Importance of Branding - 2

Branding adds value to products and services. This value arises from the experience gained from using the brand; familiarity, reliability, and risk reductions; and from association with others who use the brand (Palumbo and Herbig, 2000).

Generally, consumers really don’t think much about the importance of branding in their daily life. They just go and buy the brand, they trust like most people do. But the name of a brand comes crucial when the business point of view is under discussion. For instance the importance of a brand name can be expressed with the help of a well known brand “Nokia”, when consumers hear Nokia; they think mobile phones and the slogan of Nokia: “Nokia, connecting people.” came in their mind. A strong brand name and slogan has taken Nokia to the top of its industry.

Choosing a brand name is not a process happening by chance. It is a well thought out process which really needs to think about the analysis of names and meanings. Creating a simple name for the company is the starting point of branding, so it can be said it is the most important step of branding. Because usually consumers remember simple and short names, there is a need to find a simple name which is associated with a positive value or characteristics (Kapferer, 2004, p. 155). An example can be given from Turkey about the shortness of a brand name; Dogus Group use “Garanti” instead of “Garanti Bankası”.

Another vital point in choosing the brand name is that the brand name must be different and unique (Fuchs, 2005). It will result as revenue lost if the company brand name is too close to one of its competitors which will cause its customers’ to mix it up. Also companies can not reach success by using a close name of a brand which came in market before them.