Branding is one of the most important elements of product mix. It is an important decision regarding the sale of the product under generic name or a specific brand name. Under branding process, an organization decided what will be the name of the product, logo and an image for the product. It is very important to have a differentiated name so that it becomes easy for the customers to identify our product in the market. Thus, it facilitates product differentiation. Generic name is not very useful for the products because it does not help the buyer in identifying our products in the market where there are many products of same kind.
Important terms related to branding
Brand can be described as a sign, symbol, name, logo, design or may a combination of some of them so that it helps in identification and differentiation from the competitors’ products. For example: Samsung, oppo, vivo, micromax etc.
Brand name and brand mark
Brand name is the part of the brand which can be spoken i.e. verbal component of the brand while, brand mark is a non utter able part of the brand i.e. it can be a design. For example: parle G is a brand name while the girl printed on the parle G biscuits packets is the brand mark.
A part of the brand or complete brand can be legally protected and it is thus called the trademark. This is done for safeguarding the name of the brand being used by other people in the market or for other malpractices.
Advantages of Branding
Branding is a very advantageous activity. It is useful not only for the organization but to the customers also. The advantages are as under:
Advantages to the organization
- Product differentiation: as the product gets a name it becomes easy to get identified in the market. Product differentiation becomes easy from the competitors brand and thus gets the recognition.
- Helps in advertising and display activities: as the name is there for the product then the organization can be certain about the amount of sale that will happen because while display activities and programmes, customers can identify it, it becomes easy for the organization to advertise the products and create brand awareness.
- Differential pricing: when there is good brand value then it becomes easy for the organization to charge different price and may be bit higher than the competitors because the customers are sure of the quality and also they have a brand loyalty.
- Easiness in introducing new products: under an established and recognised brand name it becomes easy to introduce new products without starting off from the bottom. New products can enjoy the benefits of the already existing brand name and value. For example: Samsung has established brand name and if it introduces a new product, say, laptops, then it will be easy for them to sell.
Advantages to the customers
- Helps in product identification: product identification is very important for a product so that the existing customers stay by doing recurring sales and new customers can join and this can be done easily by branding.
- Ensures quality: to raise the level of satisfaction of the customers it is very important for a brand to have standard quality. When there is any change in quality of the product, the customers can talk to the brand directly and this personal connection can create a psychological satisfaction.
- Status symbol and psychological benefits: when a brand gets recognised and brand value increases then it becomes a symbol of status. Customers get satisfied by the products and they feel good to buy the product. For example: Audi, Gucci etc.
- Reduction in efforts: when a customer is sure of the brand they are going of purchase then the efforts they put in buy the products can be reduced and it saves the time and energy of the customers.
Characteristics of good brand name
There are certain characteristics that all good brands have in common. They are as under:
- A brand name should be easy to read, identify and pronounce so that the customers can remember the name and can come for the purchase again. For example: apple, idea, Rin etc.
- A brand name should be attractive and unique. It should not be common and should be catchy. For example: Maggi.
- A brand name should be capable enough to explain the benefits and qualities and also the utility of the product without creating confusion in the minds of the buyers. For example: head and shoulders.
- A brand name should be unique and distinctive and have a separate identity than the competitors. For example: coca cola, fanta etc.
- A brand name should be easy to advertise and should be adjustable enough to suit the packaging and labelling requirements of the products. For example: Reebok, Adidas, Bata etc.
- It should be versatile. It should have the capabilities to accommodate new products so that they can be merged under same name. For example: Dabur. There are various products under the single brand name Dabur.
- A good brand is registered and is legally protected so that it does not enter into any chaos later on and do not involve in illegal activities.
- Brand name is considered good when it is up to date or it is evergreen and does not get old. For example: Reynolds and signature pens.