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At a conference a few weeks ago, a graphic designer and I sat down at a table where everyone was exchanging business cards. I checked out his logo, and he read the name on my business card.

"I know that business logo. We've been in touch in the past," I said.

"That's right. I know your name," he said.

Though we weren't able to pinpoint when or why we'd exchanged mail previously, we assumed it had been at least five years back. Neither of us has an exceptional memory. Instead, he had made a distinctive visual identity for his design services, and I had devoted effort to linking my name with creative marketing.

For about five years his look and my status had lurked in the other's memory banks, whilst thousands or hundreds of thousands of other business identities had come and gone without leaving a substantial trace. Why? Memorability. It demonstrates a vital element of winning branding.

What is Branding?

Branding is the process of creating unique and durable perceptions in the minds of shoppers. A brand name is a persistent, unique business identity intertwined with associations of personality, quality, source, preference and much more.

Despite the fact that many people associate brands with major companies, the smallest of businesses may use branding techniques with great returns. When a home-based craftspersons ties a beautifully designed label on all her items telling the story of who she is and where her designs come from, she's branding her work. When the local market packages groceries in bags having its company logo in place of simple "Thank you!" or simple bags, it's branding. When your logo is exhibited along side any of your internet marketing opportunities, it's branding.

While we relate brands with national brands such as Crest, Huggies or Healthy Choice, branding doesn't really require the budgetary resources of Procter & Gamble. Branding doesn't even need a product or a tangible delivery system. Branding comes with repetition and that is quickly done with any internet marketing procedure.

Methods of branding include association of a company with logos, distinctive shades, slogans, musical sounds or tunes, unusual qualities, mascots, presentation, a memorable name, behavioral hallmarks and much more, readily implemented for the home based business too.

Why Branding Pays Off

Time, money and energy used on branding pays back many times over when the process plays out intelligently. Here's why:

1. Memorability. It's easier to recollect the branded company than the "what's its name?" one.

2. Customer loyalty. When people have a good experience with a special brand name, they're more likely to purchase that product or service again as opposed to competing companies.

3. Familiarity. Psychologists have shown that familiarity induces taste, which helps make even non-customers more likely to suggest a brand they know.

4. Top quality image, premium price. Branding could lift what you sell out of the realm of a commodity, with customers prepared to pay out more for the well-branded products.

5. Extensions. Having a well-established brand, you can spread the value you've earned to a related new product, service or branch more easily.

6. Greater company value. Creating your company into a brand name typically implies that you can get a higher price for the company when you decide to put it up for sale.

7. Lower marketing expenditures. Even though you should put in money to create a brand, once it's created you get a bigger bang for every marketing buck using it.

8. For consumers, less risk. Individuals tend to go for the brand-name supplier over the no-name one when afraid of the outcomes of a mess up.

For all those reasons and even more, branding fattens your net profit.

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