Importance Of Branding
Why branding is important? Let’s discover the importance of branding. A brand is a unique perceived image of a product or service by the people. And, branding is the process of giving a particular name, symbol, or letter to a product or service so that it can be easy to differentiate from others.
Branding makes companies different from those of their competitors. Branding gives a unique name, value, title, and reputation, and ultimately makes the future of the firm.
Branding is not only important for the firm’s profits but also for the people, the firm, society, and the environment as a whole. The major importance of the branding can be stated below:
It Helps You To Be Different From The Competitors
A brand is what makes a product, service, company, or person to be different from another company, product, or so. It helps to recognize and perceive different brands differently from the people. Some people may differentiate two brands by their quality, design, packaging, durability, good health, specific problem solutions, price, and so on.
Think of an iPhone and Samsung, how would you differentiate these brands?
It Helps To Identify Products
Another importance of branding is, that it makes it easy to identify the products of different brands. As a brand is the unique identity of the product, people can easily identify the product which is quality and which is not.
For example, when you think about the iPhone it might be because of quality and durability, and about Samsung, it might be because of the low price of than iPhone withstanding quality and affordable.
It May Refer To The Better
Most companies go for making a brand name whereas some of them do not brand their products because they are not capable of providing better quality regularly.
A strong brand is always made up of some better features or attributes. In the eyes of people, a better brand means a product having better quality. And, for such brands, people are ready to buy and pay high prices either it is more expensive than others because they feel the product has better quality.
Read More: What is New Product Development (NPD)?
It Helps You To Make A Choice Freely
As branding differentiates a product from the rest – it makes people convenient to select one from the available products. When you are a regular buyer of a product say – A, whenever you go to the market you will purchase the A instead of B, C, or D.
It is because you have a perceived image of that product and such an image any product might not give you. Since, branding clears product quality, size, design, price, benefits, and so on you and people feel easier to select one that most fit their particular situation.
It Helps To Assure Regular Satisfaction
A brand is also a promise – means something specific it gives whenever it is used. People prefer those products which can give them consistent satisfaction. A product brand also makes feel consumer the stability of quality.
Usually, branded products are perceived as having uniformity in quality and other attributes that can provide the same performance regularly. As products have their life cycle, branded products provide regular satisfaction to the consumers until their life expires. A branded product also assures security to the consumers as they can not be cheated and they also feel almost no risk while buying and using such product.
It May Satisfies People’s Status Need
Branded products not only satisfy people’s need and want but also satisfy people’s status need. It is well known that most people purchase well-recognized branded products not to meet their needs but for their prestigious purpose.
It can be seen in most of the billionaires and millionaires who bought the expensive sculptures and paintings not to satisfy their basic needs rather they want to satisfy their status needs. Similarly, most of low-class people also used to buy such branded products though the products are not essential they are attracted to the symbolic value of the product rather than its characteristics.
It Provides Adequate Information
The importance of branding is that it provides adequate information about a particular product or service. It helps consumers to get adequate information about the branded product in terms of product use, benefits, manufacturer name, address, features, contents, etc.
Such information plays an important role in the consumers to make a purchase decision and also to know for what particular reason they are buying such product. And, not branded products do not seem to have such adequate information rather it is seen as unbranded products providing false information to make more sales.
Read More: Types of Products
It Legally Protects The Interest of The Company
A strong brand generally means having a legal identity. To make a brand name of the product companies have to go through concerning law or act. This implies a particular product brand is legally protected.
Since a brand is legally protected, no other company can use the same name, symbol, letter, or character of such brand. However, when a company uses an already-used brand name or symbol, such a company will be legally punished. Thus, every brand requires a unique name, symbol, character, etc.
It Helps To Identify Market Segments
Market segments mean the various parts of the entire market. Market segmentation is the process of segmenting i.e. dividing a whole market into many smaller segments. The segments can be divided based on people’s need, want, location, income, preference, habit, and so on.
Since a brand is the specific quality of the product, it helps companies to identify and select a market segment where its quality is required most and will match too. If a product brand is on quality, the firm may target the people who prefer the quality product, similarly, if the product brand is on good taste, the firm may target people who always seek good taste products, and so on.
It May Help To Build Corporate Image
Corporate image is what people hold as a positive and strong concept of the company’s offerings. If the company can manage the uniformity and quality of its offerings regularly even-odd comes the brand may develop a positive image of the company. Such an image significantly impacts the firm’s performance and also enables a good way to introduce new products in a strong position in the market.
Read More: 8 Types and Bases of Market Segmentation
It May Save From Competition
Though competition is an inevitable part of the market. However, if a brand is very strong no other competitors want to compete with such a brand, in doing so they think they are not capable of producing such quality, customer satisfaction, etc. the way the strong brand does.
It May Serve Social Welfare
Companies and marketers do have a social responsibility too. As the branded products have no such defects. However, while developing a brand for a particular product must consider the firm’s objectives, consumers’ satisfaction, and the welfare of society.
The branded products should not have any defects that may harm consumers’ health or interfere with society’s values. If any defect is found in the branded products – people might stop believing such products as a brand and even they may take legal action against them.
It Protects Environment
Last but not least the importance of branding is – that it is conscious of the health of the environment. As consumers and society’s welfare, the branded products should be conscious of the welfare of the environment. Generally, we believe branded and quality products have the least negative impact on the environment.
Since, strong product brands are conscious of the condition of the environment such as pollution, limited resources, etc. they should be focused continuously on such matters.
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