Share on Facebook Branding is the process of communicating the value of your company and its products to a target market. This is normally done through various marketing and communication approaches, including advertising and public relations. Typically, it takes time and consistency in messages and performance for branding to work. High Profit Margins Successful branding normally leads to strong profit margins.
Companies often allocate a significant portion of their marketing budget to promoting their brands, differentiating their products and increasing market share. Strategies When promoting a brand, companies sometimes choose to follow a multiproduct branding strategy, similar to automakers Ford and Toyota.
Coca-Cola, Apple and Intel have focused their energies on branding their corporate names and images rather than individual products. Grocery chains and big-box retailers use private-label branding to attract value-conscious customers.
Advantages Companies use branding to differentiate their products based on value, quality and other attributes. A positive brand image creates a halo effect that affects existing products and makes it easier to introduce new products.
The "Intel Inside" campaign, for example, was designed to brand all Intel microprocessors as high-performance and high-quality products.
Apple has followed a somewhat different route because it relies on its corporate name and unique product brands. Kraft consumers know they are getting a quality food product, which makes it easier and more cost-effective for Kraft to introduce and gain consumer acceptance for new products.
Disadvantages The main disadvantage of branding is the high advertising and related public relations costs. Establishing a local or international brand requires years of sustained advertising, high levels of quality and exceptional customer service. A brand image and reputation cannot be established in a few weeks.
Companies must continue their promotions even during economic downturns or when sales stagnate, because if they do not, competitors might fill the void and be in a better position when the economy turns around.
These expenditures can reduce margins, especially if sales volumes are being affected by price competition or changing customer preferences. Also, there is the risk that poor customer service by wholesalers or retailers in the distribution channel might reflect poorly on the brand itself.
Co-Branding Co-branding refers to a joint branding arrangement between multiple companies. Marketing consultant Steve McKee points to grocery store aisles for co-branding examples, from cereals to ice cream.
With each branding strategy comes both advantages and disadvantages that you should be aware of. Corporate Brand – For companies that only offer one benefit to a customer, they usually use a corporate brand (unless they have an overall holding company). The main disadvantage of branding is the high advertising and related public relations costs. Establishing a local or international brand requires years of sustained advertising, high levels of quality and exceptional customer service. Published: Mon, 5 Dec A brand can be defined as a combination of marketing, logo’s, advertising, packaging, product design, slogan and names that together give particular products or services a physical or recognizable form.
Small businesses can explore dozens of opportunities in local or regional markets for co-branding opportunities that reduce cost while increasing market penetration. McKee cautions, however, that co-branding can have a dilutive effect because the credit for a positive experience is spread across at least two brands instead of one, and a negative experience with one brand could harm the partner brands.Another disadvantage of branding is that company’s scope become limited or in simple words company losses flexibility to some extent as consumer tend to associate a particular brand with particular product only and if the company sells some other product then it is not sure that the other product will perform equally well in the market.
The Branding Pyramid By Jeffrey A. Lupisella One of the many reasons why I love branding and working with our clients is that we get to know a lot of people in a lot of different industries.
We spend a lot of time learning intimately about their products and services to help serve them well. With each branding strategy comes both advantages and disadvantages that you should be aware of. Corporate Brand – For companies that only offer one benefit to a customer, they usually use a corporate brand (unless they have an overall holding company).
Co branding is the utilization of two or more brands to name a new product. The ingredient brands help each other to achieve their aims. The overall synchronization between the brand pair and the new product has to be kept in mind.
Example of co-branding - Citibank co-branded with MTV to launch a co. Three types of branding are brand, brand name and brand mark. Brands are a name, symbol or a combination of both that identifies a company and its products, brands also link products to its customer. Brands are a name, symbol or a combination of both that identifies a company and its products, brands also link products to its customer.
Global branding and advertising emphasizes the same brand positioning and messaging from one country to the next. It is an opposite approach to customizing advertising in each individual marketplace. While each approach has merits, global branding is preferred by many small businesses for a variety of reasons.