Businesses compete against each other in order to get a bigger piece of market share. This means, getting the most sales of a single market. If the monthly sales of a certain product are 100 units a month and you’re selling 25 a month, then your market share is 25%.
The traditional way of increasing your market share is offering your product at a lower price. Which means, decreasing your costs, so your product becomes cheaper and people are more likely to choose yours.
People buy on emotions
But, this is not the only way businesses compete nowadays. Marketing has provided us with the tools to engage with people and make them feel special. Remember that people buy on emotions and justify with logic.
There are several ways to differentiate from your competition. You could compete on quality and try to offer a better product or service than your competitors. Or you could compete on price as previously mentioned. But maybe, that’s not possible and you need another way to make your customers fall in love with your product. Another more appealing way to differentiate is branding.
Branding is a marketing strategy that enables you to get more customers and increase your price at the same time. People see branded products as a safe choice. When choosing between different products, branded ones will seem to have better quality. In addition, people are willing to pay more because they spend less time choosing between other options. This saves up time for them, since they don’t compare different prices or look for information about the different products. They simply focus on its quality even if it is perceived. We say perceived because sometimes branded products are not high quality. But since they are appealing to people, they seem to be high quality. Remember always that people buy on emotions.
A high-quality product with a branding strategy is a killer way to attract customers and retain them.
Giving an identity to your business can be very lucrative and can make you raise your sales. You could do this and even increase your price.
If you are promoting yourself and your personal career that’s called personal branding. But in this post, we will focus on business branding.
Make people remember the name and logo of your business
Coming up with a name, a slogan, and a logo is not the only thing to do in order to build a brand. You need to create the image of your business. This is really important since people will remember your business easier. People have to recognize your logo and you should work on this. Brand awareness refers to the ability of customers to recall or recognize a brand. If I asked you “which is the first smartphone brand that comes up to your mind?” what would your answer be? This is something you should work on your startup. This strategy is key during the purchasing decision-making of your clients.
Putting your name and/or logo on your packaging is a great example of how you can facilitate people to remember you. Using your logo on the proﬁle pictures of your business social media accounts. You need to make people trust your brand, that’s how you will get loyal consumers. Establishing a good relationship using social media is a great strategy. This is called social marketing or social media marketing.
How to build a brand?
Now let’s see how you can build your own brand by breaking down the different parts that form a successful one. You need to differentiate from the competition and become attractive. That’s why we need to learn about the different components that shape a brand:
Brand’s personality and its focus
First of all, it is important to decide how will people sense your business. What is the thing that makes your brand valuable? What words define your business.
For example, McDonald’s is a fast-food business which focuses on that. Delivering delicious food in little time. They don’t care if the food is unhealthy or the comfort of the facilities. It is thought to make people eat and leave.
Starbucks didn’t invent coffee, but instead, it created an environment to enjoy it. Unlike McDonald’s, this business charges a really high price for their products because you are paying to stay in the store. You can read the newspaper or a book while you enjoy your coffee.
What makes your business special? Which words you’d like people to associate your brand with?
These are some guiding questions you can ask yourself while working on your brand.
Your business name
It is really important to choose a name which makes no confusion with the type of business you are setting up. You need a name also that doesn’ contribute to a negative prejudged thought.
Avoid names that are hard to spell or are too long to remember. Focus on a being simple, catchy and meaningful.
Besides, if your name explains your startup by itself you’d need less money to increase brand awareness. If your startup’s name is “Eat Greener”, you can deduce that it is an eco-friendly business focusing on cuisine. But for instance, “Beginneur” doesn’t explain what is this page about. Unless you keep reading or find the slogan “Entrepreneurship for beginners”, you won’t understand what Beginneur is about.
Make a list of all the options you can think about. Even the ones you think at first glance that won’t work. You can ask some people which they like the most. But still, don’t waste too much time doing this you have to keep doing.
Make a logo
Images make more impact than words on people and your logo is the first visual impact they get from your brand. So, as said in the business’ name, if your logo helps to explain your startup then you’ll need less time and money doing it.
If you are not skilled you can go to some websites like Fiverr or Upwork. You can find some graphic designers that can make a logo for you. Again, you don’t have to spend an entire week doing this. When building a startup you need to be productive and avoid wasting time.
What is brand equity?
The amount of extra money you are able to charge to your product compared to an unbranded one. A Spalding basketball costs around $40, while a regular ball costs $25. Then, Spalding’s brand equity is $15.
Not only quality but standards of living?
People don’t always buy branded products because of perceived greater quality. And the best industry to analyze this is the clothes’ industry.
Marketing advertisements try to establish a standard of living. And the way to meet this is by buying their product. The clothes design, fashion, are also motivators that make people buy.
Some people try not to be excluded by having the latest trendy outfits or accessories.
This happens with luxury products as well. People assume that as they make more money, they should buy more expensive cars, clothes, and even watches. Some brands represent a lifestyle and that desire of meeting those standards triggers the purchasing decision-making.
Why is important to develop a good relationship with your customers?
Your relationship with your customers has to be strong. This will lead to customer loyalty. This means that if a client of yours has different options to buy a product, they will end up choosing yours. It is quite simple, people will always go for the option that is more comfortable for them and the one they trust more.
You should build a reputation for your business since people will react this way if you are doing things in a good way. Good quality and price, good service. And always aim to improve it.
This is a long-term strategy and I consider it a must-do. You don’t get conﬁdence from one day to another. It’s not done when you make one transaction. This relationship you need to build, become stronger and stronger over time.
Why do customers feel attracted by brands and why this lets you establish a higher price
By being recognized as an authority, you give conﬁdence. It also helps clients to reduce research time. Since they know your product has good quality, they don’t want to look for other options. Instead, they accept to pay more than a non-branded product and save time.
Businesses also proﬁt in other ways. They reduce costs as well. Since they develop customer loyalty, their costs in customer retention strategies decrease.
What’s your brand story?
The art of storytelling is knowing how to tell a good and well-presented story. An effective storytelling consists of keeping the audience engaged and holding the interest, throughout the narrative. It’s about reaching the listeners no matter the age or any other characteristic.
Telling a story around your brand enables you to connect with your audience. Storytelling is a powerful way of naturally bonding with your customers. This will create a stronger, unique and lasting relationship with your audience. It helps you connect with people and involve them deeply with your business story.
It makes use of narrative to stimulate people’s mind and heart, to subsequently make a stronger identification and emotional bond between your brand and your audience.
Clients tend to spend more money on brands they feel strongly connected with. Moreover, they are more likely to forgive brands if they mess up. They’ll also feel more secure lending personal information to these businesses, such as email addresses, phone numbers and more.
Before we get to talk more about this, here’s a great TEDx talk about brand storytelling by Jeff Freedman.