Brands and Branding

Posted by Kumaran Rajgopal on December 27th, 2016

In the new economy based on a surplus and increased competition, branding is considered as one of the most important activities of the organisation that has a direct impact on the financial results of the organisation. Information and knowledge are distributed immediately; new ideas, technologies and physical characteristics are easy to copy. New tools of differentiation, namely the unique, emotional, intangible characteristics of the object of offer acquire the increasing importance for the organisation. All this can be achieved with the help of the brand. The brand ensures attraction and retaining of customers, employees, investors, suppliers, it helps to develop a long-term perspective of relations, providing the basis for long-term growth of the organisation, the opportunities to expand the market and increase profits. The concepts of brand and branding have many interpretations.

Brand and Branding

Brand is a marketing tool, integrating tangible and intangible properties of the proposed object, which forms the identification of the object – its unique characteristics compared to other comparable objects presented to the target audience. This way brand creates specified value of the object for the target audience, and for the organisation itself. It is essential to brand name search at their respective trademark office.

Branding - is the creation of the long-term preference to the specific goods, which is based on the overall impact on the buyer of a particular trademark or packaging, or advertising messages, as well as materials for the sales promotion and other elements of marketing mix. This combined corporate identity united by the core idea and style, in its turn allocate production compared to the competitors' products and create its image, which is called brand image.

Brand is the carrier of information, not only about the product, but also about certain lifestyle. Brand allows giving the consumer a feeling that buying a product or purchasing a service, he or she gets closer to some ideal image, some perfect life. The brand is the hallmark of the company, its products and services. It is a mistake to think that branding affects only the style of package or the principles of distribution. Core ideas of the particular brand should be understood not only by clients, but by the employees as well. Thus these ideas should be followed in any business interaction and be seen as basic for the decision-making at every stage.

Branded products allow a company to conduct successful operations, to expand the consumer segment and to ensure competitiveness. 

Competitive advantages of the brand

Successful branding provides a number of competitive advantages:

1. Reducing the cost of the promotion at the expense of brand awareness;

2. Increased revenue by charging higher prices for goods or services;

3. Strengthening the corporate image;

4. Simplification of the market promotion of new products.

The presence of a successful brand ensures positive reaction of consumers to the goods or services of the company. Branding provides stability of the business, its greater security. The brand covers almost all aspects of business, including company image and company culture.The brand is the most valuable intangible asset of the organisation. In a competitive market every economic subject must be clearly aware of its importance and consider the basic aspects of branding in any business activities.