The basics of branding

The Basics of Branding
Learn what this critical business term means and what you can do to establish one for your company.
By John Williams

Branding is one of the most important aspects ofany business, large or small, retail or B2B. An effective brand strategy gives you a major edge in increasingly competitive markets. But what exactly does "branding" mean? How does it affect a smallbusiness 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 yourcompetitors'. 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 productthe 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 targetcustomers 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.
BrandStrategy & Equity
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. Yourdistribution 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 brandequity, 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 exampleof 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...