What Is Branding, and Why Does It Matter?

This is digit-ALL's first article in a five-part series about Company Branding and Brand Consistency.

Do you know that it takes only .5 seconds for a new visitor to your website to have an opinion about you? Or that a signature color can help increase brand recognition by 80%?

Which leads to what branding can do for a company: 

  • It can build better recall for the company and its products; who doesn’t think about a gecko when they’re thinking about changing insurance companies? 
  • It can build trust with a consumer; who doesn’t know that the red on the Target sign is the same red that will be on the carts inside?
  • It can build loyalty by creating an emotional connection with customers. The Starbucks mermaid has brought a smile to many people on their morning commutes.

What Exactly is the Definition of a Brand?

First of all, let’s discuss five terms that revolve around branding and are not interchangeable:

  • Brand: A brand is the presence of your company across channels, which could mean the colors, copy, and tone on a website, product package, and even a company t-shirt. 
  • Branding: This is the act of putting a brand on that company. 
  • Brand Identity: This is considered the aggregate of company assets and elements that create a cohesive brand.
  • Brand Consistency: This occurs when a company has a brand that is recognizable no matter where or how it is used.
  • Brand Guidelines: The internal guideposts at a company that dictates how a company needs to maintain the integrity of its brand.

In other words, a marketing department or marketing firm (like digit-ALL!) uses the act of branding to use brand guidelines to create brand consistency for a company’s brand identity in order to create a strong, effective, and memorable brand. 

And here you thought building a brand was just about picking a color and choosing a pretty font.

Why Does BrandING Matter?

Think about the brands you are loyal to. For instance, do you buy Coke over Pepsi? You’re not alone. The numbers say that 17% of soda drinkers prefer picking up a Coke compared to Pepsi’s 8.9%.

Now, close your eyes. What does that brand look like? Do you see Coke’s memorable red can? What color is the stripe? You know the answer, don’t you?

Well, imagine now that Coke had no red can, or better yet, was put into a cup alongside Pepsi in an infamous blindfold taste test. Remember that? In 1981, Pepsi ran The Taste Test Challenge. Self-described Coke lovers were blindfolded and had to drink Pepsi and Coke–and 50% more people chose Pepsi over Coke. This means that for every two people who liked Coke, 3 liked Pepsi.*

And yet…Coke is bought at a rate that’s nearly two times higher than Pepsi. 


Branding is a powerful thing. It keeps people loyal, even if the product isn’t (objectively) the best thing on the market. Think of brand loyalty as a powerful selling tool that you need to have as a business owner.

*As a side note, I’m from the South. Everything is Coke. I would never, ever have failed The Taste Test Challenge! 😊

NEXT UP: What You Need Before Starting Your Company Branding

(This will include writing your company mission statement, your company purpose statement, your brand mission statement, and your brand values.)


digit-ALL is a full-service marketing company that focuses on the people side of marketing. We focus on branding and websites, social media, blogs, newsletters, and even corporate event planning. We’re here to help when you’re ready for it.