When we think of buying any product we go for a name which is more familiar to us. For Ex: If we are buying any Operating system then we think of "Microsoft". This is something called as "Brand" in common language. Brand is something which always keeps buzzing in mind when we think of that category. If we want to search anything on Internet then we go for Google, In the same way for MBA education its IIM's, If we see a right mark on any cap or T-shirt, shoes we recognize it as NIKE. Hence from these examples we can have clarity that "A brand can be a name, symbol, logo, product, service or anything which comes to our mind when we think of the same kind of category where the brand will have a competitive edge over others".
Hence Branding is something which gives a reminder to the end user. It has different ways to create a brand for a product, service or a company by itself. The way it is done gives an impulse to the company. Hence the question that comes to our mind is how branding will help the company to market their product or service. There are different methods to create a name as a brand. One way is to keep giving advertisements so as to make people aware or buzzing the name in customers mind. People will recognize it as a brand with different attributes related to the product it may be quality, price or awareness etc. Consumers learn or get to know about brand of a product depending upon past experience with the product or linked with the marketing activities of the company.
Branding gives the company an edge over competitors. The brand can be protected through intellectual property rights such as trademarks, copyrights, designs, Geographical indication, patents etc. This is to help the company to build name through branding. Branding helps the company in simplifying product handling and tracing; even it helps the supply chain team to check through the inventory and for accounts team to handle accounts. Because of the branding the company can have an edge in the share market so as to maximize shareholders wealth than others.
Branding helps the company to stay stronger in the segment so that other companies cannot penetrate the market. Even if the price is high consumers go for that brand only. Hence it is a kind of secured and safety environment for a company. Sometimes the brand gets so much stronger that the company can act as a monopoly in the market. Branding should convince the customers that there are meaningful differences among brands and services in the same category. Companies should look at consumer's motivations and desires so as to create an image with their product.
Branding can be done for any product, service and organization. Even it is build through persons also. For ex: Sachin Tendulkar, Aamir Khan, Hrithik roshan and so on. The brand should to teach consumers 3W i.e who the product is , what it does and why consumers should care about it. It should create a mental structure in the consumers mind set so as to help them in organizing their knowledge about the products so as to make the decision making bias towards the company . Hence here we understood the role and scope of a brand. Branding helps the company to have an edge in the market. Hence "Branding is something to create difference among the products and services of the same category".
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Reference: Philip Kotler