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Branding 101:
What is the importance
of branding
in a business?

Branding 101: What is the importance of branding in a business?

Your brand is what other people say about you when you’re not in the room.” ~Jeff Bezos


What is NOT Branding?

To understand branding, it is essential to first comprehend what NOT Branding is.

Branding Does Not entirely focus on logos or colour schemes; neither is its purpose solely confined to raising awareness about a business. These are just part and parcel of the branding  process; and surprisingly, these two notions that, for most, have become the definition of branding, barely scratch the surface.

The line that differentiates between branding and marketing is rather thin. While businesses, products and services are promoted through marketing, the branding process complements marketing but does not replace it.

What is branding?

Simply put, branding is the process of building a brand. But what does this mean for firms, consumers and suppliers?

Branding is awarding goods and services with the influence of a brand” (Kotler & Keller, 2015)


Branding is the practice of providing significance and purpose to a particular institution, firm, goods or services by generating and modelling a brand in consumers’ minds. Firms devise strategies to help people prompt, recognize and experience their brand. Branding strategies further serve to provide consumers with a reason to choose their product over their competitor’s by showing what their particular brand is and is not.

A promising product aligned with the brand always invites and retains loyal customers and other stakeholders.

Who does Branding affect?

In particular, two groups are affected by branding:

  1. Consumers:

    With branding, a consumer is presented with a tough decision, whether they should buy the same product or switch to a competitor’s brand. For example:- An Android user switching to Apple. Should he remain loyal to his android or should he be adventurous and make the more expensive switch?

  2. Employees/shareholders/third-parties: 

    Apart from distinguishing similar products, to help consumers, a company’s reputation is added by successful branding strategies. You would probably not work for a brand if you do not feel connected to it.

How can it be done? 

Companies use different tools to build and shape a brand. For example, branding can be achieved through:

  • Brand definition: this includes the promise, values and purpose of the brand.

  • Brand positioning statement: creating a unique niche for your target audience.

  • Brand identity: the elements, i.e. name, tone of voice, visual identity design (which includes the logo design, color palette, typographies which portray the right image to the consumer’s mind.

  • Advertising and communications:  medians such as TV, radio, magazines, outdoor ads, website, social media platforms used to persuade consumers to take a specific action in regards to your product.

  • Sponsoring and partnerships: usually not-for-profit organizations use sponsorships for their events while other for-profit firms’ partner with corporations to help their brand grow bigger and social media platforms utilize the services of influencers and celebrities as their brand partners.

  • Product and packaging design: with relevant color combinations and design, a product can stand out and would showcase the brand’s unique selling point (USP)

  • In-store experience: this irreplaceable process helps increase traffic and sales where customers feel more confident their requirements will be carried out.

  • Workspace experience and management style: a positive co-working space is healthy for the growth of a brand. Apple carries out a democratic management style, and Twitter has led these giants to where they are standing now.

  • Customer service:the success of a brand is pertinent to customer service provision.

  • Pricing strategy:the most effective pricing strategy must be adopted to get a competitive edge over competitors.


What is the importance of branding IN a business?

Branding is critical to a business because of the overall impact it has. Branding changes the perception of consumers, it can drive the business and increase awareness levels be it Luxury brands or Products of daily use. With correct branding, a consumer can identify a product associated with a brand by just seeing the symbol, color or tagline associated with it. For instance, the big yellow M sign is associated entirely with McDonalds, ‘Just Do It’ is a Nike tagline everyone has heard, ‘Maybe She’s Born With It – Maybe its Maybelline’ – another popular tagline that put the brand right up on top in the beauty world. Without even realizing, catchy branding tactics leave a long-lasting impact.  

Branding Gets Recognition

The logo is the most crucial element of building a business. It is the face of companies and brands. Through the logo, we make memorable advertising. A professional logo design should be assertive and easily memorable, making an impression at first sight – it should grab the consumer’s attention, it should distinguish from the competition and foster brand loyalty.

Branding Increases Business Value

Branding of a retail outlet, for example, is important when trying to generate new customers as it helps in educating them about the generics of the brands and its value to the consumers. It makes a brand look more credible and hence increases the business value.

Branding Generates New Customers

A trending and well- established brand will have to face no difficulties in getting referral business from current customers. Strong branding can help solidify a bad reputation in the marketplace and help carve a positive image of the company amongst customers. Customers are likely to do business with trustworthy and reliable organizations, and the most effective advertising technique for the company will be through word of mouth.

Improves Employee Pride and Satisfaction 

There will be a higher degree of satisfaction and pride in the work that an employee does when they work for a strongly branded company. Working for a company is more enjoyable and fulfilling, especially if it is a reputable brand. Branding provides a sense of belonging to the company.

Branding Supports Advertising

Strategies of advertising will directly exhibit the desired portrayal of the brand. An appealing advertising strategy for trusted companies works wonders for your branding goals. Marketing employees’ jobs are made easier when a good brand generates added advertising efforts. Effective advertising campaigns help draw customers towards a brand with a concise message.

Sometimes Brands Need to Rebrand:

  1. Leadership is constantly evolving:

    Brands are most frequently related to a company’s leader, especially in private firms where the brand embodies a founder’s personality. When the leadership changes, from different figureheads and owners, from one generation to another or to an external owner, the brand is revamped with a new identity to reflect the transition. If the brand is effectively transformed, the shift is also reflected in the workspace, social media marketing, physical advertising etc.

  2. A Brand requires a relevant makeover:

    A brand needs to transform as per the needs of the target market. Even the largest international companies and monopolies rebrand their identity to stay up to date with their respective markets’ social needs and wants. Without rebranding and repositioning, competitors would gain a larger market share by enabling their brand to be more prominent. Revitalizing the basic elements — such as colours, typeface, or logo treatment, font, social media presence, campaigning, packaging— can appreciate your past and create a metamorphosis in the future.

  3. Mergers and Acquisitions:

    When a company merges, does the previous legacy brand die out? Acquisition and mergers aid the firm in assessing any overlaps in target markets, products list and categories, geography, and the brand’s public image. Mergers can warrant the requirement to generate an entirely new brand, with a new idea, or merely slightly modifications to its motto, slogans, message and visual identity.


Businesses want to target newer audiences; hence they reposition their brand. We can take Walmart as an example when they’re branded successfully and changed their slogan from “Always Low Prices” to “Save Money, Live Better”. This tactic made Walmart the largest corporation in terms of Revenue in 2010. Brand Identity is extremely important in today’s day and age. If you are interested in Branding, rebranding your product, get in touch with The Squarepeg. Let us help you revamp your brand from scratch.

The SquarePeg Team

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