SME Branding — THE IMPORTANCE
In Namibia, SME (Small and Mid-size Enterprises) status is given exclusively to manufacturing companies employing less than ten people, with a turnover of less than $70,000.00, and a capital basis (an initial investment, plus subsequent investments) of less than $35,000.00. This is according to the Ministry of Industrialization and Trade, 1997.
The general definition of branding is that it is the identity of a business. In earlier years branding was thought of as a logo, business card, website, and slogan of a business. In recent years that definition has been overruled by marketing and sales experts. They argue that branding is the psychology of a business — the emotional interactions with consumers, i.e., reliability, quality, availability, and affordability.
SME Branding, therefore, is the unspoken sales message by small and mid-sized enterprises. I get so many questions about branding and how a business can be distinguished in an over-serviced market. After reading this article, you should be able to position your small and mid-sized enterprise in alignment with the dollar value you want your customer to spend.
One of my mentors did a podcast about the psychology of branding. It was an incredible experience for me listening to that episode. I was so connected to it that I was finishing sentences on more than five occasions! I’m talking about Ideas That Matter by Vusi Thembekwayo, episode #21 The Veblen Effect. Get a hold of that podcast if you haven’t subscribed!
Generally, the Veblen Effect is the abnormal consumer behavior of purchasing higher-priced goods while similar low-priced products are available. Vusi took an iconic example with cars. A consumer will get from point A to B with a Nissan March as they would with a Rolls Royce Phantom. Even though the same problem is solved exactly, one product has a premium price to it.
SME owners and managers need to understand buyer psychology. The various communication methods and mediums used should speak to this consumer psyche. I promise any business owner that consumers pay the price you subliminally communicate to them. Listen to the customer, if there is one thing they are right about — it is the value of your service/product. And this valuation on your product/service has been established by you, the owner, with your business conduct, acumen, communication style, product quality, solution depth and impact, market understanding, and so many more internal and external factors. Listen to your customers!
Appealing to your market with #SupportLocal and #BuyLocal are not branding strategies. Consumers place a psychological attachment on any product to determine its importance. They then convince themselves to buy or not to by matching that perceived importance with the price. Look inward, roll up those sleeves and get to work if people are not buying your product/service.
With branding, the customer is ALWAYS right!
ZS
