Importance Of Branding

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A brand of any company is not its product, but it is something which gives a meaning to the products and defines their identity both in terms of time and space. Brands are often examined and acknowledged through their component parts: the brand name, its logo, design or packaging, advertising or sponsorship, level of image and brand awareness or in terms of financial valuation. The brand is a focal point for all the positive and negative impressions created by the buyer over time as he comes into contact with the brand’s products, distribution channel, personnel and communication. Brand is universally defined as “tangible and intangible attributes of a product or service that create influence and generate a value for the company, the person…show more content…
It is over time that the logo acquires significance. Advertising is forgotten quickly whereas a brand stays in the memory along with the implications which are attached to it by the public. The brand is ‘stocked’ in the mind of the potential consumers- thus the brand can be considered as an asset of the company. The informational role of the brand covers a very specific area which varies according to the product or service, the consumption situation and the individual. Thus, a brand does not only provide a source of information but performs certain other functions which justify its attractiveness and its monetary return when it is valued by buyers. Branding creates trust and emotional attachment to a product or company. A strong brand helps the marketer to command a premium price and maximize the number of units that can be sold at that premium. Branding helps consumers to make their buying decisions faster and…show more content…
The brand today provides added value to a product through higher brand equity. Brand equity increases the likelihood that consumers will recognize the firm’s product when they make purchase decisions. A strong brand equity can contribute to buyers’ perceptions of product quality, for example, a product from the house of TATAs always stands a good chance of being perceived as a good quality product and will invite a higher trial rate compared to other brands in the market places. The higher trial rate, when backed up by a high level of product satisfaction, will lead to furthering the conviction that the house of TATAs always delivers great brands. This is how brand value increases in the market. Branding reinforces customer loyalty and repeat purchases. A brand helps to remove a generic product from the excess of perfect competition. It serves as a mental patent against customer confusion and

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