General understanding of branding and corporate branding

1. What is a brand?

According to the World Intellectual Property Organization (WIPO):

“A brand is a combination of tangible and intangible elements, not only such as trademarks, designs, logos and trade dress but also with the concept, image and reputation from the product or service that the business wants to send to customers.”

It can be understood that a brand is all the elements from tangible (name, logo, image, slogan,...) to intangible (core values, experience, vision, thinking) that a business wants to convey to customers. A famous brand can make a special mark in history due to the special value it brings to people.

A brand can be considered a "name" that consumers think of after a period of experiencing a product or service from a business. This is considered a strategy to help consumers distinguish a business from its competitors by providing value, benefits, and promises, thereby deciding to buy the business's products.

Common signs of branding are logos, exclusive designs, slogans... printed on product packaging and labels, music and images in advertising. Through that, the deeper meaning is to affirm the position, strengths and reputation that the business wants to send to customers.

2. What benefits do businesses get from building a brand?

Building a business brand is a long-term process of building and developing the image, unique mark, core values of products or services for customers to experience and recognize. The stronger the brand, the more competitive advantage it has because customers always favor and trust it more than competitors.

Here are the benefits for businesses when building a strong brand:

2.1. Increase brand awareness:

A strong brand increases the recognition of a business compared to its competitors. Customers always remember and choose strong brands, due to the prestigious values that customers trust and want to have. Therefore, investing in building a strong brand is the sustainable development of a business.

2.2. Create trust for customers:

A strong brand creates customer trust in a product or service. Once they love and trust a brand, customers will continue to support the business and be proud to use branded products because of their guaranteed quality. In addition, loyal customers can introduce new customers to the business.

2.3. Enhance the value of products or services

A strong brand always creates a good impression on customers about style, interface, image and quality. This is a valuable asset of the business in the long term. The stronger the brand, the higher the position of the business in the market. From there, the price of products and services also increases according to the reputation of the brand.

2.4. Create a difference from competitors

When you have a strong brand, consumers will remember the quality and unique value of the business more than competitors without a brand. Moreover, the stronger the brand, the more loyal customers it attracts, helping to maintain the business as well as the sustainable development of the business.

2.5. Enhance the prestige and reputation of the business

Loyal consumers are willing to pay more for a product or service simply because of a strong brand. This brings huge advantages because businesses can increase sales prices, attract more investors to develop new products or services, and expand into new markets.

2.6. Motivate employees

A strong brand not only attracts more customers but also motivates employees. A strong brand always has a clear purpose in developing and caring for human resources. From there, employees are connected and believe in the vision of the business, and will strive to work for higher productivity.