Strategy & Advisory

5 reasons why branding is so important

Julia Langer

Social Media Managerin


April 1st, 2022


April 28th, 2022

4 min

Why branding is so important?

“Brands are essentially patterns of familiarity, meaning, fondness, and reassurance that exist in the minds of people.”— Tom Goodwin

The branding of a company is more significant than one might imagine. On the surface, your brand may only consist of logos and colours, but in reality, it is the entire identity of your business. Advertising, customer service, social responsibility, reputation and graphics are just some of the tools used to build a brand. All of these aspects (and many more) come together to form a unique and (hopefully) eye-catching profile.

Branding has always been critical in the business world, but with the globalization of our community and constant exchange, branding is becoming increasingly important.

Thanks to social media, customers discover new companies every day. For consumers, this is excellent because they have a vast selection and can research to choose the best company. But for businesses, it becomes harder to stand out from the crowd and remain in the minds of customers.

However, precisely because of this vast supply, companies must do more to stand out from the crowd. To achieve this, many resources must be devoted to developing a strong brand to attract and retain people's attention.

With the right branding, you have the opportunity to influence people's perception of your company, so do not underestimate it.

The following five aspects show you why branding is so important:

1. Branding increases the company's value

When it comes to generating future business, brand building is essential. A well-established brand can increase a company's value by giving it more clout in the industry.

Because of its established position in the market, it is an attractive investment opportunity.

A strong brand becomes a value when it has a good reputation. The brand is a monetary value that must have its line in a company's balance sheet because it increases the company's overall value.

2. Branding increases employee pride and satisfaction

Branding is significant both inside and outside your company. Of course, you want employees to enjoy their work and feel like they are part of a team. A company with strong branding will find it easier to convince employees that they are part of something more significant than just a simple job.

Working for a reputable and publicly popular brand makes work more enjoyable and satisfying.

We must recognize that human interaction is the foundation of trade, and employees are the first line of communication for a brand.

Employees who have a positive impression of the brand will pass that impression on to the customers and partners they deal with, which can also lead to better leadership, participation, products, services, and outcomes.

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3. Branding builds trust in the market

One of the most critical things a company can have is the trust of its audience, but that is not always easy to earn. A company lacking critical branding aspects will find it much more challenging to build trust. Customers undoubtedly know which company they would trust more if they had to choose between a company with clear, professionally-looking branding and one without.

With branding, you can show potential customers that you have an established and trustworthy company.

You can use this to let consumers know immediately what they can expect from a company. This is an investment in the future of your company/organization, and potential customers will notice that a lot of effort has gone into building their brand.

4. Branding enhances your advertising efforts

Without advertising, your company won't get very far.

Advertising and brand building are directly connected. If you want to improve advertising for your company, then you must first focus on developing your brand.

When it comes to advertising your company, everything should fit together and reflect the identity and values of the company. You miss out on many wonderful opportunities to create an effective campaign if you advertise without a strong brand. Many opportunities are lost as a result.

When everything comes together, incorporating your brand into your advertising efforts helps increase brand recognition.

5. Branding generates and creates loyal customers

A strong brand will have no trouble generating new business through recommendations. A strong brand name often shows that customers have a positive opinion of the company, and they are more willing to do business with you because they perceive the name they know as familiar and reliable.

If the brand has a good reputation, potential new customers can come into contact with it and already build a positive association with the brand. Therefore, the customer is more likely to buy from you than from the competition. After all, you don't just want customers to recognize your brand and use your service once - you want them to keep coming back.

Through branding, you can establish a connection with your target audience that makes them loyal customers. You can build a brand that matters to people and stand out from competitors who do not use this approach.


Branding is not an easy process that happens overnight. Developing a branding strategy requires time and effort both internally and externally to establish itself. In addition, branding is a constantly changing process that keeps your brand dynamic. Branding consists of many aspects, and in our Part 2 (Branding - Which aspects make up a good branding), we will explain what components your branding should have to stand out in the market. One thing is for sure: all of these aspects contribute to making your branding your company's DNA.


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