Branding plays a crucial role in business and businesses can get huge advantages of branding. Product identification is an essential part of product management. Under which some selected marketing activities are performed, making product identification easy. Every manufacturer wants to differentiate their product from the manufacturer to identify it to the customers Value. For this purpose, manufacturers give their products brand names, which may consist of a word, letter, sign, symbol, or a combination. There are some benefits of a good brand. Thus, branding, packaging, and labeling are possible methods to identify the product.
Meaning of Branding
A brand is thus a product or service whose dimensions differentiate it in some way. Also, differentiate it in other ways from products or services designed to satisfy the same need.
Branding is the process of stamping a product with some identifying name, mark or combination of both. Branding gives a specified name to a product or group of one seller’s products. Branding decisions help in meeting competition & in placing the products on the market in an effective way. It influences the consumer in making their buying decisions & reduces their searching time in finding the products with desired features. There are many advantages of branding in the growth of the business.
The American Marketing Association defines a brand as a “sign, symbol, design, or a combination. It is intended to identify goods or services of one seller or group of sellers. It is to differentiate them from those of competitors.”
Top 11 Reasons for Branding
There are many reasons for branding. Some of them are as.
- It facilitates the particular product or service identification.
- Helpful to facilitates easy advertising and publicity.
- Branding creates differentiation of one product from its competitors.
- It creates a particular consumer preference for the product.
- Increases the sales of the branded product.
- It makes market segmentation easier.
- Branding is an instrument of sales promotion in a competitive market.
- In the market, ensures standard quality & satisfaction to buyers.
- Reduces personal persuasive selling efforts.
- Facilitates the launching of other products with the same brand.
- It leads to more ready acceptance of a product by middlemen.
Therefore, branding must bring immediate attention to consumers and make it distinctive in customers’ eyes. It helps to create goodwill for the firm and gain the goodwill of consumers.
Advantages of Branding for Manufacturers, Marketers, and Customers
The benefits of a good brand for different parties are as follows.
Benefits of Branding for Manufacturers
- Easy Identification.
- Differentiation of Product.
- Build up Reputation & Image.
- Helpful in Advertising.
- Creation of a separate Market.
- Helpful in Introduction of new products.
- It builds product loyalty.
- Maintenance of control.
- Means of Promotion.
- Better price for the product.
- It helps manufacturers to charge premium prices.
Benefits of Branding for Marketers
- It helps in Cross-selling.
- It increases customer loyalty and customer retention.
- Repeat buying behaviour of customers.
- Integrated marketing communication is possible.
- It provides corporate Identity.
- Helpful in the Legal Protection.
- Accessible Introduction of a new product.
- Increase in Goodwill in the market.
- Increase in Profits in business.
- It reduces distribution costs.
Benefits of Branding to Customers
- Easy Identification of products for consumers.
- Lesser Risk.
- Less Time Cost.
- Psychological Reassurance.
- No need for depth analysis of the product.
- Better Experience.
- High-Quality Products.
- Price Stability.
- Increase in Status value.
- Easy to lodge complaints & make claims.