The word ”
branding
” is often heard in the business world.
I think there are few people who can clearly explain the meaning and usage.
Branding is an action to get consumers to have a common understanding that “When you say 〇〇, it means XX.”
For those who think “It’s abstract and difficult” or “What is branding after all?”, this article will help you deepen your understanding of branding.
What are the benefits for a company by putting more effort into branding? We will introduce you to the specific method of branding strategy.
If you haven’t branded your company or are stuck on the concept of branding, please refer to it.
What is branding?
In order to understand how to use branding, we will first explain the concept of “brand”.
The origin of the word “Brand” is thought to be the Old Norse word “brandr,” which means “to brand.”
In the past, people used to mark their own livestock with a branding iron to avoid confusion between their own livestock and those of others, so the word brand has the meaning of “elements that distinguish them from other similar animals.”
A brand has the following elements:
- name
- color
- logo mark
- music
- character
-
Catchphrase
- package
- odor
If you think about it for a moment, you’ll probably come up with a few things, such as, “When I think of this logo, I think of this company,” or “When I think of 〇〇, I think of that product.”
In this way,
a brand is a concept that exists in the mind of each consumer.
Therefore, even if a company communicates to the market that “this is a good product” or “this service has such value,” it cannot be called a brand if it is not recognized by consumers.
“Branding” is an action to gain recognition from consumers and create a common understanding.
The purpose of branding is to enhance the uniqueness and value of a brand and clarify the company’s position.
Components of branding
When branding, you need to understand the components of a brand.
A brand mainly consists of three elements: brand identity, abstract brand media, and visible brand media.
brand identity
Brand identity is a verbalization of the brand’s vision and characteristics after clarifying “how you want consumers to think of you.”
If your brand identity is vague, you won’t be able to properly convey your brand’s story and message.
abstract brand media
It is a concrete form of brand identity and can be broadly divided into “code” and “style.”
“Code” refers to brand identity expressed in words, such as a catchphrase, and “style” refers to something expressed in visible form, such as a logo or design.
visible brand media
It visualizes the “code” and “style” of abstract brand media in a generally easy-to-understand form as content such as TV commercials, magazines, newspaper advertisements, and web media.
Benefits of branding
The ultimate goal of branding is to “increase corporate value.”
Successful branding can increase the number of company fans and repeat customers for your products, prevent you from getting caught up in price competition, and even differentiate your company from other companies when it comes to recruiting. I will explain it in detail.
Acquire customers and improve repeat rate
By clarifying how you want your brand to be perceived, it will be easier for consumers to form an image of your brand.
If you can make consumers realize that “when you say 〇〇, it’s that product, right?”, this will give them an opportunity to purchase the product, and by turning them into fans, you will increase the repeat rate of the product.
Gain an advantage in price competition
For example, if product A and product B, which have the same appearance and performance, are placed side by side, the consumer may think, “I’ll go with product A because it’s a famous manufacturer.” Furthermore, in this case, even if product A is slightly more expensive than product B, there is a higher possibility that product A will be purchased.
For consumers, companies and products with strong brand power create a sense of security because they know the name.
On the other hand, if branding is not done properly, if the same products are lined up, the only way to differentiate them is to lower prices.
If you can find value other than price through branding, you can get consumers to recognize you without having to compete on price.
Leads to recruitment of human resources
Staff working at Tokyo Disneyland are often fans of Disneyland before they are hired, and they often understand the brand identity mentioned above.
Appropriate branding can lead to an increase in job applications, the hiring of talented people, and a reduction in mismatches after hiring.
In addition, well-known companies may be able to receive applications from targeted candidates even if they reduce their job advertisements, which can reduce recruitment costs.
In addition, by specializing in branding for specific information, even for companies that generally have low brand power and visibility, it is possible to strengthen recruitment capabilities, form a population, and reduce mismatches.
Concept of branding strategy
What kind of strategy should we develop to maximize the value provided by branding?
I will explain the concept of branding strategy in three main parts.
Perform environmental analysis
Environmental analyzes such as
SWOT analysis
,
3C analysis
, and
PEST analysis
are essential for branding.
The purpose of branding is to differentiate yourself from competitors in the market, but you must first begin by objectively understanding your company’s current situation.
Identify your company’s strengths and weaknesses, clarify the competitive market, consumer needs, and your company’s target audience.
Establishment of brand identity and output
Next, think about your brand identity. Establish the value of your brand by clearly expressing what you want consumers to think of you as explained above.
Once the brand identity is established, we translate it into abstract brand media and visible brand media to disseminate information.
Setting evaluation indicators
There is a concept called “brand equity” as a way to evaluate branding measures. If you can continue to increase brand equity, you can gain repeat customers and increase consumer attachment (brand loyalty), leading to a positive cycle.
[Five concepts of brand equity]
① Name Recognition This refers to the degree to which a brand name is recognized.
A well-recognized brand provides a sense of security and is more likely to be chosen by consumers.
② Perceived quality This refers to the quality that consumers perceive about a brand.
Quality includes not only functionality and performance, but also values such as brand reliability, service, and atmosphere.
It is important to note that this is different from the quality assumed by the company, and is strictly from the consumer’s perspective.
③Brand Loyalty Brand Loyalty is a consumer’s desire to purchase a specific brand, and represents the degree of attachment to a brand.
Increased brand loyalty will increase repeat customers, increase premium value, and reduce costs such as advertising costs.
④Brand associations Brand associations refer to all the things that come to mind when consumers hear a brand name.
For example, when you hear the word “Apple,” you get information about products such as the iPhone, iPad, and Mac, as well as simple and sophisticated designs, new product launches that always get attention, and a wide range of accessories. The more brand associations you have, the more advantageous you will be when it comes to designated purchases and designated searches.
Brands with weak associations are less empathetic, making it difficult to gain brand loyalty.
⑤Other assets Refers to intangible assets other than the four elements mentioned above. This includes patents, which protect a company’s unique technology, and trademark rights, which prevent similar designs or names from being used, and can help protect a brand from competitors.
summary
This time, we explained basic knowledge from the original meaning of branding.
Successful branding allows you to differentiate yourself from the competition.
Furthermore, by permeating a positive image into consumers’ consciousness, they are more likely to choose and purchase a company or product. Building a system for a company’s long-term success in this way can be considered a branding strategy.
Let’s continue to refine our corporate value by making full use of brand elements and brand experiences, in order to clarify our “brand identity” and have consumers share a common understanding of our vision and thoughts.