A brand is something which is a name, sign, symbol, design, etc. or it can be a combination of any of these, with an objective of identifying goods and services of a specific manufacturer. Branding aids in the differentiation of products. It is an apex level marketing strategy developed to influence a brand. The battle not only takes places among the peer companies in the market but also among the brands. Therefore, every business house looks to develop a brand image in the market.
The importance of branding is listed below.
1) Branding helps in development of trust and recognition for the business: A customer recalls the track record of a brand or its company while coming across a brand name. A brand requires being created in a way that a customer can recognise the associated company. Branding helps in the development of trust on the company by the consumers.
2) Branding helps in identification of products: A person can easily understand what products a business entity sells by having a glance at its brand name.
3) Encouragement of customers to purchase again: Branding is an encouragement to the customers to purchases the products on a recurring basis. Branding is carried out for the enhancement of sales.
4) Brand determines the social status of an individual: A brand is a symbol of quality. Many people like to wear branded clothes, use branded mobiles, etc. as they show to others that he/she likes to consume goods of good quality.
A customer usually doesn’t tend to remember the name of the manufacturer of a particular product. The brand name is what that he/she remembers and feels some sort of relationship with it by recurring purchase and consumption of the associated products. It can take a few days to a few months or even as much as a few decades for a business house to create a brand image in the market. It is, therefore, essential for any business concern to emphasize on its branding strategies.