5. Branding, Labeling, Packaging & Pricing
What is a Brand? A Brand is a name, term, symbol
or design to identify the goods or services and to differentiate them from those of the competitors. Effect – A Brand identifies the product for the buyer. A seller can earn the goodwill and have the patronage repeated.
Brand – A name, term, sign, symbol or design
or a combination of them which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.
Brand Name – That part of a brand which can be
vocalized/utter able. Eg- FIAT car, SONY TV, BATA Shoe etc.
When a manufacturer wants to introduce a new
product to the market, he wants to identify his product rather with a striking name – Brand Name. Net effect is -The buyers identify the product and differentiate it from those of competitors. The basic purpose of Brand Name is to fix the identity of the producer of a given product. Brand Name is a brand or part of a brand consisting of a word, letter, group of words or letters comprising a name which is intended to identify the goods or services of a seller or a group of sellers and to differentiate them from those of competitors. It is nothing but a combination of letters, words or numbers. Eg – Tata, Godrej, 555, 501 Soaps etc.
Branding is the process of giving a specified
name to a product or a group of products of one seller.
In other words naming a product, like naming a baby
is known as branding. Parents have children and manufacturers too have children i.e. products. As parents, manufacturers are eager to know the character & capacity of their products on their birth, but not their names. Thus Branding is a management process by which a product is named i.e. Branded.
Reasons for Branding
An instrument for sales promotion in the market,
where stiff competition exists. Facilitates easy advertisement and publicity. Creates special consumer preference over the product. Sales can be increased through brands. Arrests the immediate attention of buyers. Differentiates the goods of a producer from the goods of the competitor. Ensures standard quality and satisfaction to buyers.
Reasons for Branding Individual Products
Memory recall is facilitated. Leading to greater
frequency of buying and hence deeper loyalty. Leads to a more ready acceptance of a product by wholesalers and retailers. Self-selection is facilitated-a very important consideration in self-service stores. Importance of price differentials may be diminished. Brand loyalty may give a manufacturer greater control over marketing strategy & channels of distribution. Other products may be introduced more readily. The amount of personal persuasive selling effort may be reduced.
Functions of Branding
Brand facilitates distinctiveness from the rival
products in the market. Branded products possess individual identification. Branded goods create a satisfactory or standard quality in the minds of the consumers. Branding reduces price comparison, because two similar items with two different brands may not be compared. Brand differentiates the product and facilitates the advertisement to be more effective & successful. A good brand signifies prestige, ensures legal right, forms the basis for successful demand, creational activity, sales-stability & widening the market area.
Features of a Good Brand
Brand should suggest something about the
product – Purpose, Quality, Benefit, Use, Action etc. It should be simple short and easy to pronounce and remember. Eg- Lux, Hamam, Murphy etc. It should be easy to advertise & identify. It should be of a permanent nature. It should be clear & attractive. It should be capable of being registered & protected legally.
Features of a Good Brand
It should be distinctive.