What Is Branding?

Branding is the process of assigning characteristics and properties within and outside an offering
to give that generic offering an identity which helps it to be recognised and differentiated in the
market.

Three points that should be noted in this definition of branding are –

 Assigning characteristics and properties within and outside an offering: Even though
the characteristics and properties are offering-specific, they are not limited to within the
offering. A Facebook post by the company represents the brand as well.
 To give an identity: The main purpose of branding is to give an identity to the generic
product. The identity is very much human-like; with a name, voice, tonality, colour, and
sometimes even sound.
 To help it be recognised and differentiated: Another role of branding is to be unique. A
unique branding results in the product being more recognised and differentiated in the
pool of competition.

Importance Of Branding

 Create an identity for the offering: Branding is what the product is known for besides
the generic properties. It is the unique name, colour, design, and even the psychological
experience that makes the product identifiable in the market.
 Create consumer preference towards the offering: The market is full of offerings with
the same properties which often confuse the consumer to what he should buy. A way
through which consumers can confront this problem is through leaning towards such
brands which they know and trust. Popular brands are known to be safer investments as
compared to the risky ones and they provide consumer satisfaction for the utility it
provides them.
 Create a new asset and build value: A brand in itself is an asset that can be sold
separately. Wonder why Apple products cost twice as much as the competition which
sells the product with the same configuration? It’s the brand effect.
 Build trust: Branding an offering results in the professional appearance of the offering. It
includes well-strategised labels and packaging according to the legal requirements and
the planned positioning. This increases its appeal as consumers trust offerings with a
professional outlook.
 Improves pride and satisfaction: Branding the company or the offering improves the
pride and satisfaction of both the customers as well as the employees. It personifies the
company and its offerings and helps everyone who associates with it to create a deeper
connection with the brand.
 Develop marketing strategies: Marketing strategies without a brand will be nothing but
futile as there will be nothing to identify the offering with. Branding is a core part of
marketing as all of the marketing strategies have their roots in branding.
Components Of Branding

Branding isn’t limited to just name and logo. It is a combination of characteristics and properties
which have an effect on almost all of our senses to result in a uniform experience every time we
have contact with it.
  Name: The name which we use to identify the product with.
 Logo: A symbol or other design adopted by the business to identify its brand.
 Colour: A colour mostly used by the business in its marketing messages to describe or
complement the brand.
 Vision: The group of goals or objective behind the brand that help guide its activities and
its future.
 Message: the value proposition of the brand which it conveys through the brand
personality to set the brand positioning.
 Shape: Either the distinct shape of the offering or the shape of the packaging.
 Aroma: The distinct smell which the user experiences before, during, or after he uses the
offering.
 Graphics: The uniform and distinct aesthetics used in the marketing messages.
 Sound: The sound used in the marketing messages to reinforce the brand identity.

Features of a good brand name: A good brand name can make a huge difference in how your
business is perceived. Here are some key features of a strong brand name:

1. Memorable: It should be easy to remember and stick in people's minds. A short, catchy
name can often be more effective.
2. Unique: It should stand out from competitors and be distinct in your industry. Avoid
generic or overused words.
3. Relevant: The name should align with what your business offers or the values it
represents. It can hint at the product, service, or your brand's personality.
4. Easy to Pronounce and Spell: A brand name should be easy for people to say and spell,
making it easier for them to talk about or search for your business.
5. Flexible: The name should be broad enough to allow for business growth and expansion,
not too niche that it limits future diversification.
6. Evokes Positive Emotion: It should create a positive association or feeling with your
audience. A name that connects with people emotionally can foster loyalty.
7. Available: Ensure that the domain name, trademarks, and social media handles are
available. It's crucial to be able to own the name across all platforms.
8. Timeless: Ideally, it should not be tied too strongly to trends, as you want the name to
age well over time.
9. Culturally Appropriate: Consider how the name will be interpreted in different
languages or regions, especially if you're targeting global markets.
10. Scalable: It should be adaptable to new products, services, or locations if your business
grows or diversifies in the future.

Types Of Branding

Branding isn’t limited to products. Today we witness the branding of organisations, products,
services, places, and even people. Here are 4 types of brandings one should know about –
Product Branding : Product branding is one of the most common types of branding where the
offering is given an identity and a personality to make it identifiable and differentiable in the
market. Even though it is called product branding, it isn’t limited to just products. Product branding
refers to the branding of any offering be it product or service.

An example of product branding could be Mountain Dew. Mountain Dew has its own name,
colour, voice, and personality. One can recognise the brand even when the generic product is not
even there.

Personal Branding : Personal branding is very common among politicians, celebrities, athletes
and other people who have niche followership. This type of branding makes it easier for these
people to create an image for themselves among their followers. This brand image not only helps
them in creating new business opportunities for themselves but also benefits the brand associated
with them.

Michael Jordan is a perfect example of personal branding who, because of his niche
followership, was not only able to benefit himself by launching his own apparel line but also
benefited Nike which partnered with him to launch the same.

Corporate Branding : Branding the organisation is as important as branding the offering it’s
selling. Corporate branding gives an identity to the offering provider and opens new opportunities
for him to extend his offerings portfolio easily.

Corporate branding is also of vital importance when it comes to hiring as employees always
desire to work with a company with a known brand.

PepsiCo is a good example of corporate branding. The company has several products lines in
its product mix including Frito-Lay, Pepsi, Diet Pepsi, Mountain Dew, Lay’s, Gatorade,
Tropicana, etc. all of which are owned and operated by the parent brand- PepsiCo.

Geographical Branding : Geographical or regional branding is often used by the tourism industry
who create a brand out of a geographical location by assigning it certain characteristics and
experience to attract more visitors.

For example, Hawaii is being marketed as the perfect destination to visit if you want to go to
beautiful islands lined with beaches of warm, white sand and verdant, lush flora. The state is also
marketed as the only place to experience Hawaiian cuisine, Hawaiian art, and the Native
Hawaiian religion.

What is Brand Equity?

Brand equity refers to the intangible value that a brand adds to a product or service. It
represents the total of a brand's perceived value, consumer trust, and overall market position.
Strong brand equity contributes to customer loyalty, positive brand associations, and increased
market share. Essentially, brand equity is the result of how a brand is perceived by its audience
and the emotional connections it creates.

Elements of Brand Equity or Factors determining brand equity

Several key elements contribute to brand equity:
 Brand Awareness: The extent to which consumers recognize and recall a brand.
 Brand Image: The overall perception and associations consumers have with a brand.
 Brand Loyalty: The degree to which customers consistently choose a particular brand over
others.
 Brand Associations: The mental connections consumers make between a brand and
specific attributes, value or benefits.
 Brand Personality: The human-like characteristics and traits assigned to a brand.
 Customer Perception: What is the overall perception and experience of the customer
related to the brand?

Benefits of Creating Brand Equity

The creation of brand equity offers numerous advantages to product management:
 Increased Customer Loyalty: Consumers are more likely to remain loyal to a brand they
trust, leading to repeat business.
 Competitive Advantage: A strong brand stands out in a competitive market, attracting
more customers and increasing market share.
 Higher Perceived Value: Consumers are often willing to pay a premium for products with
a strong and trusted brand.
 Brand Extensions: Positive brand equity makes it easier to introduce new products under
the same brand umbrella.

Brand positioning : It refers to the process of defining how a brand is perceived in the
minds of consumers relative to its competitors. It’s all about establishing a unique, distinct place
in the market so that customers understand exactly what a brand stands for and why it’s relevant
to them. Proper brand positioning allows a company to differentiate itself and create a strong,
lasting relationship with its target audience.

Here are the key Elements of brand positioning:

1. Target Audience

 Definition: Identifying the specific group of consumers you want to reach with your brand.
 Key Point: You need to understand the needs, wants, behaviors, and pain points of this group to
position your brand effectively. Your messaging and products will resonate with them more if
they feel tailored.

2. Competitive Frame of Reference

 Definition: This defines which brands or products your brand is competing with in the market.
 Key Point: You need to understand who your competitors are, what they offer, and how your
brand stands out. It helps to know what makes your brand different from alternatives.

3. Brand Promise

 Definition: This is the unique value or benefit your brand promises to deliver to the customer.
 Key Point: It should be clear, authentic, and meaningful to your target audience. For example,
Volvo promises safety, while Apple promises innovation and simplicity.
4. Brand Values

 Definition: These are the core principles and beliefs that guide the brand’s actions and
messaging.
 Key Point: Your brand's values can resonate with consumers who share similar beliefs, which
helps to form emotional connections. Brands like Patagonia, for example, emphasize
sustainability and environmental responsibility.

5. Brand Differentiation

 Definition: What makes your brand distinct from others in the same category.
 Key Point: Identify what sets you apart—whether it's a product feature, quality, customer
service, pricing, or a specific emotional connection with consumers. Strong differentiation allows
a brand to stand out in a crowded market.

6. Brand Positioning Statement

 Definition: This is a concise statement that defines how your brand is positioned in the market. It
typically includes:
o Target Audience: Who you're addressing.
o Frame of Reference: The category you're in.
o Point of Difference: What makes your brand unique.
o Reason to Believe: Why the brand is credible and capable of delivering on its promises.
 Key Point: A strong positioning statement should guide all marketing, communication, and
strategic decisions for your brand.

7. Brand Messaging

 Definition: The language, tone, and key messages that communicate your brand’s position.
 Key Point: Your messaging should consistently reinforce your brand’s identity and positioning in
everything from advertisements to social media posts.