Advantages and Disadvantages of Branding in Marketing Management


Meaning of Branding in Marketing Management

Branding is a marketing activity of creating a positive and strong perception of the company in people’s minds. It refers to the process of creating the company’s better name and image in the market. Branding involves activities concerned with developing a good name and reputation of the business in the market.

Branding provides distinguished identity to the business. It helps them in differentiating themselves from others in the market. It serves as a standard for your business. Branding helps the business in facing the competition by distinguishing from competitors. It aims at increasing the satisfaction of customers and serving them better.

Better branding helps in grabbing the customer attention. It helps in acquiring new customers with fewer efforts. By establishing a proper brand image, companies need to invest less in promotional and advertisement activities. It cuts the selling expenses of companies. Companies should develop a short and attractive brand for themselves. It should leave a long term impression on their customers.

Advantages and Disadvantages of Branding in Marketing Management
Advantages and Disadvantages of Branding in Marketing

Advantages of Branding in Marketing Management

Creates Wide Awareness

Branding helps the business in creating wide awareness regarding its products or services among the public. This process leads to the circulation of the company’s promotional message in wider areas. Branding informs customers about the quality and features of the company’s products and differentiates it from other competitors.

Acquires Customers Easily

Good brand of a company helps it in getting new customers. Companies enjoying better images are easily able to acquire new customers. Customers develop faith and confidence in good brands. They become loyal to them and make repetitive purchases. 

Increase Profitability of Business

Branding helps businesses in generating large revenue. Through branding, the business develops a good position in the market. They are easily able to sell their products at a good margin. Customers are willing to pay high prices for the goods of reputed brands. It is all because of the trust and faith they have in these brands.

Helps in Facing Competition

A good brand is an important factor for businesses facing tough competition. Through branding, businesses create a distinguished identity that helps them in developing loyal customers. These customers remain stick to a particular brand over a long period. They prefer their brands over all others in the market.

Enhance Business Value

Business value in the market is a must to attract funds from the market. A reputed business has a good image in the market. Every investor wants to invest in reputed companies. Branding by developing a good image helps companies to easily attract funds from investors.

Improves Productivity of Employees

Good brands are easily able to attract the most skilled and qualified employees. Every person wants to work in top reputed companies. Your good reputation will attract them to your business. This way companies get talented and smart workforce for their different activities.

Supports Business During Crises

Strong brands are able to survive during the time of crisis. In case of any mishaps, they are able to handle it easily. Customers have strong confidence and trust in these brands. This confidence and trust is developed by delivering quality and superior products over the years. So if there is any quality issue and fault with their products, customers support them in their hard times.

Disadvantages of branding in Marketing Management


The branding process involves huge development costs on the part of the business. They need to incur huge costs on advertising and publicity programs for maintaining their brand image. All this expenditure influences the price of goods and services offered by the brand.

Creates Confusion

It creates confusion in the minds of consumers while choosing products. Every company through its publicity messages gives the same assurance regarding its product quality and features. People are confused in deciding which one to purchase and which one not.


Businesses may lose personal touch with their customers as branding is an impersonal activity. They are able to manage better relations with their customers when they interact with them personally.

Leads to Monopoly

Branding leads to the creation of a brand monopoly in the market. This process aims at creating a better image of products and its manufacturers in the minds of customers. Small businesses that cannot afford branding expenses suffer from monopolistic competition in the market.


Another important disadvantage of branding is that it is a time-consuming process. It requires large efforts and time to design a branding message and circulating it among the large public to establish a better public image.