While promoting our brand sometimes we forget that if we put in more effort than required then it might produce negative results. If you post more adds than necessary or send more promotional E-mails than required, it would surely leave a negative impression. Therefore, before beginning with the promotion of your firm it is necessary that you understand all the possible disadvantages of corporate branding.
Whenever a company wants to establish itself in the market, it tries to create a strong brand image. Branding gives an identity and image to a company. But if not done properly, sometimes a strong brand image can be disadvantageous. Poor management of a brand can lead to alienating the customers.
Disadvantages of Corporate Branding without Strategy
6 Disadvantages of Corporate Branding
1. High cost
Creating a strong brand image usually takes a long time and continuous effort. You have to remain in the mind of people for a long time, and for that, you will have to continuously run advertisements. This continuous need for exposure costs a lot. You will have to keep aside a large amount of money for image building exercise.
2. Dilution of image
A company may be known for a particular kind of product. For example, a company may be famous for its electronic goods. If it now wants to diversify to some other category, say furniture, the consumer may not be confident in buying this new product. The previous image will come in way of marketing the new product.
3. Risk of negative publicity
If the brand is not managed properly, or there is an unfavorable incident related to your company, then your brand will suffer negative consequences. Any bad marketing or massive recall can tarnish the brand image and the company will have to try hard to recapture its place in the market.
4. A brand can become commonplace
When a brand becomes very popular, and is in public awareness for a long time, it has the risk of becoming commonplace, and loosing novelty. Many people may not buy even new products from this company as every other person may own the same product. Due to this reason a company loses many customers even though its product may be the best.
5. Wrong perception of cost
If a company publicizes its products hard and is seen everywhere, few customers may be alienated, as they may perceive the products to be very expensive, even though the products may cost same or even less than the competitor. Thus sometimes too much of hoopla can be counterproductive.
6. Takes a long time
The process of building a brand takes a lot of time. Sometimes it takes years of hard work and energy to create a strong brand image. Even when the brand becomes known it needs a consistent marketing strategy to remain in the eye of the people. One wrong step may hamper all your hard work and you may have to start once again.
How to strategize Corporate Branding
Years ago, when brands were introduced, it was the brand’s name, promise, logo and its packaging, which established the brand identity. Now, it is not only limited to the name and the logo however, it has grown and includes the entire development process of creating a brand, its name, identity and advertising.
Digital branding uses digital media, which help to form, launch and strengthen the relationships between the brand and consumers. It is a web-based system, which include any digital or non-screen CD-ROMs format, kiosks and other electronic system.
It is beneficial for every type of corporation as well as for business and every major brand employ websites in order to improve better brand image.
1. Digital Branding Strategy
These days, technology is emerging at lightning speed and people are finding new and faster ways to connect with the world around them. People are becoming aware and it is hard to persuade them to a particular product or brand. Hence, every company or brand needs an effective digital brand strategy. This will teach you the art of constructing the best digital content in order to convey brands message and tell your brand’s story. Before embracing the strategy, it is important to learn the importance of visuals in a digital marketing strategy and discover how it is different from traditional media. The brand strategy involves following things:
Presentation is the main attraction of consumers and if you will have an attractive digital presentation then it will lead to the betterment of your product and help you to persuade them.
Bigger brands usually have a separate department for this, but even as small or medium scale enterprises you can take smart steps to ensure proper coordination. Having affordable project management software like Proofhub could be one such way. It’d help your team in countering the complications inherent in technology and running your business in a smooth manner.
4. Target audience
It is essential to know your customers and for this, it is important to ensure that the brand that you are establishing should communicate appropriately to our different audience. However, it is hard to hold the audience so digital brand strategy will help a brand to hold its target audience.
Digital branding is a newer form of creating a better brand image in the competitive market. It is important to make an effective digital brand strategy in order to make people aware of your brand and persuade them to consume your brand and its services. While other strategies might lead to negative result there are few like digital brand extensions that cost virtually nothing and rarely fail to make an impression.
Using digital Brand Extensions
It is very important for a brand to create its special and positive appearance in the market or in the heart of people. This becomes even more important for digital brands as the customers using digital brands are aware about what is good and bad for them. They will spend their precious time and money only on things that can meet there needs and wants.
Various digital brand extensions benefit the company and consumers as well. Here we have a list of some fascinating digital brand extensions.
1. Google smarty pins
This was released recently, which utilizes API of Google’s Maps and layers over a game function. This may quizzes players about arts, culture, science, sports, geography, history, entertainment, and current events. With the help of this, a particular brand can tie with various sports and events, which leads to maintain its relevance and promote the brand.
2. Destination unknown
It is a type of game, which makes the use of Instagram images as clues. In “Destination Unknown” players try to guess the location with the help of scraped Instagram images. These images are taken by people in order to create an organic feel.
3. Weather program
Weather program is a simple weather tool that provides complete weather details and tells them what type of product they can use based on the weather of that particular day. It makes people aware of the product that they may not have seen before. It provides a market for a particular product and leads to the popularity of that product or company.
4. Social media
Social media can add value to a product as it can increase its popularity and can help to attract more people. This can create an identity of a product that can lead to greater awareness and profitability. It is vital to use social, media as a digital brand extension as it can increase your brand connections and promote consumer interaction.
Advantages of digital brand extensions
Brand extension is one of the most vital strategies that a company can use in order to maintain the company’s image and worth in the market. It is not a new concept and is as old as marketing strategy itself. As the market is full of different brands, it is not easy to create a unique identity of a new brand in the market. It becomes even more difficult in the case of the digital market and branding.
Digital marketing extensions improve the image of the company and provide firmness to a particular brand. According to experts, it is less risky way to enhance the popularity of a brand in a short period. It makes customers aware about the brand, its services, and helps them to choose quality products.
Marketers can transfer the required information to their customers from different online brand extensions. Online brand extensions can cut down the launching cost of a new brand. It can also make the advertisement more effective and can easily make its place in the heart of the customers. Apart from this, an effective and suitable brand extension can enhance brand visibility and profitability as well.