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IMPORTANCE OF BRANDING


    IMPORTANCE OF BRANDING 

         It is rightly said that “name is game in marketing.” Customers buy the brand not the product. Brands vary in the amount of power and value which they have in the marketplace. Some brands are largely unknown to most buyers. While others have a high degree of consumers brand awareness. In fact, a power brand is a valuable asset of a company which can be sold or bought for a price. According to Philip Kotler, “high brand equity provides a firm number of competitive advantages. A powerful brand enjoys a high level of consumers brand awareness and loyalty, and the firm will incur lower marketing costs relative to revenues.
         Branding provides enormous advantages to a marketing company. The following points clearly explains the importance of branding:

1. Identification of the product becomes easy by using brand name.

2. Company’s products can be effectively differentiated from the competitors’ product.

3. One significant advantages of using branding is that it reduces price comparisons bu the customers. Customers do not bother to pay some extra money for good quality branded products.

4. It is the perception of brand in the mind of customers, that is important in comparison to the product. By effective advertising the firm can generate favourable perception for its products. In the long run brand loyalty can be created.

5. Branding is the base for advertising.

6. Importance of packaging as a distinct marketing function. Branding and packaging go hand-in-hand.

7. Product’s personality can be created through branding.

8. The marketing company can build up a bright image of its organisation around the brand.

9. If a marketing company has more lines of branded products, that it can be add a new product in its product-mix easily.

10. Brand consciousness is rapidly growing in the minds of customers, not in the metros and big cities but even in rural markets.

11. Brand names tell the buyer something about the products.

12. Branding also provides great assistance in market segmentation. The marketing company may introduce separate brand for different market segments.

13. Brand name makes it easier for the suppliers to process the orders.

14. Branding also helps in the measurement of market share.

15. Brand is a valuable asset of the marketing company. In order to consolidate its position in the market, the firm can purchase power brands.

16. Brand provide trust and confidence to the customers.

17. Today the nation’s strength is evaluated on the basis of the “Brand Equity.” Brand equity is the financial value of the brand. Therefore, the nation’s strength is measured by the combined value of its all power brands introduced by the all marketer.

18. Culmination of brand success is conversion of a specific brand name into “generic name”, such as “vim”, “surf”, “brand-aid” and “Dalda” etc.


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