Importance of Branding

Only available on StudyMode
  • Download(s) : 375
  • Published : February 25, 2013
Open Document
Text Preview
Introduction
Successfully building an appropriate brand for a company does more than merely provide an appealing design, picture and slogan for a consumer to view. It provides a value that which is necessary to obtain in order to stay competitive in most industries in modern day society. This is both valid in Business to Consumer (B2C) marketing and Business to Business (B2B) marketing. The approach and importance of successfully branding ones service or product both tangible and intangible through B2C and B2B are similar, but also do have key differences. In this report, we will discuss the advantages of building a strong brand name and image, risks, and some techniques.

Relative Literature
Brand pundits refer to our modern day society, (that which strategic branding is necessary otherwise one will be faced with a competitive disadvantage) also as a branding world (Sarin). This is due to there being more than 2.5 million registered trademarks in the United States alone (Sarin). With such heavy competition, it is vital that ones company does everything possible to differentiate themselves. Building a strong brand is a great method of doing so. Obtaining a recognizable brand backed with a positive brand image make purchaser’s decisions much easier. It allows an abundant amount of information to be provided to the customer or business representative before any form of research (Robert Vitale). As much as bundling information for purchaser’s to make easier decisions assists businesses increase their sales, it also prevents the consumer or business representative from purchasing the wrong good. Active marketers aim to succeed at two different points of a sale: 1- properly market their product/service to be initially bought, 2- have the person or company be satisfied with the value purchased (Robert Vitale). After the second point, it is likely that the company has just gained a repeat, loyal customer. If an individual/company finds a good/service that meets their criteria, why risk purchasing something else that may not deliver? With a recognizable brand, one can ensure that every time this purchaser seeks the same product/service, they will come right back. Value has been created from the product/service, recognized by the brand, therefore creating a positive brand image. Brand image further establishes a reputation and as long as that is positive then one can expect to notice sales to exponentially increase. Due to extra value added onto companies with an established brand name, there is extra cost. The value added for the purchaser generally encompasses the predictability of getting the same product or service (less risk) and familiarity, in other words, “the value of trust earned between the brand promise and the brand experience” (Maruca). One CEO of an electrical business producing copper wire reported that he preferred brand products because of consistency (Sarin). Consistency is important for him because the materials purchased are then used by his company to create iron rods that they strive to have quality behind. If they cannot trust the quality of their supplies then they cannot confidently produce their own good. It is too much of a hassle for companies to constantly search for new suppliers, once one is found, it saves an enormous amount of effort to become a repeat customer. A massive steal producer in India explained that he would rather pay the increased premium price for a brand product because the initial cost might be high, but operation costs and maintenance is lower since the brand products purchased come with customer care and instill a workflow stability (Sarin). Companies aiming to establish a positive brand image must provide great customer care. It is hard to build a good reputation, but it is easy to destroy it (Philip Kotler). Strategizing how to properly build a good image for ones company must be consistent. Throughout all avenues of the media a clear message of ones company must be...
tracking img