What is a Brand and why it is important?

A Brand is a perception of a company, product or service that build inside people’s mind over time. It depends on a lot of factors like quality of products or services, how a company presents itself, company’s values and culture, etc.

In broader terms, to build a certain kind of perception inside people’s mind, companies work on two main areas: Brand Strategy and Brand Identity. We will discuss them one by one.

A brand strategy is a framework that determines how you want to be percieved in the market. The brand strategy consists of your company’s vision, mission, value proposition, brand promise, tone of voice, marketing strategy, products or services, understanding of real competitors, and selection of the right target market.

Brand identity, on the other hand, is the way you actually presents yourself. It refers to the collection of visual, verbal, and sensory elements that distinguish a brand and shape its perception in the minds of consumers. It consists of elements that identify your company, like your company’s name, logo, tagline, slogans, colors, typography, sound, etc.

Brand Strategy and Brand Identity work one-on-one with each other to create the desired reputation and perception of a company.

If a company has a great product and a well-defined brand strategy but does not have a strong brand identity, the company will not be recognized well, which affects how customers perceive their products, services, or company.

On the other hand, If a company has a strong brand identity and does not have a well-defined brand strategy, its perception will be short-lived. It may draw attention at first, but it would not develop long-term loyalty and trust.

Serious businesses invest in branding because they understand that a strong brand is essential for success in the long term. As very well said by Steve Forbes,“Your brand is the single most important investment you can make in your business.”