What is Product Branding? And, Why is it Important?
Product branding is the process of creating a unique identity for your product. Branding can help companies establish their market, set them apart from competitors, and create loyalty with customers. A brand can be recognized by one or more logos, trademarks, service marks, slogans, and colors, and this recognition can help the brand accelerate its growth, retain customers, and much more.
Why Should a Company Invest in Product Branding?
There are many reasons to invest in good product branding. One of the main reasons is that it increases sales and market share. When a company has a strong brand, people want to buy their products just because they like the way it looks, the way it sounds, or even the status the product brings. A person might be familiar with the logo from television commercials or internet ads, but they might not know what that company sells or who makes them. This means that by investing in good product branding, companies can spread awareness of their brand, and when the time is right and the customer needs their product, they are much more likely to convert them.
The benefits of good product branding include (but are definitely not limited to):
Brand Identification
Customer Preference
Market Penetration
Barrier to Entry
Let's walk through the benefits of good product branding.
Brand Identification
When a product has good branding, or even when a company has good branding, an average customer can recognize your brand based on the logo, slogan, or even colors. For example, Coca-Cola can commonly be recognized for its red and white colors.
Oftentimes, customers of a company will start to identify with a product or company when they are exposed to it enough times. Another example would be the Apple iPhone. Chances are, when someone sees a person using an iPhone, they can identify the phone to be an Apple iPhone because they have been exposed to it many times before.
If a customer can identify your brand, you've already succeeded at the first phase of marketing, exposure. It takes multiple touchpoints to convert a customer, and at this point, if they can recognize the brand, you are much more likely to convert them down the line.
Brand Loyalty
Similarly, when a customer trusts the brand, the brand is more likely to gain their loyalty. Branding your product doesn't just provide you with more sales in the present day - it also helps set up potential future sales as well. A customer who has been consistently exposed to your branding will think of your name This means, the brand is much more likely to retain the customer for repeated sales.
Market Penetration
Once you've established your brand and have good product branding, it is much easier to penetrate new markets.
When a company launches a new product, the marketing strategy needs to be different than when that same company has established its brand. It is much easier for the company to reach out to new customers and sell their products because they have already built up their brand, and also have built their audience of loyal customers.
Barrier to Entry
When a particular market has a bunch of products with good product branding, it instantly increases the barrier of entry for new competitors. Competitors will have to spend a lot of money on marketing and branding just to get noticed in the market. This is something that established companies with good product branding don't need to worry about because they already have customers and they have built their brand by developing good product branding.
Dip Devices packaging for Dipper Vaporizer
To Sum it All Up
In conclusion, every company should invest in good product branding. As we stated above, product branding can help a brand to develop its brand identification, customer preference, market penetration, the barrier to entry, and much more.
Do you have a question that wasn’t answered above? Or would you like to reach out to our team about overhauling your product’s branding? Feel free to reach out by filling out our contact form!
