Its name can recognize the product. Once the name has been recognized, it may run smoothly among the people. The firm wants to create awareness and recognition through the branding strategies.
The question arises what is a ‘brand’?
A brand is a name, term, sign, symbol or design or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of others. The part of the brand which can be vocalized (the utterable) is known as the brand name.
That part of the band that is given legal protection for exclusive use by the seller is known as the trademark. A trademark may, thus, include any word, name, symbol or design. A trademark registered fo a service is known as a service mark.
Objectives of Branding:
The aim of branding a product or service is the same everywhere in the world. The three major objectives of branding are as follows:
- Create identification and brand awareness.
- Guarantee a certain level of quality, quantity, and satisfaction of a product or service.
- Help in the promotion of the product.
These objectives have the same ultimate goals, i.e., to induce repeat purchases.
Advantages of Branding:
There are several advantages of the branding to the customers and sellers. They are as follows:
- It makes shopping feasible to customers since it is means of identification. In case no brand names are used, for example, for products such as blades, toothpaste and toilet soaps, every time a shopper shops for these products, he has to inspect each piece of the product and in some cases, has to test them also. The problems that are to be faced by the shopper in such a situation can be imagined, even after inspection and testing, he may not be sure as to whether he has picked p the right product. Since branding reduces the shopping effort of the customers, it also reduces the selling effort of the manufacturers. The manufacturer’s need does not spend resources every time to convince the shoppers that the former are providing the same type of products which the latter are looking for.
- Shoppers treat brands as a guide to quality, the price of the product, service, etc. generally, consumers associate each brand with certain quality, price, service, etc. Hence, it becomes easy for consumers belonging t0 different segments to associate certain brands with their requirements and exercise choice. For instances, ‘Vimal’ is related to high price, high-quality textiles and National Textile Corporation is associated with low price, mass consumption textiles. The attitude of the customers helps the manufacturers to segment markets by offering different brands of the same product such as toothpaste, detergents, toilet soaps, etc.