Branding strategy is a means to increasing your profitability that you may have ignored..

Although large corporations have adopted branding strategy and realize the impact of a good brand on corporation profits, many small business owners know little to nothing about branding. What they do know is usually related to visual identity and graphic design.

Branding Strategy For Small Businesses: Branding Components

But branding strategy requires much more than visual identity. In fact some brand consultants consider visual identity the least important of branding components. Other more important components comprise the basic branding strategy for small businesses.

• the target market for the business’s products or services,

• the name of the business,

• the slogan of the business

• the price of products and services,

• the distribution outlets delivering products to customers,

• the advertising and promotional strategies.

The first three of these components are covered in this article. The last three will be covered in part 2.

Branding Strategy For Small Businesses: Target Market

When an entrepreneur is considering a new business is the time to target a market and to learn every thing possible about target market members.

This part of branding strategy requires knowing demographic characteristics of target market members. Demographic characteristics can usually be determined through research, including brain-storming and researching literature on the Internet and at libraries.

Then the entrepreneur needs to determine psychographic and behavioral characteristics for the market in order to determine what products or services market members are likely to buy. Getting this part of the branding strategy correct determines business and branding profitability.

Several segmentation products and services are available online to assist business owners with this research, but some are quite expensive. However, small business owners can learn to do this research for themselves.

Branding Strategy For Small Businesses: Business Name

Selecting the wrong business name often derails a branding strategy from day one. The major problem that small business owners make in naming their businesses is naming them after themselves instead of selecting a name that represents what the business does or sells.

A business name is the most important part of the business’s brand. It should appeal to the target market and leave no doubt about the business’s purpose.

Of course there are large corporations that break this rule, but these corporations spend fortunes establishing the relationship between their company name and the company’s purpose. Most small business owners can’t afford fortunes to establish their business name and brand. Thus, taking the time and resources to get this component of branding strategy right early saves money and increases brand profitability.

Branding Strategy For Small Businesses: Slogan

Your slogan should include your distinguishing characteristics and it’s major benefit to your target market.

You’ll need to really give this some thought, write lots of slogans, and test them with your target market before deciding on your final one.

Slogans and names are closely tied together. In fact, when I was renaming my publishing business in 2005, I first thought of my slogan. Then developed the name from it.

Branding Strategy For Small Businesses: Part 1 Conclusion

Getting the target market, business name and slogan components of branding strategy right should be done before launching the business or product. They are fundamental to the success of a small business’s branding strategy.

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Submitted to EzineArticles.com 8-27-07: Branding Strategy
for Small Businesses - Part 1