of associating a name or image with your product. By branding your business, you are making sure that people remember you and your company - whether it be by logo or writing style.

What is great about branding is that there is no right or wrong approach to it. What works for one brand, can fail miserably for another. Branding is entirely dependent on what the company wants to accomplish and where they want to go.

Frequently Asked Questions (FAQ)

Here are some of the most frequently asked questions about What Is Branding and Why Is It Important for Your Business:

What is branding in simple words?

Branding in simple words is the process of identifying and marketing a product or service with favorable characteristics. 

You should try to concentrate on how "branding" helps you build an identity; one that is memorable, distinctive, individualized, and consistent over time.

How do you define branding?

Branding is defined as the process of creating a unique name and image for a product or service, which will be easily recognized by the customers. 

What is branding and why is it important?

Branding is very important for every enterprise, no matter what it is. What a company sells is not that important. What matters the most is how you present your product or service to your customers.

Having a strong brand can help your business personalize its message, connect with customers (which is important these days), and even build an emotional relationship with them. What's more, branding affects the behavior (and profitability) of companies in many different ways.

What are branding and examples?

Branding's examples are the following:

Red Bull

Red bull has built its brand identity around the slogan "Red Bull gives you wings" and an advertising campaign featuring supermodel Claudia Schiffer, snowboard champion Markus Schairer, skateboarding trick surfer Nicholas Wolken and motocross driver Paris Hilton. Red Bull is synonymous with energy drinks. It gives them a unique strong identity that is appealing to the general public.

Harley Davidson

Harley Davidson is the most popular bike in the world. They are considered a premium brand of motorcycles, with heavyweight touring and custom bikes priced higher than most other brands. What does this imply? It says that they provide excellent quality at an affordable price range. What then do you get from Harley Davidson? You can expect great quality, excellent performance, and aesthetics that are second to none.


Apple products are synonymous with quality, premium, and customer satisfaction. You're not just buying a phone, computer, or tablet that will break or stop functioning after a few months. People buy gadgets from Apple because of their quality, which last longer and are more usable. You're paying for a product that has been designed to solve your needs in the long run. Apple is known to provide great customer service because they know that if they satisfy the customer, they will keep on buying their products and services.

What makes a brand unique?

Branding in current terms has been described as "the marketing strategy which focuses on creating a unique name or symbol that represents a specific product, service and/or company."

What many businesses fail to understand is that branding isn't just about making products look attractive, it's also about creating the mental associations of your company.

What makes a brand successful?

A brand is considered successful when it captures a large number of customers. What's more, the brand has to be able to retain these customers and convince them to buy your product or service again. It is successful when it's able to achieve widespread recognition, and when your brand is easily identified even by people who have never used the product before.

A strong brand has a long shelf life; it usually outlives its founder or creator.

What makes a brand effective?

A brand is effective when it has the power to make your customers feel a certain way about your product. Strong brands can tap into the emotions of customers; they can make them feel proud, safe, happy, and confident. What's more, when you possess a strong brand, you'll enjoy the trust and confidence of your customers because they know that you're credible and that you'll deliver what you promise.

What is the purpose of branding?

The purpose of branding is to give your company a name, logo, or symbol that will help you stand out in a crowded marketplace. What’re more, strong brands allow you to charge premium prices because customers are willing to pay more for products and services associated with powerful brands.

The goal of branding is to make your company memorable. Strong brands are easily identifiable. What's more, they're memorable because they're unique and original. Strong brands are also cohesive, as all the communications associated with your brand – including packaging, logos, websites, advertising campaigns, and other marketing materials – are consistent.

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