Meaning of Branding
Branding refers to the process of creating a company name & image in the market. It involves activities concerned with creating business good name & reputation in the market. Branding provides distinguished identity to the business. It helps them in differentiating them from others in the market.
It serves as a standard for your business. Branding helps the business in facing the competition & distinguishing yourself from others. It aims at increasing the satisfaction of customers & serves them better. Better branding helps in grabbing customer attention.
It helps in acquiring new customers with less effort. By establishing a proper brand image, companies need to invest less in promotional & advertising activities. It cuts the selling expenses of companies. Companies should develop a short & attracting brand for themselves. It should leave a long term impression on their customers.
Importance of Branding in Marketing Management
Branding plays an efficient role in the smooth functioning of businesses. Some of the important roles of branding are discussed below:
Provides good reputation
Businesses having a good image in the market enjoy several benefits over others in the market. They through their goodwill are able to attract more customers easily. It is through this that businesses distinguish themselves from others.
It provides distinguish identity to the business. An easy memorable & attracting brand should be designed by companies. It helps in creating a long-lasting impression on customers.
Acquires customers easily
Good brand of company helps it in getting new customers. Companies enjoying better image are able to easily acquire new customers. Customers develop faith & confidence in good brands.
They become loyal to them & make repetitive purchases. Customers like to do business with good established brands. It provides satisfaction & appreciation to them using their products.
Increase the profitability of the business
Branding helps the business in generating large revenue. Through branding, 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 trust & faith they have in these brands. Branding thereby helps businesses in increasing their profit margin by fixing high prices for their products.
Increase business value
Business value in the market is a must to attract funds from market. A reputed business has a good image in the market. Every investor wants to invest in reputed companies.
Branding helps the companies to easily attracts funds from investors. It helps business in increasing its value by giving more leverage in industry. Business can increase their size easily using this fund.
Helps in facing competition
A good brand is an important factor for businesses for facing tough competition. Through branding, businesses create distinguished identity which helps in developing loyal customers. These customers remain stick to particular brand over long period.
They prefer their brands over all others in the market. Strong brand also serves as a barrier for new competitors to enter the market. Good brands have a large share hold over the market which can’t be affected easily.
Increases productivity of employees
Good brands are easily able to attract the most skilled & 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 & smart workforce for their different activities. Employees also work hard on getting involved with these businesses.
Provides distinguished & remarkable identity
Branding enables the business to develop a unique & distinguished image in the market. It is through this that customers get attracted to them. It provides an appealing & different identity to business from other competitors in the market.
People remember you for a long time through your brand name. It should be considered that brand or a company should always be short & attracting.
Branding has an efficient role in doing the advertising activity of businesses. It generally supports the advertising of companies. Good brands are able to formulate better advertisement strategies.
They acquire better results from advertisement by investing less in it. Branded companies create appealing & long-lasting impression on people by advertising their products. They require less efforts & funds for advertisement 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 & trust in these brands. This confidence & trust is developed by delivering quality & superior products over the years.
So if there is any quality issue & fault with their products, customers support them in their hard times. They provide them with valuable feedback & show good patience towards them.
Increase the pride of employees
Branding helps in increasing the loyalty of employees towards their business. It provides pride & great happiness to people work in top reputed in business. They get respect & better treatment from society by working here. Branding improves the happiness & satisfaction level of employees.
They enjoy working in these companies & develop an emotional bond with them. It thereby increases their loyalty & all employees work honestly towards the accomplishment of goals.