Hello practicum class,
My name is Alejandro Joya and for this week’s social media
moment I will be focusing on the importance of company branding. Considering
that we are about to present our business ventures I think it would be a good
idea to go over what a strong brand consists of. With increasing competition in
most markets worldwide there is a growing importance in companies having a recognizable
brand with a loyal customer following.
According to entrepreneur.com branding is, “your promise to
your customer. It tells them what they can expect from your product services,
and it differentiates your offering from your competitors. Your brand is
derived from who you are, who you want to be and who people perceive you to
be”. One of the fundamental elements of
a brand is the logo. This is the face of the brand and will be a visual
representation that connects your company to customers. Other important
elements of branding are your website, packaging, promotional materials and
even the way customers perceive staff members. In summary, your brand is all
the elements that affect the way customers view and feel about your company.
Many small companies and start-ups fail to establish a clear
vision for their brand and long term this can have a strong impact on your
business. Taking the time to define this could prove to be difficult and time
consuming but with enough customer research and firm decision making a company
can establish a solid brand.
Entrepreneur.com provides the following questions to help companies
define their brand:
·
What is your company’s mission?
·
What are the benefits and features of your
products or services?
·
What do your customers and prospects already
think of your company?
·
What qualities do you want them to associate
with your company?
As previously mentioned, the importance of brands is higher
than ever. Scott Goodson explains the reason behind this in his article “Why
Brand Building is Important” for Forbes.com. He states, “Brands are psychology
and science brought together as a promise mark as opposed to a trademark.
Products have life cycles. Brands outlive products. Brands convey a uniform
quality, credibility and experience.” A clear indicator of how important
branding has become to companies is the growing trend of company’s acquiring
each other for extremely high amounts. One example given by Scott Goodson is
Kraft Company’s buyout of Cadbury confectionary for an astonishing $19.5
Billion. What exactly did Kraft pay that astronomical amount for? The
chocolate? Factories? Recipes? Candy Makers? No, while those are all valuable
assets the most valuable component Kraft bought was their brand. They wanted to
enter the confectionary market with an established brand customers already had
an affiliation with worldwide. Branding is key for differentiation; if there is
no differentiation there is no long-term profitability. People don’t have
relationships with products, they are loyal to brands and in a world where
there is booming middle class markets (For example Brazil, Russia, South
Africa, Indonesia, Mexico and many more) customers are looking for premium
brands to consume.
Here is a list given by stategynewmedia.com explaining why
branding is important to small organizations:
·
Branding promotes recognition-If branding
is consistent and easy to recognize, it can help people feel more at ease
purchasing your product.
·
Your brand helps set you apart from
competition- Companies now compete on a global scale, what are you doing to
differentiate from millions of other companies worldwide?
·
Brand tells people about business DNA-Your
full brand experience and all its visual elements tell your customers what type
of company you are. Are these points telling the right story?
·
Your brand provides motivation and direction
for your staff- provides staff with the clarity your staff needs to be
successful. It tells them how to act, how to win, and how to meet
organizational goals,
·
A strong brand generates referrals-
people tend to tell others what brands they like but you can’t tell someone
about a brand you can’t remember.
·
A strong brand helps customers know what to
expect- A brand should be consistent and clear, this puts your customer at
ease.
·
Your brand represents you and your promise to
your customer- you are the brand, your staff is the brand, your marketing
materials are your brand. What do they say about you and what you have to
deliver?
·
Your brand helps you create clarity and stay
focused- A clear brand strategy helps you stay focused on your mission and
vision as an organization.
·
A strong brand provides your business value-
a strong brand will provide value to your organization beyond your physical
assets. Your relation to the customer is the most valuable
QUESTIONS
1-Do you agree that establishing a brand is crucial for
young companies? Why?
2-Would you say it is more important to establish a solid
product or brand?
3- Any brands that you have strong affiliations for that you
do not foresee yourself stopping consumption? Why do you feel that way about
them?
LINKS
I think that for a young company it is most important to have a good product. Unless we are talking about artists, or designers or people who make fashionable, potentially fading brand names. If the product is good and consistent then the brand recognition will grow with it naturally. For a young company branding can help, but I don't see it as the main focus.
ReplyDeleteI will continue to consume products by certain grocery brands. I also love levi's. Most of the things I go to the brand for have always provided me with high, consistent quality at a good value.
I think it is very important to establish a brand before you launch your product or service into the market. Your first impression is everything. I feel people may not remember the exact purpose of your product or service but will remember your brand. If they connected your brand to something positive or impactful they would be more likely to revisit why they connected to your brand. Here is a brief Youtube video highlighting the importance of branding:
ReplyDeletehttps://www.youtube.com/watch?v=cnr-QNuME2c
I believe that is vitally important for young companies to establish a brand. If people remember your brand, they will continue to use your products/services. There needs to be some level of brand recognition established; however, developing a solid product is also of upmost importance. A solid product leads to a greater chance of successful branding. It is also extremely important to value delivering the best possible product to your customers. Even though I do not use an iPhone anymore, I am still strongly affiliated with Apple and many of their products. I usually am not the type to follow and use a product just because everyone else is doing it. However, Apple has consistently released innovative products that I have found more useful and valuable than that of its competitors.
ReplyDelete- Jeran S.
It is for sure very important for a young company to establish a brand because it makes the company to be noticed when they are doing something good or at the same time something bad. Establishing a brand gives the company the opportunity to create their own space and to get their own piece of the market share they enter. At the same time, to establish a successful brand is important to have a solid product to support that brand. Each company needs to have a product that differentiate them from competitors and make the voice of their brand to be heard in the market so customers will start looking for that solid product from that newly created brand. Recently, I bought a MacBook Pro from apple and the new experience has been great. However, I still use some of the Microsoft products because I know how they work and have had great experience with them in the past. I love both brands and use both of them when I need to and when I have to.
ReplyDelete-David Arismendy
1-Do you agree that establishing a brand is crucial for young companies? Why?
ReplyDeleteYes, establishing a brand is definitely crucial for young companies because during the early stages of your development you want to be well known. You want your customers to have something to remember, something that will remind them of your company. A lot of trends are set by younger generations buying big named brands. As soon as the cool kid in high school has the next Apple product or NIKE shoes, everyone wants them.
2-Would you say it is more important to establish a solid product or brand?
I think you need a fairly decent product in order to build a brand but at the same time some companies could get away with having a bad product and good brand. Look at some of these clothing companies who charge $900 for a t-shirt meanwhile it cost them maybe less than $10 to make. However, you need to have really good connections or a really good history and brand before you can do something like that.
3- Any brands that you have strong affiliations for that you do not foresee yourself stopping consumption? Why do you feel that way about them?
I love Iced tea, I definitely have a favorite brand of Iced tea but some places do not have it. I am not going to not drink any other iced tea just because I have a favorite or preferred brand. I do not really chase after brands. I have a couple of Apple products but I am always open to something else new and innovative or even cheaper depending on the quality but I am not held down to any particular brand. When flying I love to go with United. US airways/American airlines, southwest airlines, and airtran are not my favorite but if they are cheaper then I most likely will go with one of them
- Derek D
1. I think it is Alejandro. Now as more and more small companies are coming into the market, people are bombarded with all kind of logos and catch phrases. However, it is very important that from start you establish a strong and credible brand. People should be able to identify with who you are and what you do. The media today strongly emphasizes that consumers connect the most with those brands that give back to the community and have a clear vision. Besides the fact that a good brand can be marketed well, a good brand makes the customer feel proud of being part of their family.
ReplyDelete2. As mentioned in the paragraph above, a good brand can be excellent for advertising! People nowadays can identify more with a certain brand than their products. A clear example of this is Apple’s iPhone. I believe this company year after year comes up with two iphones that probably improves in two very little aspects that make very little difference. However, why do people still make those long lines each and every time to buy the newest one? Brand Recognition! People are dying to have the latest iphone on the market just to say they have the newest one. Once you ask these customers what they think about it, most say “same shit as last my time.”
3. I have strong feelings for Adidas. Ever since my Nike shoes just completely tore(which was like 8 years ago) I have only shopped for the European based soccer supplier. These have proven to be both fashionable and durable. Their innovation team is exemplary, making Adidas segment leaders in almost every market they participate in.
Eduardo M