What is branding?
Branding is a component of marketing and a vital part of any smart company’s business strategy. It is the specific application of marketing resources in order to create a unique and own-able market position and market perception. These activities generally support larger, more strategic business objectives designed to create clear and visible competitive differentials that make one company and its products stand apart from its competitors.
Branding marshals a company’s tangible (names, symbols, etc.) and intangible assets (values, heritage, etc.) and packages them in such a way that it positively influences consumer perceptions related to the brand and its products. Its objectives often include creating and reinforcing both a functional benefit (i.e. go really fast) with an emotional benefit (i.e. look really cool while doing it).
These real or perceived functional and emotional benefits in turn drive consumer brand awareness—I am familiar with Shelby vehicles; brand loyalty—I only buy Shelby vehicles; and advocacy—I tell my friends to buy Shelby vehicles. Thus, effective branding creates real value for a business by creating consumer recognition and driving product sales.