What Is Basic Branding? (With Lists and Helpful Benefits)
By Indeed Editorial Team
Published November 6, 2022
The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.
Branding is an essential business aspect that can offer a competitive advantage and ensure business differentiation. To create a brand, many businesses first explore branding basics, review its types, and understand how it can help improve industry recognition. Learning about branding basics can help you create an effective branding strategy for a business. In this article, we define basic branding, list its types, highlight how to develop an effective branding strategy, and share several benefits.
What is basic branding?
Basic branding refers to a business's promotion of its core values to potential and existing customers. It covers a business's brand and identity. A brand is an entity's personality, such as a business, an individual, or any other organization crafted in a specific way. In contrast, a brand identity is typically a set of designs a business chooses to communicate its brand. Branding can help make a business memorable and establish better connections with a target audience.
List of basic branding types
Here are the branding types that exist at the most fundamental level:
Personal branding is the deliberate attempt to influence the public's perception of an individual instead of a business or corporate organization. While this type of branding primarily helps present an individual positively to a target audience, businesses often use personal brands to promote their products and sell their services. They may reach agreements with famous individuals in music, sports, and education individuals to convince consumers to buy their products. These individuals generally act as opinion leaders, providing the authenticity that the target audience needs and helping the business build trusting relationships with them.
Read more: How to Establish a Personal Brand
Product branding involves crafting a distinctive identity for a standalone product. This type of branding typically involves the logo, unique visuals, message, and packaging accompanying a product and compels consumers to purchase it. Product branding aims to differentiate a product from similar products by the same or different producer, but it also helps create recognition for the brand. When branding a product, there's often a strong emphasis on the colour scheme, shapes, and designs. The brand aims to connect emotionally with its target audience using elements with which they can easily relate.
Service branding differs from product branding because it promotes an intangible item. Before branding their service, the business attempts to understand the product's value to the customers. Service branding also requires a deep understanding of the industry and expertise to understand customers' psychology and what motivates them to request certain services. Businesses generally use various means to brand their services, including improving their access to customers and allowing employees to work outside the office when possible. They also often conduct webinars and special classes where they can display their service.
Retail branding refers to a retailer's attempt to transform their store into a marketable product to increase reach and sales. This type of branding typically manifests in design choices, layout, and outstanding customer service, creating a positive and excellent customer experience for visiting customers.
For example, a retail store may create a rewards or loyalty program. While they may not produce the goods, their strategy may influence customers to shop with them instead of competitors selling the same products. Companies may also choose specific colours, flooring types, and construction materials for their store to evoke brand uniqueness.
Corporate branding means how a corporate organization presents its image and identity to customers. It's broader in scope than product and service branding and encompasses the company's values, messages, mission, goal, and target customers. Due to its wider scope, corporate branding entails numerous online and offline activities that make the business recognizable. It consists of how a business designs its websites, promotes its ads, and handles certain events, such as fundraisers or the recruitment process.
How to create an effective branding strategy
You may follow the steps below to develop an effective branding strategy for a business:
1. Identify the target audience
Understanding a product or service's target audience can help you create a branding strategy that works. You might choose to perform separate research where you attempt to determine the personas and characteristics of the consumer base, or you may include this in the industry analysis. Once you analyze the needs and preferences of the target audience, you can create branding elements such as messages that align with their wants.
2. Research the competitors
Most businesses conduct industry analyses to know and understand their competitors. This analysis covers the competitor's branding strategies, strengths, and weaknesses. By incorporating their understanding of the target audience and their competitors' strategies, they may create a unique strategy that appeals to customers and afford them a market share portion.
3. Determine the brand's market position
Brand positioning refers to how consumers perceive a company's brand and distinguish it from competitors. You can often create a distinctive brand position by consolidating consumers' and competitors' analyses. Consider identifying market opportunities you address using branding. Writing a short statement that outlines the brand's essence can further improve the brand's distinction in a saturated marketplace.
4. Create a brand identity
Next, you can create a brand identity. This identity acts as the business's personality and what consumers typically interact with first. It includes the logo, name, and tagline. Use colour schemes that customers can easily relate to on the logo and apply it consistently across the brand's channels online and offline. The brand's tagline, mission, and vision statements may also contain clear and concise messages that the audience can easily understand. People typically relate and connect better with what they understand.
5. Incorporate online and offline branding
Ensure you use online and offline branding to increase the company's reach. With the internet's ability to accelerate a brand's messaging and growth rate, many businesses have moved online where potential customers are so they can promote their products and services.
Online branding involves using social media, e-mail, and search engines to attract potential customers and promote the brand. Offline branding involves using non-digital means such as billboards, event banners, flyers, and trade shows to promote the brand and its services. Incorporating both branding strategies can significantly increase a business's reach and improve its awareness. For example, a company may include a QR code on their billboard or banner that redirects to its website when scanned.
Benefits of branding
Here are some of the most common benefits that businesses may derive from implementing effective branding strategies:
Increases brand recognition
Using an effective branding strategy helps a business become more recognizable to consumers. These consumers are more likely to patronize a brand they're familiar with than one they're hearing of for the first time or which isn't memorable. They may also promote the brand to friends and relatives, which helps the business acquire new customers without spending additional fees on marketing and advertising strategies.
Offers a competitive advantage
Numerous brands generally exist in the marketplace providing similar products and services. To control a portion of this market share, it's important that a business promotes itself in a way that differentiates it from every other business in that industry. Once the business also discovers an effective branding strategy, consistency further distinguishes it and may make it more preferable to consumers.
Impacts business profits
A business with an effective branding strategy may notice a positive difference in its financial balances. Customers typically purchase their products and request their services, which can significantly impact revenue. The business can then use generated profits to develop other aspects of the brand, such as launching a product line and expanding into a new market. Branding also helps accelerate business growth by facilitating customer loyalty and increasing customer retention.
Improves business's credibility
Business credibility defines the trust a target audience has in a brand. Credibility often arises from a business's appearance and the quality of its products or services, which are fundamental aspects of branding. Establishing a clear brand improves a business' authority in the marketplace and makes the brand well-known. Consistently offering quality services also improves customer loyalty and brand recognition, which helps makes the business competitive.
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