What Is Branding?

Branding is not just about a name, a product or a logo. Branding is a way to communicate excitement about your company and your products. If you use branding effectively, your company will stand out in the marketplace.

Benefits of Branding
If you have a small business, you may think that branding your company and your products or services is not worth the time, money and effort. However, branding is a good business strategy, because it

• Helps focus your business
• Helps you determine not only the advantages of using your product but also the benefits of using your product
• Lends more authority to your product or service
• Positions your product to be different from your competitors' products
• Makes the name of your product or service harder to forget
• Enables you to bring emotion into the buying process

Some companies end up having their trademark names used to represent a whole product category over time. This is invaluable, free advertising. If your widget is named "Dynamo," why couldn't everybody refer to any type of widget as a "Dynamo" in the future, whether they are referring to your product or products that are produced by your competitors?

Components of Branding
Components of branding can include:

• A company name
• A product or product line name
• A trademark or symbol
• A logo
• A slogan

These elements should be used in any interactions that you have with the public, whether those interactions are correspondence, promotions or advertising.

Developing Your Brand
Take a look at your competition. How are they presenting themselves in the marketplace? What kinds of "zingy" words or phrases do they use to describe themselves and their products? Does all of the competition "sound" the same? How can you make yourself sound different from the rest of the pack? What is unique about your company and products?

Then look at different names for your company and your product. When considering names, make sure that you completely understand the implications of the names. In today's multicultural society, you do not want to pick a name that will put you in a position of ridicule within one of your key market segments.

When picking names, you have several options. One way is to choose a company name that provides an umbrella for your products' names, such as the name of your company's founder. However, as has been seen in recent years, if the founder falters and gets involved in unscrupulous activities, the company can take a huge hit.

Another approach is to pick an "umbrella" name for your company that describes what your products do. This approach sometimes leads to "generic" feeling names that simply do not spark excitement or stand out in the crowd of competitors, so be careful when looking at this path.

You can also make up names. Some successful companies have chosen names that have rhyme or rhythm to them. An example might be "Glimmerings" for a company that offers a makeup line. Other companies choose names that are based on Latin or Greek words. You might also be interested in using an acronym. For example, if your company makes paint brushes for watercolors, you might consider the name "PBW."

After you have settled on a name, you can look at developing tags and slogans that are related to your name or product. The best slogans look at your product and make a larger statement that sets you apart from your competitors. For example, if you sell athletic shoes, a slogan might be "Sneakers on the Run." However, if your slogan becomes "Moving Free," you are no longer talking about shoes. You are selling an image that can also be used if you develop related product lines.

Then develop a logo. A logo should attract the eye and literally add color to your brand, and it should also complement the name and slogan you have already chosen. Also consider colors that go well with your product or company. For example, if you are opening a company that provides tax services, you may want your logo to be green or gold, colors commonly associated with money.

Once you have chosen your names, slogans and logos, you must go through the trademark process. You can create a legal and financial nightmare for yourself if you create a brand and develop all of your materials only to find that you have used or too closely resemble another company's branding. In addition, you will prevent others from using your branding if you trademark it.

Getting Help
Should you do the work of business branding from within, or should you hire branding agencies for assistance? The answer to this depends, in part, on your budget and the talent that you have in-house. Ideally, if you have the budget, hiring an expert to work in collaboration with you and your ideas might be the best bet. However, for smaller companies, the financial burden may be too much. You don't want to put yourself in financial straits early on. In this case, you might consider working through the branding process in stages or doing at least part of the work yourself.