Branding is often ignored by small and medium sized entities. They often miss out or pay the price because they do not understand the benefits of branding. In this article we highlight the importance of branding and how it can be beneficial to your business and your customers.
The importance of branding should not be understated as it offers great benefits to your business. Should you invest in branding? The first thing to consider is how difficult it is to differentiate your products. If you can differentiate your products by branding them, you can charge a premium. In some markets, the products are equal. For example milk, paper and eggs. In such cases, the key advantage is price discounting which if strategically implemented can result in an increase in business volumes.
Branding enables you to create what we call brand equity. Customers are willing to pay a premium on your products based on tangible and intangible benefits. Think of big brands such as Porche, Mercedes-Benz, BMW or Audi – these are big brands in the motor vehicle arena. These are brands with power brands. Branding results in customers having an affinity towards a brand and this can be beneficial for businesses.