5 Reasons Why Branding Is Important for All Businesses


There are two types of industries: those that are brand-driven and those that are product-driven. The first type can often be seen in the fashion industry where the logo on the article matters as much as the design and the material itself. However, just because the brand is not the most important thing in some other industries, it doesn’t mean it’s completely irrelevant. With that in mind, here are the top five reasons why branding is so important for all businesses, regardless of their type or industry.

Creating trust

It’s impossible to establish a relationship with an unknown entity, and without a relationship, there can be no trust. So, in order to make your company appear more lifelike, more… well, human, you need to give it some unique and recognizable features. Colors, logos and a voice (when addressing your audience) are at its core. Other than this, you need to establish and advocate some strong corporate values. All in all, creating trust is the first step in generating return customers and, later on, even brand ambassadors. In a way, creating trust is the first thing you need to do in order to invest in your company’s future.

Recognition comes before awareness

There’s a difference between brand recognition and brand awareness. Brand recognition means that a person that sees a logo or a product knows that it belongs to your company. Awareness, on the other hand, entails something completely different. It means that a person in question knows a thing or two about your brand. The more knowledgeable they are about your business, the more they trust you. The importance of trust in the business world is something that we’ve already discussed.

Using the immense power of psychology

There’s a reason why red and yellow are the colors of McDonald’s. Apart from being positive and energetic colors, they are also known to enhance one’s appetite. Sure, the color of the logo alone isn’t bound to make people want to eat, buy or pay for your services, but it can help you nudge things in the right direction. It’s not just about the color. The naming, positioning, package design and visual identity, in general, can all be used to give you an edge in the business world. This alone is a strong reason why so many businesses decide to consult a professional branding design company instead of developing these brand features on their own.

A foundation for your marketing campaign

The next thing you need to understand is the fact that all your marketing campaigns, and there will be many of them over the years, need to work in succession. The only way in which this will work is to build one on top of another with a strong brand at the foundation. For instance, nowadays, Coca-Cola stands for equality, family values and a festive spirit, yet, they would be unable to make this appear genuine if these traits weren’t at their very core from the start.

Appealing to the emotional side

Regardless if you see B2B or B2C as your primary business model, you need to find a way to appeal to the emotional side of your target audience. The best way to do so is to create a strong brand that your audience can relate to. In a way, you can help them become part of the community, which will, in turn, make them more loyal than they ever could be. Take for instance the iOS vs. Android debate that’s been going on for years now. It’s irrelevant who comes up with a superior device when Apple fans always go for an iPhone while Android fans always go for an Android-based smartphone.


The list doesn’t end here and there are plenty of other reasons why branding is so important, yet, these five are more than enough on their own. Moreover, as your business grows, the issue of a brand will become even more important. This is why it’s crucial that you tend to it as early as possible.

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