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Business and Product Branding

Business and Product Branding

Competition is now severe daily and therefore beating the rival by winning over the customer's heart and soul and mind is becoming crucial. The companies have also became aware that one of the very most valuable assets of these company is the brand name that is associated with their product and services. Thus the most crucial development after 1980 has been the realisation among the list of managers that established brand could symbolize a certain value for the business. (Publication: - Brand management pg 8).

Branding must be one of the very most overused and misused terms in marketing and sales communications today. In the same way "marketing" is often used euphemistically to mean "sales" or "advertising, " "branding" appears to have a new definition to nearly every person. A brandname is usually known as a name, indication or mark used to identify items or services of the seller(s) and to differentiate them from goods of rival. Though brand seems to be a simple aspect of marketing; but it's far more complicated term.

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Therefore it could be said that "Branding is ultimately about securing the continuing future of the business, its products and services by building loyalties using psychological as well as rationale principles. Such values matter not only because they're exchanged for cash in the marketplace place but the perception of company's product and services are also influenced by it.

(Pg 1 reserve brand warrior by Fiona Gilmore).

Therefore understanding and nurturing the brand takes on an important role.

What is a brand?

Too often even marketing professionals don't have an answer, and too many have their 'own' answer. Indications and symbols are part of what a brand is, but to us this is an extremely imperfect definition.

The Dictionary of Business and Management defines a brandname as:

"A name, indication or sign used to identify items or services of owner(s) also to differentiate them from goods of opponents. "

According to the North american Marketing Connection (AMA), a brand is a

"name, term, sign, mark, or design, or a combo of them, intended to identify the products and services of 1 seller or group of sellers also to differentiate them from those of competitors" (Building, Measuring and Managing Brand Collateral, 3rd Release, Kevin Street Keller)

In Rules of marketing by Philip Kotler and Gary Armstrong a brandname is described as

'A name, term, signal icon or a combo of these, that identifies the manufacturer or seller of the product.

http://en. mimi. hu/marketingweb/brand. ht

A brand usually communicates specific information about a business, service or product, distinguishing it from others in the marketplace. A brand carries a "promise": a promise about the characteristics and particularities that produce the organization, product or service special and unique.

It is rightly said that "consumer is the king of the market". Because of this anything that is made by the business should be for the consumer and as per the consumer's needs. Thus creation of an effective brand is not an easy task but it requires the combination of varied aspects collectively within an exclusive way. These aspects include the following things such as:

  • High quality and appropriate product and services according to the consumers needs and requirements.
  • Attractive brand as per the consumer's understanding of the product.
  • Packaging, promotion, costing and all the elements must similarly meet the testing of appropriateness, charm and differentiation.

(Book proper brand management pg 5)

Brand takes on an important role not limited to the company also for the consumers.

The consumers came to the realization the advantage of buying a brandname and consuming it provides them the satisfaction and value for his or her money and they'll continue to buy it. They also put forward their trust and loyalty. It is also possible for the consumers to make their buying decision after they know which brands gratify their needs. Brand also takes on a substantial role in indicating certain product characteristic to consumers. In addition they take on unique, personal interpretation to consumers that facilitate their day to day activities and enrich their lives. (E book proper brand management pg 8, 9).

As per the business's point brand offers a variety of valuable role for the business. They generate a competitive advantages for the company with their product performance. They also help the company to lessen the switching cost of the consumers as the consumers become loyal to a specific brand. A brand is a product then, but that gives other measurements to differentiate it in some way from other products designed to gratify the same need. (Publication proper brand management pg 4). Therefore it can be said that the brand is the end result. It helps the business to built and keep maintaining its image in the mind and the heart of the customers. It is just like a tangible as well as intangible asset of the company which also a while helps in controlling the company's future. A successful brand is not only a product that has been launched to great press, strong sales, and client satisfaction although those things are certainly suitable. Strong, enduring brands are designed with the concept of brand loyalty in mind of the clients.

Brand is vital for the business enterprise because they set up meaningful interconnection between manufactures and their customers as well as employers and employee. Brand has become valuable asset due to their manifestation of these connections. If successful, their potential to built trust and loyalty will cause the consumer choosing the particular brand then continuing to choose it. (Booklet brand eyesight and principles pg 17)

What is Brand loyalty?

A successful brand is not only a product that is launched to great press, strong sales, and customer satisfaction, although all those things a certainly suitable. Strong, long lasting brands are designed with the idea of brand loyalty in mind-the proven fact that consumers will establish a bond with the brand that will enhance over a period of time and can make changing to another brand feel like betrayal of trust. (A top quality world M. Levis, pg194)

Oliver defines loyalty as "a deeply performed determination to re-buy or re-patronize a preferred product or services in future despite situational influences and marketing initiatives getting the potential to cause switching behavior" (Marketing management kotler pg 294)

The American marketing association defines brand commitment as "the situation in which a consumer generally buys the same manufacturer originated service or product repeatedly over time rather than buying from multiple suppliers within the category" or "the amount to which a consumer consistently purchase the same brand within a product class".

Brand devotion is the ultimate goal that the company sets for something. It's the desired goal of most businesses to build brand commitment from members of their target market segments. Once it's been created within the consumers they stick to the same product. It is more difficult to persuade customers to switch to an alternative brand. Some consumers will only purchase the same product, nothing at all else can do. Thus brand loyalty is made through series of circumstances, such as durability and reliability of the merchandise, but even more through the satisfactory execution of customer experience. (Pg 198 booklet a top quality world)

Brand Loyalty is the consumer's conscious or unconscious decision, expressed through intent to repurchase a brand constantly. It occurs because the consumer perceives that the brand offers the right product features, image, or quality level at the right price. Consumer behavior is habitual because habits are safe and familiar. To be able to create brand loyalty, advertisers must break consumer patterns, help them acquire new habits, and reinforce those habits by reminding consumers of the worthiness of these purchase and encourage them to continue purchasing those products in the foreseeable future. http://www. essortment. com/all/brandloyalty_pqk. htm

Loyalty for a brand from customer's view-point may differ. Because of this a market can be segmented by customer-loyalty habits. This is usually done with respect to the clients and their degree of loyalty to their brand.

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Brand loyalty is a simple part of building a brandname, as consumers generally have a choice of products in the same market section, and so a successful company should come up with ways to keep consumers re-buying their product or returning to their location rather than going to a competition.

Today's and tomorrow's customers are a great deal not the same as the consumers and business to business buyers have been used to. Globalisation is changing things so, is the progress of technology, the internet in particular. Customers are on the internet plus they travel the world without departing their homes and offices. Their needs and wants, opinions and beliefs, are crossing edges and challenging cultures with velocity and power. As they are on web they are really global and are accessible to all websites and branding communications delivered via internet. In such circumstances the purpose of the companies is to keep carefully the customers coming back. Customer Loyalty, local or global, doesn't develop over night. Nor it's triumphed in through 'attitude' or extravagant promises, flashy images or gimmicky design. Loyalty is developed via a succession of positive experiences customers have with brand. To your customers, each experience should be gratifying and reassuring. Even more important, each experience should build momentum in customer's thoughts, reinforcing your brand as their preferred choice. As experiences accumulate and targets develop, your brand makes the implicit promises to perform efficiently against those expectations.

(Branding across edges J. Gregory page 97)

The three main reasons why brand loyalty is important are the following.

  • Higher sales volume level: through lowering customer loss.
  • Premium pricing capacity: as devoted customers are less sensitive to price change, generally, they are willing to pay more for his or her preferred brand.
  • Lower cost for advertising, marketing and syndication: Brand loyalists are prepared to seek out their favorite brands are less sensitive to competitive marketing promotions.

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Factors responsible for customer decision making:

Marketers who analyze consumer behavior are ultimately enthusiastic about one central question: How are consumer selections made? Various environmental such as cultural school, income, family and individual factors are responsible customer in Decision-making. (Zikmund, 1998)

Customer Loyalty

Customer loyalty performs an important role in the performance of any business. Thus retaining the customer is often more profitable then finding one. As customer loyalty has turned into a buzzword in companies today however the most essential thing is to keep that loyalty. Loyalty schemes should be highly centered and really should build on strong customer marriage in order to attain 100% client satisfaction. (Customer loyalty is really important pg 2 last Para). Customer loyalty will not happen overnight. It does not happen with a single phone call or a simple piece of immediate mail, or a groovy websites. Customer loyalty starts with trust. (Customer management versus customer loyalty pg 1)

Maya Angelou, Poet and Publisher has rightly said "I've learned that people will forget what you said, people will ignore what you have, but people won't forget how you will made them feel. " http://www. pierce. ctc. edu/conted/business/email/images/classPDFs/aglobal/Four%20Keys%20to%20Customer%20Loyalty. pdf

Customers have alternatives. There are very exceptional products and services that are different or unique an business is not threatened by competitive pressures. What can cause a customer to choose one service or product over another is just how they experience the product and exactly how they feel these are treated by the business. This is particularly evident in the demand today for stellar service and its effect on building customer loyalty.

A very essential routine of dedicated customers are that they demonstrate their loyalty through certain behaviours that benefits the company. These can be explained by making use of 4 R's:

  • Retention: customers who are loyal to an organisation provide a solid foundation for success. Though retention of a person is hard, but it's a greater than finding new customers.
  • Referrals: faithful customers encourage others to opt because of their company or organisation. This in turn reduces the price to acquire new customers. Person to person is very powerful, and it influences many people.
  • Reputations: Devoted customers speak well of you. They increase open public support and positive interest from investors, suppliers, future employees, the press, and even regulatory bodies.
  • Revenue: Loyal customers offer you a larger share of these business, which boosts overall earnings and the recognition that is included with success. Cross-selling and up-selling to existing customers is the principal growth technique for many organizations and is particularly lucrative with loyal customers. (Previous Web)

A first procedure of classifying consumers considering their degree of loyalty is that of George H. darkish corresponding to whom potential buyers can be split into four organizations:

  • Hard core faithful- always buy the same product
  • Split loyal- faithful to two or three brands
  • Shifting loyal - loyal to 1 brand for a period of time, but easily moving in one brand to some other, anticipated to certain advantages proposed by the new brand.
  • Switchers - show no loyalty to any brand, switching the brand with nearly every buying situation.

Brand Loyalty as a strategy.

Loyal customers can be and really should be the building blocks for online marketing strategy. Beyond the earnings they generate, faithful customers supply the basis for brand development and improvement. The brand that loses vision of its devoted customers has lost its route, and is prone to lose its market talk about. As being a brand's ratio of devoted customers rises, market share boosts and the brand becomes more profitable. Share rises because those customers who become duplicate purchasers are no longer lost to your competition. In addition, devoted customers will be more profitable than clients - attracting clients involves investing a lot more marketing and promotional cash.

When a consumer builds up loyalty towards a brandname he/she evolves a favourable frame of mind towards brand resulting in commitment. Brand loyalty offers lots of benefits to the internet marketer.

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