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What is branding? Understanding its importance in business

What is branding? Understanding its importance in business
What is branding? Understanding its importance in business

Branding

Brand Strategy

Brand Development

Marketing

Branding

Brand Strategy

Brand Development

Marketing

Written by:

12 min read

Updated on: May 23, 2024

Toni Hukkanen

Head of Design

Creative Direction, Brand Direction

Toni Hukkanen

Head of Design

Creative Direction, Brand Direction

We have all been there: scanning the supermarket shelves and going for that bottle of Coke—even if it costs a little more than a no-name brand. Odds are, you are not just buying a fizzy drink; you are investing in how it makes you feel. That emotional spark is precisely where branding steps in.

Branding isn’t confined to how a product looks or works. It revolves around the vibes, associations, and impressions a company sparks in people’s minds. When a brand synchronises with its audience’s lifestyle or aspirations, it can generate loyalty and long-term sales. Below, we’ll unravel some key facets of branding—its purpose, its influence on business, and the ways companies shape it for lasting success.

We have all been there: scanning the supermarket shelves and going for that bottle of Coke—even if it costs a little more than a no-name brand. Odds are, you are not just buying a fizzy drink; you are investing in how it makes you feel. That emotional spark is precisely where branding steps in.

Branding isn’t confined to how a product looks or works. It revolves around the vibes, associations, and impressions a company sparks in people’s minds. When a brand synchronises with its audience’s lifestyle or aspirations, it can generate loyalty and long-term sales. Below, we’ll unravel some key facets of branding—its purpose, its influence on business, and the ways companies shape it for lasting success.

What is branding?

What is branding?

Branding involves creating distinctive elements for a product, service, or organisation—yet it goes far beyond colours or clever taglines. A well-rounded approach includes storytelling, visuals, messaging, and how the company delivers on its promises.

Branding influences how customers think and feel. It’s not only the logo on a billboard but also the tone of an Instagram caption, the design of product packaging, and how a brand’s employees treat customers.

Branding involves creating distinctive elements for a product, service, or organisation—yet it goes far beyond colours or clever taglines. A well-rounded approach includes storytelling, visuals, messaging, and how the company delivers on its promises.

Branding influences how customers think and feel. It’s not only the logo on a billboard but also the tone of an Instagram caption, the design of product packaging, and how a brand’s employees treat customers.

Why is branding important?

A compelling brand gives your business a serious boost in the marketing arena. Companies that invest in brand development are more recognisable, better at winning customer trust, and more prepared to compete in crowded markets.

  • Staying competitive: Standing out is crucial, especially online where countless new rivals emerge every day. A well-established brand makes it easier for prospective customers to spot—and choose—you over a generic alternative.

  • Wide range of costs: Branding isn’t an exclusive luxury for megacorporations. While certain elements might be pricey, many aspects are a matter of planning, consistency, and a willingness to see your business from the customer’s point of view.

Increases business value

Strong branding can amplify the worth of your enterprise, especially if you are seeking investors or planning an exit strategy. A prominent presence and a solid brand strategy often translate to higher prices, better industry clout, and broader customer appeal. This intangible yet powerful factor—sometimes referred to as brand valuation—can tangibly impact everything from stock prices to partnership deals.

Boosts advertising and marketing

Consider marketing as a megaphone for spreading your brand’s message. If people already have positive associations with your name or logo, any campaigns you launch will go that much further. Engaging ads or social media posts can spark curiosity, leading to higher foot traffic (or click-through rates) and stronger loyalty.

Improves employee pride and satisfaction

People often like to work for a company whose values they respect. That sense of pride can elevate morale, improve client relations, and enhance a brand’s reputation overall. Employees effectively become brand ambassadors, giving genuine, enthusiastic endorsements every time they communicate with clients, partners, or friends.

Creates trust in the marketplace

When a business consistently delivers on its promises, it builds trust which is often the toughest thing to earn and the easiest to lose.

With established credibility, a brand can charge premium prices, weather unexpected downturns, and build strong customer loyalty. In crowded sectors, trust can transform a casual browser into a loyal fan.

Generates new customers

A positive brand image often leads to word-of-mouth referrals, which remain one of the most reliable ways to grow. When your product or service leaves a strong impression, existing customers will recommend it to their networks. As those recommendations spread, potential buyers are more likely to jump on board.

A compelling brand gives your business a serious boost in the marketing arena. Companies that invest in brand development are more recognisable, better at winning customer trust, and more prepared to compete in crowded markets.

  • Staying competitive: Standing out is crucial, especially online where countless new rivals emerge every day. A well-established brand makes it easier for prospective customers to spot—and choose—you over a generic alternative.

  • Wide range of costs: Branding isn’t an exclusive luxury for megacorporations. While certain elements might be pricey, many aspects are a matter of planning, consistency, and a willingness to see your business from the customer’s point of view.

Increases business value

Strong branding can amplify the worth of your enterprise, especially if you are seeking investors or planning an exit strategy. A prominent presence and a solid brand strategy often translate to higher prices, better industry clout, and broader customer appeal. This intangible yet powerful factor—sometimes referred to as brand valuation—can tangibly impact everything from stock prices to partnership deals.

Boosts advertising and marketing

Consider marketing as a megaphone for spreading your brand’s message. If people already have positive associations with your name or logo, any campaigns you launch will go that much further. Engaging ads or social media posts can spark curiosity, leading to higher foot traffic (or click-through rates) and stronger loyalty.

Improves employee pride and satisfaction

People often like to work for a company whose values they respect. That sense of pride can elevate morale, improve client relations, and enhance a brand’s reputation overall. Employees effectively become brand ambassadors, giving genuine, enthusiastic endorsements every time they communicate with clients, partners, or friends.

Creates trust in the marketplace

When a business consistently delivers on its promises, it builds trust which is often the toughest thing to earn and the easiest to lose.

With established credibility, a brand can charge premium prices, weather unexpected downturns, and build strong customer loyalty. In crowded sectors, trust can transform a casual browser into a loyal fan.

Generates new customers

A positive brand image often leads to word-of-mouth referrals, which remain one of the most reliable ways to grow. When your product or service leaves a strong impression, existing customers will recommend it to their networks. As those recommendations spread, potential buyers are more likely to jump on board.

How to build your brand?

Branding is an always evolving process that involves input from multiple stakeholders—everyone from the CEO to the design team, and sometimes even loyal customers. Below are some pillars to guide you in shaping a cohesive, recognisable identity.

1. Plan a brand strategy

A clear brand strategy maps out how your company presents itself in the market and stands out from competitors. It goes beyond short-term campaigns, focusing instead on the deeper purpose behind your offerings and the emotional outcomes you want to create.

  • Functional purpose: Relates to immediate business objectives like revenue or market share.

  • Intentional purpose: Strives for tangible goals (such as generating profit) while also pursuing a positive impact on society or the environment.

  • Consistent message: Stick to a straightforward, uniform set of core messages across all channels. This builds recognition and solidifies your brand’s identity.

  • Adaptability to market changes: While staying consistent matters, a touch of flexibility helps your brand stay relevant in evolving markets.

  • Customer loyalty: Reward repeat customers. Showing appreciation can reinforce bonds and foster continued support.

2. Create brand identity

Brand identity is what people recognise as soon as they spot your logo or hear your brand’s name. It includes visual elements (e.g., colours, typography), brand voice, and even the emotional vibe your brand conveys.

The simple swoosh, an energising tagline, and endorsements from superstar athletes collectively build an image of performance and grit. That combination encourages consumers to see Nike as much more than just a sportswear label—rather, a badge of motivation.

3. Develop brand positioning

Brand positioning is how you want customers to view your business compared to competing players. It might involve emphasising specific features, solving particular pain points, or appealing to a certain lifestyle. Key steps include:

  1. Identifying what your target audience needs and how you can meet those needs.

  2. Explaining why you are uniquely qualified to provide those solutions.

  3. Highlighting your brand’s distinct benefits.

  4. Finding effective ways to share this message, whether through social media, email campaigns, or other channels.

4. Implement the brand

Once you have nailed your strategy, it’s time to put it in motion. Some businesses create a “brand steering group” to keep everything on track. Others train key employees—or brand ambassadors—to champion new initiatives.

Brand implementation isn’t a one-off affair. With every product launch, marketing push, or public statement, ask yourself: “Does this align with who we say we are?” If the answer is yes, you are reinforcing your brand with each step you take.

5. Establish a brand message

Defining a clear brand message helps the public connect with your company instantly. Ideally, it encapsulates your core beliefs, values, and vision. From your choice of words to the stories you share, every touchpoint should reinforce what you stand for.

  • Find your target audience: Get crystal clear on who you are talking to. Are you aiming at budget-savvy college students or affluent city dwellers? This shapes everything from tone to visuals.

  • Write a mission statement: Clarify your main purpose. Maybe you are out to revolutionise recycling or champion an eco-friendly approach to fashion. That goal will guide your design, language, and overall vibe.

  • Keep up with market changes: Industries don’t stand still. Remain receptive to shifts, whether in consumer preferences or technological breakthroughs—but avoid losing sight of your essence.

  • Define your values, qualities, and benefits: Zero in on what makes you different. Maybe it’s transparent supply chains or whimsical packaging. These details often set you apart.

  • Shape a brand voice: If your company spoke, how would it sound? Friendly, direct, humorous? A consistent tone fosters familiarity and trust.

6. Manage and expand your brand

  • Branding doesn’t end once you have finalised your visuals or tagline. Like any living system, a brand evolves over time. Consistency remains key, but occasional refinements are natural—and often necessary.

  • Brand Guidelines: Typically collated in a digital or print style guide, these rules keep your visuals, tone, and messaging in sync, whether you are designing social posts or packaging.

  • Brand Management: You might consider ongoing monitoring to gauge how people talk about you—online reviews, social mentions, or survey responses.

  • Brand Extension: After building trust in one arena, you could branch into related products. Just ensure that any move aligns with your existing identity. The wrong extension can harm your image as quickly as a bad product review.

Branding is an always evolving process that involves input from multiple stakeholders—everyone from the CEO to the design team, and sometimes even loyal customers. Below are some pillars to guide you in shaping a cohesive, recognisable identity.

1. Plan a brand strategy

A clear brand strategy maps out how your company presents itself in the market and stands out from competitors. It goes beyond short-term campaigns, focusing instead on the deeper purpose behind your offerings and the emotional outcomes you want to create.

  • Functional purpose: Relates to immediate business objectives like revenue or market share.

  • Intentional purpose: Strives for tangible goals (such as generating profit) while also pursuing a positive impact on society or the environment.

  • Consistent message: Stick to a straightforward, uniform set of core messages across all channels. This builds recognition and solidifies your brand’s identity.

  • Adaptability to market changes: While staying consistent matters, a touch of flexibility helps your brand stay relevant in evolving markets.

  • Customer loyalty: Reward repeat customers. Showing appreciation can reinforce bonds and foster continued support.

2. Create brand identity

Brand identity is what people recognise as soon as they spot your logo or hear your brand’s name. It includes visual elements (e.g., colours, typography), brand voice, and even the emotional vibe your brand conveys.

The simple swoosh, an energising tagline, and endorsements from superstar athletes collectively build an image of performance and grit. That combination encourages consumers to see Nike as much more than just a sportswear label—rather, a badge of motivation.

3. Develop brand positioning

Brand positioning is how you want customers to view your business compared to competing players. It might involve emphasising specific features, solving particular pain points, or appealing to a certain lifestyle. Key steps include:

  1. Identifying what your target audience needs and how you can meet those needs.

  2. Explaining why you are uniquely qualified to provide those solutions.

  3. Highlighting your brand’s distinct benefits.

  4. Finding effective ways to share this message, whether through social media, email campaigns, or other channels.

4. Implement the brand

Once you have nailed your strategy, it’s time to put it in motion. Some businesses create a “brand steering group” to keep everything on track. Others train key employees—or brand ambassadors—to champion new initiatives.

Brand implementation isn’t a one-off affair. With every product launch, marketing push, or public statement, ask yourself: “Does this align with who we say we are?” If the answer is yes, you are reinforcing your brand with each step you take.

5. Establish a brand message

Defining a clear brand message helps the public connect with your company instantly. Ideally, it encapsulates your core beliefs, values, and vision. From your choice of words to the stories you share, every touchpoint should reinforce what you stand for.

  • Find your target audience: Get crystal clear on who you are talking to. Are you aiming at budget-savvy college students or affluent city dwellers? This shapes everything from tone to visuals.

  • Write a mission statement: Clarify your main purpose. Maybe you are out to revolutionise recycling or champion an eco-friendly approach to fashion. That goal will guide your design, language, and overall vibe.

  • Keep up with market changes: Industries don’t stand still. Remain receptive to shifts, whether in consumer preferences or technological breakthroughs—but avoid losing sight of your essence.

  • Define your values, qualities, and benefits: Zero in on what makes you different. Maybe it’s transparent supply chains or whimsical packaging. These details often set you apart.

  • Shape a brand voice: If your company spoke, how would it sound? Friendly, direct, humorous? A consistent tone fosters familiarity and trust.

6. Manage and expand your brand

  • Branding doesn’t end once you have finalised your visuals or tagline. Like any living system, a brand evolves over time. Consistency remains key, but occasional refinements are natural—and often necessary.

  • Brand Guidelines: Typically collated in a digital or print style guide, these rules keep your visuals, tone, and messaging in sync, whether you are designing social posts or packaging.

  • Brand Management: You might consider ongoing monitoring to gauge how people talk about you—online reviews, social mentions, or survey responses.

  • Brand Extension: After building trust in one arena, you could branch into related products. Just ensure that any move aligns with your existing identity. The wrong extension can harm your image as quickly as a bad product review.

Types of branding

Branding takes many shapes. While the core principles remain the same—communicate who you are and why you matter—the tactics differ according to context.

  1. Personal branding: Revolves around an individual’s traits and personal reputation. Ideal for freelancers or influencers who are effectively the “face” of their business.

  2. Online branding: Entirely focused on digital spaces, spanning everything from social media profiles to chatbots.

  3. Product and service branding: Aims to build strong identities for specific offerings (e.g., a new app, a signature clothing line).

  4. Corporate branding: Covers company-wide positioning. Think of a big tech firm that’s known for cutting-edge design or ethical sourcing.

  5. Cultural branding: Emphasises aligning with cultural norms, traditions, and values. Classic example: Coca-Cola’s ability to link its products to family gatherings, celebrations, and communal joy.

  6. No branding: Some budget-friendly goods rely on minimal branding, letting the product’s affordability or practicality speak for itself.

Branding takes many shapes. While the core principles remain the same—communicate who you are and why you matter—the tactics differ according to context.

  1. Personal branding: Revolves around an individual’s traits and personal reputation. Ideal for freelancers or influencers who are effectively the “face” of their business.

  2. Online branding: Entirely focused on digital spaces, spanning everything from social media profiles to chatbots.

  3. Product and service branding: Aims to build strong identities for specific offerings (e.g., a new app, a signature clothing line).

  4. Corporate branding: Covers company-wide positioning. Think of a big tech firm that’s known for cutting-edge design or ethical sourcing.

  5. Cultural branding: Emphasises aligning with cultural norms, traditions, and values. Classic example: Coca-Cola’s ability to link its products to family gatherings, celebrations, and communal joy.

  6. No branding: Some budget-friendly goods rely on minimal branding, letting the product’s affordability or practicality speak for itself.

Branding examples for inspiration

Whether you buy a chocolate bar or a washing machine, they are made by companies with strong brands. Some iconic brands include McDonald's, KFC, BMW, Microsoft and Ikea. Consumers around the world recognise these brands by hearing a jingle or spotting a logo. The success of these long-standing brands wasn't immediate as they spent a lot of money and thoughts to reach their target audience. Here, we have enlisted some of the best examples of branding in design and communication to inspire you.

Coca-Cola

It is a prime example of successful branding. Even the name of Coca-Cola evokes the feeling of refreshingly cold can and sense of happiness. This didn't happen overnight or by chance. 

Their branding excels in appealing to its audience and leaving a lasting impression. The campaigns focus mainly on emotions and personal connections like:

  • Taste The Feeling

  • Share A Coke

  • Open Happiness

The color scheme of logo and classic serif script font, still reflects the brand image. It continues to develop brand loyalty from die-hard Coke fans.

Nike

Nike has evolved from a sportswear brand to a lifestyle brand. This happened with the help of its strong strategy centered on innovation and performance. The credit for its success goes to high profile endorsements from top athletes like: 

  • LeBron James

  • Cristiano Ronaldo

  • Michael Jordan.

Michael Jordan endorsed “Air Jordan.” This line still remains one of its most iconic and successful products.

The famous slogan, “Just Do It” encourages overcoming obstacles to pursue athletic goals.

Tesla

Elon Musk revolutionised the automotive industry by creating Tesla. The brand strategy for this electric vehicle is centered on sustainability, innovation, and future.

Tesla positions itself as a tech company that makes cars that appeal to tech enthusiasts and stand out from traditional automakers. Its brand strategy is a masterclass in simplicity and novelty focusing on cutting edge technology, affordability and direct to consumer approach to stay at the forefront of the industry.

Whether you buy a chocolate bar or a washing machine, they are made by companies with strong brands. Some iconic brands include McDonald's, KFC, BMW, Microsoft and Ikea. Consumers around the world recognise these brands by hearing a jingle or spotting a logo. The success of these long-standing brands wasn't immediate as they spent a lot of money and thoughts to reach their target audience. Here, we have enlisted some of the best examples of branding in design and communication to inspire you.

Coca-Cola

It is a prime example of successful branding. Even the name of Coca-Cola evokes the feeling of refreshingly cold can and sense of happiness. This didn't happen overnight or by chance. 

Their branding excels in appealing to its audience and leaving a lasting impression. The campaigns focus mainly on emotions and personal connections like:

  • Taste The Feeling

  • Share A Coke

  • Open Happiness

The color scheme of logo and classic serif script font, still reflects the brand image. It continues to develop brand loyalty from die-hard Coke fans.

Nike

Nike has evolved from a sportswear brand to a lifestyle brand. This happened with the help of its strong strategy centered on innovation and performance. The credit for its success goes to high profile endorsements from top athletes like: 

  • LeBron James

  • Cristiano Ronaldo

  • Michael Jordan.

Michael Jordan endorsed “Air Jordan.” This line still remains one of its most iconic and successful products.

The famous slogan, “Just Do It” encourages overcoming obstacles to pursue athletic goals.

Tesla

Elon Musk revolutionised the automotive industry by creating Tesla. The brand strategy for this electric vehicle is centered on sustainability, innovation, and future.

Tesla positions itself as a tech company that makes cars that appeal to tech enthusiasts and stand out from traditional automakers. Its brand strategy is a masterclass in simplicity and novelty focusing on cutting edge technology, affordability and direct to consumer approach to stay at the forefront of the industry.

Frequently Asked Questions

What is a brand image?

Brand image is how people perceive your business, shaped by everything from product quality to customer service. It’s the sum of customer interactions and experiences, including visual cues, messaging, pricing, and overall reputation.

What are the six features of branding?

  1. Purpose: Why do you exist in the market?

  2. Principles: Which core values guide you?

  3. Positioning: Who is your audience, and what makes you different?

  4. Promise: What do you commit to delivering?

  5. Proof: Why should anyone trust you?

  6. Personality: If your brand spoke, how would it sound?

What is the difference between branding and marketing?

Branding deals with a company’s long-term identity including who you are and what you stand for.

Marketing is more about promoting those qualities, typically in shorter bursts, to spark customer interest or drive immediate sales.

Final Thoughts

Branding sits at the heart of any business seeking a unique identity—an identity that helps people remember you, get excited about your offerings, and stay loyal. By defining your values, telling an authentic story, and ensuring consistency across channels, you lay the groundwork for deeper connections with customers.

Speak directly to the customers you want to attract (and keep). Most importantly, stay consistent—no one likes a brand going through an identity crisis. Invest in that clarity and strategy now, and watch how it propels your company’s growth, loyalty, and all-around success.

Frequently Asked Questions

What is a brand image?

Brand image is how people perceive your business, shaped by everything from product quality to customer service. It’s the sum of customer interactions and experiences, including visual cues, messaging, pricing, and overall reputation.

What are the six features of branding?

  1. Purpose: Why do you exist in the market?

  2. Principles: Which core values guide you?

  3. Positioning: Who is your audience, and what makes you different?

  4. Promise: What do you commit to delivering?

  5. Proof: Why should anyone trust you?

  6. Personality: If your brand spoke, how would it sound?

What is the difference between branding and marketing?

Branding deals with a company’s long-term identity including who you are and what you stand for.

Marketing is more about promoting those qualities, typically in shorter bursts, to spark customer interest or drive immediate sales.

Final Thoughts

Branding sits at the heart of any business seeking a unique identity—an identity that helps people remember you, get excited about your offerings, and stay loyal. By defining your values, telling an authentic story, and ensuring consistency across channels, you lay the groundwork for deeper connections with customers.

Speak directly to the customers you want to attract (and keep). Most importantly, stay consistent—no one likes a brand going through an identity crisis. Invest in that clarity and strategy now, and watch how it propels your company’s growth, loyalty, and all-around success.

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Work with us

Click to copy

work@for.co

FOR® Agency

Design Trial
Coming soon

FOR® Industries

Retail
Finance
B2B
Health
Wellness
Consumer Brands
Gaming
Industrial

We’re remote-first — with strategic global hubs

Click to copy

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Click to copy

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Click to copy

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