Why Is Branding Important?

Why Is Branding Important?
Article by Jelena RelićJelena Relić
Last Updated: May 06, 2023

From establishing trust and credibility to differentiating your business from competitors, branding offers various benefits for businesses, no matter the scale. Going beyond just creating a free logo or tagline, effective branding can shape customer perceptions and ultimately drive loyalty.

In this article, we’ll talk about the concept and the benefits of branding and provide a few famous examples of successful branding.

Why Is Branding Important?

Let’s look at the benefits of branding your business can enjoy:

  1. Increases Brand Recognition
  2. Helps Build Trust
  3. Attracts Talent
  4. Increases Customer Loyalty
  5. Helps Businesses Differentiate from Competitors
  6. Creates Emotional Connection
  7. Generates Long-Term Value

1. Increases Brand Recognition

One of the major benefits of branding is that it helps brands get recognized among consumers. When consumers memorize and become familiar with your brand, they are more likely to purchase your products over those offered by a brand name they’re not familiar with.

2. Helps Build Trust

Another value of branding is that it allows you to show potential customers that you are trustworthy, honest and authentic. Through effective branding which involves fostering connections, educating your customers and engaging with your community across platforms, you will build trust with your audience.

As a result, customers who trust a brand are more likely to recommend it to their friends.

3. Attracts Talent

Branding plays a big role in the recruitment process, too. When potential employees notice a company that has a strong brand and positive reputation, they are more likely to be interested in joining that team, to become a part of something great.

If you have established a unique brand persona and respected values, you will find it easier to attract potential employees who share those values.

4. Increases Customer Loyalty

A strong brand leads to increasing loyalty among customers. When a brand creates personalized experiences for their customers, shows their human side and forms an emotional connection with them, customers can relate to the brand more. Loyal customers become repeat customers.

5. Helps Businesses Differentiate From Competitors

Branding can differentiate a business from its competitors by showcasing unique brand attributes and values that set it apart in the market. When customers perceive a business as different and unique, they are more likely to choose it over its competitors.

For example, the messaging and imagery used in Coca-Cola's branding are distinct from that of Pepsi, even though both are beverage companies. This differentiation in branding helps customers easily distinguish between the two brands and make a choice based on their preferences.

Branding can also help a business highlight its unique selling proposition (USP) and showcase its strengths. For instance, a business that emphasizes its commitment to sustainability and environmental responsibility can differentiate itself from competitors that may not prioritize these values.

6. Creates Emotional Connection

Branding can create an emotional connection with customers by incorporating values, beliefs, and personality into the brand identity. A strong brand identity that resonates with customers creates a sense of attachment and community. This emotional connection increases customer loyalty, supports word-of-mouth marketing, and ultimately leads to increased revenue and profitability for the business.

For example, Apple's brand identity is built around innovation, creativity, and simplicity. Similarly, Nike's brand identity is built around inspiration, motivation, and empowerment. Customers who resonate with these values are likelier to feel an emotional connection and become loyal customers.

7. Generates Long-Term Value

By establishing brand equity — the value a brand adds to a product or service beyond its functional benefits — branding can create long-term value for your business. Brand equity can be measured by factors such as brand awareness, brand loyalty, perceived quality, and brand associations.

A strong brand with high brand equity can help a business maintain its competitive advantage and increase its market share over time. This is because customers are more likely to choose a brand that they recognize, trust, and have an emotional connection with. As a result, a business with a strong brand can charge a price premium, which can increase its profitability and revenue.

What’s more, a strong brand can help a business expand into new markets and product categories. For example, if a business has a strong brand in one product category, it may be easier to introduce new products under the same brand name, as customers already have a positive perception of the brand. Brand equity can also be an asset for a business in the event of a merger, acquisition, or sale.

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How To Brand Your Business: A Step-by-Step Guide

Here is a step-by-step process for branding your business:

  1. Analyze Your Target Audience
  2. Research Your Competitors
  3. Develop a Brand Identity
  4. Craft Messaging
  5. Build an Online Presence
  6. Maintain Consistency

1. Analyze Your Target Audience

Before you take any other steps toward creating a brand, you need to research and analyze your target audience and ask yourself: who are your ideal customers?

To develop messaging and target the right customers, you need to understand who your audience is, what they like, what their pain points are, and how to solve them. Once you know who your target audiences are, group them based on their interests, age, and shared characteristics. This is called audience segmentation.

When you’ve grouped your audience, develop buyer personas to represent each target group. A buyer persona is a fictional but detailed description of a customer who represents a particular group of consumers you’re targeting.

Developing buyer personas will help you improve your targeting and tailor your messaging and marketing efforts to each group.

2. Research Your Competitors

Researching your competitors and industry leaders is an essential step in branding because it allows you to see who you’re up against.

Learning about your competitors, their branding strategies, and their offering will help you determine what you need to focus on in your branding efforts and how to set your brand apart from other businesses in your industry.

3. Develop a Brand Identity

Now that you know who your target audiences are, you are ready to start shaping your brand identity and creating a brand book. A brand book outlines every aspect of your brand identity, including your brand name, your story, logo, and other elements, and will serve as a guide for representing your brand.

This means defining your visual persona, including logo, color palettes, typography, and imagery, as well as determining your core values, mission, and tone of voice.

4. Craft Messaging

The next step is to craft the messaging to define how your brand will communicate its unique value proposition. Your brand’s value proposition explains to consumers what benefits your product or service provides and the value they will get from it.

You will also need a tagline or a slogan which is a short, catchy, and memorable statement that sums up your brand’s essence. Think of Nike’s “Just do it” tagline, which is so simple but catchy that the brand has been using it for over twenty years. If you need help coming up with a tagline, Shopify has a free slogan maker you can use.

Craft your main benefits or selling points that make your brand stand out and ensure they reflect your brand voice. You will use these points for content creation, including blogs and social media.

5. Build an Online Presence

Now you need to start establishing an online presence. This includes building an optimized, user-friendly website and being active on social media.

Once you create a website, start a blog to educate your audience. Write blog posts related to your industry and the product/service you offer that provides value to your audience.

For many people, your blog will be the first interaction they have with your brand. If you write quality content optimized for search engines, your audience will discover it when searching for related information on Google. This is why it’s important to provide informative, meaningful content to attract and engage them.

Social media also plays an important role in boosting brand awareness. In fact, a study conducted by the Sprout Social Index revealed that a staggering 89% of consumers tend to shop from brands they follow on social media.

To discover where your target audience spends time and which social media platforms you can use to reach them, analyze your audiences’ demographics. For example, TikTok is popular among younger audiences such as the Gen Z population, while the biggest group of Facebook users are between 25-34 years old.

6. Maintain Consistency

Consistency is key to effective branding. This means ensuring that your brand’s representation is cohesive across all channels and touchpoints.

To maintain consistency in branding, you need a brand book with brand guidelines, which we talked about earlier.

Use your brand book to make sure your brand is represented consistently, from your website to your social media pages, marketing materials, and beyond. This not only includes visual elements, such as your logo, typography, poster templates, and color palette, it also includes consistency in your messaging, brand promise, and values.

Get connected with the right branding agency for your project.

Top Three Examples of Powerful Branding

We’ve talked about the key steps of branding but what does successful branding look like in practice? We’re about to show you! Here are three famous examples of successful branding:

  1. Apple
  2. Starbucks
  3. Coca Cola

1. Apple

When thinking of successful branding, Apple is one of the brands that immediately come to mind. The tech company’s brand positioning was so successful that people now identify themselves as an Apple or Android person or a Mac vs. PC person.

Apple’s brand mission from day one was to bring the best user experience through its innovative products and services. And it stays true to that mission today.

Apple products are known for their intuitive, user-friendly interface. Unlike other consumer electronics brands, Apple focuses on a single mobile phone model – the iPhone. And the supplies are always limited when a new product comes out. This creates a sense of urgency and pushes consumers to act quickly and buy the product.

Apple’s logo, the bitten apple, is recognized worldwide, and in 2022, Apple was deemed the most valuable brand in the world at $355 billion.

2. Starbucks

The name Starbucks has become almost synonymous with drinking coffee and that is why this is one of the top examples of successful branding.

This global brand reimagined the coffee-drinking experience and created a third place between home and work where people can go to grab their favorite drink and relax. What’s more, people go to Starbucks not for the coffee but for the experience the brand provides.

The idea of writing down people’s names on cups of coffee when serving was brilliant and became a recognizable part of the brand’s culture.

3. Coca-Cola

If you didn’t see a Coca-Cola Christmas commercial on TV, has the holiday even started? The giant soft drink brand Coca-Cola has built its brand identity around togetherness, sharing, happiness, and the holiday spirit.

But it wasn’t a success story from the beginning. The first glass of the refreshing drink was sold in 1886, but it’s the marketing and branding efforts from the 1970s onward that created the Coca-Cola that we know today. Their taglines evolved over the long history ranging from “Always Coca-Cola” and “Taste the Feeling” to “Together Tastes Better,” emphasizing the experience, not the product itself.

The product itself hasn’t changed in 130 years, which is why Coca-Cola focused on branding and evoking a feeling associated with opening a bottle of a cold, refreshing drink on a hot day or over lunch with friends and family.

Coca-Cola doesn’t just sell a soda drink — it sells happiness in a bottle, a feeling consumers can share with their loved ones.

The brand also managed to personalize the consumer experience with its global Share a Coke campaign, where popular local names in over 50 countries across the world were printed on the label instead of “Coca-Cola.”

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The Importance of Branding: Key Takeaways

Branding, or the process of creating a brand persona and positioning a brand in the minds of consumers, can do wonders for your business if done right, as seen from the examples above.


  • Increases brand recognition
  • Helps build trust
  • Attracts talent
  • Increases customer loyalty

To successfully brand your business, you need to follow the established step-by-step process, which includes:

  • Analyzing your target audience
  • Researching your competitors
  • Developing a brand identity
  • Crafting messaging
  • Building an online presence
  • Maintaining consistency

Branding success does not come overnight, but if you build a great brand story and remain consistent in brand representation, you can reap long-term benefits even from small business branding. A professional brand management company can be your best asset in achieving this.

Branding Importance FAQs

1. What is the value of branding?

The value of branding lies in its ability to create a positive image and reputation for a company, product or service that distinguishes it from competitors and attracts customers. In the long run, branding helps businesses gain a competitive advantage while driving revenue and profitability.

2. What is a branding strategy?

Branding strategy is a long-term plan that outlines how a company will create and promote its brand to differentiate itself from competitors and establish a strong connection with its target audience.


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