Building a business from scratch is surely challenging. But did you know what’s more complicated? Making it a brand. Ever thought why companies spend millions on advertisements? Is it just for recognition? No… not completely.
Do you think Coca Cola or Pepsi still needs to be acknowledged? Of course not. These are centuries-old companies, who have already proved themselves in the business world. So what’s their marketing secret?
The answer is “Brand”. These companies don’t offer products, but they sell brands.
Logo and brand are two different things, but people mix the two concepts.
What is a Brand?
Phillip Kotler defines the brand as a “name, sign, symbol, term, or a combination of all these components.” Also, in contemporary marketing, branding includes colors, themes, music, and everything else that attracts customers, and urge them to stay loyal with the offered products or services.
But apart from the bookish knowledge, you can call brand a way of how customers and the general public perceive your business. In other words, it’s your business’s reputation in the customer’s mind. Or as Jeff Bezos says ‘Your brand is what other people say about you when you’re not in the room’.
So, ever heard of brand ambassadors? Why do you think Nike hire renowned athletes to market its products? Well, just to make sure their brand equity keeps increasing. So in that way, every other famous guy or a girl is a brand. Businesses use them to enhance sales, I am lucky as I have several very loyal brand ambassadors who help me shout my name from roof tops.
Moreover, to make a brand out of your business, you need to work on several factors. And the logo is just a drop in the ocean.
So What Is a Logo?
Contrarily, a logo is a symbol or a mark that could be found in the form of text, painting, or digital art using different fonts or colors.
Therefore, a logo is just an essential element of your organisation’s brand identity. It helps in differentiation, recalling, and recognition of your brand.
So finally, you can conclude that any product or service that has a unique name, reputation, and position is a brand, whereas, a logo is just a part of branding that can only express a few of your brand’s features or essence. So, a brand makes your business novel while the logo gives recognition to your brand.
A Brand is the Heart and Soul of Your Business
Ask yourself, can a logo describe the product’s quality? No, it can’t. But brands can. What would you choose if you’re given an option to pick Audi or Dacia? Indeed you would go for the Audi. Not only because of the logo, but for the love of status, and overall brand’s reputation. So it’s necessary to concentrate on building a brand than merely a logo because of:
1. Competitive Advantage
A brand keeps your business on the top of the list. It separates your offerings from the rest of the competition. And as a result, you see a peak in sales. Competitive advantage without having a brand is nearly impossible.
One of the best ways to grow your business is by making it reliable. A company that gains customers’ trust achieves its goals quickly. And without a brand, there’s no way you can enjoy the credibility factor.
3. No Compromise on the Price
When you have a brand, you can set prices as per your demand. On the other hand, a general product or service won’t sell out if the rates are high. But a brand can help you sell a £10 product for £100. That’s brand magic.
4. Customers Loyalty
There are many types of buyers, but the most profitable ones are those who are loyal to your product. It’s 80/20 rule, where the majority of business comes from 20% of people. And that 20% are your loyal customers, who are psychologically in love with your product and service just because it’s a brand.
5. Attracting Prospects and Potential Customers
There are times when you unwillingly buy things, which you don’t even think of purchasing. And sometimes you plan to buy a general product without having any brand in your mind, but eventually, you fall for a specific brand.
So, the first situation is called the impulsive buying behavior that makes you a prospect. The second condition makes you a potential customer.
But whatever the case is, prospects and potential clients are mostly attracted to brands.
Although the 21st-century marketing practices are more advanced, some old methods are still in the limelight. One of the best ways of marketing is through referrals, which is only possible via indirect or direct word of mouth.
So the word of mouth marketing becomes easy for a brand as compared with a general product, or a product with a nice and fancy logo. Your existing customers convince potential customers to buy your brand. And, on the other hand, the potential customers are effortlessly convinced.
7. Brand Brings Confidence
A branded product is something that makes you proud. You market the brand with great confidence, as you know people adore and trust your commodity. And seeing you confident grow the number of followers.
8. Ease of Launching New Product Line
Diversification becomes a piece of cake when you’re the owner of a brand. You can launch any new product or offer any latest service based on your reputation.
Brand and logo are two different parts of marketing. Nevertheless, due to a lack of knowledge, many people believe that both terms are interchangeable, but they aren’t. A logo is simply a monogram that identifies a brand. Whereas, a brand consists of several other components including advertisements, jingles, social media content, and many more. And most importantly, the logo associated with the brand. And if there’s no brand, then there’s no use of a logo. So if you wish to have a successful business, then make sure you concentrate on making it an infamous brand instead of giving more attention to crafting a logo.