Meaning of Branding
After producing goods, the producer provides sign or mark to justify ownership of the products. The same sign or mark is called brand. In other words, the name, sign, symbol or digit or letter is called branding of products. As various types of products enter in markets, every company or firm tries to give separate identity of the product
According to Prof. Philip Kotler, “Brand is the name, term, symbol, or design or a combination or services of one seller or group of sellers and to differentiate them from those of competitors.”
2. Brand name
According to Prof. Philip Kotler, “Brand name is that part of brand which can be vocalized.”
3. Brand mark
Prof. Philip Kotler has defined it as, “Brand mark is that part of a brand which can be recognized but is not alterable such as a symbol, design, or distinctive coloring and lettering.” The feature of attractiveness should contain in the product.
4. Trade mark
According to Prof. Philip Kotler, “Trade mark is a brand or part of brand that is given legal protection because it is capable of exclusive appropriation.” For example, Dettol, Nycil, Break etc.
Characteristics of Branding
2. Product features
3. Short and simple
4. Easy to pronounce
8. Avoidance/ lack of obscenity
9. No hurting religious feelings
Objectives of Branding
1. Business organization related objectives
- Safety from competition: Business organizations give brand name to their products so as to make easy to positioning and advertise the product. It helps customers to know about quality and features of the product. In this way, the product can be saved from unhealthy competition.
- Promotion: Business organization should conduct promotional activities. Brand of the product greatly helps in conducting such activities. Brand also helps to know about price and features of the product. So, production organization aims to promote the product while giving brand to the product.
- Brand loyalty: The customers can get information about the feature, quality, price, aim and utility of the product. They can easily know about the company and its products. In this way, the objective of a company is to make customers loyal to brand name by maintaining quality.
- Product mix expansion: Quality product is first given brand name. In this way, product line or products can be expanded in markets. New products can be easily taken to target markets. So, the business firms have their objective to expand products mix.
- Legal protection: The brand name of the product registered by fulfilling legal requirements cannot be used by any other producers or companies. But such brand name can be given on hire, lease, or can be sold to any company to use it. So, the concerned company forms its objective to have legal protection.
- Product positioning: In order to positioning any product, it should be given brand. It can be easily distinguished on the basis of brand. Loyal customers can be provided sufficient description by comparing brand of the products. So, every company forms its objective of product positioning.
2. Society related objectives
- Consumers’ welfare: While buying branded products, the rights of the consumers remain secure. Consumers can get legal remedies if they have been given wrong or false information, or found any defect in the products. If some wrong products are sold to customers, the company should take responsibility for it. So, the producer company has the objective to give special attention to the interest of the consumers.
- Environmental protection: The companies which give brand to their products also become equally careful towards environment. They try to protect environment. In fact, the products of the company which do not pay attention toward protection of environment may be boycotted by the society. So, the producers themselves form objective to protection of environment.
- Social welfare: Popular and reputed companies/firms conduct social welfare activities while branding their products. Such activities contribute to the interest of the society and welfare of the companies themselves. The society accepts the products of such companies with priority.
3. Customer related objectives
- Product identification: The customers can easily identify and adopt the branded products. They take decision to buy products by comparing with other company’s products on the basis of brand. While taking decision to buy such products, there does not remain possibility to be confused, cheated or misled. Hence, the producers make their objective to give exact introduction or their products.
- Price stability: The producers always aim to maintain price stability. The price of the branded products is fixed by the producers themselves. So, the price of such product does not change frequently. The producers try to keep price stable for long time.
- Quality stability: The producers try to maintain stability in quality of the branded products. If quality of the product declines for any reason, the customers’ attitude towards such products becomes negative. Hence, the customers can always get opportunity to get high quality products. So, the producers try to maintain stability in the quality of branded products.
- To maintain the prestige: All the branded products make customers’ prestige high. When the quality products enter into markets, the customers feel satisfied with the quality products, due to which their image also heightens.
Reasons For and Against Branding
1. Reasons for Branding
- Product identification: The customers can easily identify/ recognize branded products. They can easily buy branded products whichever they want. They do not become bewildered to buy. There does not remain possibility to be cheated. So, products should be branded for the protection of the customers.
- Price stability: The price of the products is fixed by the production company itself. The price of branded products does not fluctuate frequently. So, price of such products remains stable. That’s why, the producer gives brand name of the products.
- Quality stability: The producers give brand name only to the quality products. They make policy not to give brand name to the qualityless products. Quality of branded products does not decline. So, firm or company tries to maintain quality so that the customers can always get quality products.
- Regular supply: Producer, at first, gives brand name to the products. Such branded products are regularly supplied to target markets. The customers can easily get demanded products. products are given brand name with the intention that products demanded by customers become available in market.
- Demand creation: Information about quality, feature and price etc. is given in branded products. Brand promotes sale of the products. It creates demands by attracting possible customers. It also encourages customers by appealing them to buy products.
- Time saving: Branded products do not take long time for selection. Customers can give prompt purchase order by mentioning brand of the products whichever they like. As adequate information can be found in the branded products, selection of product becomes fast, time is saved. So, products are also branded for time saving.
- Prestige: Branded products heighten the customers’ prestige. Branded products increase customers’ dignity in society. So, producers give brand name to their products to help to increase customers’ prestige and dignity.
2. Reasons against Branding
- Increase in price: Branded product may be more expensive than unbranded ones. Brand name should reflect the quality and features of the products. Promotional activities also should be conducted for the branded products, due to which per unit price of such products becomes higher. So, decision can be taken not to give brand name to the products to save for high price.
- Low quality: Some products are not branded die to being unable to maintain quality. Customers also do not believe in products whose minimum quality cannot be maintained. Once they have bought and used, they do not buy such products again. So, brand name should not be given to some products.
- Perishable products: While giving brand name to any products, their nature also should be considered. These types of products should be sold promptly. Such products may be perishable. An arrangement should be made to sell such products without giving brand name. Vegetable items, fruits etc. should not be branded. They are perishable goods. So, they should not be given brand name.
- Homogeneous products: Many companies may produce same type of products. It becomes difficult to identify which product belongs to which company. Raw materials, paddy, wheat, millet, maize or all the food stuffs are the examples of such products. They cannot be distinguished by branding. So, such homogeneous products should be sold without branding.
- Legal procedure: Legal procedure should be fulfilled for branding. Government prescribed legal procedures and requirement should also be carefully considered. It needs to spend time and money for fulfilling such requirements. So, some production companies decide not to give brand name to their products to avoid legal troubles.