Factors that Positively and Negatively Execute Brand Identity

Brand identity is about customers’ perception; this makes it one of the more psychological aspects of business management. So, while a company can work to have some influence over how people feel about their brand, it’s impossible to have complete control.

That said, the most successful businesses are those that implement brand management to identify and take charge of what they can control, including the factors that could potentially impact perception. In this article, we’ll briefly explore brand management, as well as some known factors that positively and negatively execute brand identity.

Introducing Brand Management

Brand management is a crucial part of marketing that focuses on the value of a product, service, or an entire brand in the market over some time. Studies have shown that beyond the value of products, customers also consider the brand image and identity before engaging in a business. So, it’s always crucial for companies to consider other business aspects beyond their offerings.

In terms of perception, brand management can be effective in assessing the factors that can positively or negatively influence a company’s brand identity. This strategic approach allows businesses to identify strengths to leverage and weaknesses to address, ensuring all touchpoints align with the company’s core values and marketing efforts.

So, what are some factors that most influence brand identity both positively and negatively? Let’s explore them.

Positive – Understanding the Customer

Understanding customer needs and expectations can help shape a brand’s identity and build long-standing customer loyalty. In most cases, businesses achieve this by conducting audience segmentation and discovering multiple subgroups within a marketplace.

Typically, these segmentations are based on various factors, from age range to location and previous buying habits; whichever the case, brands can only implement an effective brand strategy when they understand the unique needs and preferences of their target audiences.

Negative – Ignoring Customer Feedback

Paying attention to customer feedback is an effective way to understand the needs and opinions of your target audience. Customer feedback often serves as the basis of a company’s reputation, so ignoring them, even though they’re negative, can significantly hamper the public’s perception of a brand.

Companies need to respond to both positive and negative reviews, as this feedback often comes from customers who have used the product or service. Negative reviews imply the product lacks essential features that can potentially put off future customers. Hence, businesses that respond to this feedback are better placed to have a positive standing with current and potential clients.

On the other hand, ignoring these reviews creates the impression that a brand does not care about customer experiences, which can be detrimental to its identity.

Positive – Brand Reputation

Another factor that impacts brand identity over time is the reputation of the company in the eyes of the customers, stakeholders, and general public. Brand reputation refers to the general perception and opinion of a business based on its actions, performance, quality, and values.

It’s quite straightforward – a company with a positive reputation can enhance its brand identity, credibility, and loyalty. Therefore, brands must deliver on their promises, provide top value, satisfy customers, and uphold their ethical and social standards. Companies that monitor and manage their online and offline reputation and promptly address issues are better positioned to execute a brand identity that resonates with customers.

Negative – Low-Quality Product or Service

Speaking of brand reputation, a company can significantly hamper its perception in the public eye by consistently shipping out low-quality products or services. The quality of a product or service is a direct reflection of the brand; as such, it serves as the foundation on which the business’s success and identity are built.

Delivering sub-par products or services can result in a loss of trust and credibility as clients begin to question the brand’s ability and expertise. In today’s digital age, news spreads fast, and customers are quick to share their negative experiences. This can have a long-lasting, bad impression of the brand, making it difficult to attract and retain customers.

Positive – Brand Culture

An additional element that positively influences company branding is the culture within the organization. What are the beliefs, values, norms, and behaviors of a brand? And most importantly, how does the business interact externally and internally? These all contribute to creating the culture within an organization.

As expected, a strong and positive culture reinforces brand identity, alignment, and productivity. Employees within a positive culture understand and embody the brand’s values, mission, and vision. This consistency is reflected in all interactions with customers, creating a cohesive brand identity.

Employees who are engaged and aligned with the brand culture also act as ambassadors, promoting the brand positively within and outside the organization. Such genuine employee advocacy will undoubtedly reinforce the brand identity.

Negative – Poor Employee Management

While employee ambassadorship does wonders for a brand’s identity, the reverse can be the case for companies that manage their employees poorly. Sometimes, companies lay more emphasis on external issues that they ignore some significant internal problems. This is especially true when handling employees whose involvement, as we’ve seen, can significantly impact brand identity.

If companies manage internal cases poorly, it results in reduced morale, employee turnover, and complete distrust in the organization, which can have a ripple effect on not just employees but customers and stakeholders.

A major case study of such poor management is the criticisms of Amazon regarding harsh working conditions in warehouses, high injury rates, and unrealistic productivity targets. While Amazon remains a big name, the negative media coverage and public scrutiny have significantly affected the company’s image.

Executing brand identity is a consistent process that requires investment and maintenance. It is fundamental to building lasting customer relationships, maintaining steady market performance, and enhancing brand value. As such, companies should always look to identify crucial factors that could be working for or against a positive customer perception.

Through brand management, companies can easily identify internal and external factors that affect their image and work on them to ensure an identity that resonates with clients and fosters recall.