The advantages of branding are discussed here in this article. Branding is the marketing service in which company creates a name, image and symbol for recognition of the company. This is used to identify a product and distinguish it from other products and services.
As we are clear with definition of branding, let us clearly know that what is branding. When any company tries to establish itself in the marketplace, it turns to branding for help. The concept of branding for any company works as creating an image in the market which makes it identifiable and recognizable.
10 Advantages of Branding
The identity and reputation of the company is directly related to profits. Thus branding plays an important role in organization’s gain and loss. Some of advantages of branding are:-
1. Create Awareness
This is the most important advantage of branding for any company. Therefore a company should work harder on its branding and identity to increase awareness of their organization. We can see many companies around us that have separate and unique identity and can be recognized from far through its color and shape.
For example, whenever we see a picture of half-eaten apple we assume that picture belongs to apple electronic device company. This is branding at its best.
2. Marketplace consistency
It is really very important to maintain consistency of brand in the market. The more often a customer sees a brand, there are more chances that he will consider it for purchasing. When the brand and identity is kept consistent in the marketplace, mindset of customer that quality of the brand is good and it’s likely that he will become your regular customer. However, it is necessary that product must remain consistent which tells brand and identity of the company.
3. Loyal customers
When the branding is done properly, it helps to create loyal customers for the company of its product. Consumer mind is forced such that he will buy the same product again giving profit to the organization. Thus this is the importance of branding.
Branding should be done in such a way that these loyal customer have reason to purchase the product again in present and future.
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4. Different image
We see in the market that same product is made by many different companies targeting similar set of customer. Same is case with service. Here branding comes to play. Branding is something that makes your product look unique and good from any other similar products. It tells the customer is different and better than other similar product.
Brand’s product is set apart in market with distinctive edge of uniqueness and this differentiation factor will be able to solve the problems of customer increasing the profits of the firm.
5. Competitive Advantage
The brand of any product has to face tough competition as well as the new entrants too face such competition in the market with companies making the similar product targeting same set of customers. Service offering companies too face such problems. Thus branding helps in carving distinguished identity of the product in the marketplace in the minds of the customers by promotions and much advertising which tells the customer of unique and different features of the product thus giving the brand a upper hand.
6. Strong base
Once the brand has gained customer loyalty and confidence, new products which are similar can be launched under the name of same brand who has established its identity in the marketplace.
The strong legacy of quality offering and best of customer service levels by same brand leads to high promotion of the product and services.
These new line of products are initially bought due to faith and trust in the brand’s name. In this way, a company can increase its target customers as well as its business.
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7. Investment offers
As the brand has gained name and fame, brand has the power to attract investors to invest in the product or when the funds are required by the company to do promotions and advertisements. Whenever a company is short of money, it can turn to investors to invest in their product as they have a good brand name and their money will not be wasted in different activities.
8. Market leader
Brand’s name not only attracts customers towards any product but help the brand to become market leader. Branding helps in becoming market leader by setting new heights in business, marketing, promotions. Market leading companies always tries to offer best quality of product as well as good customer service. Overall product’s quality is inspiration for other companies by market leaders. It is among the top advantages of branding.
9. Price hike
Once a company has established brand for a specific product or service, it gains a lot of trust and faith of the customer. When the customer believes you for the quality and services of the product, it is easy to increase the price of the product to a certain extent. Due to brand’s name, no customer will question about the price rise as he is assured that product delivered by the brand is best for him.
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10. Provides strategy
Branding sets a perfect foundation for the company as it move forwards with its business. Brand will define the path for everything it does. We can increase our line of products and services if we have strong brand’s name and goals and mission of the brand has a strong strategy in its base.
People always buy a product of good brand. This good brand is what established by offers, promotion and advertisement. Thus branding is necessary for every product.