Branding – what it is and what it consists of?

Have you ever wondered why certain brands are present in our minds? Why, when you think of fizzy drinks, your first association is Coca-Cola? The answer in this case is effective branding. It allows companies to distinguish themselves from their competitors and to stick in the minds of their consumers for a long time.

In this article you will learn:

• What is branding?
• What elements does branding consist of?
• How do you build a brand?
• What is the importance of branding for your business?

Branding – definition

Branding is the process of building brand awareness. It involves creating in the minds of the public a unique and attractive identity for a product (product branding), service, company or person (personal branding). The aim of branding is thus to win loyal customers by providing them with products or services that meet their needs and expectations of the brand. It is worth entrusting the planning and implementation of the process to a specialist such as a brand manager.

Elements of branding

If you want to build a strong, recognisable brand, you first need to know the elements that make up branding. These are:

Visual identity system

Visual identity significantly influences how a brand is perceived by customers and how it will be remembered by them. The brand image, however, is co-created by the following elements:

• Logo – one of the most recognisable elements of a brand’s visual identity. A properly designed logo should be uncomplicated, yet distinctive and easily recognisable. Furthermore, the logo must reflect the brand identity. This will ensure that consumers will easily associate the logo with a particular brand.
• Colour scheme – plays a significant role in brand communication. Choosing the right colour palette is key here – as each colour evokes specific associations and emotions. It is also important to consistently apply the chosen colour scheme across all promotional materials and communication channels – this will make the brand recognisable and its actions will be perceived as consistent and well thought-out.
• Typography – brand image is also influenced by the style and type of fonts used in various communications and marketing messages. The font should be legible and match the chosen tone of communication and brand identity.
• Graphic style – this refers mainly to illustrations, photographs or icons. When choosing a graphic style, make sure it is well thought out and consistent with the brand image and values.

Brand identity

The brand identity defines the brand, its objectives and its values. Brand identity consists of the following elements:

• Mission – defines the main purpose or reason for existence, i.e. what the brand wants to achieve or what consumer problems it wants to respond to.
• Vision – the long-term goal the brand aims to achieve. It should be ambitious yet realistic.
• Value proposition – what the brand promises its consumers. It is also the element that sets the brand apart from its competitors. The value proposition should focus on the benefits that customers will gain from using the chosen products or services.

Brand positioning

Brand positioning determines how consumers perceive and understand the brand. With effective positioning, it is possible to build a strong position in the market, gain a competitive advantage, build brand awareness and improve brand awareness, and create valuable, long-term relationships with customers, ultimately also increasing sales.

There are various brand positioning strategies – but they all have one goal – to build a brand image that is unique, original and attractive to a specific target group. In the context of brand positioning, we distinguish between:

Customer experience

The customer experience (CX – Customer Experience) consists of all the interactions a customer has with a brand and all the feelings that accompany the customer at each stage of his or her journey (Customer Journey) – from the first contact with the brand, through the purchase process and after-sales service. CX therefore has a direct impact on how the consumer perceives the brand. It also determines whether they will become a loyal consumer and use the products or services offered again.

Every customer interaction is a valuable opportunity to build positive brand associations. In order to build an attractive brand image in consumers’ minds through their experience, it is worth paying special attention to:

• The purchase process – it should be simple, intuitive and transparent. This includes both intuitive website navigation, understandable and accurate product information, uncomplicated ordering and short, clearly defined delivery times.
• Customer service – the positive customer experience is largely influenced by a properly structured customer service department. It is important that employees, who are in direct contact with the consumer, provide a comprehensive, efficient and courteous service.
• Personalisation – by analysing data concerning your target group, you can provide your consumers with personalised experiences – e.g. individually tailored product or service offers tailored to their needs and preferences. These types of solutions will improve the customer experience and thus make your brand positively and long-lasting in their memory.
• Feedback and engagement – in order to improve the customer experience, it is worth taking customer feedback into account and engaging in dialogue – e.g. by responding to comments posted on social media.

Branding process

The branding process should be based on the following steps:

Market analysis

Market analysis usually includes elements such as:

• Competitor analysis – its purpose is to understand who your main competitors are, what their marketing and communications strategy is, what products or services they offer and what their strengths and weaknesses are. Knowing what your competitors are doing, on the other hand, enables you to identify the market gaps that your brand will fill – making it stand out from the rest and become a permanent fixture in the minds of your audience.
• Target audience analysis – this involves learning about consumer demographics, behaviour, needs, preferences and expectations. You can use a variety of tools to analyse your target audience, such as surveys, focus groups, interviews and data analysis.
• Market trend analysis – market trends can influence, among other things, how customers perceive a brand, which products or services are popular at a given time and which communication channels are most effective. It is therefore worth keeping up to date – by taking advantage of current audience preferences, you can build the desired image of your brand in their minds.
• SWOT analysis – this tool is used to identify your brand’s strengths and weaknesses, as well as market opportunities and threats. It therefore helps you understand where your brand should focus its efforts and what challenges it may encounter along the way.

In-depth market analysis, in turn, allows the brand to move on to the next stage of branding, which is the creation of a well-thought-out strategy that addresses real market needs and current consumer expectations.

Brand strategy

A brand strategy is otherwise known as a plan of action that defines how a brand will communicate its characteristics, benefits and values to a selected target audience. Creating a brand strategy includes the following elements:

• defining the brand’s mission, vision and value proposition – defining the short- and long-term goals and benefits that potential customers will gain from the brand’s proposed products and services,
• defining the brand positioning – defining how the brand is to be perceived by consumers and identifying the characteristics that differentiate it from its competitors,
• choice of marketing channels – choosing how the brand will communicate with its audience; communication channels include social media, email marketing, advertising or events, among others
• planning marketing activities – the elements listed above will allow you to create an effective marketing strategy that will enable you to reach your chosen customers, increase brand awareness, gain consumer loyalty and achieve your sales goals.

Implementing the strategy

Once a brand strategy has been created, the next step is to implement it. This is the stage where the developed plan is transformed into concrete actions. The implementation of the brand strategy allows for the effective communication of predefined values, the creation of quality relationships with customers and the achievement of set business goals.

Monitoring and optimisation

Remember that effective branding also means collecting data on your marketing and sales activities on a regular basis. Metrics such as website traffic, conversion rate, consumer satisfaction, customer retention or market share are particularly important.

On the basis of the data collected and the analysis carried out, you can in turn make the necessary changes to your strategy. These may include your product or service offering, the way you communicate with your customers or other modifications in the area of customer service.

Monitoring and optimising your activities will allow you to continually improve your brand, build lasting relationships with your customers and, ultimately, improve your sales performance.

Importance of branding

The branding process is extremely important to the success of your business. This is because branding:

• Influences purchasing decisions – a strong, distinctive brand can significantly influence consumer purchasing decisions. This is because customers often choose products and services from well-known and trusted brands. They provide a sense of security and a guarantee of high quality products and services. A properly built, recognisable brand will therefore help attract the attention of potential customers and induce them to make a positive purchase decision.
• Builds brand identity – effective branding helps to create a unique identity that reflects your mission, vision and value of the company and its proposition. In turn, a strong, clear brand identity allows you to establish a valuable relationship with your customers that will translate into real profits for your business in the past.
• Helps customers remember your company – branding includes creating a recognisable visual identity – an attractive logo, consistent typography and appropriately chosen colours help customers to identify and remember your company. An understandable and consistent brand message, tailored to a specific target group, is also important in this context.
• Reinforces advertising and marketing activities – branding underpins all advertising and marketing activities. Properly defined positioning, a clear and consistent value proposition and audience-tailored brand communication are extremely helpful in creating successful campaigns.

Branding is therefore not just an attractive logo or an interesting website. It is a strategic process that allows you to build a strong market position, attract and retain customers and increase their loyalty. All this, in turn, leads to long-term business success.