Pros And Disadvantages Of Branding

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Branding Branding refers to the process of establishing the brand for a product in the consumers’ mind. According to Kotler (1988), branding is ‘a name, term, symbol or design or combination of them, which is intended to identify the goods of one seller or group of sellers and to differentiate them from those of competitors’. A brand is a combination of few elements, which are brand identity, brand image, brand mark, trademark and brand name. A brand identity is an ideal which is what an organization wants the publics to perceive while a brand image is a reality which is what the publics really think about an organization. Brand mark is a visual element for a product such as symbol, logo or character while a trademark is the legal designation indicating that the owner has exclusive use of the brand. Brand name is distinctive…show more content…
Firstly, it enhances product recognition. Brands provide multiple sensory stimuli to enhance customer recognition. For example, a brand can be visually recognizable from its packaging, logo, shape, etc. It can also be recognizable via sound, such as hearing the name on a radio advertisement or talking with someone who mentions the product. Besides, it helps to build brand loyalty. Customers who are frequent and enthusiastic purchasers of a particular brand are likely to become brand loyal. Cultivating brand loyalty among customers is the ultimate reward for successful marketers since these customers are far less likely to be enticed to switch to other brands compared to non-loyal customers. It also enables an organization to command a price premium. A strong brand will help an organization to differentiate the price from the rest and encourage their customers to pay for the intangible benefits they get from associating themselves with a brand that makes them appear cool fashionable, or clever. In addition, a brand provides a vital differentiator, especially when the basic product or service is widely

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