What Is Branding and Why Is It Important for Your Business?

Branding is important not only because it leaves a lasting impression on consumers, but also because it lets customers and clients know what to expect from your company. It also differentiates you from your competitors and makes it clear what you offer that makes you a better choice. Brands are built to truly express who you are as a business and how you want to be perceived.

There are many areas to build a brand: Branding Agency in Egypt, social responsibility, reputation, visuals, and more. All of these elements (and many more) come together to create a unique and (hopefully) attention-grabbing profile.

What is branding?

If the description of branding were simple, there would not be so much ambiguity or dissonance about the concept. However, a solid understanding of branding requires a good grasp of the basics of business, marketing, and relationships. Branding is such a large concept that even a correct definition that encompasses it all would not be enough to clarify the subject. However, we offer a more complete definition in order to reduce the propagation of outdated, erroneous, and incomplete information about branding.

Comparing this definition with the official Cambridge definition, it is clear that the latter (Cambridge) is more superficial and gives the reader a false understanding. This may be one of the reasons why many people assume this definition is correct and use it as a basis for knowledge building. The truth is that when we base our learning on a definition that limits branding to just one element (visual identity), all other concepts related to branding fall short when trying to connect the dots.

At first glance, our definition of branding may seem more vague than some other definitions, but the deeper we delve into its meaning, the better we understand the concept. Below is a rough breakdown of what we mean.

1. Perpetual process

Branding is a permanent process that never stops. People, markets, and businesses are constantly changing, and brands must evolve to keep up.

2. Identify, create, manage

Branding involves a systematic process of defining who you want to be to your stakeholders, then developing a brand strategy to match that and continually managing what influences your positioning.

3. Cumulative assets and actions

Positioning should be embodied in assets (visual identity, content, products, advertising, etc.) and actions (services, customer support, relationships, experiences, etc.) that project it to stakeholders, gradually shaping their perceptions.

4. Perception of a brand

Also known as reputation. It is the association that a person (whether a customer or not) has with your brand. This perception is the result of the branding process (or lack thereof).

5. Stakeholders

Customers are not the only ones who shape the perception of your brand in their minds. Stakeholders include potential and existing customers, employees, shareholders and business partners. Each of these forms their own perception and interacts with your brand accordingly.

Why is branding important?

Branding is absolutely essential to a business because of the overall impact it has on the company. Branding can change people's perception of a brand, stimulate new business, and increase brand value, but if it's not done correctly or at all, it can have the opposite effect.

Contrary to popular belief, branding is not an "expensive marketing tactic used only by big companies. On the contrary, branding has a lot to do with common sense and depends largely on the market you are in and the level at which you want to play. Branding requires a consistent mix of different competencies and activities, and costs can vary greatly on a case-by-case basis. Of course, high-level consulting and flawless implementation can cost more than lower costs. Similarly, branding an international, multi-product business is much more complex and requires more resources than, for example, a local business. There is no one-size-fits-all approach.