Branding is defined as the process involved in building a unique name and image for a particular product and service in the minds of consumers’ through a series of advertisement campaigns with a constant theme. It aims to establish a remarkable and distinctive presence in the market to attract and retain customers.
Apart from just a memorable name and logo, branding accelerates the total value of the company, furnishes employees with motivation and direction, and acquires new clients efficiently. In short, a brand is everything to a company; it represents the overall perception of the products, services, customer service, advertisements, and logo. When all these parts start to work well, brands tend to be vigorous.
However, most of the small and medium-sized enterprises often ignore the importance of branding due to several reasons such as being overwhelmed by the idea of producing a unique brand and the cost involving in it.
These are the six key benefits of branding for SMEs:
The logo is one of the major components of your brand, the face of your company. The design of your logo becomes critical as the simple graphics will be on each and every piece of correspondence and advertising. For example, the golden arches of the restaurant giant, Mc Donalds. A professionally created logo will be memorable and powerful enough to provide the desired impression of your company.
A unique, professional appearance can easily build trust and reliability in the minds of customers. People are often likely to do business with a firm that appears legitimate and refined. In precise, emotional reactions are influencers.
The advertisement is the other major element of your brand. It is the method chosen, along with the demographic aimed for advertisements, creates a brand. Both the factors should be blended in a spectacular way to build a unique brand that can explore new markets and leave an everlasting impression on the minds of potential clients.
- Financial Value
The firms that are listed on stock exchanges are valued more than their actual hard assets because of their brand value. If a company is about to borrow funds for expansion or go for an IPO (Initial Public Offering), its brand value will make things easier during the process in every sense. A high brand value always assures greater financial returns.
- Staff Motivation
Most employees usually crave more than just work; they need something to motivate them in work. A strong brand makes the employees understand the goals set and enhances their belief in the institution. Employees feel proud in working with a unique brand that guarantees a professional work culture.
- Referral Generation
A strong brand always gets referral business. ‘Word of mouth’ referrals are possible only in a position where the company delivers a lasting impression with its customers.