This editorial is informed by our interactions with prospects and clients, and it draws insights from Alina Wheeler’s "Designing Brand Identity”. Through this editorial, we aim to provide a comprehensive understanding of the importance of branding, along with practical scenarios when businesses should consider investing in brand-building activities free from marketing fluff.
First, we will define branding to establish a common understanding. Next, we will demonstrate the necessity of branding through a causal link introduced by Wheeler and a little thought experiment about Apple. Finally, we will discuss different scenarios for investing in branding, including personal anecdotes from our interactions.
Defining Branding
Before we demonstrate the necessity of branding and provide five possible scenarios for a business to engage in a brand-building exercise, it would be beneficial to establish a common understanding of what branding is.
Though there are a few definitions of branding, it can be seen as the core of your business's identity, including its purpose, mission, vision, values, and unique traits that set you apart from competitors. Similarly, branding could also be defined as a set of sensory experiences that shape market perception.
At KOVA, our approach to branding aligns with the latter definition, adopting a more holistic belief. From this perspective, branding is an interdisciplinary concept that merges principles from design, communication, psychology, and sociology to craft a cohesive sensory experience for your customers.
If you’re keen in learning more about the differences between branding and marketing, check out our previous editorial piece on the topic “From Brand Name To Marketing Fame: The Differences Between Branding & Marketing”.
Why Invest in Branding
Branding is central to a business’s longevity. However, this is not always clear to business owners focused on Return on Investments (ROIs) and Key Performance Indicators (KPIs). With the help of Alina Wheeler, we will outline the link between branding and business longevity.
Brands influence perception, which affects behaviour and ultimately impacts the bottom line. A thoughtful brand strategy and design shape how customers perceive a business. This perception drives their behaviour, including whether they engage with the brand, purchase its products or services, or recommend it to others. Positive behaviour towards the brand leads to increased sales, customer loyalty, and a stronger market position, directly influencing business performance.
Still not convinced about the importance of branding? We invite you to take a moment to envision how Apple would design a hotel. If the imagery that popped up in your head included minimalistic design, soft and inviting ambient lighting, ergonomic furniture with smooth curves, and state-of-the-art technology seamlessly integrated throughout the lobby, it’s due to their mastery of branding touchpoints.
When to Invest in Branding
As a consultancy offering brand strategy and design, you might think that we would advise business owners to invest in branding as soon as possible. But that is not always the case. The answer to “when should you invest in branding” is a lot more nuanced. Therefore, we have outlined various stages of a business’s development as possible entry points for considering an investment in branding.
New Company, New Product
When launching a new business or product, establishing a recognisable brand is essential. This is one of the most popular yet least important reasons why businesses invest in branding, based on our experience working with clients.
For bootstrapped startups, we often advise allocating as many resources and time possible to developing their products and services at the start to ensure market fit above all else. At this stage, the focus should be on creating serviceable brand elements like a simple name, logo, and website, which are necessary for making a strong first impression in the eyes of potential customers and partners.
However, if you are a larger organisation with considerable resources hoping to launch a new product, investing in branding becomes crucial. Specifically, positioning the new product against existing offerings is key to differentiating it in the market and leveraging the established brand’s strength.
Not sure whether to hire an agency or go for an affordable freelancer? Drop us an email at hello@kovacollective.co. We're always happy to listen to your current business circumstances and additional considerations before deciding the best course of action. No strings attached.
Name Change
Sometimes, businesses need to change their names due to mergers, legal issues, or rebranding efforts to improve market perceptions.
For instance, after a merger, a new brand identity that represents the unified entity is crucial for presenting a cohesive image to stakeholders and customers. Likewise, a company entering new markets with a name that carries negative connotations might rebrand to avoid alienating potential customers.
Revitalising a Brand
Businesses often find the need to refresh their brand to remain relevant.
For instance, a company looking to expand might recognise the need for branding support acknowledging that, "we need help entering new markets". Successfully penetrating new markets often requires adjusting the brand to resonate with local preferences. Similarly, shifting focus to a different demographic, necessitates a rebrand to align with the tastes and expectations of the new target audience.
Revitalising Brand Identity
The tangible assets of a brand, like logos, business cards, and marketing materials, might need updating to reflect the brand's evolution.
A brand that appears outdated may benefit from a refreshed identity to improve its market position. As often voiced by our clients, "our identity does not position us shoulder to shoulder with our competitors”. Streamlining brand elements across multiple divisions ensures consistency, especially for companies facing issues like, "we have 80 divisions and inconsistent nomenclature".
Creating an Integrated System
An integrated branding system ensures that all parts of a business present a unified image. This often happens when a business hires freelancers through platforms like Fiverr or Upwork for specific tasks like logo design, colour palette, or investor pitch deck design, without a cohesive strategy overseeing these separate assets.
Inconsistencies in branding can confuse customers and weaken brand recognition, leading to the realisation, "we do not present a consistent face to our customers." A cohesive strategy ensures all communications reinforce the same brand identity.
Furthermore, centralising branding efforts across divisions, especially when "every division does its own thing when marketing", reduces costs and ensures that all parts of the business are aligned and working towards the same goals.
Branding is not merely a visual representation of a business. It is a strategic tool that encompasses the core identity, mission, and values, shaping how the market perceives your company. Effective branding affects customer behaviour and ultimately influences business impact. Whether you're launching a new product, undergoing a name change, revitalising your brand, or striving for a consistent brand identity, thoughtful investment in branding can make a significant difference.
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