The brand is one of the most important parts of every successful business online or offline. Most of you already heard of Brand one way or other but in today’s post, you are going to understand it to a deep level. So sit back and learn What is Branding in marketing and how the brand building can make your business powerful.
What is Branding in marketing?
A brand is a name, term, sign, symbol, design, or some combination of them, used to identify the products of one firm and differentiate them from those of competitors.
For example – Mercedes, Parker, Nike etc. You will learn about Branding in Marketing as the post continues…
Brand is a comprehensive term which has two components – Brand Name and Brand Mark.
If I ask you tell me the toothpaste you use?
Most of you may say Colgate, why?
Colgate is not generic but you linked it with toothpaste, unconsciously for your toothpaste and Colgate are the same.
That’s THE POWER OF BRANDING.
Similarly you may come across Trade mark. You may ask is it part of brand or something else?
For this reason it is better to understand what trade mark is, before going further and know how to build a brand and take your business to one step further.
TRADE MARK : A brand or part of a brand that is given a legal protection against its use by other firms is called Trade Mark.
Read the below poster to know the difference between Copyright and Trade Mark.
Therefore the firm that got its brand registered, gets the exclusive right for its use. In that case, no other firms can use such mark or name in the country.
By now you should have a good idea of What is Brand?
After that what comes into your mind?
BRANDING isn’t it?
So the next section is going to talk about What is Branding and later you will come to know how to make your Brand successful with some basic and advanced strategies.
BRANDING – can make or break your business.
One of the most important decisions that a marketer has to take in the area of Product is in respect of Branding in Marketing.
Below is the perfect and most suitable definition of product given by Father of Modern Marketing – Philip Kotler.
lets look at that first.
“A product is anything that can be offered to a market for attention, acquisition, use, or consumption. It includes physical objects, services, personalities, place, organizations, and ideas.”
Coming back to Branding. He/She has to decide whether the firm’s product will be marketed under a brand name or a generic name.
You know the difference between above two. If not then look at below small demonstration.
If I say to you this words Windows, IOS, and Android and ask you what is the first thing that comes into your mind.
Now I will try my best to make you understand what is Brand name and why they are used. ( NOTE- This is my attempt to explain this part, you may not agree with it or have some different views regarding this and I totally respect that).
Imagine if they were to market their with generic name only then, its become difficult to understand and distinguish also somewhat boring and most importantly it will not make them stand out from the competitors.
The iOS is an Apple product, Windows is a product of Microsoft, and Android is developed by Google. An operating system consists of the software responsible for managing everything from a smartphone’s resources, memory, apps, and interface we use to engage with it.
Therefore most marketers give a name to their products, which helps in identifying and distinguishing their products from the competitors products.
BRANDING is the process of giving a name or a sign or a symbol, etc to a product.
Advantages of Branding in marketing
Branding is not benefecial for only business or customers. It provides benefits to both marketer and customers.
Hence, Branding is a must and what advantages it provides is given below for both. Branding in Marketing works in relation to other factors in the marketing environment. To know more about marketing, visit our post on a marketing plan. It will make you more familiar with marketing and ultimately help you in brand building.
To the Marketers:
(A) Enables making product differentiation:
Branding helps a firm in distinguishing its product from that of its competitors. This enables the firm to secure and control the market for its products.
(B) Ease in introduction of new products:
If a new product is introduced under a known brand, it is likely to get an excellent start. Thus, many companies with established brand names decide to introduce new products in the same name. For example, Samsung extended the brand name of its television to washing machines, microwave oven, etc.
(C) Differential pricing:
Branding enables a firm to charge a higher price for its products than its competitors because if customers like a brand and become habitual of it, they do not mind and become habitual of it, they d paying a little higher price for it.
(D) Helps in advertising and display programmes:
A brand name helps a firm in its advertising display programmes. Without a brand name, the advertiser can only create awareness for the generic products and can never be sure of the sale for his product.
To the Customers:
(A) Helps in product identification:
Branding helps customers in identifying the product. If a person is satisfied with a particular brand of a product, he need not make a close inspection every time, he has to buy that product. Thus branding in marketing greatly facilitates the repeat purchase of the products.
(B) Ensures quality:
Branding ensures a particular level of quality of the product. If there is any deviation in the quality, the customers can make a complaint to the manufacturer or the marketer. This builds up confidence in the customers and helps in increasing his level of satisfaction.
(C) Status symbol:
Some brands become status symbols because of their quality, e.g., Woodland, Parker, Mont Blanc, etc. The consumers feel proud of using them and adds to the level of satisfaction of the customers.
How to build a Brand
Choosing the right brand name is not an easy decision. What makes this decision important is the fact that once a brand name is chosen and the product is launched in the market, changing the brand name is very difficult. So, getting it right the first time is very essential and it puts you on the path of brand building.
Following are some of the considerations, which should be kept in mind while choosing a brand name:
1. A brand name should be short, easy to pronounce, spell, recognize, and remember, e.g., – LG, NANO, VIP, Rin, Vim, etc.
2. A brand name should suggest the product’s benefits and qualities. It s appropriate to the product’s function, e.g., Hajmola, Ujjala, Hair and Care, Eeco, Swift, etc.
3. A brand name should be distinctive, i.e., Zodiac, Kodak, Zerox, Safari, etc.
4. Chosen name should have staying power, it should not get out of date,
5. The brand name should be sufficiently versatile to accommodate new products, which added to the product line, e.g., Maggie, Colgate, etc.
6. It should be adaptable to packaging or Labelling requirements, to different advertising media and to different languages,
7. Brand name registered and protected legally.
3 important basic steps that helped in brand building
Before going to know some advanced steps in building a brand. Lets start by knowing some basics steps or procedures that you have to undertake.
These three steps consists of;-
PACKAGING and What is Branding in marketing?
Packaging refers to the act of designing and producing the container or wrapper of a product.
It plays an important role in advertising and also provide some essential security to product.
For example, Toilet Soaps come in paper boxes or plastic wrappers, Biscuits come in paper packaging, Refrigerators or Televisions come in hard wood and board cartons and Expensive perfumes and liquor come in glossy boxes and designer bottles.
Packaging plays an important role in determining customer attitude towards the product. Sometimes, by looking at the packaging the customer tries to assess the product quality. Good packaging is one of the important factors in the success of products like Maggi’s noodles, Uncle Chipps, or Lays wafers.
Functions of Packaging:
The packaging greatly helps in the identification of the products. For example, Uncle chips in green color, Mage noodles in yellow colors, Ponds cream jar in white and blue color, etc. can be easily identified. Identification is a major benefit of Branding in Marketing
Packaging protects the contents of a product from spoilage, breakage, leakage, pilferage, damage, climatic effect, etc.
Packaging promotes the sale of the product by attracting the attention of the customer. The package is the buyer’s first encounter with the product and is capable of turning the buyer on or off. The attractive, colorful, and innovative packing e.g., Haldiram’s Sweets and Namkeens, Ferrero Rocher Chocolates, etc. attracts the customers to buy the product, especially in self-service outlets. The packaging is, therefore, considered a silent salesman and works as factors in brand building..
Packaging promotes the sale of the product by attracting the attention of the customer. The package is the buyer’s first encounter with the product and is capable of turning the buyer on or off. The attractive, colorful, and innovative packing e.g., Haldiram’s Sweets and Namkeens, Ferrero Rocher Chocolates, etc. attracts the customers to buy the product, especially in self-service outlets. The packaging is, therefore, considered a silent salesman.
Labeling refers to designing the label on the package.
The label may vary from a simple tag attached to the product (in case of local we products like sugar, wheat, pulse complex graphics that are part of the ( in case of Taj Mahal tea or In Basmati rice), Labels are useful in providing detailed information about the product contents, method of use, etc.
Functions of Labelling:
Labels perform a number of important functions relating to communicating with the potential buyers and promoting the sale of the products and brand building. The various functions performed by a label dress follows:
Describe the product and specify is contents:
One of the most important functions of labels is to describe the product, its usage manufacturing, and expiry dates, cautions in etc. and specify its contents. Examples: (1) Package of fast food products like ready to eat Dosa, Idli or Noodles, describe the procedure of cooking these products, (ii) Package of a brand of coconut oil describes the product as pure coconut oil with Heena, Amla, Lemon and specifies how these are good for hair.
Identification of the product or brand:
The other important function performed by labels is to help in identifying the product or brand. For example, we can easily identify a Cadbury chocolate from the various chocolates kept in the shelf of a shop by the colour of its label. The other common identification information provided by the labels include name and address of manufacturer, net weight when packed, maximum retail price, manufacturing and expiry dates, etc.
Grading of products:
Another important function performed by labels is to help to grade the products into different categories. Sometimes marketers assign different grades to indicate different features, Branding in Marketing, or quality of the product. For example, Brooke Bond Red Label, Green Label, etc.
Help in the promotion of products:
An important function of the label is to help in the promotion of the products. A carefully designed label can attract attention and give reason to purchase. We see many product labels providing promotional messages, for example, the pack of a popular Amla hair Oil states, “Baalon mein Dum, Life mein Fun’. Labels play important role in sales promotional schemes launched by companies. For example, the label on the pack of Dettol shaving cream mentions “40% extra Free” or package of Colgate toothpaste mentioning “Save Rs10”
Providing information required by law:
Labelling performs the function of providing information required by law. For example, the statutory warning on the package of cigarettes, “Smoking is injurious to Health”. In case of hazardous or poisonous material, appropriate safety warning needs to be put on the label.
We generally come across hundreds of advertising messages every day, which tell us about various products such as toilet soaps, detergent powder, shampoo, face creams, deodorants, soft drinks, and services such as hotels, insurance policies, etc.
Advertising is the most commonly used tool for promotion. It is an impersonal form of communication, which is paid for by the marketers (sponsors) to promote some goods or services. The most common modes of advertising are ‘newspapers’, ‘magazines’, ‘television’ and ʻradio’. Advertising is like the essence of brand-building.
“Advertising is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor.”
-American Marketing Associations
The definition shows the following important features of advertising:
Advertising is a paid form of communication. That is, the marketer (sponsor) has to bear the cost of communicating with prospective buyers and Branding in Marketing.
Impersonal method of promotion:
There is no direct face-to-face contact between the prospective buyers and the advertiser. It is, therefore, referred to an impersonal method of promotion. Advertising creates a monologue and not a dialogue.
Advertising is undertaken by some identified individuals or company, who makes the advertising efforts and bear costs.
Functions of Advertising
Advertising helps to create demand by making people aware of new products and new uses of existing products.
Educates consumers and makes shopping easier:
Advertising educates consumers by providing useful information about how products can be used for better satisfaction. It also helps consumers by informing them about the new features of the existing products. Thus, it makes shopping easier for them.
Some advanced methods for brand building
To compete more effectively, many companies are now embracing target marketing. Instead of scattering their marketing efforts, they are focusing on those consumers they have the greatest chance of satisfying and Branding in Marketing.
Effective target marketing consists of:-
(A) Identify and profile distinct groups of buyers who differ in their needs and wants (market segmentation)
(B) Select one or more market segments to enter (Market targeting)
(C) For each target segment, establish, communicate, and deliver the right benefits for the company’s market offering 9market positioning)
Market Segmentation, targeting, and positioning are known as the “STP” of marketing.
Bases for segmenting in Branding in Marketing
Market segmentation divides a market into well-defined slices. A market segment consists of group of customers who share a similar set of needs and wants. The marketer task is to identify the appropriate number and nature of market segments and decide which one to target.
We use two broad groups of variables to segment consumer markets and help in brand building. Some researchers define segments by looking at descriptive characteristics-geographic, demographic, and psychographic and asking whether these segments exhibit different needs or product responses. For example, they might examine the differing attitudes of “professionals,” “blue collars,” and other groups toward, say, “safety” as a product benefit.
There are many statistical techniques for developing market segments. Once the firm has identified its market-segment opportunities, it must decide how many and which ones to target, Marketers are increasingly combining several variables in an effort to identify smaller, better-defined target groups.
Thus, a bank may not only identify a group of wealthy retired adults but within that group distinguish several segments depending on current income, assets, savings, and risk preferences. This has led some market researchers to advocate a needs-based market segmentation approach.
Effective Segmentation Criteria
Not all segmentation schemes are useful. We could divide buyers of table salt into blond and brunette customers, but hair color is undoubtedly irrelevant to the purchase of salt. Furthermore, if all salt buyers buy the same amount of salt each month, believe all salt is the same and would pay only one price to salt, this market is minimally segmentable from a marketing point of view.
To be useful Branding in Marketing and market segments must rate favorably on five key criteria:
All marketing strategy is built on segmentation, targeting, and positioning (STP). A company discovers different needs and groups of consumers in the marketplace, targets those it can satisfy in a superior way, and then positions its offerings so the target market recognizes its distinctive offerings and images. By building customer advantages, companies can deliver high customer value and satisfaction, which leads to high repeat purchases and ultimately to high company profitability and brand building.
UNDERSTANDING POSITIONING AND VALUE PROPOSITIONS
Positioning is the act of designing a company’s offering and image to occupy a distinctive place in the minds of the target market.? The goal is to locate the brand in the minds of consumers to maximize the potential benefit to the firm.
A good brand positioning helps guide marketing strategy and Branding in Marketing by clarifying the brand’s essence, identifying the goals it helps the consumer achieve, and showing how it does so in a unique way. Everyone in the organization should understand the brand positioning and use it as a context for making decisions.
NOW TELL ME WHAT YOU FEEL
So that’s it folks I hope that I provided you with some knowledge through my post. Please provide your feedback and suggestions through commenting.
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