Many people use the word brand quite loosely. So let’s define what a brand is? For many people, a brand is just a logo with a unique identity and nothing else.

So let’s define what exactly a brand is and how we can use it to position ourselves in this crowded marketplace.

I was once talking to a brand expert and she said “Several decades ago, perhaps even centuries ago, if people wanted to buy flowers, they would just buy it from a vendor on the street. People were mostly commodity shoppers.”

Today, the market place is so crowded that almost everybody sells a similar commodity. How do you differentiate one from the other? It could be the exact same product but they could differ in quality and performance. So, now enter brands.

A brand to me is a reputation and also a personality. People buy based on reputation. If two people went to raise capital in the market one was Warren Buffet and the other was XYZ, most people would invest in Warren Buffet because Warren has built a reputation of being a wise businessman with a great track record in building multi-billion dollar companies. And, nobody has any idea who XYZ is.

I have also seen people being attracted to a personality. Most times, the business takes on the personality of the entrepreneur. Richard Branson and Donald Trump are great examples of attracting people to their personality.

So how do you build a brand?

#1 Find a target market.

Why is this so important? Because you can’t be everything to everybody. Are you going to cater your product to a high-end customer base or are you going to be an economy product who caters to price sensitive shoppers? Ferrari, the Italian car manufacturer caters to a very exclusive clientele and their entire image reflects that. If you own a Ferrari or a Rolls Royce, it’s a symbol of pride and success.

And, Toyota on the other hand caters to a more economy segment. More affordable, lesser maintenance costs and better mileage. Imagine if Ferrari and Rolls Royce were affordable to everybody, do you think the elite, high end customer would pay as much for it. I doubt it. Branding is also about intangibles and emotional factors that make people buy.

#2 What do you stand for?

This is so crucial when you are doing a branding exercise. Lot of successful entrepreneurs will tell you that “business is a movement.” The Mahatma Gandhis, the Nelson Mandelas and the Kennedys all became famous because they stood for something.

In the modern era, it’s the Beatles and the Madonnas. They all stand for something. Even if you don’t agree with it, there are still a movement that many people follow.

So what’s your movement? Identify your movement before you find that fan base.

#3 Be consistent

Once you are clear about what you stand for, every action you take has to be consistent with that image. If you are a high end brand, your communication, the way your employees dress, the way you communicate with your customers and your policies should reflect that.

And, finally let your personality stand out. I do believe every individual has an X-Factor in him. Love your personality, work on it and let it shine.

Happy Branding!

Guest Author: Vinil Ramdev is an entrepreneur, author and business consultant who helps business owners increase revenues and maximize profits. He is founder of StartUpGrowthExpert.com – a consulting firm that helps businesses increase revenues through powerful branding and focused strategies.