Do you know who’s your target audience? Or is that everyone or a specific group, male, female, adult, teens or any other demographics? If your answer is yes, then you are not making an impact. Before understanding what’s wrong here, let’s examine what exactly “Consumer Segmentation” or “Target Audience” is? For that, we’ll look into Iceberg Model of Consumer Segmentation
Consumer Segmentation
Segmentation is the process of defining or subdividing a large homogeneous market into clearly identifiable segments. These will have similar needs, wants, and demand characteristics. There are four types: demographic, geographic, behavioural, psychographic, and motivational.
Demographic
Demographic segmentation uses age, gender, socioeconomic status, location, rural vs urban, most basic segmentation type, helps locate targets and is helpful in the marketing process but not a good option for brand-building because it’s just the tip of the iceberg.
Behavioural
Behavioural segmentation is much better because it focuses on what people are doing. In this type of segmentation, you are looking at user status and how loyal they are, and how often they buy, for example, whether they buy the brand at all or occasions of use.
Psychographic
Psychographic segmentation is the third type of segmentation and is a step forward that looks into personalities, lifestyles, and attitudes, which impacts the behaviour. It’s much more profound than behavioural segmentation and is the first step towards understanding why people do what they do. Now finally, my favourite motivational segmentation.
Motivational
It’s a bit complex method, but the one method used by most of the big brands you know, and you love. We can add so many brands to this list like Apple, Coca-cola, Red Bull, BMW, GoPro. Apple’s focus on innovation and creative individuals BMWs focus on performance and enjoyment, the ultimate driving machine. Motivational & Needs segmentation uncovers why people do what they do, what drives them, reasons.
This is a brief introduction of segmentation now to help you understand this let’s look at this image.
ICEBERG MODEL FOR CONSUMER SEGMENTATION
Did you get it? If you’ve segmented your consumers on demographics, then you are just at the tip of the iceberg, and there are so many things left for you to cover. In order to make a significant impact, you have to dig deeper and connect to your consumers on an emotional level. Using all four segmentation type will help you create a profound consumer segmentation and differentiate your business from others. Define your point of difference in the few steps below.
Point of Differentiation
There can be many differentiating points like you can offer low price, you can provide better quality, so on and so forth, these differentiating factors can be beaten easily, if you are offering low price someone can offer a price much lower than you, same goes for quality your competitor has the same access as you have. So, what you can offer is experience and provide values to your consumers.
Few extra points from the book “BIGGER THAN THIS” by Fabian Geyrhalter.
Story:- Stories can change perspective more then any data analysis could and they can transform your business into a meaningful brand.
Beliefs:- When your values are bigger than product. Shared values will always have a bigger impact on your tribe than your product.
Heritage:- Connect with your heritage and let it speak. It will create conversations that will have your brand as the centerpiece.
While there is certainly an overlap between branding and marketing, there are certainly significant differences in providing value your business needed that only one of them can do. So first let us understand, what branding and marketing are?
Branding vs marketing
When it comes to marketing, it can describe as telling your customer that you exist, whether through social media or any medium. In the real world, we can think of it as telling someone how you are so great (kind of show off). It’s usually performed for an instant goal or a new product launch you want your customer to know about. But when it comes to branding, we described it as establishing who your company is and what it stands for, the feel you want to give your customer, the environment you create for your product launch. We can say you are making an environment for product let the customers decide why they should buy your product. It’s usually done for a long-term goal or once in a while for a significant change.
Let’s dive in and discuss what, why and when to use branding and marketing.
What is branding?
In essence, brandingis the practice of differentiating one business from another through a name, logo design, story, messaging, feel, tone, voice. Branding is the experience you create for your customer, and what they say about you when you are not there. Companies may sell similar products and services, but depending on their branding, they can attract completely different customers who feel connected to their brands for specific reasons.
What is marketing?
Dictionary.com defines marketing as “the action or business of promoting and selling products or services, including market research and advertising.” Marketing refers to any company’s actions to attract an audience to the company’s product or services through high-quality messaging. The overlap between branding and marketing you can see like branding can also be part of marketing. In branding, you create the image of your business that can further help you sell your product or service, but Marketing aims to deliver standalone value for prospects and consumers through content.
Overlap between branding and marketing
Why branding is important
Branding is essential to a business because of the overall long-term impact it makes on your company. Because branding changes people’s perception of your brand, it can drive new business and increase brand loyalty. is about getting your prospects to see you as the sole provider of a solution to their problem or need. In its essence, Branding is vital for :
To create a sense of identity in your customer’s eyes
Branding plays a vital role in getting recognition from your ideal customer and how they look at your product. Good branding can create the image of your business on your customer’s mind. The more and more you will be recognised, the more your brand loyalty increases as It would be easier for people to trust you and hence to buy your product. Recognition is what shifts a company from being ‘a just another company’ to ‘a brand’.
A good example would be ‘Colgate’. In India, Colgate’s word has become synonymous with ‘toothpaste’, Colgate has created a strong recognition as its name itself as toothpaste, strong enough to replace the word ‘toothpaste’ itself with ‘Colgate’ entirely across the nation. People in local vendors don’t ask for toothpaste, and they directly say the name ‘Colgate’.
Colgate
To stand Out
As a business, you can’t be alone forever, and there might be hundreds of other companies in the world selling products or services like yours. So, you need to create a unique brand image. Branding helps you create an identity unique compared to your competitors. It enables you to convey your ‘why’, mission, vision, and personality of your company, thus increasing your customers’ chances of selecting you over others.
So let’s take Apple as a brand. Apple has differentiated itself as a premium product, a status symbol in the tech industry. Apple’s products are not just another gadget; they have created a robust environment for every product that they synchronize so well that it feels seamless, so what is differentiating factor here? Well, that’s the experience they give, and thus, the customers are willing to pay more for it.
Starbucks
Creates value
Many employees need more than just money — they need something to work toward. When employees understand the mission of a business and its reason for being, they are more likely to feel the same pride and work in the same direction and achieve the firm’s goals. Because having a solid brand is like turning the company logo into a flag, and the rest of the company can rally around.
Why marketing is important
What if you had the most delicate product line or the tastiest menu items, and no one knows? What if your customer service was so excellent it could put a five-star hotel to shame, but no one had the chance to experience it? What if no one knows about your business?
So it’s obvious you need marketing, let’s dive deep in which aspects of your businesses you need marketing.
To inform and sell new product or services
Marketing should be put in place to build brand awareness, the latest thing you are offering, or the latest product. The marketing strategy should be an ongoing process where you keep up with your competition and trend. Marketing should be at the core of what a business wants to achieve in future.
You market with some product or service or some goal in mind. To inform about your existence, you run ads or any content marketing. How superb your positioning or branding is, and you can’t sell anything if people don’t know your presence.
The ultimate goal is to make money, so utilising marketing channels can help you achieve this. Here, the marketing and strategy bridge the gap between the customer and what a brand is selling.
New product launch marketing
To Engage with customers
One of the goals of marketing is to engage and build a relationship with your customer base. Engagement is essential, as people look more to brands who provide them with a lifestyle experience, respond to their requests rather than just sold out. In any business environment, keeping your customers talking and interacting with you after the product or service is vital for repeating customer and developing and maintaining this a fine art, as not all customer feedback will be positive. This is also important for keeping your product updated or, let say, consumers’ demands and resolve issues fully to ensure that, even if the initial experience may have been flawed, the engagement after this point was informative and resolved quickly to restore that initial faith in the brand.
Apple’s conference
Conclusion
If you’re still struggling with the difference between branding and marketing, you’re not alone! Because they overlap a lot & many Marketers lump Branding as a part of their packages & visa-versa. As they’re both very different, and serve two masters & have their own agenda’s. Let’s compare branding vs marketing side by side so you can have a clear image.
Branding
Marketing
Branding is why – Why do we exist? Why should people care? Why are we different?
Marketing is how – How do we make progress? How do we measure things? How do we get results?
Branding is long-term – What is the company vision? What can we disrupt in our industry? What long-term impact will we make?
Marketing is short-term – What will bring immediate results? What will get our message heard? What tools will we use to do it?
Branding is macro – What are our beliefs? What is our culture? What is our voice?
Marketing is micro – What software will we use? How will we break it into steps? Who will help us on this project?
Branding defines trajectory – Where are we going? Why are we trying to go there? What is the intention of our goal?
Marketing defines tactics – What is a measurable goal? What are our deadlines? What is the size of our budget?
Branding builds loyalty – Why will people connect with our brand? What can we do to delight customers? What will make them feel inspired?
Marketing builds response – How can we get more clicks? How can we get a greater open rate? How can we generate leads?
Branding creates value – Who are we speaking to? What value can we give? What impact will it make?
Marketing extracts value – How many people responded? How do we increase engagement? How will this data help us?
Branding is the being – What is our personality? What is our purpose? Who are we here to serve?
Marketing is doing – What are the actionable steps? How long will this project take? Who is going to drive the project?
When we think about branding then first thing that comes in our mind that is Logo, but we know that logo is just a medium of branding, but it is one of the most Important part and foundation for the branding of any business, also we can say that branding creates the face value of your company. It is the first thing that a potential customer will notice about your business and its overall operations. A logo can quickly grab viewers’ attention and communicate a company’s core values and ideas in an interesting way.
Nike logo
A good logo can help your business and do the hard work for you by bringing customers creating. A lasting impression is essential and brand recognition plays a huge part in this as well as being one of the most important aspects of any modern business having a recognizable logo and design across your pursue an ideal place to attract and retain new customers and it’s these key things that act as a visual reference to your brand after all visual data such as pictures and images speak a thousand times louder than words can transfer information much quicker than written or printed words using imaginary and a consistent design at the forefront of your business can really boost your brand recognition amongst your customers competitors and the wider populace think about big brands and how we as consumers instantly recognize them through icons marketing materials and products it’s the same idea here by creating a unique and recognizable brand that customers can identify.
Here are some reasons why a logo is important to a business-
Creates a Great First Impression
First Impression
A logo can quickly grab viewers’ attention and communicate a company’s core values in an interesting way.if you have a solid logo then that logo will show your company reputation.
Foundation of Your Brand Identity
Amazon’s A to Z logo
Logo should be easy to recognize both in large and small print. Customers need to recognize your company with ease, whether it’s displayed on a smartphone, a digital advert, or plastered on a billboard.
Creates an Emotional Connection
Macdonald’s logo
Iconic logos are masters of understatements. Some logos are able to say everything about your company also even a small details.
Fosters Brand Loyalty
Sony Logo
As your brand grows, your logo is going to become more familiar to a wide range of consumers, and this familiarity creates the perception that you’re trustworthy and accessible.
Branding is a strategy designed by organizations or associations to help people quickly identify and experience their brand. Amongst all consumers that helps your company to make profit and success. We can also say that Branding can change how people think about your brand, Read more about branding
So why all company is choosing to make themselves a brand. It is absolutely critical to a business because of the overall impact it makes on your user’s minds. It can change how people think about your brand, it can drive new business and increase brand awareness. Branding has so much power that making your company a brand can change the perspective of your company.
apple vs samsung
Apple vs Samsung
The perfect example of how Branding & brand positioning can affect your user’s perspective about your business or product. Apples’ positioning of itself as a premium brand, a status symbol. And Samsung has positioned itself as an everyone’s product anyone can use their product. You can see the price differences between these two, this is just an example.
First, we have to make it clear that branding is not a logo of any company. It can be anything that can make a company impression and helps in profit. But we can say that logo is just a medium and branding is the environment. It makes a memorable and unique impression on consumers. And also allows your customers and clients to know what they can expect from your company.
A to Z ( amazon logo)
Your customers will compare your brand or product with the leading company in the market. Branding improves the recognition of your company. It makes you stand out from the competition. It also creates trust among your customers. Marketing is also part of branding because it is another important component of a brand. Both media is chosen and the demographic targeted for advertisement help in building the brand. Advertising techniques such as the use of promotional products from trusted companies. Such as Outstanding Branding make it easy to create a connected advertising strategy that plays well into your branding goals. It helps to generate new customers.
Branding of your company also inspires your employees to work harder to make it more perfect and valuable. Many employees need more than just work — they need something to work toward. When employees understand the mission of a business and its reason for being. They are more likely to feel the same pride and work in the same direction. To achieve the goals the business has set. Having a strong brand is like turning the company logo into a flag. The rest of the company can rally around.
If you’re not aware of the word branding then don’t worry. Because even for some people who have studied marketing can often quickly become confusing. So to understand the topic “what is branding” first we need to know that what is product and brand.
PRODUCT –
A product can be any goods, services, or ideas that can be offered to a market to satisfy the wants. Example- A product can be anything from a flight, a hotel stays, a car, a language course, clothes, food or any groceries, etc.
BRAND –
“A brand is a name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other sellers” (American Marketing Association).
In simple words, we can say that brand is the unique identifying essence of your business.
Also, you can consider a brand as the idea or image of your company in people’s mind. When they think about specific products, activities, or services.
(ex- that brand of the shoe makes me comfortable)
(ex – that product of company looks so stylish)
BRANDING –
Branding is a strategy designed by organizations or associations to help people quickly identify and experience their brand. Amongst all consumers that helps your company to make profit and success. We can also say that Branding can change how people think about your brand,
It can drive new business and increase brand awareness. Sometimes we know the company’s impression due to their branding, not by their quality of their products.
It is not important that branding always shows on the product that sells by any company it can be music, ads, or any image that is related to that company and that helps to make a profit.
At present every company has its own Branding value which shows how the company is performing in the market and also what is the position of the company in the market. The goal of Branding is to link your identity, values, and nowadays every company and organization is spending so much amount on branding. Because if branding will successful then the business of that product will also give so much profit.
So we can say that branding is directly proportional to the increment of their organization. It means if the brand value increases then the company makes a profit and vice versa. at this time making so much profit on the market will not give a name but branding of your own product will create a different perspective in consumer’s minds.
We can say that “your brand is what that other person says about you when you’re not in the room”
– Jeff Bezos (Founder of Amazon)
So we can surely say that branding is the root of the success of any company.
Branding creates or impacts a positive impression of your company
