Branding of products is very important in marketing. It promotes image and reputation of business firm. It also gives satisfaction to the customers. Trademark helps producer and sellers get legal protection. From this customers can get quality products at reasonable price.
Producers, sellers, customers get different benefits and advantages from brand name and trademark. So, the main reasons for branding products are the benefits and advantages that the consumers and business firm get.
Producers, sellers, customers get different benefits and advantages from brand name and trademark. So, the main reasons for branding products are the benefits and advantages that the consumers and business firm get.
The importance and reasons for branding products can be mentioned as follows:
Importance and reasons of branding from consumers' viewpoint
1. Product identification
Branding plays an important role to help consumers or industrial users to identify and differentiate the products from the other company. The consumers or users, with little effort, can easily buy the products of the brand whichever they want.
2. Stability in quality and price
As the products, which have been branded, do not differ in quality and price, the consumers can purchase such products with confidence. moreover, mostly reputed producers produce the branded products. The producer always try to improve quality by which the consumers get more utility and benefits from branded products.
3. Buying spares and parts
Branding helps customers to buy spares and parts for their automobile, machines, and other equipment. As the producer produce such spares and parts in the same brand name and trade mark, the customers do not have to cheated by counterfeit products.
4. Regular supply
As the branded products are supplied regularly, the customers can get and use them regularly. If once the customers are satisfied with the products, they buy the products of the same brand when need again.
5. Social prestige
Social prestige, respect and status of consumers rise up from buying branded products. Branded products also give psychological satisfaction to the consumers.
So, branding product is logical and useful for the above mentioned benefits the customers or consumers get from branded products.
Importance and reasons of branding from producers' viewpoint
From the producers' and sellers' point of view, the following advantages and benefits can be enjoyed from branded products:
1. Advertising
Branding helps producer and sellers to promote their products and sales through advertisement. Branded products can be advertised and advertisement creates demand.
2. Market control
Branded products can control market more than the unbranded ones. It becomes possible to receive purchase order from customers for the products, which have brand name or symbol. If the products have brand name, 'brand loyalty' or 'brand patronage' becomes possible.
3. Expansion of product mix
A reputed manufacturing company, which produces and sells better products of established brand, can also produce other new products using same brand. The customers who have brand loyalty of the old products confidently buy and use the new products of the same brand. In this way, branding helps to develop, produce and sell new products.
4. Reduces price comparisons
If the products are branded, the customers do not compare price with other products of different companies, because brand itself differentiate the products and prices. Hence, the producer or sellers become free to determine price.
5. Goodwill and image
Quality product and popular brand help increase goodwill and image of the manufacturing firm and sellers. Such brand attracts general public towards the firm. As a result, volume of sales increases. Besides this, banks and financial institutions provide necessary financial help for production and sales.
Importance and reasons of branding from society's viewpoint
1. Promotion of social events
A company, which deals in products of reputed brand, sponsors for different social programs such as education, health, sports, cultural campaign, seminar, workshop etc. for the promotion of product. Such activities do not only promote products but also make the society aware.
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2. Consumer welfare
Branded products protect consumers' rights. If any wrong, defect or fault is found in branded products, the consumers can get compensation according to the legal provision. But if any defect, fault found in unbranded products or they cause damage or loss, it becomes difficult to identify and take legal actions.
3. Environmental protection
Products of reputed brand become helpful in environmental protection.On the other, environmentally aware society gives priority to use environment friendly brand. In this way, branding of products also helps protect environment.
