Meaning of Branding
A brand is a name, term, symbol, sign, design or some combination of them, used to identify the products, goods or services of one seller or group of sellers and to differentiate them from those of the competitors. For example some of the common brands are Apple, Puma, Nike, Adidas, etc.
That part of a brand which can be spoken is called a brand name i.e. the verbal component of a brand. For example, Asian paints, Safola, Maggie, Dunlop and Uncle chips are the brand names.
That part of a brand which can be recoganised but which is not utterable is called brand mark. It appears in the form of a symbol, design, distinct colour scheme, or lettering. For example, three stripes of Adidas and apple of Apple.
A brand or part of a brand that is given legal protection is called trademark. The protection is given against its use by other firms. Thus the firm, which got its brand registered, gets the exclusive right for its use. In that case, no other firm can use such name or mark in the country.
Advantages of branding to the marketer
Enables Marketing 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.
Helps in Advertising and Display programmes:
A brand aids a firm in its advertising and display programmes. Without a brand name, the advertiser can only create awareness for the generic product and can never be sure of the sale for his product.
Branding enables a firm to charge different price for its products than that charged by its competitors. This is possible because if customers like a brand and become habitual of it, they do not mind paying a little higher for it.
Ease in Introduction of New Product:
If new product is introduced under a known brand, it enjoys the reflected glory of the brand and is likely to get off to an excellent start. Thus, many companies with established brand names decide to introduce new products in the same name. For example, Food Specialties Ltd. has a successful brand Maggie.
Helps in Identification of Goods:
Branding helps the customers in identifying the product.
Branding ensures a particular level of quality of the product. Thus, whenever there is any deviation in the quality, the customers can have recourse to the manufacturer or the marketers.
Some brands become status symbol because of those brands of product feel proud of using them and add to the level of satisfaction of the consumers.
Characteristics of good brand name
- The brand name should be short, easy to pronounce and spell.
- A brand name should suggest the product’s function.
- A brand name should be distinctive e.g., Liril, Sprite.
- The brand name should be sufficiently versatile to accommodate new product, which are added to the product line e.g., Maggie.
- It should be capable of being registered and protected legally.
- Chosen name should have staying power that is it should not get out of date.