IMPORTANCE OF BRANDING
… … To get a better understanding of these terms, click here.
In Singapore, small and medium-sized enterprises (SMEs) are defined as businesses with annual sales turnover of not more than $100 million or employing no more than 200 staff. Many SME owners believe that branding is for large companies, while others believe that branding is only important for those in the business-to-consumer (B2C) sector. These are huge misconceptions.
A product can be quickly outdated, but a successful brand is timeless. – Stephen King
Branding is the reason why successful brands are successful.
Regardless of the sector that they are competing in, both B2B and B2C SMEs must understand the importance of branding and the handsome rewards that it yields. At Qoorious™, it is our belief that branding is even more important for SMEs due to their size and nature in which they conduct their business, as well as the problems and contraints that SMEs face.
As compared to their MNC counterparts, SMEs have a smaller customer base and rely more heavily on repeat businesses from loyal customers. Without a large budget for mass-advertising, SMEs also depend on positive word-of-mouth and customer referrals to attract more business.
Some Common Problems faced by SMEs:-
- Inability to charge a price premium without any distinct differentiating factor
- Inability to retention customers as customers tend to choose the cheapest supplier
- Inability to conduct product/service innovation without identifying customers’ unmet needs and wants
- Inability to attract and retain good employees
- Inability for second-generation SME owners to revamp the business without getting buy-in and support from stakeholders
Benefits of having a Strong Brand:-
- Ability to command a price premium over competitors
- Project the images of Size, Quality, Experience and Reliability
- Reduce buyer risks by serving as a guarantee against the risk of non-performance
- Facilitate customer acquisition through positive word-of-mouth
- Encourage customer retention through brand loyalty and increasing buyers’ risks of supplier-switching
- Offer some level of protection when mistakes occur as customers are more willing to forgive strong brands
- Provide directions for marketing and innovation activities
- Transformation into a talent magnet to attract and retain a pool of good employees
- Instill greater stakeholder confidence when the company undergoes changes for business expansion
- Weather economic downturns better than competitors with weak brands
Do you have a brand? What does it stand for in the minds of your stakeholders? Are you enjoying the above benefits?
Let Qoorious™ find out for you today.