The Importance of Branding to an Organisation
"Branding", is like setting names for products. Nobody would set up in
business or launch a new product without giving it a name. Branding is
a very important part of promotion. It can help a business to
establish an identity to the product. Furthermore, 'Branding'
contributes to the value and financial viability of businesses, just
like their products, fixed assets and input.
Businesses therefore would spend large amounts of money on TV and
newspaper advertising campaigns, in order to end up with name that
foremost in everyone's mind. Just think of 'Coca-cola' and 'Pepsi'
competition, they both spend an obscene amount of money in promoting
their brand each year, in order to become the dominant brand. We can
also notice that many of their ads don't even contribute to its
product, but rather, selling their brand and try to create "brand
awareness" as well as "brand loyalty." Why? The answer is simply
because they want to create a "well-established" brand, which would
eventually formulate an inseparable link between its product and the
This becomes apparent as we just see how powerful 'branding' can be as
a selling tool in our multi-media marketing environment, when looking
at areas such as: Computers, we would automatically think of IBM; or
Software we would automatically think of Microsoft. These companies
have established themselves as "the" dominant player in their fields.
Such good job at impressing its brand into consumer's mind may also
gain advantages in competing with other brands/products. Even for
businesses that have superior products at superior prices, but without
a 'well-established brand', they might still have disadvantages when
comparing to one's corporate brand that is well-established. From
this, it can be seen that the power of branding might even be more
important tan the quality or price of your product. In addition, when
competition is global, it may also gain advantages, as branding is a
way to distinguish your product from other competitors' products as
well as differentiate yourself and your business from the competition.
Branding is also like the reputation of a company, which also effects
business' publicity. Often the choice of setting up an industry or a
business is often directly linked to this notion of reputation. As a
company has a good reputation, it may attract new customers, which
would create ones' demand and 'brand loyalty'. Customers tend to
purchase products from companies that have a good reputation. This is
because as the...