What Is Branding and Why Is It Important for Your Business?

Cambridge Dictionary defines branding as “the act of giving a company a particular design or symbol in order to advertise its products and services.” Not so long ago, this was a pretty accurate description of branding – at least, what the general consensus was at the time.

Branding was (and still is) misunderstood by being reduced to its aesthetic component: visual identity. For many, whether specialists or not, branding is still just about the visual identity – name, logo, design, packaging, etc. Even more so, while the concept of branding and its understanding have evolved enormously over the years, the same old vision of branding is being preached, even by high-level marketers. Visit here; Branding Specialist.

Branding is important because not only is it what makes a memorable impression on consumers but it allows your customers and clients to know what to expect from your company. It is a way of distinguishing yourself from the competitors and clarifying what it is you offer that makes you the better choice. Your brand is built to be a true representation of who you are as a business, and how you wish to be perceived.

There are many areas that are used to develop a brand including advertising, customer service, social responsibility, reputation, and visuals. All of these elements (and many more) work together to create one unique and (hopefully) attention-grabbing profile.

What is branding?

If the explanation of branding was simple, there would not be so much ambiguity and dissonance regarding the concept. Still, for the most part, a strong understanding of branding requires a decent grasp of business, marketing, and even (human) relational basics. Branding is such a vast concept that a correct definition that truly encompasses everything that it represents would not bring too much clarity to the subject just by itself. But, for the sake of lowering the propagation of obsolete, incorrect, and incomplete information about branding, we offer a more complete definition:

Branding is the perpetual process of identifying, creating, and managing the cumulative assets and actions that shape the perception of a brand in stakeholders’ minds.

If you compare this definition to the official Cambridge definition, you can clearly see that the latter (Cambridge) offers more surface-level information, giving a false sense of understanding to the reader. This might be one of the reasons why most people think that definition is correct and choose it as the foundation of their knowledge-building on the subject. In truth, basing your learning about branding on a definition that reduces it to only one element (visual identity) makes every other branding-related concept fall short when trying to connect the dots.

Our definition of branding, even if seemingly more ambiguous than the other, gives much more sense to the concept when diving deeper into its meaning. Here is a rough breakdown:

1. Perpetual process

Branding is a perpetual process because it never stops. People, markets, and businesses are constantly changing and the brand must evolve in order to keep pace.

2. Identify, create, manage

There is a structured process to branding, one where you must first identify who/what you want to be to your stakeholders, create your brand strategy to position yourself accordingly, and then constantly manage everything that influences your positioning.

3. Cumulative assets and actions

Your positioning must be translated into assets (e.g., visual identity, content, products, ads) and actions (e.g., services, customer support, human relations, experiences) that project it into your stakeholders’ minds, slowly building up that perception.

4. Perception of a brand

Also known as reputation. This is the association that an individual (customer or not) has in their mind regarding your brand. This perception is the result of the branding process (or lack thereof).

5. Stakeholders

Clients are not the only ones that build a perception of your brand in their minds. Stakeholders include possible clients, existing customers, employees, shareholders, and business partners. Each one builds up their own perception and interacts with the brand accordingly.