What is branding?
Branding is the process of finding and fixing the means of identification. When a manufacturer wants to introduce a new commodity to the market, he wants to classify his product with an attractive Brand name. The buyers can identify the product and differentiate it from those of various competitors. The root purpose of branding is to fix the identity of the producer of a given product. Now, almost all products are branded and packaged attractively.
Brand vs. Brand name vs. Brandmark:
Brand: A brand is a name, term, sign, symbol, or design or a combination of them by which the buyers can identify the goods or services of one seller or group of sellers and differentiate them from those of competitors.
Brand name: That part of a brand, which can be spoken, for example, Sony TV, Toyota car, Nike shoes, etc. Not only for the physical product, but it is also applicable to services too. For example, WhatsApp messenger is more popular than other platforms due to its brand.
Brandmark: That part of a brand can be recognized but cannot be spoken, such as a symbol, design, coloring, or lettering. It can have a hidden message. For example, if you see the Amazon brand, it seems they provide delightful service and make its customers happy.
Why is Branding required?
• It is convenient for sales promotion in the market where there is great competition. Especially when you introduce more products.
• It provides flexibility to advertisement and publicity.
• It creates interest in consumers for the product.
• Brand can increase the number of sales.
• It gets the immediate attention of buyers and provides social identity to customers as well.
• It differentiates the goods of a producer from the goods of competitors.
• It ensures standard quality and satisfaction to buyers. It builds a unique customer segment for the commodity.
Features of a Good Brand
• Brand should suggest information about the product such as purpose, quality, benefit, use, action, etc. For example, Sony Laptop, Samsung Mobile.
• It should be simple, short, and easy to pronounce and remember, such as Lux, Pepsi.
• It should be easy to advertise and identify.
• It should be permanent because loyal customers will always come in long-term.
• It should be clear and attractive.
• It must have a pleasing sound to the ear.
• It must be inventive. If not, it can cause copywriter issues.
• It should not be attacking. Otherwise, it can cause a legal issue.
• It has to create a reliable image.
Benefits to the Producer
• Brand enables a firm to build a reputation among its rivals.
• It makes it easy to introduce new products with a sizable market in a simple process.
• It helps to discern products easily from rival companies.
• It escalates the market size of the organization through demand creation.
• The manufactures spend fewer costs on promotions.
• Branding attracts persistent sales.
• Branded goods reduce the need for price comparison.
Benefits to Wholesalers/Retailers
• They do not need to keep the product for a long time as it is easily saleable.
• The products are less risky.
• People show a stable demand for their favorite branded products.
• Branding substantially helps in advertising and other promotional activities.
• The buyers do not compare the prices of branded goods often.
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