A brand is a name, term, symbol or some combination of them which is to used to identify and differentiate a product from that of its competitors. It is a wide term and it includes brand name and brandmark. A brand is a name, term, sign symbol or design or a combination of them, intended to identify the goods or services of one seller or group of the seller and to differentiate them from those of competitors. Thus a brand identifies the seller or maker.
Branding is the process of finding and fixing the means of identification. It facilitates advertising and price control. Branded goods command a wide market. The most distinctive skill of professional marketers in their ability to create, maintain, protect, and enhance brands, Branding is the art and science of influencing perception about a product, service, or organization.
Also Read: Why Branding Is Important for Small Business
Branding is all of the ways you establish an image of your brand or company in your customer’s eyes.
Branding is a complex process, mainly because it’s success or failure is determined by your customer’s reactions to the act of doing business with you.
The Marketer should brand his product as branding brings home numbers of merits both to the consumer and marketers. There are some advantages of branding in the market at the consumer as well as the marketer level.
Significance of Branding to the Consumer
1. It Assures Quality and Value
Whenever a product is distinguishable by means of a brand, the consumer has an assurance of quality, consistency, and definite value. It is so because a brand stands for a product, quality, standard and value.
2. It Evaluates Status
The brand is a prestige builder or status evaluator. Whenever a person uses a particular branded product, he has a feeling that he belongs to a special class of society. It is not the question of buying a car but say, Maruti 800 of Toyota that matters for the prestige-conscious individuals.
3. It Saves Time and Effort
A branded product render product identification much easier and convincing. This is of particular importance in the marketing of industrial goods. Even in the case of consumer goods, it applies equally. The money value of time and efforts saved will mean a substantial consumer solace.
4. It Gives Trade and Legal Protection
A consumer finds it easier to lodge complaints and make claims against those marketers of branded products in case their products fail to meet the declared claim of consumer satisfaction. Thus consumers are provided with trade and legal protection against unscrupulous and unfair trade practices.
Significance of Branding to the Marketer :
1. It is a Massive Asset
The brand is considered as a major intangible asset because all the physical assets can be duplicated or copied very easily. However, it is almost impossible to duplicate brand names.
2. It is a Promotional Tool
Sales promotion is founded on the basic idea of product identification or product differentiation. Most Firms prefer to compete on a non-price basis. This difference is brought about by a brand.
3. It Protects Markets
Once a consumer has tried and liked a product then the brand enables him or her to identify it, so well that he is tempted to buy it again and again. Thus brand reputation ensures market control as repeat sales become more likely.
4. It is a Means of Identification
Branding is the easiest way of identifying a product or a service that a customer likes. A consumer uses a brand image as a proxy for quality and dependability. A branded product is distinct in his eyes, ears, and brain.
5. It facilitates Product Line Expansion
A well-known brand name can be an advantage for the firm expanding its product line. It will facilitate consumer acceptance of the new product because of its existing brand reputation.