Course: SLF 130 Marketing Practices for the Small Business

Unit 5 Reading

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- Unit 5
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- Unit 5 Glossary (Selected)

Business Partnerships Page 3

What is a Brand? Why is Branding Important?

A brand consists of any name, term, design, style, words, symbols or any other feature that distinguishes the products and services of one seller from another.

Branding is crucial to the success of any product or service, no matter what the size of the business venture. Branding can influence whether consumers will buy the product. Branding can also help in the expansion of a new product or service through building on the consumer’s perceptions of the values and character represented by the brand name. For example, a small catering business with a “good reputation and brand recognition” will be able to transition into a restaurant location because of the positive feelings associated with its name.

A brand is initially created and developed by a business, but, the customers and their feelings about a brand create the reality of a brand in the marketplace.
We live in a branded world! There are benefits of branding for the consumer. After a brand is chosen by a customer, the decision process is made easier! There is a comfort in knowing that a brand and its value proposition will be satisfying.

There are benefits of branding for the business, also. Branding helps create loyalty and repeat business, decreases the risk of losing market share to the competition, and allows premium pricing that is acceptable to the consumer because of the perceived value of the brand.
There are psychological patterns in terms of how American consumers perceive messages sent to them through branding. Signage, packaging, and the logo and font associated with a product or service make an impression in the customer's mind. The start-up business has one chance to introduce itself to the public. If the small business owner is not a “visual” person, the assistance of a creative friend or relative can be very beneficial.

Most computer software allows for different color and font selection. From the inception of the business, business cards, letterhead, signage and packaging should maintain a consistent “branded” look and feel. This is not a costly process, just a process that requires some thought.

Look at the examples below. How does font and color create an image of a small business brand?
STOP AND REVIEW

A brand consists of any name, term, design, style, words, symbols or any other feature that distinguishes the products and services of one seller from another.

A brand is initially created and developed by a business, but, the customers and their feelings about a brand create the reality of a brand in the marketplace.

Small business owners must look at their brand and everything associated with theirs brands as seen through the eyes of customers. Everything creates an impression about the BRAND.