IS BRANDING WORTH IT? DISCOVER 10 REASONS WHY BRANDING CAN HELP BOOST YOUR BUSINESS' BOTTOM-LINE

Here are 10 reasons that explain how branding can help boost your business' bottom-line:

1. Triggers Memorability And Aids Recognition

Have you ever hurriedly decided to do grocery shopping to pick up household items that have been exhausted - only for you to get into the shopping mall and you got?bombarded with a flurry of products to choose from, and like a Deer caught in the glaring lights of a car's head-lamp you just couldn't make up your mind on what to choose?

How did you get to resolve the conflict?

I guess if you are like most people who are in a hurry, you will not have the luxury of time to check the product's lengthy description - and you were left with the?only option of making a snap judgment just by looking at the product's packaging.

If you happen to have fallen into that category of grocery shopper described above, you just experienced the power of branding to aid your decision making process.

If perhaps you have seen an advert or marketing campaign by a product, the tendency is for you to have been subconsciously prompted to choose that product while?scanning through the options laid before you during your shopping experience.

Let's view this scenario from the perspective of the producer, and you will discover that the businesses that sell-out fast because of their well branded products?will experience a surge in their Return-On-Investment and as such would be able to keep pumping out more products into the market place for more sales. This is evidence of the power of branding to boost a business' bottom-line.

2. Leads To Decrease In Price Sensitivity

Looking good is top priority for people who value their self worth, and one way that people of high-worth prove their need to validate their self worth is by?going for products that are top quality. For this reason they would be more willing to pay for products with higher price tags.?

A very effective way for brands to therefore differentiate their products as high-end products is to invest in quality branding - this in return prompts their target?customer who are willing to pay a higher price for goods that match their self-worth to be less sensitive towards the price of goods they choose to buy.

The benefit this has on the business is that each product they sell will be able to cover for the cost of production as well as give a wide margin of profit that?could help the brand re-invest in producing more high-end products. This process can therefore accelerate the growth rate of a business in the long-run.

3. Improves Customer Loyalty

Oh yes, everyone likes to brag about something they consider as a symbol of status - such as the brand of car they drive, the club membership they belong to, the vacation spots they have been to, the designer of the clothes or shoes they wear among other things.

Hence, it will be hard for somebody who is emotionally attached to a particular product to easily be bought over by a competing product - this is a classic example?of how branding can help a business stay on top of its market niche just by the impression it has made on the mind of its customers.

The long-term effect this has on a business is that the repeat customers who patronize a brand will help the business owners enjoy huge returns-on-investment caused by?branding the business.

4. Increases Brand Visibility And Patronage

Humans are influenced by what they see and hear. But more importantly, as humans we gravitate towards things that are visible, so if a business invests effectively in?branding, it gains the needed traction that comes with gaining visibility in the mind of its customers.

The impact this will have on a business' bottom-line is that with more visibility comes more patronage. The multiplier effect this will have over time is that the?business will experience a consistent and continuous growth that will keep the business gaining steady market share.

5. Establishes Business Partnerships

Businesses thrive on shared collaborations and in some instances strategic partnerships. Having an effective brand gives interested parties willing to partner with?a business the needed motivation to further their partnership, as it is a sign that a business is well invested in its growth.

Business growth can thus be catalyzed by the level of investment a business has put into branding. The outcome of such partnerships are thus going to?effectively impact the bottom-line of a business in financial terms as through the shared collaborations the customer base and sales generated will likely move to?a higher level in the overall revenue outcome.

6. Helps Attract Top-Rated Employees And Talents

By reason of branding effort that some brands have invested in their business, it is a thing of pride for talents looking for employment to gravitate towards such companies?with a reputation of high regard due to the brand's influence.

It is not going to come as a surprise if an individual trying to impress his friends mentions that he works with any of the top rated companies in the Tech industry?such as Apple, Meta, Google, Amazon or in the Finance industry such as Goldman Sachs, JP Morgan, Bank of America Merrill lynch or the IMF.?

These businesses have effectively branded themselves such that the equity generated from their brand influences the decision of top talents looking for employment opportunities.

7. Builds Brand Equity

Brand equity builds up overtime to reflect how valuable a company is based on its productive capacity. The greater portion of brand equity could be tied to the impact?a business has been able to shape in the mind of the customer, directly linked to its branding activities.

What exactly is Brand Equity??

Brand Equity as defined by the Cambridge dictionary is -

"The value of a particular brand for the company that makes it."?

This implies that the value that a company has can be tied to the brand impression that a business has built over time coupled with the productivity levels it has gathered?- which could be seen to impact the bottom-line of the business' financial statement.

8. Positions The Business To Be Competitive In The Marketplace

The real battle a business has to fight to gain dominance is in the mind of the customers. The customer's mind is where all the buying decision takes place and as such?branding acts as the foot soldiers who help in winning the war to conquer the mind of the customer to become loyal to a brand and keep on patronizing her merchandise. Thus branding could be described as the military strength of a business in the fight to gain market dominance.

9. Enables Word Of Mouth Marketing

Most people take pride in being able to recommend products or services they found useful for their personal needs to their friends and colleagues, and branding gives a customer the needed marketing message the customer can tap from while engaging in its indirect marketing functions towards promoting their favorite brands to close friends.

This singular act of word of mouth marketing has a subconscious impact of personal gratification on the person who makes it a point of duty to speak about something they've found helpful.

10. Effective Branding Gives Clear Direction To Your Team

Just imagine for a second you found yourself within the Head Quarters of the renowned Apple Inc., and you get to see the impact that the business is making across the?globe with their technological presence - the thought of this along with the already built brand image is enough to provide the required strength to join hands to?be a part of the phenomenal impact that the company's activities have on the global market.

The enormous impact the company has built over the years gives the workforce of the company clarity and vested interest to ensure that they add their input towards the shared goals of the company. This illustrates the impact branding can have on galvanizing any company's workforce towards achieving its goal, thus impacting its overall bottom-line.

If you'd like to find out more about what branding is, click here!