Article - Corporate Branding - Why is it important? | XCO Group
05 Mar 2019
The Importance of Effective Corporate Branding
Corporate branding is a term that gets flung around in most industries quite often – especially when it comes to marketing and advertising. It seems to be one of the things that a business cannot live without, yet not many people are quite sure what it is or why it is important.
What is Corporate Branding?
Corporate branding can be described as the way the company presents itself. It is a representation of the mission, the culture, the values, and goals of the company. A business needs to create an impression with the potential customer, and has to be steadfast in terms of what they offer and how it presents itself to the customer. It is vital to have a look that is unique and consistent on all advertising and marketing platforms.
The most important parts of creating this consistent look is creating a logo, and picking colours and packaging that exemplifies the character of the business. The look and feel of the business is usually created to appeal to their specific audience, which are the people who are most likely to buy into the brand. For instance, a high-cost designer brand will be attractive to just about anybody, but the actual marketing and advertising will be to create a desire for the product that speaks about money, prestige, and luxury.
While not many people can afford these brands, the desire is created with the corporate branding, and often, people will save up money or buy items on credit to share the brand ideals. Advertising is very cleverly strategised to appeal to the target market that is most likely to buy the brand. That is why a low-cost clothing firm or supermarket is not likely to advertise in an expensive magazine – purely because their target market is not likely to purchase these magazines. Time slots on television also include corporate branding ideas. If you want to sell a product to a child, such as a new yogurt or drink, the advertisements should be placed during the times when audiences are at their largest, e.g. during children’s’ television shows.
Why is Corporate Branding Important?
Corporate branding will determine practically everything around advertising and marketing. It will dictate who to sell to, how much to sell it for, where it should be placed, who should stock it, and how it is manufactured and packaged. Here are some of the things that make corporate branding vital to the success of a product or service.
· It Creates Customer Loyalty: Great corporate branding builds a bridge between the potential customer and the product or service. It creates a consciousness with the customer, and allows them to build an opinion on how the brand will suit their lifestyles, their dreams, their practical needs, and their budgets.
· Builds Brand Awareness: Nobody will buy your brand if they do not know it exists. Your corporate branding and advertising will create awareness with potential customers that the brand is out there and ready to be used. It also serves as a reminder for those who are already familiar with the brand, that it is still around, and that they are encouraged to use it.
· Establishes A Clear Idea of The Brand: Because a strong brand identity provides strong clues about the personality of the brand, there are no misunderstandings when it comes to the use of the brand. It is the responsibility of the company to represent their brand in a trustworthy manner that provides everything the service or product is supposed to do. This inspires confidence in the brand, and people are more likely to invest in it.
· Return on Investment: This is something all companies need. Whenever money is invested in something – whether it is branding, marketing, new machinery, more employees, or innovative new working processes, it is important that the company receives a return on this investment. Corporate branding makes ROI easier to manage because it creates a consciousness within the company structure about what the business is all about, and how it should be sold and advertised.
If you want to know how to establish your corporate branding in your target market, get in touch with our experts at XCO Group. We have all the expertise to help you grow the presence of your corporate branding!