What is branding? A brand is an identity given to your company that defines who you are.

The American Marketing Association defines a brand as: “any distinctive feature like a name, term, design, or symbol that identifies goods or services.”

A strong brand differentiates your company from others and gives you a competitive edge. 

This blog will discuss branding, consider its key elements, explain how branding benefits your business, and highlight why it is especially crucial for small businesses.

Outline

1. What is branding?
2. What are the elements of a brand?
3. What are the business benefits of branding?
4. Why do small businesses especially need good branding?
5. Conclusion
6. Design your brand with Ripple Design & Marketing

What is Branding?

Branding is the process of determining how you want your organization to be perceived through features like your logo and brand name. Brandingmag defines it as “the perpetual process of identifying, creating, and managing the cumulative assets and actions that shape the perception of a brand in stakeholders’ minds.” Branding can be a long, intensive process, requiring market research and careful consideration of how you want to direct your company. 

What are the elements of a brand?

There are generally six key brand elements. Let’s look at these elements in greater detail.

Brand Name

Your brand name is the name people will use to refer to your company or product. It should be easily recognizable and memorable.

The naming process should be carefully executed since your brand name is one of the first brand elements your customers will encounter. Your brand should align with your company’s vision, values and objectives. One way to do this is by using a naming brief, which will help define your focus for the naming process.

Types of Brand Names

There are different types of brand names, too. These categories can be explained using a graph, with “construct” along the x-axis and “approach” along the y-axis. Based on the construct axis, brand names can either be a real word, a compound term, or a coined (made-up) term. Based on the approach axis, the names run along a continuum from descriptive to suggestive to abstract. The Container Store is an example of a real word, descriptive brand name. On the other side of the spectrum, a coined, abstract name example is Dasani.

Logo

Your logo distinguishes your company from the competition and is often the first thing customers notice. It is a visual representation of your brand. Your logo is used on brand collateral, such as business cards, email signatures, apparel, vehicle wraps, etc. Your logo mark is usually paired with your brand name in a stylized format but can also be used on its own.

Colour Palette

Colours evoke feelings that people will associate with your brand, so it’s crucial to be intentional when choosing them. Your brand’s colour scheme can also help it stand out to customers and be memorable. For example, international brands like McDonald’s or Google are recognizable by their colours alone. 

Brand colour schemes typically have three components: a base, an accent, and a neutral colour. You might choose to add additional colours to tie the elements together, but these three are the most important. Let’s look at base, accent, and neutral colours in branding.

Base colour

Your brand’s base colour is the colour you will feature most. It’s a colour that will stand out and fit your brand’s personality. When choosing your base colour, it’s important to consider how it will pair with other colours. Your base colour will be a key component, and the other colours you select must match it.

Accent colour

Your brand’s accent colour will be a secondary feature in your brand’s colour palette. Colours can be paired using different methods, such as monochromatic, complementary, and triadic. Using a colour wheel at this step can help note the minute differences between colours.

Neutral colour

Third, many brands choose a neutral colour to round out their colour palette. Picking a neutral allows you to create a consistent, balanced appearance. To make their brand colour palette more versatile, some brands will choose to have both light and dark neutral. The light neutral might be used as a background colour, whereas the dark neutral colour is used as a website text colour.

Colour theory and psychology are crucial when deciding on your brand colour palette. We subconsciously associate different feelings with certain colours. Cool colours like blues and greens can make us feel calm. Warm colours, on the other hand, make us feel energetic or even hungry in some cases. Consider these associations when designing a brand to ensure it conveys the correct message.

Imagery

Brand imagery includes your brand’s visual elements, such as photography and illustrations. Consistent imagery can tie brand elements together in a cohesive way. For start-ups and small businesses, high-quality photography can be a cost-effective way of defining your brand’s imagery. Good photography can give your brand a clean, high-end feel reminiscent of large, multinational brands. Examples of brands that use photography effectively are outdoor brands like Patagonia or Arc’teryx. Many car companies also use photography to help customers visualize the car in different settings. 

Custom illustrations are another great way to create imagery for your brand. Popular among more advanced businesses, illustrations can help define your brand’s style. Google, Etsy, Mailchimp, and Headspace use illustrations to give their brand a consistent, personable feel.

Typography

Typography refers to the fonts and lettering your brand uses. Fonts evoke different feelings and must match the style and personality of your brand to appear cohesive to the viewer. Typography can change how people perceive your brand – from high-end to casual and everywhere in between. 

Tone and Voice

The brand elements we’ve discussed consist of visual aspects. However, how your brand communicates is important, too. Considering what your brand sounds like across different mediums is called tone and voice. As Sprout Social defines it, “Brand voice is what you say, and brand tone is how you say it.” Voice dictates the words and language you use when talking about your brand. The tone is how you communicate those words – casual or strictly professional. Your brand tone and voice should convey your brand personality to your target audience in a way that they can understand.

Business benefits of branding

Now that we’ve discussed branding, why is it important for organizations? Let’s discuss how your business can benefit from branding.

Increased brand awareness

Brand awareness considers how familiar viewers are with your brand. Customers who easily recognize your brand are more likely to gravitate towards it when purchasing. Strong, consistent brand awareness can increase sales by ensuring customers always reach for your product over others. You can increase brand awareness through an eye-catching logo or a unique colour palette, which will help you stand out. Long-term brand awareness is essential for businesses that rely on large, infrequent customer purchases (such as real estate or automotive sales). 

Stand out in your field (competitive differentiation)

Your business will also benefit from the branding process by differentiating itself from competitors. Marketers estimate that the average person sees thousands of ads in one day. Consumers don’t remember every branded ad campaign they see, but they’ll remember the ones that caught their attention. With good branding, customers can understand the nature of your business through the colours, images, fonts, etc., used. Combine the visual elements of branding with the written ones, and you’ll stand out from the competition.

Brand trust and perception

When customers know your brand and can easily recognize it, they’re more likely to trust it. Well-executed branding makes your company appear put-together and professional. Professional branding increases brand trust because every customer touchpoint feels intentional. Consumers can tell when a brand is not integrated because their experience on your website versus social media, for example, is inconsistent. 

Ensuring your brand is consistent and organized across all mediums gives you credibility among your target audience. And, with consistency and credibility comes loyalty.

Brand loyalty and retention

Brand loyalty increases when your brand is recognizable. Good branding will appeal to your target audience and create emotional connections to your company. People will return to your brand when your branding matches your high-quality products or services. Consider name-brand items used as generic terms: Band-Aid, Kleenex, Sharpie, Chapstick, etc. These brand names have become household terms because their branding sticks. Effective branding helps you stay top-of-mind with your target audience, so you’re always the first brand they think of in your industry. By staying top-of-mind, you can more easily retain and turn customers into loyal, lifelong customers.

Lower price sensitivity

Well-established branding and high customer retention can also lead to lower price sensitivity for your brand. Price sensitivity is the degree to which changes in your price influence customers’ purchase decisions. Businesses with low price sensitivity maintain positive relationships between their brand and customers. Apple or Starbucks, for example, have low price sensitivity because of their loyal customer base. With strong branding, customers engage and become fans of your brand. A loyal customer base improves customer retention and makes brand extensions more successful.

Attract prospective employees and retain them

A recognizable and trustworthy brand also helps attract people to work for your company. Everyone is a consumer, so when searching for a job, they might start with brands they know. When your branding is consistent and organized, people will be excited about the possibility of working for your brand. People like to talk about things they’re proud of, including the company they work for, if they believe in its success. 

Quality branding can also help retain employees for the long term. When your branding represents your company’s vision and values, employees who join your company are more likely to support those goals. Employees with a personal connection to the brand are more likely to stay long-term.

Why do small businesses especially need good branding?

We’ve discussed many reasons why branding is essential for all types of businesses. But why should a small business invest hard-earned money into branding? Let’s look at why branding is vital for startups and small companies.

Establish yourself as a credible brand 

One of the most important things for small businesses to do in the marketplace is establish their credibility. Effective branding provides credibility by creating a cohesive and professional brand image. Without proper branding, customers may be wary of working with you since they can’t verify your legitimacy. Using your brand online on your website or social media shows customers that you are actively building your brand. Prospective customers will view your small business as a serious competitor to larger companies when it’s evident that you care about your image.

Easier product introductions

As a small business, introducing new products can be difficult if customers aren’t familiar with your brand. Cohesive branding enables you to build trust among your target audience. Customers who trust your brand are more likely to try your new products. Getting customer support for your products is beneficial to your company’s continued growth.

Create brand ambassadors through word-of-mouth marketing

Having an attractive, memorable brand enables your company to become a topic of conversation. A positive brand experience encourages word-of-mouth marketing, which is beneficial among your target market. Well-designed branding can help your company stand out in a crowded market and get people talking about what makes your product or service unique. Word-of-mouth marketing works well for small businesses because it can begin with people in your circles. If your friends, family, and clients believe in your company’s vision, they’ll become brand ambassadors who share about your company in their conversations.

Premium pricing ability

When your brand appears professional and put-together, people may associate a higher perceived value with your product or service. People assume higher quality with brands that use consistent branding throughout social media, their website, advertising, etc. When customers expect a high-quality product and they have a positive experience, they’re more likely to see value in supporting your smaller business.

Conclusion

In this blog post, we’ve discussed branding, its elements, its importance for businesses, and why small businesses especially need good branding. Branding is the process of determining how you want your company to be perceived, through items like your name, logo, colours, etc. The main elements of branding are name, logo, colour palette, imagery, typography, tone and voice. Branding is important for all kinds of businesses because it increases brand awareness, helps you stand out, builds brand trust, loyalty, and retention, creates lower price sensitivity and attracts new employees. Small businesses especially need good branding to establish their credibility, make new product introductions easier, create brand ambassadors, and opportunities for premium pricing. Overall, branding is beneficial and crucial for all businesses to help them grow and connect with their target market. 

Discover your brand with Ripple Design & Marketing

Is your brand keeping up with the current market? Need help with branding your startup or small business?

When you work with Ripple, we focus on discovering your brand’s story. By understanding who your company is, we can create a brand identity that aligns with your vision and values. Our brand design process carefully considers all the elements of a great brand, such as the name, logo, colour palette, imagery, typography, tone, and voice. We work with you to understand your goals for the branding process and create a well-designed, integrated brand that will drive your business forward. 

Contact us to learn more about our branding process and how we can help your business succeed.