What is Brand Identity? Definition, Working, Advantages vs Disadvantages

The business world is very competitive. Businesses adopt different marketing models to increase sales and reach a new customer base. In this effort, they promote their brand to the public. Hence, brand Identity is a common term used in the business world. Unlike an individual’s identity, brand identity is a separate thing.

A business must adopt different promotional and advertisement strategies to develop its brand identity. Almost all major companies worldwide emphasize a lot to create their brand identity. Let’s learn what is a brand identity and what are the advantages and disadvantages associated with it.

Key Takeaways

  1. Brand identity refers to the visual and verbal elements that distinguish a brand from others and communicate its values and personality.
  2. These elements can include a logo, color palette, typography, tone of voice, and overall design style.
  3. A strong brand identity can help create brand recognition, build consumer trust, and differentiate a brand in a crowded marketplace.
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How does it work?

Brand identity is a public perception by which anyone can identify a brand through its product, name, logo, or tagline. It makes the brand easily recognizable to the public. For example, whenever anyone says “Ford”, everybody recognizes it as a vehicle manufacturing company. It is a car brand which is easily recognizable in public with its name.

It is an important aspect of a company’s marketing strategy. For this reason, many companies spend millions of dollars to develop their brand identity. Advertisement on both conventional and digital media is the usual way of the brand identity development process. Many small companies have recently been using social media platforms for their brand identity development.

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Uniqueness is an essential part of brand identity. It separates the brand from other different brands. To achieve this objectivity, different companies take different strategies. Many companies hire influential brand ambassadors for their brand identity development. These influential brand ambassadors do not sell any products or services directly. Instead, they make the public familiar with the brand.

Even though brand identity is an important part of marketing strategy, achieving a recognizable brand identity in public doesn’t grantees the success of the brand. Along with brand identity, various other factors also play a crucial role in a brand’s success.

Advantages of Brand Identity

Developing a positive brand identity can be beneficial for the brand. Here are some advantages a company gets after developing a good brand identity.

  1. The brand receives easy recognisability in public.
  2. Most people trust a company according to its brand identity.
  3. It becomes much easier to sell multiple products under one recognizable brand.
  4. Recognizable brand identity also increases the valuation of the company.
  5. A company must focus less on marketing campaigns after becoming a recognizable brand.

Disadvantages of Brand Identity

Many people think that developing a brand identity ensures success in the business. However, this way of thinking is not right. There are also multiple disadvantages associated with Brand Identity.

  1. Brand identity development requires a lot of expenditure on advertisement.
  2. The brand ambassadors charge a lot of money for brand identity development.
  3. Strong brand identity development can be difficult for small businesses.
  4. The company needs to spend regularly to maintain its brand identity in public.
  5. Developing a brand identity may take a lot of time.
References
  1. https://www.emerald.com/insight/content/doi/10.1108/02634501111138527/full/html?fullSc=1&mbSc=1&fullSc=1&fullSc=1&fullSc=1
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Last Updated : 11 June, 2023

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22 thoughts on “What is Brand Identity? Definition, Working, Advantages vs Disadvantages”

  1. I think this article is compelling and well-researched. A good representation of the challenges involved.

    Reply
  2. This article raises an important point about the ongoing costs of maintaining brand identity. Often overlooked.

    Reply

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