Importance of Branding
Branding has following importance for different categories:
To consumers
1. Easy to Recognize
The existence of a brand name allows the consumer to identify the brand in the market clutter. This is because the brand has distinctive packaging, colour, design, etc.
2. Availability of Quality Products
A brand is an assurance of quality. Even the producers have to make constant effort to invest in R&D etc, So that they offer quality products and fulfill the brand promise. Consumers therefore get an assurance of quality when they buy a brand.
3. Minimum Fluctuations in Price
It has been seen that price fluctuations do not occur in brands. Consumers therefore get assured prices.
4. Improved Packing
The packaging of the brands is given a lot of importance. s.d. name of the brand and other details are included in the brand packaging. The packaging itself has to undergo a constant innovation in terms of look and feel so that quality perceptions of a brand is maintained.
5. Mental Satisfaction
The use of brands by consumers also gives a lot of satisfaction to consumers as it gives them feeling that they have a superior product. For many consumers it can be open be the feeling of pride like owners of Mercedes and Harley Davidsons.
To Producers
1. Easy to Advertise
Having a proper brand helps the organization to develop advertising strategies as the brand’s vision, target markets and value proposition are clearly defined. The name of the brand can be used by Organization in its advertising campaigns.
2. Easy to Identify Products
The brand name helps consumers to identify the products. This helps in advertising the products easily.
3. Creation of Separate Market
The brand helps the company to develop the value proposition of a particular market. This also helps it to develop a separate market for the products.
4. To Get More Price
Branding attracts and retains customers. They become loyal to the brand and are ready to pay any price for the brand.
5. Easy to Expand the Product Mix
The existence of a successful brand helps the company in expanding the product mix. The company can add new products to the product mix and also add to its product lines. Getting the consumers to buy new products is not a problem as the new products can Rely on the positive image of existing brands.
6. Personal Contacts with Consumers
The brand also helps the company to establish a direct link with its customers and eliminate the activities of all middlemen who have vested interests. This reduces the cost of distribution immensely.