Branding and brand-building are vital components of any business' success, but what about small business? Is creating a different, relevant, powerful brand identity really all that important for small businesses and organizations? Learn why branding is vital to the success of any small business in this overview of Branding for Small Business.
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:
- I don't need a brand, I've been in business for "X" amount of years.
- I don't have a "marketing" budget, so I can't do any branding.
- I have a logo, isn't that all I need?
- Times are tight so we're cutting back on our branding initiatives.
- 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:
- 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.
- 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.
- 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.
- When times are tight, branding initiatives and brand positioning strategy should be the highest priority. Position yourself to explode once the market rebounds.
- 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.
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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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