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You can have a great idea, the money to execute that idea and the people to help you bring it to life, but without a brand, you have nothing.
Branding is the bread and butter of any business, and the ultimate key to its success. Simply put, It is the ability to create plain areas of differentiation that differentiate your products or services from those of competitors. At its core, a brand helps bring life to a company, regardless of its industry or category, and there are many elements that come together to make a good. It is very much like an individual, with its unique and defining characteristics that position it for the desired target market. It also helps to dimensionalize a business and add character that appeals to that market.
Take Oreo cookies for example. Instead of marketing itself as a crme sandwich cookie maker, the company takes its product to the next level. The tagline “twist, lick, dunk” was marketed as the proper way to enjoy one, turning eating a cookie into a complete snacking experience. The resulting power of the brand helped set Oreo apart from other cookies—a layer of character and likeness that appealed directly to its target market, which has helped make it a consistent success for more than 110 years. Without the brand behind it, Oreo would be just another snack label.
Branding is also broad and complex: creating one requires many components, even before promotion and advertising, including asking the following: How do you know? Who? You’re advertising, how do you know? what You’re advertising, and how do you know when it’s time to rebrand and reposition?
related: 3 examples of building a strong brand community
What is Brand Equity?
A fundamental element of branding is brand equity – the total value of a brand based on associations and expectations. Such equity is determined by name awareness, loyalty, perceived quality and genuine associations.
, brand awareness is important, of course, and falls into two categories: recognition and recall. The former refers to remembering past exposures (for example, hearing a jingle and quickly recognizing the company it belongs to), while the latter is more about which product comes to mind when discussing a category. Is (say, a brand you envision when you think of insurance, or toilet paper). This can vary from person to person depending on where he or she lives, as well as their habits, etc.
What is more important, recognition or recall? The answer is really neither; It totally depends on each company and its goals.
, brand loyalty It measures how loyal a consumer is to a brand. There are some consumers who simply will not buy a specific brand, while others may always compare the two and may not commit to either one. Still, others can reliably go with the lowest priced product, and there are some who buy out of habit without any specific reasoning. Finally, there are committed, loyal consumers who will always turn to your product. There are proven ways to increase this vital loyalty, such as frequent buyer programs and incentives (isn’t it interesting how some people will only fly on one airline – the loyalty miles they’re accumulating?)
related: 5 Ways to Build Highly Valuable Brand Loyalty
• In the mind of a consumer, perceived quality It is the value they add to a brand, no matter how good or bad it is. In the end, perception is everything. By distinguishing themselves from competitors, brands do what is necessary to stand out—to demonstrate that they are superior—and expertise and/or exclusivity can lead to higher perceived quality. A strategy like influencer marketing can also have a positive effect on perceived quality. It comes down to how the consumer views the brand and its overall image.
• Is the final component of brand equity real union, It can be anything that a consumer can associate with – whether it is a spokesperson, a logo, a distinctive colour, even a tagline – anything that prompts the consumer to think of a particular business.
By being aware of all these elements, a company can begin the process of evaluating its position in a product category as well as its uniqueness. Being able to understand your own worth can also help you understand what a target market is and how to advertise it successfully.
related: ‘Brand equity’ is an intangible that is worth real money
Being able to evaluate the brand equity of a business is just the beginning of the journey of building that brand. Understanding this equity can help generate insights that can be helpful in narrowing down the target market, as well as determining how a brand is lacking and needs development or repositioning.
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