The Power of Branding

Branding is an essential part of how to open a business, but it is also a concept that has been rapidly evolving with the growth of the internet. Twenty years ago, the power of branding was something that primarily benefited large corporations. Today, it’s just as important for smaller businesses. It’s essential for everyone who wants to learn how to open a business to take the time to study branding strategy. Here’s a look at how branding has shifted in the digital era.

Branding Used to Be About Providing Consumer Information

In the pre-internet era, branding was all about taking advantage of an environment where consumers didn’t have a lot of information. Since people knew very little about the products they purchased beyond what they saw in advertisements, they gravitated toward brands they recognized and had past positive experience with, hoping for more of the same. As a result, even in the 1980s, a company’s brand was its most important asset. Eighty percent of consumers said that brand loyalty was an important part of their purchasing decisions. This had the effect of making it harder for new brands to enter the market.

Consumers Now Live in an Information Rich World

Today, however, that eighty percent has become twenty, in large part due to the vastly greater number of options that the internet has provided. In addition to serving as a platform for commerce, the internet has also placed vast amounts of consumer information at everyone’s fingertips. That eighty percent of people are now online, looking up product reviews before they make purchasing decisions. With so much information on the options, people are much more willing to change it up.

This opens up the market quite a bit, as consumers aren’t just going to stick with a brand because they’ve used it in the past. Instead of coasting by on the past performance of a brand name, even big businesses need each product to prove itself. The fast spread of information online means that if a small business creates a product that’s better than the competition, the word will get out.

Branding is Now About Distinguishing Yourself from the Options

Today’s savvy consumers now know that there are many options to serve their many needs. Whether you’re the head of a Fortune 500 company or someone who’s just learning how to open a business, branding has become a way to provide consumers with a compelling reason to try what you’re offering.

Branding is a key part of learning how to open a business, and it can be challenging for new entrepreneurs. Even established entrepreneurs need to keep up with the evolving brand landscape. If you’re looking to work with branding consultants, say hello to A Hundred Monkeys.