According to the American Marketing Association, “A brand is name, term, sign, symbol, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition.”
Branding is the practice of giving a specified name or identity to a product, a service or group of products from one seller. In other word, naming product or an organisation, like a naming a baby, is known as branding. A brand would include brand elements like the word, letter or numbers which may be pronounced, the trade marks and pictorial designs.
What’s behind a Brand?
Attributes – Mercedes brings to mind expensive, well built, well engineered, durable, high prestige automobiles.
Benefits – The attributes “durable” could translate into the functional benefits and the attributes “expensive” translates into the emotional benefits.
Values – Mercedes stands for high performance, safety and prestige.
Culture – Mercedes represents German Culture:; organized, efficient and high quality.
Personality – Mercedes may suggest a no nonsense boss (person), a reigning lion (animal) or an austere palace (object).
User – Suggest the kind of consumer who buys or uses the product. A top executive behind the wheel of a Mercedes and not a young secretary.
Why Branding?
Your brand is a massive asset. Leverage on your brand and use it as:
- Promotional tool
- Weapon to protect market
- Antidote for middle man survival
- Means of identification for customers
Threes Cs of Branding
These are three Cs of successful brand engagements:
- Clarity– Strong bands are clear about what they are & what they are not. They understand their unique promise of value. And this promise of value sets them apart from their competitors. It differentiate them and allow them to attract and build loyalty among a desirable set of consumers.
- Consistency – In addition to being clear about who they are, strong brands are also consistent. They are always what they say they are.
- Constancy – It is not enough to be clear and consistent if you are not always visible to your target audience. Strong brands are constant; they are always there for their customers and prospects.
Significance/Advantage of Branding
| Producers | Middlemen | Consumers |
|---|---|---|
| Easy to advertise | Easy to understand needs and wants of consumers | Easy to recognise |
| Easy to identify the products | Less risk | Quality assurance |
| Creation of separate markets | No need of advertisement and sales promotion | Minimum fluctuation in price |
| To price product higher | Increase in sales | Availability of quality product |
| Easy to expand the product mix | Increase in profits | Mental satisfaction |
| Personal contacts with consumers | – | – |
