3 Misconceptions About Branding for Small Business

I firmly believe that the best thing small businesses and organizations can do to become more successful is to embrace and implement a focused brand development strategy. Unfortunately, there are too many businesses and organizations that either don’t understand branding, undervalue branding, or have misconceptions about how branding can help their specific situation.

I find myself many times, when discussing creative needs with a client, that these misconceptions about branding are some of the first hurdles we need to address. Because unless you understand the importance, value, and return associated with a solid branding strategy, you’re never going to tap the power of branding to its full potential.

So here are three common misconceptions that I hear frequently from clients and potential clients, and hopefully some helpful responses..

1. I think branding is over rated…I need to focus on my products and services.

Your products and services are very important – after all, these make up the engine of your organization. But what happens when the engine has no fuel to run? Your brand is both the fuel, and the spark that starts your organization’s engine, and keeps it running. You can have the best engine in the world, but without fuel, you’ll never go anywhere.

Remember, consumers don’t make decisions based on specific products or services like they did 50 – 60 years ago. Consumers make decisions primarily based on the emotional attachment and gut feeling they have about your brand. When I walk in an Apple store, I’m captivated by the brand, not necessarily about the computer. Sure the computer meets a need, but my decision to buy an Apple versus a Compaq is based on the brand surrounding it.

So focus on developing your products and services as much as possible. But don’t forget that without a surrounding brand strategy that effectively aligns with your business strategy, you’ll never get off the ground.

2. I already have a logo

Good for you! But a logo is not a brand. Your logo is just a piece of the proverbial pie, not the pie itself. Your brand actually has nothing to do with you. It has everything to do with your customers. It’s not about what you think about your products, services, or business. It’s about what they think.

A logo is simply the face of your organization – it’s the ambassador that hopefully reflects what you want your customers to think and feel about who you are as an organization. Your logo is a branding element, that helps direct your customers’ perspective about how they should view your products or services. But you must have a brand in place so you know how and where to direct them.

Furthermore, you should be concerned if all you have is a logo. It’s rare that you can encompass all aspects of your brand into your logo, so you want to make sure you are utilizing other branding elements to support and carry your brand message. If you brand is the foundation of your organization, you should build upon it with a variety of branding elements based on your specific needs, target markets, and goals. These can include a web presence, new media initiatives, experience development (office space, brand environments), and even how your staff operates.

If you have a logo that is unique, creative, and reflects your brand idea then you’re on the right track – but you haven’t reached your destination yet – because your brand is much more than your logo.

3. We just don’t have the marketing budget right now.

Then you have your priorities reversed. Your brand strategy and branding initiatives shouldn’t be dependent on your marketing – your marketing should be dependent on your overall brand strategy. And let me ask you this, do you put a limit on the development of your products and services? How about a limit on your goals and aspirations for your organization?

Then why limit the fuel that will drive your organization to meet those goals by restricting your brand strategy with your budget limitations? I’ve covered the difference between viewing branding as a cost or an investment in another article, but those principles apply here. If you limit your brand development by how much of a marketing budget you have, you’ll never get anywhere – primarily because the marketing budget is the last money in, and usually the first money to get cut out when times get tight.

For the record, I’m not saying have a limitless financial strategy when it comes to your branding. What I am saying is you need to have a larger view of your brand – don’t limit the possibilities. Thing big. Think creatively. And then orient your marketing plan, your branding plan, and even your business plan around those thoughts and ideas.

QOTD: Which one of these misconceptions have you believed? What needs to be done to change your perspective and get your brand back on the right track?

About the Author: Jason VanLue is a graphic designer and brand consultant who lives in Orlando, FL. He is the Founder and Principal of FiveSeven Studios, a small interactive design and brand consultancy that helps small businesses and organizations grow their brands. Learn more about FiveSeven Studios.

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Branding for Small Business – An Overview

Definitions

Before we get too far along, I’d like to provide some definitions to help us understand what we’re talking about.

Small Business – According to the US Small Business Administration, a small business is defined as “one that is independently owned and operated and which is not dominant in its field of operation.” Additionally, the SBA offers ranges for the size of small businesses, which varies across industries, but usually employs less than 100-150 employees. For the sake of argument, when I mention small business, I am referring to organizations that are local in nature, employing less than 150 individuals, and could include such organizations as churches, ministries, non-profits, and professional organizations.

Brand – Quite simply, a brand is the emotional attachment and mental picture an individual has in relation to a specific product, service, or organization. Marty Neumeier has said that a brand is a “person’s gut feeling about a product, service, or company”. A brand is not a physical entity, but rather a collection of visual images, experiences, emotions, and senses that make up a collective opinion.

Branding – Branding is the practice by which companies and organizations build their brand image. It’s any effort or initiative that organizations undertake to push a particular collection of images and experiences to help define the overall brand image for an individual. Branding applications are as numerous as the ideas behind them, but primary applications include identity design, website design & development, print campaigns, environmental experience design, product design, and media.

Modern Practices

Without delving into a comprehensive history of advertising and branding, I’d like to cover the most recent shifts in branding practices. At the turn of the century, products (brands) were defined more by its features, what it “has”. By the 1920s, more and more products were hitting the market with the same features, and brands developed into more of what the product “does”.

By the 1950s brand strategists were positing their products around the experience, what you’ll “feel” by using this particular product. By the turn of the millennium, another phenomenon was taking place among consumers – in an information, product, and consumption-soaked world it wasn’t enough to simply “feel or offer something different”. Consumers began to change their habits and loyalties to brands that they identified with. Thus the latest stage of branding involves more of the brand’s identity – what it “is”.

What does this mean in real terms? Well, if you’re a company, it’s not enough to create a new product. It’s not even enough to create a new product that “does” different things. And it’s not even enough to create a new product that evokes certain emotions. No, the product will only be successful if you can get your target market to build an identity around the product that they trust, and that matters to their daily life. For many, a BMW is more than just a car (what it has) that offers certain features (what it does) that looks rich and sophisticated (feelings). For many, a BMW is part of their identity, it’s part of their lives because a BMW is more than just a car, it’s a statement about the owner, and a reflection of their lifestyle.

So Where do Small Businesses Come In?

When we think about brands, branding, and brand-building, more often than not we think on a large scale. Global brands come to mind, or Fortune 100 companies. Rarely, when we think about branding, do we think about small business. And if you’re a small business owner, believe it or not, the thought process is similar.

Small businesses have a myriad of challenges to face – I know, I own one – and frequently have to face these challenges without the safety net that many large corporations have. As a result, I see too often businesses and and business owners drop their branding efforts before anything else because this seems the easiest to cast off and pick back up again. This could be farther from the truth, and is detrimental to success and growth.

Misconceptions of Small Businesses

Here are some of the more prominent misconceptions of small business in relation to branding and brand-building:

  1. I don’t need a brand, I’ve been in business for “X” amount of years.
  2. I don’t have a “marketing” budget, so I can’t do any branding.
  3. I have a logo, isn’t that all I need?
  4. Times are tight so we’re cutting back on our branding initiatives.
  5. I have a unique product that’s different from anything else on the market. That’s all I need.

Might I suggest a few answers to these misconceptions:

  1. And while your experience and longevity in the local market are powerful tools, you can’t rely just on that. Plus, it may be a time for a re-brand initiative, especially if your brand is outdated and a bit dry.
  2. Branding and marketing are different, don’t lump the two together. Marketing involves driving attention to your brand. Branding involves expanding your identity, differentiation, and relevance. Marketing can be seen as an expense, branding should be seen as an investment.
  3. According to Paul Rand, a logo is the ambassador of the brand, but it’s not the brand itself. Just because you have a logo does not mean you’ve built a brand. The tip of the iceberg still needs a lot of iceberg underneath.
  4. When times are tight, branding initiatives and brand positioning strategy should be the highest priority. Position yourself to explode once the market rebounds.
  5. While a different, unique product is one step in the process, it must also be relevant to your customers. Clear Pepsi was different, but nobody cared about it, therefore it was taken off of the market. Your brand needs to be different, and relevant to be successful.

Branding is Essential

The last thing your customers need is more information, or more products. The world is cluttered enough as it is – it’s estimated that the average individual is bombarded with over 6,000 advertisements and marketing initiatives every day. It’s no wonder that most of it goes in one eye or ear and out the other.

But just because there’s “too much out there” doesn’t negate the importance of developing a solid brand. In fact, that should be proof enough that a different, relevant brand identity is vital to your success in the marketplace.

And just because you’re a small business doesn’t mean branding isn’t important. I would venture to say that because you’re a small business, branding becomes even more important. How are you going to set yourself apart from hundreds of other competitors? How are you going to provide a product or service that is different? And how are you going to convince your customers that this product is relevant to their daily life and needs?

That’s branding. If you’re not concerned with that, than you’re not concerned with growing your business. I believe that the single most important factor in growing your business is how you create, grow, and manage your brand presence.

Get A Brand-Aid

So if you’re a small business or organization and it’s been a while since you’ve looked at your brand strategy, or if you realize you’ve never given any thought to developing your brand, now is the time. Before you make one more sales call, print one more flyer, or invest in new office equipment, why not spend some time focusing on the most important aspect of your business?

You don’t have to do everything at once. Effective brand development takes time, and once a brand identity is created, it must be faithfully managed so it can successfully evolve. You need to craft a long-term brand strategy, where you set your prioritites, figure out what needs to happen and when, and work to harness the various brand touchpoints that will help grow your business.

Every small business owner wants one thing – to grow their business. I would submit to you that by participating in an effective process that discovers, defines, and deploys proven strategies to grow your brand, will, in turn, make your business more successful. Branding for small business is vitally important. I invite you to wait no more, and start implementing a focused brand development initiative in your organization today.

About the Author: Jason VanLue is a graphic designer and brand consultant who lives in Orlando, FL. He is the Founder and Principal of FiveSeven Studios, a small interactive design and brand consultancy that helps small businesses and organizations grow their brands. Learn more about FiveSeven Studios.

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Branding – Cost or Investment?

I’ve had several clients and small business owners tell me lately that they can’t start any new branding initiatives because they are cutting costs and streamlining their operations to help navigate the economic challenges. While I’ll be the first to admit that the current economic situation should cause all of us to take a good, hard look at our business model, and that cutting costs and reducing expenses is a wise endeavor – I think there’s a fundamental mistake in that line of reasoning. Branding shouldn’t be considered a cost – and therefore be subject to ‘reduction’ – instead, branding should be viewed as an investment.

Branding as a Cost:

You see, if we view branding initiatives as a cost, we’re always going to be looking for ways to get the cheapest deal. While this may be a good idea for shopping after Thanksgiving, it’s not a good idea for your business. Why? Well, because I believe a focused brand strategy is the most important part of your business. In order to be successful, especially as a small organization, you have to build a brand that’s different, relevant, and able to evolve.

Why then would you want to ‘cut’ this vital part of your business plan when times get tough? Typically, it’s because your perspective of branding, and your perceived value of brand strategy is wrong. Whenever I think of a ‘cost’ I always have a negative view. When I think of costs I think of bills, collection calls, and money draining out of my account.

Branding as an Investment:

Alternatively, if you view branding as an investment, there are a few preconceptions you accept. For one, you expect to get a positive return on your investment. Secondly, you understand that in order to receive a positive return, it will take some time. Thirdly, you understand that the more you put in, especially in times where you can take advantage of situations to better position your investment, the more you will get out.

So apply those expectations to your brand. In times like these it’s very easy to want to button down the hatches and remove all ‘excess’ outflows. This couldn’t be more detrimental to your business. Because the markets will turn around and the economy will rebound. Where will your brand be when it does? Don’t you think that it’s better to position your brand now for success later? By viewing your brand strategy as an investment, it takes the ‘negativity’ factor away from what you put ‘in’ because it shifts your perspective from what you’re putting in to what you will eventually get out.

This is how we should view our brand development strategy. We should be positioning our brands for long-term success, just like you would desire for any investment.

Practicality:

So does that mean spend your Amex balance on branding initiatives with no discernment? Absolutely not. I understand that tight times mean tighter cash reserves. All I’m saying is that in order to continue building a successful brand, and to achieve long-term success in the marketplace, you have to keep your investments separate from your costs. Because when times get rough, your costs are the first things to go. And if your brand is one of those, you’ll be throwing the baby out with the bath water.

So how do you continue to develop your brand, invest in your brand development strategy, and position yourself for long-term success in a down economy? Here are some helpful tips to consider:

  1. Force yourself to remove all aspects of your brand, brand strategy, and branding initiatives from your cost category and place them in the investment category – this could include your website, e-marketing initiatives, print campaigns, environment design, and marketing strategy.
  2. Plan your marketing strategy around your brand goals, taking money out of the picture. Don’t set your goals based on your budget, set your budget around your goals.
  3. Once you’ve defined what you want to achieve, start applying your budgetary limitations. But don’t budget your costs first, do those last, after you’ve allocated funds and resources to achieve your branding goals.
  4. Understand that you may not be able to accomplish all of your branding goals – but by focusing on these goals outside of your expenses, you’ll be more willing to devote funds and resources to these endeavors when available.
  5. Research your competition and see where they are cutting back – there may be opportunities for you to take their place in certain initiatives.
  6. Just because your customers aren’t buying doesn’t mean they aren’t thinking about buying – by keeping your brand in their minds through strategic, targeted branding initiatives will help encourage them to choose your brand when they are ready to buy again.

If you let money rule your decisions, you’ll only grow as much as you’re willing to write a check.

In order to build a successful brand, especially as a small business or organization you have to stay motivated. You have to stay envisioned. And you have to keep brainstorming, and conceiving ways to position your brand to make the biggest splash. You must be wise with your finances and resources, especially in a down economy for sure. But you mustn’t be limited by your current limitations. By viewing your brand strategy as an investment, rather than a cost, you’ll be able to maintain a long-term perspective, and keep heading towards your goal.

In the course of building your brand, sometimes you’ll be running towards your goals, sometimes you’ll be walking. But you should never be standing still.

QOTD: How much are you willing to invest in your brand this next year? How will you achieve this even with financial and resource restrictions?

About the Author: Jason VanLue is a graphic designer and brand consultant who lives in Orlando, FL. He is the Founder and Principal of FiveSeven Studios, a small interactive design and brand consultancy that helps small businesses and organizations grow their brands. Learn more about FiveSeven Studios.

Popularity: 5% [?]

3 Keys to Succesful Branding for Small Business

In an information-soaked world, it is more important than ever for any business or organization to employ an integrated and focused brand strategy in order to be successful. And this is no different for small businesses – in fact, it might just be more important for small businesses. In a small business or organization, rarely do you have the financial support, time, or recognition in the marketplace to simply “plod” along. In a world where thousands of companies and products are vying for consumers’ attentions, it is vital to make sure you are positioning your product or service to cause consumers to choose you.

Remember, it does you no good to just offer your customers another choice – you have to offer them a better choice. You can do that by employing three primary branding strategies to your business:

1. You Must Be Different.

When creating a product, or thinking about how to market a service, it’s not enough to just “dive” into the marketplace. It’s estimated that the average consumer is bombarded by over 6,000 marketing messages every day. It’s no wonder then why consumers tend to develop habits that they stick with – especially when it comes to purchasing products or utilizing services. It’s your job to shift these habits and loyalties over to your organization, and you do that first through differentiation.

You have to be different. In your particular industry (unless you’ve created the next lightbulb) there’s probably several competitors within a 50 mile radius. More when you consider the ease of the phone and the internet. So what makes you different? Why are you unique from your competitors? What sets you apart that will make your target market pay attention?

Here are some quick questions to ask:

A) Identify your main competitors in your industry – what makes your products or services different from theirs?
B) Why would John Q. Consumer want to use your products or services over your competitors?
C) Make a list of how your products or services are similar to your competitors. Now make a list of how they are different. How can you exploit the differences to draw attention to your brand and away from your competitors?

2. You Must Be Relevant.

As important as it is, you can’t just be different. As I mentioned before it’s not enough to offer your potential customers more choices – you have to offer them a better choice. Your brand must be relevant. Your brand has to matter to the consumer – otherwise, you may have the most unique product on the market, but nobody will buy it because you haven’t done a good job convincing them WHY they should buy it.

Take Clear Pepsi for example. Pepsi came out with the product in the 1990s and it made a big splash initially because it was different. How could something taste like Pepsi but be clear? It was clearly a unique product (no pun intended). But Pepsi missed one important part of the puzzle, and as a result, the brand flopped a short time later. They didn’t make the product relevant. People didn’t care. They figured, if it tastes like Pepsi, why not just drink Pepsi? Or maybe they liked Sprite better.

The bottom line is that Pepsi created a unique product that people just didn’t care about. And it wasn’t successful. In the same say, you have to position your brand in such a way so that people will care about it enough to shift their purchasing habits. It’s a challenge, but a necessary one in order to achieve success.

Some questions to ask:

A) Why should consumers buy your product or use your service?
B) What will make the average consumer shift their habits and loyalties from your competitors’ brands to your brand?
C) What will the average consumer “GET” out of your brand that they won’t get out of others?
D) Why can’t the average consumer live WITHOUT your brand?

3. You Must Be Able to Evolve.

Finally, in order to achieve lasting success, and to not end up just a flash in the pan, your brand must be able to evolve. The first step is to create a unique brand and brand idea. The second step is to define why consumers can’t live without your brand. The third is to develop a long-term strategy for growth that allows your brand to stay ahead of the curve, and evolve with the changing market trends and consumer demand.

We’re seeing this firsthand in the auto industry. With higher gas prices, economic challenges, and changes in consumer tastes, the SUVs are shifting from a product of high demand to a product of low demand. Several SUVs are very unique products. And several companies have done a good job convincing the consumer why they should care about a particular brand of SUV. But how many of these companies will make the necessary changes for the brand to evolve? How will the changing market trends and consumer demands affect the long term success and failure of this industry – that will be determined by which brands successfully evolve.

In your small business or organization, you must think long term. You must employ strategies and initiatives that not only keep your brand in the forefront of your customers’ minds from a unique and relevant perspective – they must see you brand as one that is not affected by change, but rather as one that AFFECTS change. You’ve got to be a trend setter, a leader, not a follower. It may be different from business to business, from industry to industry, but if you don’t pay attention to the shifts in market demand, you’ll find yourself with yesterday’s news.

Some questions to ask:

A) What are the changes in market trends and consumer demand that I see in my industry in the coming years?
B) How can I position my brand to embrace change and evolve during those shifts?
C) How can I embrace technology to help my brand evolve – this can include the web, new media, and social networking.
D) Where do I want to be in 5 years? How can I position my brand now in order to make sure my brand is still different, relevant, and evolutionary at that time?

In order to achieve lasting success for your brand, especially for small businesses and organizations, you must do your due diligence to create a different, relevant, and evolutionary brand strategy. And you must have all three – it’s an all or nothing play. But if you work to create a brand strategy that effectively employs all three elements, you’ll go far in positioning your brand for success.

Quick Tip: When answering the questions above, think in dual perspectives – think from your perspective, and think from your consumer’s perspective. One good exercise is to take a completely unrelated brand outside of your market and industry, and answer the above questions as an owner, and consumer. It might help you come up with good ideas that can then be translated to your market and industry – and it helps removes the bias you may have.

QOTD: How have you made your brand different, relevant, and evolutionary – post your answers below.

About the Author: Jason VanLue is a graphic designer and brand consultant who lives in Orlando, FL. He is the Founder and Principal of FiveSeven Studios, a small interactive design and brand consultancy that helps small businesses and organizations grow their brands. Learn more about FiveSeven Studios.

Popularity: 5% [?]

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