Every consumer has their favorite brands—brands they trust, recognize, and return to time and again for the products or services they need. Every business, from SMBs to startups to established midsize firms, knows that it needs a strong brand to establish itself in the marketplace and bolster its credibility and loyalty with customers.
Most business leaders and marketing professionals also understand that without a strong brand, businesses stand to lose a lot. According to UpCity’s 2023 Brand Monitoring Survey*, 57% of marketers, for example, have seen criticism or defamatory content about their brand online.
But just what a “brand” is and how to create one can seem like a great mystery. Brand identity involves much more than a good logo and some consistent photography; it gets to the heart of your value proposition and brand promise to consumers and offers a beacon for your internal and external marketing teams to follow. According to Gartner research on brand positioning, “A distorted and inaccurate view of their brand profile has led many brand leaders to make misinformed brand strategy decisions.” [1] And that’s obviously what you want to avoid as you begin building your brand identity or reinventing it as needed.
From developing an in-depth understanding of your customers to finding a unifying message and definition of your business, we’ll dive into the ins and outs of brand identity [2], how to create a brand identity, some small business branding tips, how to differentiate your brand from the competition, and more.
What is brand identity?
In the simplest terms, brand identity is the combination of things people think of when they think about your brand. That combination includes everything from your logo choice and colors on the packaging to the personality of your written and video content, your social media voice and tone, and much more. All of these factors come together to create your brand identity and define your brand for both internal and external audiences.
One of the great brand identity examples is Apple [3]. From their iconic commercials to the packaging of their products to the in-store experience, Apple has created an identity for their brand that clearly communicates trustworthiness, high-end products, and ease of use.
Of course, most companies aren’t Apple. More than 33 million small businesses operate in the U.S., and that number accounts for over 99% of the total number of businesses [4]. With those many businesses trying to define themselves and gain or retain customers, you can see why creating a brand identity for small businesses is so crucial.
Why is brand identity important for small businesses?
Standing out in a sea of small businesses, whether in a crowded field or a niche market, is one key to growth and success. Additionally, a memorable brand makes it easier for customers to remember you when they need solutions or products and to recommend your business to others.
Beyond that, a cohesive brand identity will inform all of your marketing efforts, providing a central framework for every message and every outlet you choose. Consistency is key, and a strong brand identity provides an instant connection with customers and an easy-to-follow guide for your marketing and PR efforts [5].
Branding for small businesses also involves careful monitoring of the brand reputation, especially online. 62% of marketers have said that building trust, loyalty, and credibility with customers is how online brand reputation management has positively impacted their company**. And 94% of marketers say that they are using as much as 50% of their company’s PR/marketing budget for online brand reputation management*. This is because trust and credibility are especially important, and they come directly from having a well-defined brand identity.
How to build brand identity
The steps here outline a framework for branding your small business. This framework will help you begin creating a brand identity and clearly defining your brand for both internal and external audiences and other stakeholders [6].
1. Analyze the market and research your competition
Before diving right into all the factors that currently define your brand, you need to understand the market and your competitors, as well as their place in the market. You’ll start by identifying exactly who your competitors are, the similarities and differences between your companies, and both new and existing audiences.
Then your analysis will dive into the brand identities of each competitor, value propositions, mission statements, and so on, as well as how those things are communicated in their advertising and content marketing materials. With these brand identity examples in hand, you can develop a SWOT analysis. A SWOT analysis is short for strengths, weaknesses, opportunities, and threats, and can be used for a business or for a specific project/product as needed [7]. Identifying all of these pieces will in turn guide you in defining your company’s brand identity that is unique, impactful, and authentic.
The benefits of a competitive analysis include identifying gaps and opportunities in the market for your own brand, defining customer types and needs, seeing industry trends, and even inspiring new products or services you can offer.
2. Determine your target audience
With the first step completed, you almost certainly have also gained new information about audiences—both your current customer base and the potential customers who are not yet aware of your brand. The information you’ll want to consider includes basics such as demographics but goes much further in understanding prospective customers and audiences—their purchase intention, common interests, beliefs and values (also known as psychographics), lifestyle, and even current brands and companies they prefer.
This step is impactful as it allows you to really hone your message, marketing, and brand identity to align with what people want in a business or partner organization. The potential for increased ROI in your marketing efforts, differentiation from the competition, and growth in customer loyalty and retention is enormous.
3. Define your brand’s personality and goals
With all of the information gathered in these first two steps, you have a solid foundation for small business branding and the data you need to create a brand identity.
First, you will want to define both your brand’s personality and brand identity’s goals. These are key as they will provide the base for your messaging and marketing efforts in every outlet. From videos to social media to the website and more, an effective brand personality that is relatable and resonates with customers will create a stronger impression and bond between the audience and your company.
4. Develop detailed brand guidelines and templates
Your brand guidelines will include your brand’s personality, voice and tone, visual style, and logo usage. Because you have spent the previous steps understanding and defining your brand’s identity, you can now create clear, concrete guidelines that will guide all marketing and communications efforts for your company.
Additionally, you can begin developing brand identity templates for common communication pieces that incorporate and adhere to the guidelines you have developed. In addition to being useful for quickly developing marketing materials, the templates provide a quick reference and guide for your marketing team regarding what the brand looks like, how it is presented, and how your brand speaks to customers.
5. Track and monitor your brand identity and performance
Once your well-defined brand identity is out in the wild, you will want to create a process by which you monitor both the identity and how it is performing. Just developing a strong brand identity is not a guarantee of success, and keeping tabs on how it is being received is key for making adjustments and improvements when needed.
Online brand reputation management is part of this puzzle, too. 63% of marketers say the reason online brand reputation management is important to their company is so they can control their online reputation as people spend a lot of time online today talking about their experience with products/services/brands. 64% say it’s so they can maintain a trustworthy online presence as the prevailing social climate has made consumers more skeptical.
According to Gartner’s Brand Management Primer for 2024, brand and reputation monitoring “…have traditionally been difficult to measure given their wide scope, long timeframes and integrated qualities.” [8] But given the importance of these components, it’s absolutely worthwhile and essential to develop a reputation and brand identity monitoring strategy for your business.
Build a better brand identity starting today
Now that you know how to create a brand identity for your business, it’s time to dive in and advertise your company. This can be one of the more fun and exciting projects you undertake because the possibilities are seemingly endless.
For example, you may decide to position yourself (as the founder or CEO) or a similar executive as the face of the organization. In some industries, this “personal branding” can be especially effective and can help establish the brand as providing expertise and guidance. Other businesses may choose to have the brand itself as the expert, while still others may use a combination of in-house spokespeople and influencers or customer voices.
According to Gartner’s market guide for brand strategy agencies, “The consumer climate is becoming more challenging for brand owners, and they will continue to need help developing and refining their brands to stay competitive. Data shows that customers are becoming increasingly skeptical of brands’ value.” [9] Fortunately, though, small business owners and marketing executives don’t have to undertake this process alone.
There are numerous brand identity agencies and brand identity design services that can provide expert guidance and assistance with one or all steps of the brand identity process. From defining your target audience to actually creating the visual identity of your brand, the UpCity network includes numerous branding providers who have been trusted and relied on by both large and small organizations. They can almost certainly guide you through any questions you have, as well as the research and development needed to create the strongest brand identity for your business. Also, check out Should Small Businesses Use Personal Branding?
Sources
- Create Effective Brand Positioning in a Volatile Environment, Gartner
- Brand Identity: What It Is and How to Create a Strong One, Semrush
- Apple Brand Personality: Delighting Customers With a Blend of Simplicity and Sophistication, Brand Credential
- Frequently Asked Questions About Small Business 2023, U.S. Small Business Office of Advocacy
- Why Brand Identity Is More Important Than Ever In 2024, Forbes
- Creating a brand identity that resonates with your audience — and grows your business, Canva
- SWOT analysis: Examples and templates, Asana
- Brand Management Primer for 2024, Gartner
- Market Guide for Brand Strategy Agencies, Gartner
Survey methodology
*UpCity’s 2023 Brand Monitoring Survey was conducted online in February 2023 among 299 U.S. respondents to learn about company brand reputation or monitoring practices, needs, and challenges. Respondents were screened to have marketing, advertising, communications, or PR job roles or functions and include respondents that work for companies that practice and do not practice brand monitoring tactics/strategies.
**UpCity’s 2023 Role of AI in Digital Brand Management Survey was conducted online in October 2023 among full or part time employees (18-65 years old) in Marketing/Advertising Department of all-size companies that have a digital presence and online reputation brand management strategy.