If you ever wondered ‘why branding is important in marketing?’ this snippet is for you.
‘Twist, lick, dunk’
‘Twist, lick, dunk’ is a ritual with at least one member in most households. Did you know the iconic Oreos cookies is over 105 years old? As iconic as it became and remains so, Oreos was not the first cookies of its kind.
Once upon a time, a few years before Oreos took over the world, there was another cookie – round and chocolatey brown biscuit sandwich with vanilla cream in between – it was called ‘Hydrox.’ This sweet little cookie sat in the American stores all by itself with no competitors for a couple of years. Then one fine day, came Oreos, similar in looks, feel and taste. In no time, the newcomer ousted Hydrox off the shelves, the market and people’s memory.
Oreos, however went on to have cook books, cakes, ice creams dedicated to it and they even kept up with the digital times and have a popular mobile game – Twist, lick, dunk!
We will not delve in to why Hydrox failed despite being there earlier. What we focus on is how did Oreos succeed and become the icon it is today?
This is where we tell you, Oreos is not another cookie, it is a ‘Brand.’
Let’s find out, ‘how branding helps’
A product may be great; however, it still needs to compete and stand out from the thousands of other similar products in the market.
Why would a customer buy one product over another? Is it the quality, price, or any other specification? Or is it great service and impact?
This is where branding comes into play. Branding can communicate what your business is all about and what makes it extraordinary. More importantly, branding creates an emotional link – showcasing an attribute customer can identify with.
Customers purchase based on their perceptions and these are influenced by the effectiveness of a business’ brand.
Good branding also does more than just create an image for a business; Makes your company savvy, creates an identity that is bigger than the product, builds loyalty and trust, conveys stability, helps recall and reflects commitment.
How branding helps sales?
Think of the world’s greatest companies – Apple, Coke or Nike, you don’t buy just their product. You buy their brand. Branding focuses on establishing a relationship with the consumer illustrating how your life will be influenced by a brand. Branding creates an experience, about the value of a product or service. Then, the brand demonstrates reliability and trust.
In business, great branding creates the trust required to make selling a product easy. Though customers choose brands based on their emotional choices and affordability, proper use of branding can steer customers towards products or services that we may otherwise not have been looking for. Especially with the ever-increasing reach of e-commerce, branding is crucial for your presence in the digital medium. Most people first search for products and services online, see what is visible, read reviews on what other people have to say about it, compare it with the features of another identical brand, and then make a purchase. Good branding is essential to create a quality web presence.
So, it makes sense that companies that have great branding can generate more sales.
Who benefits from branding?
Every business benefits from good branding – whether it is a start-up looking to create a market for themselves, a small-medium-enterprise trying to carve up an identity or a big company wanting to recreate their presence.
Branding is an integral and sustainable marketing strategy that is important to create an exclusive identity to a business. It is the personality of a business or a product. The flavour of an ingredient. It is required to generate a perception and a response to the identity of a product or business.
Good branding strategy helps in creating a competitive advantage to the business by:
- creating a positive and reliable identity
- differentiating a business from competitors
- positively influencing customer purchase decisions
- showcase a reputation that invites positive association
With astounding evolution of technologies, widening social media platforms and increased mobile adoption, it is not easy to make an impact and stay relevant in the customer’s memory. As marketers struggle to create new channels with their marketing activities, the one thing that can ensure sustainability is creative brand building.
An ace marketer once quoted, “marketing is what you do, branding is what you are”.