Importance of Branding - 3

In today’s global business world organisations need teach the importance of branding to their internal customers (employees). Employees who know their jobs’ importance in their brand’s success will contribute more than who doesn’t know. Believe in your brand name, what it means, and customers will follow.

Time, money and effort spent on branding come back many times over when the process plays out intelligently. According to a privately held online publisher of home business and small business information Powerhomebiz, branding fattens companies’ bottom line for the reasons stated below:

1. Memorability: It is much easier to remember a branded product than a unknown, what was its name? product.

2. Loyalty: People tend to buy brands that they tried in the past and have positive experience with those products. We can say consumers are loyal to the brands they trust and are pleasant to buy them.

3. Familiarity: Psychological studies have shown that familiarity induces liking which makes even non-customers more likely to recommend a brand they know.

4. Premium image - premium price: Generally customers are willing to pay more for the well-branded products or services.

5. Extensions: It is much easier to introduce a new product or service with the help of your gained respect and success with your existing well-known brand.

6. Greater company equity: Companies with more brand value cost more than the companies with the same size but not well-branded when they are under sale.

7. Lower marketing expenses: You need to invest really big money to create a strong brand but once it is created you get big advantage over your competitors in every kind of marketing campaigns.

8. For consumers, less risk: When you afraid of the consequences of a mess-up you tend to choose the brand-name seller instead of the no-name one.

Keller (2003) stated the roles of brands to consumers and firms. According to Keller (2003) there are seven roles of brands to consumers. Brands provide:

 identification of source of product
 assignment of responsibility to product maker
 risk reducer
 symbolic device
 signal of quality
 search cost reducer
 promise, bond or pact with maker of product.

Keller (2003) claimed six different roles of brands to firms, they provide:
 means of identification to simplify handling or tracing
 signal of quality level to satisfied customers
 source of competitive advantage
 source of financial returns
 means of legally protecting unique features
 means of endowing products with unique associations