What is Branding?

The American Marketing Association (AMA) defines a brand as a "name, term, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of other sellers.
Therefore it makes sense to understand that branding is not about getting your target market to choose you over the competition, but it is about getting your prospects to see you as the only one that provides a solution to their problem.
The objectives that a good brand will achieve include:
- Delivers the message clearly
- Confirms your credibility
- Connects your target prospects emotionally
- Motivates the buyer
- Concretes User Loyalty
To succeed in branding you must understand the needs and wants of your customers and prospects.You do this by integrating your brand strategies through your company at every point of public contact.
Your brand resides within the hearts and minds of customers, clients, and prospects. It is the sum total of their experiences and perceptions, some of which you can influence, and some that you cannot.
A strong brand is invaluable as the battle for customers intensifies day by day. It's important to spend time investing in researching, defining, and building your brand. After all your brand is the source of a promise to your consumer. It's a foundational piece in your marketing communication and one you do not want to be without.

The History of Branding

Branding practices were first practiced in the nineteenth century, when packaged goods were sold to the general public. The first commercial brand registered was Pears Soap. When the items shipped to local merchants, the company would place the brand name and logo on all of the packaging, therefore implementing basic branding practices.
Other companies quickly followed suit, including Aunt Jemima, Quaker Oats and Campbell Soup. Each of these companies is still recognized and known around the world today – with the same branding they used decades or centuries ago. With branding, a consumer is essentially buying a company name, instead of just a product. Branding increases the reputation and respect that is held for a specific company.

The Fundamentals of Branding

A company’s product or service is only as effective as its branding strategies. Even with the best product in the world, a business cannot generate revenue without customer recognition and attraction. The underlying goal of branding is to prompt the consumers to both consciously and subconsciously recognize a certain product brand. Research has demonstrated that the more familiar consumers are with a product or brand, the more likely they will buy.
For example, the top Fortune 500 companies, such as Coca-Cola, Disney, and IBM, are exponentially successful because of their strategic branding practices. Regardless what country you travel to, the image of Coca-Cola, Mickey Mouse, and McDonalds are prevalent and powerful – their branding strategies permeates to consumers, regardless of age, location, or nationality.
Most business experts agree that if a company desires to achieve multimillion revenues, effective branding practices must be implemented. Through proper branding, an unknown corporation can attain celebrity status in consumer households. For example, the strategic branding and placement of the word “Juicy” across derrieres launched fashion line Juicy Couture into international fame. In fact, branding is one of the easiest and fastest ways for a company to develop its market share.