Branding is an ever-evolving subject that straddles many different areas of expertise, such as business management, marketing, design, and psychology. As a result, it can be confusing to know where to start when learning about branding. However, the sooner you gain a clearer understanding of what it is and how it works, the better equipped you’ll be to implement it in your own business.
The term “branding” was originally used to refer to the practice of marking cattle with a distinctive symbol burned into the animal’s skin using a hot branding iron. This was done to make it easy for ranchers to identify their livestock so they could claim ownership should the animals get stolen. Later, the term began to be used more broadly to refer to the strategic personality of a product or company – the promise it makes to its consumers.
Strong branding builds consumer trust. This trust, in turn, leads to loyalty and a willingness to spend more money on your product or service. For example, Apple customers will happily upgrade to new products (like iPhones or MacBooks) despite the higher price tag because they trust the company and feel that it is worth the extra investment.
Branding also relates to the way that your business is perceived by others, including other businesses, government agencies, and non-profit organizations. For these types of businesses, branding is more about building a public image and reputation than it is about generating sales. However, these brands do need to differentiate themselves from competitors in order to remain competitive.