Question

(500 words)

• Discuss the importance of branding and brand management? Why do you think is important?

Answer 1

Brand Management is the function of marketing techniques to a specific product, product line, or brand. It seeks to increase the product’s perceived value to the customer and thereby increase brand franchise and brand equity.

Brand management is utterly important as this not only affects a firm externally ( read market or consumers) but it also has a huge impact on internal perception of the company. Brand management is the only function that can pretty much puts the soul and flow the spirit across various functions like Marketing, Human Resource Management, Operations, Sales, Finance etc.

The process of maintaining, improving, and upholding a brand so that the name is associated with positive results.

Importance of Branding

Reducing the Risks in Product Decisions

A brand can reduce the risks in product decisions:

• Functional risk: The product does not perform up to expectations.
• Physical risk: The product poses a threat to the physical well-being or health of the user or others.
• Financial risk: The product is not worth the price paid.
• Social risk: The product results in embarrassment from others.
• Psychological risk: The product affects the mental well-being of the user.
• Time risk: The failure of the product results in an opportunity cost of finding another satisfactory product.

Branding Gets Recognition

Branding is important because it helps the consumer to identify the source of the product and because of the past experience and its marketing program over the time, consumer find out which brands satisfy their needs and which ones do not. As a result, brands provide a shorthand device or means of simplification for their product decisions

Branding Increases Business Value

Branding is important in generating future business by establishing the brand and give the company more leverage in the industry.

Branding Generates New Customers

Strong brand value reflects that company really provide the customer value which helps in word of mouth and referral to other customers. Brands may be particularly important signals of quality and other characteristics to consumers for these types of products.

Improves Employee Pride and Satisfaction

An employee will be more satisfied with their job and have a higher degree of pride in the work when they associate themselves with a strong branded company and truly stands behind the brand.

Creates Trust Within the Marketplace

Brands can reduce the risks in product decisions and build trust in the marketplace. A company with well-strategised branding and with a professional appearance will help the company build trust with consumers, potential clients and customers.

Branding Supports Advertising

Advertising strategies will directly reflect the brand and its desired portrayal. Advertisement is one the component of branding.

Source of competitive advantage

Brand loyalty provides security and predictability of demand for the firm and creates barriers of entry for other firms in the market.