A brand is an indelible mark, word, design, symbol or anything else that identifies one vendor’s good or service as distinctly different from those of others. It is a term used by the consuming public to identify specific products or services. Products and services of a particular brand are identified by how well they satisfy consumers’ needs. As such, brands form a basis for a consumers’ awareness of a product or service, which in turn determines the brand value.
In terms of a small business’s brand identity, it is the total personality and concept that makes it stand out from similar products or services from other companies. Just like a human personality, each small business brand has its own unique selling proposition (USP). If you were to look into every person’s personal brand, you would find that the USP would vary widely, and would not be static. However, branding experts believe that a unique USP could be a signature or even color-theme, sound, or even a logo.
A brand’s strong identity is what draws customers to it. This strong brand identity could also come from a heritage or brand history. A brand’s strength comes from its history or heritage and the trust that consumers have in it. Consumers who recognize a brand name are likely to give it a try, making it important for a brand to build loyalty.
Building loyalty is crucial to the success of any brand, especially if it is one that sells a product or service. Brand loyalty is earned through a consumer’s trust and willingness to buy again. The more a brand builds up this trust and loyalty, the more likely it is to achieve higher sales and higher gross margins. Consumers will continue buying a product or service that they trust, and have faith in. If a brand has successfully built this trust, then they are likely to have a large customer base. This is because they feel good about the brand and think it will give them what they need.
Branding allows businesses to differentiate themselves from other brands. Branding is defined by Oxford dictionary as “the reputation or self-worth of a person, place, thing, or an idea”. It is the intangible sum of all the good things a brand do for a company, helping it to move up the ladder of success in most industries.
If a business wants to ensure its brand name recognition and stay ahead of the competition then they must keep changing their brand name and develop new and innovative strategies. Branding does not only come with a brand name but with the perception of the brand. The brand name is only part of the equation but it plays a key role in the perception of the brand.