The commerciality of Brand.
Have you ever pondered the monetary value of your brand identity to your business? It can be as hard to quantify as it is valuable.
But why is it so valuable? This is a question to which many founders, CEOs and CMOs have sought answers. It is a question that was posed to our founder, Tess, many years ago during an interview which tapped into her wealth of experience educating fellow business leaders on the commercial importance of a brand identity. This 3-part article expands upon her notes.
What are the commercial benefits of having good corporate design and branding?
TL;DR
A strong and coherent brand identity gives a business the opportunity to control not only how they are seen, but also that they are seen to be different. It is this difference that makes a business both visible and memorable, separates them from competitors, attracts and motivates customers and gives them a competitive advantage.
A strong visual identity enables a business to punch above its weight or lead in their field, to grow market awareness and sales. It also improves internal and external communications, increases credibility (although delivering on the brand promise in the customer experience is vital to achieve this), and builds brand loyalty and stability.
A well thought-out brand strategy and corporate identity and brand builds business success.
Having good corporate design and branding offers numerous commercial benefits, both tangible and intangible.
Here's how it can positively impact a business:
1. Increased Brand Recognition
Consistent and memorable branding helps your business stand out. A well-designed logo, colour scheme, and brand identity make it easier for customers to recognise your products or services instantly.
This visual identity becomes a part of the customer’s buying decision, especially in crowded markets.
2. Customer Trust and Credibility
A professional and consistent design reflects reliability and trustworthiness. Consumers are more likely to trust a company that looks established and polished.
Perceived professionalism often leads to higher trust, which can make a customer choose your brand over competitors.
3. Differentiation from Competitors
Strong branding and design help differentiate your company from competitors. This is particularly important in saturated markets where products and services are similar.
Unique design elements and branding also convey the company’s values, mission, and quality, setting you apart.
4. Enhanced Marketing Effectiveness
Effective corporate design makes your marketing more efficient and cohesive. Well-branded materials resonate more with target audiences, increasing engagement rates in ads, social media, and email campaigns.
Design consistency across channels reinforces your brand message, making marketing campaigns more effective.
5. Customer Loyalty and Retention
A compelling and relatable brand helps foster emotional connections with customers, which can lead to higher loyalty and repeat business.
A strong corporate identity encourages customers to stick with your brand, even if competitors offer cheaper alternatives.
6. Attracting Talent and Investors
Good design not only appeals to customers but also to potential employees and investors. Top talent is often drawn to companies that look modern, innovative, and aligned with their values.
Investors are more likely to trust companies with a solid, professional brand identity, perceiving them as more likely to succeed.
7. Higher Perceived Value
Good design elevates your brand’s perceived value. People often associate well-designed products and services with quality, allowing you to justify premium pricing.
A professional brand image can also lead to better margins since consumers are willing to pay more for a brand they trust and admire.
8. Increased Sales and Market Share
Effective branding leads to higher conversion rates, as a strong brand can push undecided customers to choose you.
Over time, well-branded businesses often see an increase in market share as brand loyalty builds and customer awareness grows.
9. Flexibility and Growth Opportunities
Strong branding gives businesses the flexibility to grow into new markets or launch new products. A well-established brand identity makes it easier to introduce new offerings without confusing customers.
It also ensures smoother geographical expansion or the introduction of sub-brands under a trusted corporate umbrella.
10. Cost Efficiency
Once a consistent and cohesive brand is established, the cost of design and marketing often decreases over time. Design templates and clear brand guidelines streamline processes and reduce the need for constant redesigns or brand revisions.
Strong corporate design and branding not only help attract and retain customers but also provide strategic advantages in marketing, pricing, and corporate growth, all leading to long-term commercial success.
How damaging can a poor brand image be to a business?
TL;DR
All businesses have a brand and an image of that brand exists whether they are aware of it or not.
If a brand is unfocused and is not managed or communicated effectively, people exposed to the brand will form different views about the business and perceptions can become confused and negative. An unfocused and poor brand image will not only mislead an audience and potential customers, but it is likely to result in losing sales, a decline in market share and a decrease in credibility.
What does branding say about a company? What are the messages branding can convey?
A company that has a successful brand has a core idea and vision together with a set of shared values, aims and beliefs that come together as a coherent strategy. This is then used to create a brand’s visual identity that is visible and tangible for all its audiences to see, understand and buy into emotionally. These messages build awareness, credibility and trust, attracting new customers and increasing market share, resulting in higher levels of brand loyalty.
A poor brand image can be extremely damaging to a business, affecting nearly every aspect of operations, from customer trust to financial performance.
Here’s how it can negatively impact a business:
1. Loss of Customer Trust and Loyalty
A weak or inconsistent brand image erodes customer trust. If a brand appears unprofessional, outdated, or unreliable, consumers are less likely to trust the quality of its products or services.
Loyalty suffers when customers no longer feel emotionally connected to a brand, leading them to explore alternatives.
2. Decreased Sales and Revenue
Consumers tend to avoid brands with a poor image, which can lead to a significant drop in sales. If customers don’t feel confident in a brand, they will seek other options, resulting in reduced revenue.
This loss of consumer confidence can cause a decline in market share, as competitors with stronger branding capture your customer base.
3. Damage to Reputation
A poor brand image can lead to negative public perception, which spreads quickly in today’s digital landscape. Bad reviews, poor customer service, or a controversial brand stance can damage your reputation, making it difficult to recover.
Once a negative image is ingrained in the public’s mind, it’s challenging to change perceptions, even with extensive rebranding efforts.
4. Difficulty Attracting New Customers
New customers are unlikely to engage with a brand that has a bad reputation or confusing identity. First impressions matter, and a poor brand image may cause potential customers to form a negative perception before they even interact with the business.
Word of mouth and social proof work against a business with a poor image, as people are less likely to recommend or promote a brand they don’t trust.
5. Negative Impact on Employee Morale and Recruitment
A poor brand image doesn’t just affect customers—it also affects employees. Staff may feel demotivated or embarrassed to work for a company with a tarnished image, leading to lower morale and higher turnover rates.
Top talent is less likely to want to work for a company with a negative or unclear brand image, making it harder to recruit skilled employees. It may also increase hiring costs as the company has to work harder to attract candidates.
6. Increased Marketing Costs
With a poor brand image, businesses often have to spend more on marketing to attract customers. Rebuilding a damaged image requires additional advertising, public relations efforts, and promotional activities to win back trust.
Even after significant marketing investment, repairing a brand can take time and may not be fully successful, especially if the brand damage is severe.
7. Lower Pricing Power
A business with a weak or negative brand image typically struggles to command premium prices. If consumers perceive the brand as low-quality or untrustworthy, they are unwilling to pay higher prices, forcing the business to rely on discounts or low prices to drive sales.
This results in lower profit margins, making it difficult for the business to invest in growth or innovation.
8. Challenges in Partnering and Collaboration
Other businesses and organisations may hesitate to partner or collaborate with a brand that has a bad image. They may fear that the association will harm their own reputation or lead to negative public relations.
Supply chain partners or distributors may also reduce their cooperation, impacting the company’s ability to expand or function effectively.
9. Increased Vulnerability to Competition
A weak brand image makes the business more vulnerable to competitive pressures. Competitors with stronger, more positive brands can easily lure away customers, leaving the business struggling to maintain its position.
Even in price wars, a company with a poor image may fail to retain customers if they perceive competitors as offering better value.
10. Difficulty in Expanding or Launching New Products
Expanding into new markets or launching new products becomes more difficult when the core brand is viewed negatively. Consumers are less likely to trust a new product or service if they already have a poor perception of the company behind it.
This also leads to missed growth opportunities, as competitors with stronger brands capture new market segments more easily.
11. Loss of Investor Confidence
Investors are less likely to support a business with a bad brand image. Poor branding often leads to concerns about long-term profitability, stability, and growth potential.
If investors or stakeholders lose confidence, it can result in a decline in stock prices for publicly traded companies, and challenges in raising capital for privately held businesses.
12. Rebranding Costs
If a company decides to overhaul its image to recover from a poor brand perception, the cost of rebranding can be high. This includes costs related to redesigning logos, marketing materials, and reintroducing the brand to the market.
Additionally, rebranding efforts may not always be successful, especially if the damage to the brand’s reputation is deeply ingrained.
A poor brand image can have widespread negative effects on a business’s bottom line, from losing customers and revenue to damaging its reputation and long-term viability. Maintaining a positive, strong brand identity is critical to sustaining growth, profitability, and market presence.
What does branding say about a company? What are the messages branding can convey?
Branding plays a crucial role in communicating a company’s identity, values, and positioning in the market. It shapes the way customers perceive the business and creates a lasting impression. Here are the key messages that branding can convey about a company:
1. Company Values and Mission
Branding is a direct reflection of what a company stands for. Through visual elements (like logos, colour schemes, and typography) and messaging (such as taglines and mission statements), branding communicates the core values of a company.
For example, eco-friendly branding may indicate a focus on sustainability, while tech-forward design may suggest innovation and modernity.
2. Quality and Professionalism
Strong, consistent branding conveys a sense of quality and professionalism. Well-designed logos, cohesive colour schemes, and a clear brand message suggest that the company is competent and takes pride in its products or services.
Conversely, inconsistent or poorly executed branding may give the impression of low quality or carelessness.
3. Market Positioning
Branding helps define a company’s position in the market. For example, luxury brands often use elegant, minimalistic designs and sophisticated messaging to signify exclusivity and premium quality.
In contrast, budget-friendly brands may use bright, bold designs and playful language to emphasise affordability and accessibility.
4. Target Audience
Branding signals who the company is trying to reach. The design, tone, and imagery used in branding often reflect the tastes and preferences of the target audience.
For example, a tech company targeting younger, innovative customers may use cutting-edge, sleek designs and modern language, while a family-oriented business may use warm, inviting visuals and friendly, approachable messaging.
5. Company Personality
Branding conveys the company’s personality or brand persona. Whether the brand is fun and playful, serious and professional, or creative and innovative, it helps shape how people feel about the company.
A quirky, humorous brand design, for instance, can suggest that the company is approachable and fun-loving, while more formal and sleek branding can imply seriousness and professionalism.
6. Trustworthiness and Credibility
A well-established, consistent brand image builds trust with customers. Professional, polished branding gives the impression that the company is reliable, stable, and trustworthy.
If the branding appears credible, it reassures customers that they can depend on the company for quality service or products.
7. Innovation and Forward-Thinking
Modern, cutting-edge branding can suggest that the company is innovative and future-oriented. For tech companies, startups, and creative businesses, branding often highlights how the company is at the forefront of its industry or driving change.
Use of new technology or modern design trends reflects a forward-thinking approach.
8. Company Culture
Branding can reflect a company’s internal culture and how it operates behind the scenes. For example, a brand that uses playful, open, and creative visuals and language might suggest that it fosters a culture of collaboration and creativity within the workplace.
This aspect of branding is important not only for external audiences but also for employees and potential hires.
9. Stability and Longevity
Established, consistent branding often communicates that a company has been around for a long time and is stable. It reassures customers, investors, and partners that the company is here to stay.
Branding that evolves too frequently or lacks consistency can signal a lack of direction or instability.
10. Emotional Connection
Branding evokes specific emotions and feelings toward a company. Whether it’s nostalgia, excitement, or comfort, the emotional aspect of branding helps build a deeper connection with the audience.
For example, brands like Coca-Cola use warm, happy imagery to evoke feelings of joy and togetherness, reinforcing an emotional bond with their customers.
11. Ethics and Social Responsibility
Many companies use branding to highlight their commitment to social responsibility or ethical practices. Whether it’s through sustainable packaging, charitable partnerships, or inclusive messaging, branding can reflect a company’s dedication to positive change.
Ethical branding tells customers that the company cares about more than just profits and is committed to making a positive impact.
12. Customer Experience
Branding often gives clues about the experience customers can expect. For example, a company that prioritises user-friendly design in its branding may suggest a focus on excellent customer service or ease of use.
The tone of voice in branding also signals the company’s attitude toward its customers—whether it’s helpful, friendly, and attentive, or more formal and distant.
13. Global vs. Local Appeal
A company’s branding can signal whether it has a global presence or is focused on a local or regional market. Global brands often have branding that appeals to universal values and preferences, while local brands may emphasise regional identity or cultural aspects to connect with their audience.
Localised branding often helps smaller businesses differentiate themselves from large multinational corporations.
14. Adaptability and Relevance
Branding can show how adaptable and relevant a company is to changing market trends. A brand that frequently updates its look or messaging in a meaningful way demonstrates its ability to stay up-to-date and in touch with current consumer needs and cultural shifts.
Branding communicates a company’s values, professionalism, target audience, and personality. It shapes public perception by signaling trustworthiness, quality, innovation, and emotional connection, influencing how customers engage with and feel about the company.
Do businesses take the importance of its image seriously enough?
TL;DR
For some businesses, branding is still not seen as an integral part of a business plan, however creating and maintaining a strong brand identity is absolutely crucial, particularly if you are competing in a market that is saturated with other businesses selling the same product or service.
A brand needs to be nurtured and reviewed and refreshed to allow a business to actively respond to developments in their market, new opportunities, new products, and rapid ongoing changes in technology and customer demand. Businesses cannot afford not to take their brand image seriously, particularly in the current economic climate.
While many businesses recognise the importance of their brand image, not all take it as seriously as they should. The significance of branding has grown over the years, but its treatment varies greatly depending on the size of the business, industry, and leadership priorities.
Here are some key observations:
1. Large vs. Small Businesses
Large corporations tend to invest heavily in their brand image, understanding that a strong brand is key to sustaining their market share and reputation. They typically have dedicated marketing and branding teams, conduct market research, and regularly update their branding to stay relevant.
For example, companies like Apple, Nike, and Coca-Cola continuously evolve their branding to reflect changing customer preferences and maintain their iconic status.
Small and medium-sized enterprises (SMEs), on the other hand, often underestimate the importance of brand image. They may see branding as an unnecessary expense or focus more on short-term goals like sales rather than long-term brand building.
Smaller businesses often lack the resources or expertise to invest in strong, consistent branding, which can put them at a disadvantage in competitive markets.
2. Startups and Tech Companies
Startups, especially in tech, often prioritise branding from the outset. Many startups understand that a strong brand can help them gain attention and differentiate themselves in a crowded market. Well-executed branding helps convey innovation, creativity, and professionalism, even if the company is new.
Companies like Airbnb and Uber made branding a priority early on, helping them stand out and build trust quickly with users and investors.
3. Old vs. New Perception of Branding
In the past, businesses may have seen branding as limited to logos, slogans, and visual design, viewing it as a superficial part of marketing. However, today, branding is understood to encompass every touchpoint between the company and its audience, including customer experience, social responsibility, and company values.
Despite this shift, some companies still fail to understand the strategic importance of branding. They may invest in marketing and product development but overlook how their brand perception affects customer loyalty, market positioning, and long-term success.
4. Industries with Varying Focus on Branding
Certain industries, such as fashion, consumer goods, and luxury, treat brand image as central to their business strategy. In these industries, brand identity is inseparable from the product itself, and businesses rely on strong branding to convey exclusivity, quality, and desirability.
On the other hand, B2B companies or industries such as manufacturing, logistics, or construction may undervalue branding, thinking their customer base cares more about technical specifications than about the company’s image. However, even in B2B, branding plays a crucial role in fostering trust and distinguishing one company from another.
5. Reactivity vs. Proactivity in Brand Management
Many companies treat branding reactively, responding to crises or market shifts when they arise, rather than proactively managing their brand image. This often leads to hurried, poorly executed rebranding efforts when a company finds itself in trouble (e.g., after a PR scandal or declining market share).
Businesses that manage their brand proactively—updating their identity to stay fresh and aligned with their audience—are generally more successful. Proactive brand management helps maintain relevance, attract new customers, and respond to changes in the market without losing credibility.
6. Brand Image as a Long-term Investment
Some businesses view branding as an expense rather than an investment. They may focus on immediate returns like sales growth and fail to see that brand equity (the value of having a well-recognised and trusted brand) is built over time.
Businesses that fail to take branding seriously may struggle with customer retention and brand loyalty in the long run, as consumers increasingly gravitate toward brands they feel connected to.
7. Branding in the Age of Social Media
The rise of social media has elevated the importance of brand image. Consumers now have more direct influence over a brand’s reputation, through reviews, social media engagement, and word-of-mouth marketing. A business that neglects its brand image risks being misrepresented or misunderstood in the online space.
While some businesses embrace the opportunity to engage with customers and build their brand online, others underestimate the importance of having a clear, consistent digital presence.
8. Misunderstanding Brand Consistency
Even businesses that understand the importance of branding sometimes fail to maintain consistency. This inconsistency can confuse customers and dilute brand recognition. Brand consistency across all touchpoints—physical stores, websites, advertising, social media—reinforces the company's image and builds trust.
Inconsistent branding, whether through design elements or messaging, undermines the company’s credibility and can give the impression of unprofessionalism or instability.
9. Cost-Cutting in Branding
During economic downturns or financial strain, companies often look to cut costs, and branding is sometimes one of the first areas to suffer. Reducing budgets for branding and marketing can result in deteriorating brand image, which, in turn, affects sales and customer loyalty in the long run.
Short-term cost-cutting in branding can be a mistake, as strong brand perception is critical for surviving difficult market conditions and retaining a competitive edge.
10. Brand Reputation as Crisis Management
Businesses that don't take brand image seriously enough often realise its importance too late, particularly when facing a reputation crisis. In cases of public relations disasters or product failures, companies with a strong brand can often recover more quickly, as they have built trust with their audience.
A company with a poor or neglected brand image may struggle to recover after a crisis, facing longer-term reputational damage.
Conclusion
While many businesses do take their brand image seriously, there are still a significant number that underestimate its importance, particularly in industries where branding is historically seen as less critical. Companies that proactively invest in and manage their brand image tend to see longer-term success, stronger customer loyalty, and a better ability to withstand market changes. Those that fail to prioritise branding may experience slower growth, weaker customer relationships, and increased vulnerability to competition.
As a strategic brand & communication design partner, Gendall are committed to helping businesses navigate the commercial importance of their brand, but don’t just take our word for it; ask your customers. Gather focus groups and conduct competitor analysis.
Examples of questions to ask yourself and your customers about your brand
Does it stand out against competition? What is distinctive/unique about your brand and visual identity that only you can call ‘yours’?
Does it reflect your purpose?
Do your values support your growth plans?
Relevance to the market you operate in – synergy with others in that arena – how does it compare?
Does it resonate with your target audience?
Does the brand/name reflect trust/professionalism/experience/security (whichever is most important to your customers)?
The goal is to make your identity show up in the best way to customers by demonstrating empathy for their needs.
Header photo by Samuel Regan-Asante on Unsplash
