Benefits of Branding

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Benefits of Branding
Marten van der Zee, Student (University), Netherlands

One of the major questions regarding establishing a proper branding strategy is: First, should we establish our own brand names or should we engage exclusively in reseller brands (private labels or own label brands? This question is considered highly by medium-sized companies, which due to limited resources and specialized knowledge prefer to sell their products without their own brand. However, there are considerable benefits:

1: Branding gives company the opportunity to increase the amount of loyal and profitable customers.
2: Strong brands increase corporate image, thus easier to launch new brands and obtain more acceptance by distributors and consumers.
3: Brand name makes it easier for the company to process orders and determine problems.
4: Branding helps the company to segment markets.
5: Brand name and logo of the company provide legal protection of unique product features, which the competition seeks to copy.

Could anyone add more strategic benefits?

Kotler,P.(2003) Marketing Management: Analysis, planning implementation and control. 11th edition. Englewood Cliffs, NJ: Prentice Hall.



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