The 4 elements of effective branding
What makes a business branded?
Branding is perhaps the most over used word in business. I can totally understand why; there’s so much fuss about how impactful branding is on a business. For instance, the total monetary value of the coca-cola company’s asset is so small comparable to the estimated worth of the coca-cola brand itself which is $70.7billion. This is because branding is the difference between a business and a company. The irony is that a lot of so called entrepreneurs don’t know such a difference exists. For many, a business and a company may as well be the same thing. But are they really the same? This article is about pointing out the winning difference.
Which Do You Own: A Business or A Company?
A business is any economic activity that involves the exchange of goods and services for a fee.
A company is a business that engages in a set of specific economic activities that involves the exchange of goods and services for a fee.
The difference is branding. Branding is what takes your business from an economic activity it originally is and turns it into a living entity known as a company or organization. Branding is what gives your business its own unique personality that makes it to stand out tall [SIGNIFICANT] among its industry peers. The simple differentiation is that a business is any activity that can potentially make you money. So, what do we have these days? We have a lot of entrepreneurs in business [making money] but very few who actually own a company [making a name]. I know you are taken aback by that last statement and probably saying to yourself now; but my business is registered and that makes it a company. So what the heck are you talking about here Tito?
Patience. We’ll soon find out.
Let’s get one thing clear; registering your business with appropriate bodies responsible for the incorporation of businesses in your country only makes your business a legal entity. Meaning, your business is recognized by the law and the state which confers on her the right to sue and to be sued. It doesn’t mean your business is actually a company in the eyes of your target market. Your incorporation gives your business legal recognition because your business now carries a company title. But your incorporation doesn’t give your business market recognition, which is the essence of branding.
A company is a company not because it is registered, but because customers have come to associate the business with a set of qualities that distinctively sets it apart from all others in the same playing field. Branding is what confers on your business market recognition. Branding is what translates your business from an economic activity to a living entity. It is what takes your business from a legal entity [incorporation] to a living entity [recognition]. Branding gives your business meaning, it is the string that unifies all the diverse activities of your business and gives meaning to each of them to create an overall effect in the lives of your target market. It gives your business a voice; it brings life to your business. In short, it is the soul of your business. Tito Philips Jnr. is a young Nigerian that is M.A.D – Making A Difference.
TO BE CONCLUDED NEXT WEEK