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

The business world is very competitive. Different businesses adopt different marketing models to increase their sales and reach a new customer base. In this effort, they often 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.


Business Quiz

Test your knowledge about topics related to business

1 / 10

A firm which outsources its works requires ___________.

2 / 10

Working capital means _________.

3 / 10

The management of the company is entrusted to __________.

4 / 10

Membership in a Co-Operative Society is?

5 / 10

Non-economic activities aim at __________.

6 / 10

_________ is an important consideration for setting up an office.

7 / 10

Productivity means how much was done compared to what it took to do it.

8 / 10

When an existing company offers its shares for sale to the existing shareholders, it is known as ___________.

9 / 10

The Standard of living is the number of goods and services people can buy with the money they have.

10 / 10

A Company is called an artificial person because _________.

Your score is


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

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. As an example, whenever anyone says the word “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 brand identity development process. Recently, many small companies are using social media platforms for their brand identity development.

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 an influential brand ambassador for their brand identity development. These influential brand ambassadors do not sell any product or services directly. Instead, they make the public familiar with the brand.

Even though brand identity is an important part of marketing strategy, but 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 of the 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 has to less on marketing campaigns after becoming a recognizable brand.

Disadvantages of Brand Identity

Many people think that developing a brand identity, ensure 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 the 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 for maintaining its brand identity in public.
  5. Developing a brand identity may take a lot of time.
  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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