1. Branding Improves Recognition
One of the major parts of your brand is your logo. Think of how you instantly recognise the golden arches of McDonalds or the simple, but reliable "P" of Australia Post. Being the “face” of a company, your logo's design is critical because that simple image will potentially be on every piece of correspondence and marketing. A professional logo design will be simple enough to remain memorable, but powerful enough to deliver the desired impressions about your company.
2. Branding Promotes Trust
A professional and consistent appearance builds trust and credibility . Consumers are more likely to purchase from a business that appears legitimate and polished. Emotional reactions are wired into our brains, and those emotions are quite real and can influence customers' buying decisions.
3. Branding Supports Your Advertising
Advertising is another important part of your brand. Both the medium chosen and the target demographic is key to defining a brand. If the advertising focus is too narrow, a company is at risk of being “pigeon holed” into a category and losing their ability to expand into new markets and demographics. If the focus is too broad, then the company fails to create a definable image in the minds of its potential customers.
4. Branding Builds Fiscal Value
Commonly companies who are publicly listed on a stock exchange are valued at many times the actual assets of the company. Most of this value is due to the branding or perceived image of the company. A strong brand can guarantee future business. In the case of a company trying to borrow funds for expansion or setting up to roll out an IPO, being perceived as more valuable will make the process easier and more lucrative for the owner of the company. The more a company devotes to building its brand value, the greater the fiscal return for its efforts.
5. Branding Creates New Customers
Branding gives your company the ability to get referral business. Consider, would it be possible for you to tell a friend about that new restaurant you just discovered if you couldn’t remember the Name or in the case of a product, the brand? A large reason ‘brand’ is the word used for this concept is that the goal of any "brand" is an unshakable impression. As we all know, the most profitable advertising source, word of mouth referrals, are only possible because your company has delivered a memorable experience to your customer.
The most profitable companies, small and large, have one thing in common. They have established themselves as a leader in their industry by building a strong and lasting brand.