Branding: Brand Strategy & Equity
Branding: Brand Strategy & Equity
Branding: Brand Strategy & Equity
An effective
brand strategy gives you a major edge in increasingly competitive markets. But what exactly does
"branding" mean? How does it affect a small business like yours?
Simply put, your brand is your promise to your customer. It tells them what they can expect from your
products and services, and it differentiates your offering from your competitors'. Your brand is derived
from who you are, who you want to be and who people perceive you to be.
Are you the innovative maverick in your industry? Or the experienced, reliable one? Is your product the
high-cost, high-quality option, or the low-cost, high-value option? You can't be both, and you can't be all
things to all people. Who you are should be based to some extent on who your target customers want
and need you to be.
The foundation of your brand is your logo. Your website, packaging and promotional materials--all of
which should integrate your logo--communicate your brand.
Your brand strategy is how, what, where, when and to whom you plan on communicating and delivering
on your brand messages. Where you advertise is part of your brand strategy. Your distribution channels
are also part of your brand strategy. And what you communicate visually and verbally are part of your
brand strategy, too.
Consistent, strategic branding leads to a strong brand equity, which means the added value brought to
your company's products or services that allows you to charge more for your brand than what identical,
unbranded products command. The most obvious example of this is Coke vs. a generic soda. Because
Coca-Cola has built a powerful brand equity, it can charge more for its product--and customers will pay
that higher price.
The added value intrinsic to brand equity frequently comes in the form of perceived quality or emotional
attachment. For example, Nike associates its products with star athletes, hoping customers will transfer
their emotional attachment from the athlete to the product. For Nike, it's not just the shoe's features
that sell the shoe.
Defining your brand is like a journey of business self-discovery. It can be difficult, time-consuming and
uncomfortable. It requires, at the very least, that you answer the questions below:
Do your research. Learn the needs, habits and desires of your current and prospective customers. And
don't rely on what you think they think. Know what they think.
Because defining your brand and developing a brand strategy can be complex, consider leveraging the
expertise of a nonprofit small-business advisory group or a Small Business Development Center .
Once you've defined your brand, how do you get the word out? Here are a few simple, time-tested tips: