• Recognition; a logo, a name or a tagline should be enough for your existing or potential customers to recognize your company and its products, anywhere in the world.

• Differentiation; customers distinguish your product / service from your competitors' and accidental brand switching is avoided.

• Legal protection; a well established brand name is protected by brand piracy and unfair competition.

• Extension; your company can explore the development of new products / services under the same successful brand name.

• Pricing; a recognizable and differentiated brand can achieve premium pricing.

Benefits of Branding

Positioning refers to the perception that customers have about a product/service or a brand and how this perceived image differs from competition, in terms of value proposition. The benefits that customers will receive upon acquiring the specific product/service, functional attributes or emotional benefits, is what defines the relevant position (in customers' minds) of your brand, compared to competition. If your product/service seems the same in the eyes of the customers, why should they choose you? Especially if your product / service costs more.

In order to create the right image in your customers minds, you need first to decide what your position will be in the market; it has to be clear, distinctive and desirable. And then it needs to be communicated effectively to your customers.

Importance of Positioning

Communication refers to promoting the product/service and passing the message to your customers. An effective communication ensures that all your efforts into branding and positioning will be fruitful. Otherwise, the image you want to create for your company (brand identity) may not match the image your customers have created for your brand (brand image) and the customers will not differentiate your brand from the competition.

Communication is all about connection and understanding. Thus, you need to select the right channels of communication to reach and the right message to approach the right people who will become your customers. If the channels or the message isn't the appropriate one, then there can be no connection or understanding, respectively, between your company and your potential customers.

Impact of Communication