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Description of Branding. Explanation.




Definition Branding. Description.

Branding is the process by which both a brand and brand identity are developed through selecting and blending tangible and intangible attributes to differentiate a product, service or corporation (See also: Corporate Reputation, Online Reputation) in an attractive, meaningful and compelling way. An association is being made between the (name of the) product and various values, images, awareness, recognition, qualities, features and benefits.

It is also described as the process of building a favorable image for a product or company that differentiates it, in the minds of prospects and end users, from other competitors.


Benefits of Branding. Advantages


One of the main questions in establishing a proper branding strategy is: Should we establish our own brand names or should we engage exclusively in reseller brands (private labels or own label brands? Medium-sized companies with limited resources and specialized knowledge may prefer to sell their products without having their own brand. However, there are considerable benefits of branding:

  1. Customer Loyalty: Branding gives company the opportunity to increase the amount of loyal and profitable customers.
  2. Corporate Image: Strong brands increase the corporate image, thus making it easier to launch new brands and obtain more acceptance by distributors and consumers.
  3. Product Identification: Brand names makes it easier for the company to process orders and determine problems.
  4. Segmentation: Branding helps the company to segment markets.
  5. Legal Protection: The brand name and logo of the company can provide legal protection of unique product features, which competitors may seek to copy.

Source: Kotler, P. (2003) Marketing Management: Analysis, Planning, Implementation and Control. 11th edition. Englewood Cliffs, NJ: Prentice Hall

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