Misconceptions about Branding

Branding is a very important aspect of any business or company that tends to be overlooked especially by startup businesses. This happens due to the lack of proper understanding of what branding is, how is it utilized in a business, and how it adds value to your brand or company. Although branding is not a new concept, many people mistake it for other business concepts such as logo, marketing, or advertising. These preconceived notions about branding can hurt your business because you cannot utilize it and maximize its potential that could benefit your business. We listed some of the misconceptions about branding that you might be thinking too. Understand branding and use it as a tool to have a holistic and successful business.

1. Branding as Your Business Logo

Business owners or startups go to a graphic designer asking to take care of their branding by making a logo design. Some graphic designers and designing agencies even claim that they do branding when all they create are logos or merchandise for businesses. Although logo design is part of a brand identity it is not the whole package. If you do have a logo design that is just the first step to create your brand identity or branding.

2. Branding as your Business Aesthetic

Design and aesthetics are definitely part of branding but it goes beyond that. You cannot say that something is your branding based solely on your business looks. It goes further to every other part of your business such as customer service and customer engagement. Just like the famous saying you cannot judge a book by its cover.

3. Branding as Advertising

Branding is mostly done by advertising agencies before there is a proper understanding of what branding truly is. This is based on the misconception that you are advertising a brand for short term goals and that is not branding. Branding looks at the overall identity of your business and not just for the here and now. The difference between advertising and branding is that with each advertising goal there is a set time and target that the business should reach, while with branding, it is the mainstay of the brand. For example, advertising is releasing promotions that last for weeks or months, while branding is your constant customer support.

4. Branding as Marketing

Marketing, branding, and advertising are departments that are related to each other. This could be hard to compare since they work closely together and may have overlapping qualities and functions. While advertising has set goals and is looking towards tangible results such as an increase in sales, marketing is all about building your business relationship with your audience and the effectiveness of your brand identity in reaching potential customers. Do not expect a sales report from the marketing department because that is not their goal. Same with branding, audience engagement is a part of creating your brand identity, yet with branding, you are more concerned with the consistency of these methods employed to have clarity on your branding.

5. Branding for all types of Businesses

If you think that your business is just starting or not big enough to have branding or to need branding then you are absolutely wrong. A successful business starts with branding even if it is starting small. Focusing on your branding before you start your business is a great way to maintain the consistency and integrity of your brand. This way the customers you are accumulating as you go along your business venture will know your brand and recognize it as soon as they see it or experience it. Big companies build the foundation of their brand identity as early as they started so that they do not need to change halfway and lose the interest of their current customers.

6. Branding for added value

If you are asking, what does branding add to the value of my business? You might think that there is no ROI because there are no tangible results such as an increase in sales with branding. But having a brand identity is an asset itself. It provides a face for your business and you are able to capture a certain demographic when you are consistent with your brand identity. This is why branding has trademarks, copyrights, etc. Because big brands know the power of branding. Once you have an established brand identity, customers will not think twice anymore in trusting your brand.

7. Branding affect sales through brand loyalty

We said earlier that there are no tangible results with branding. While that is generally true, it does have some effects on sales through brand loyalty. Brand loyalty is when your customers purchase your goods and services just by the name of your brand. They are less likely to think twice when buying a product from your brand because they are certain through your brand identity that you will put out good quality products. This only works when you invest in good branding and maintain it. Consistency is the key to branding that earns loyal customers.

8. Branding should start now

Getting a branding agency or specialist as early as now that you are starting your business is the general rule to a successful business. Just imagine your most favorite brands now and suddenly changing their branding while they are at the top of their game. It could upset customers and lose loyalty and trust. If you are already running a business without branding then you could still make it. Start now and you will not regret it later.

9. Branding is a staple

Trends are not for branding, they are for marketing and advertisement that constantly adapt to the demands of consumers and trends in the competing market. Branding is a staple identity that needs to be constant and consistent. This is why you need to have a clear vision for your business to create a brand identity that will stick to your principles as a brand.

10. Branding does not come cheap

While it might be tempting to hire a branding agency or specialist to create your branding at a cheaper cost it is not wise. You cannot have a brand that can be mistaken for another existing business. It should be made according to your values and vision for the brand.