Branding is the process of identifying a product with a name or image that communicates the qualities and benefits of a product to customers and prospects. A strong brand creates a personality for the product and differentiates a product from competitors.
- Branding plays an important role in the demand promotion process. The use of a brand often results in the repeat sales with minimal efforts.
- Branding increases the chances of success of advertising and sales promotion programs as branded goods can easily be identified.
- It helps the customers in shopping, i.e. makes product identification easy.
- It enables the manufacturers to differentiate their products from those of competitors.
- It facilitates the manufacturers to introduce new products successfully.
- It makes it easier for manufacturers to process orders and track down problems.
- It helps to segment a market; for example different brands of a product can be manufactured aimed at specific benefits seeking segment.
- Strong brands help to build the corporate image of an organization making it easier for an organization to launch new brands and gain acceptance by distributors and consumers.