Know Branding and How to Calculate the Budget
The word branding comes from the word brand, while the meaning of branding is a variety of communication activities carried out by a company with the aim of building and raising a brand so that it is better known to the public.
The elements of branding include:
a. Brand name or brand.
b. Logo (logotype, monogram, flag).
c. Visual appearance (product design, packaging design, uniform design, etc.).
d. Spokesperson (co-founder, mascot, company figure, famous person).
e. Sound (thematic song, sound/tone icon).
f. Words (slogans, taglines, jingles, acronyms).
Types of Branding
a. Product Branding
Aims to encourage consumers to prefer products that are bred in such a way than other products.
b. Personal Branding
Personal branding is a marketing tool used to promote the name of a public figure, for example, politicians, musicians, celebrities, and so on. That way the public figures will get the image they want in the public eye.
c. Corporate Branding
The purpose of corporate branding is to enhance a company’s reputation in a particular market. Covers all aspects of the company from the products/services offered to the contribution of their employees to society.
d. Geographic Branding
Aims to bring up a description of a product or service when the location name is mentioned by someone.
e. Cultural Branding
Aims to develop a reputation regarding the environment and people of a particular location or nationality.
Function & Purpose of Branding in Business Development
There are at least 4 functions of branding, including:
a. As a differentiator
Products that already have a strong brand will be easily distinguished from other brands.
b. Promotions & Attractions
Products that have a strong brand attract consumers and will be easier to promote to the wider community.
c. Build Image, Confidence, Quality Assurance, and Prestige
The function of branding is to form a brand image so that it makes a product easy for others to remember.
d. Market Controller
A strong brand will be easier to control the market because people already know, trust, and remember the brand.
Tips for Calculating a Branding Budget
The most common way to calculate a promotion budget is to assign a percentage figure to the value of sales. This percentage value varies. For small businesses, a branding fee of 5% of the estimated sales can be budgeted. For example, if the estimated sales value for this year is $ 300 million, then the funds that need to be allocated for branding costs will be 5% or $ 15 million.
Modification will depend on several factors specific to our business, such as how long the business has been running, the type of product or service offered, how far the business is located, and the type of consumer it is targeting. It may be necessary to allocate more of the promotional budget for new businesses selling innovative products. For an established business, with a better distribution network and lower levels of competition, the budget for branding can be made smaller.
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