The Importance of Branding to an Organisation

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

provider.

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 w...

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...cost.

Even for a well-established brand name, it can be easily forgotten in

consumers' mind, therefore, it would be costly for businesses to pay

for 'continuous' promotion of the brand.

Nevertheless, 'branding' is a very powerful tool in promotion and also

very important tool for developing businesses. Although it is an

expensive tool, which some businesses may not be able to afford the

amount of money for 'branding.' Such businesses might results with

some disadvantages when compare with a well-branded business, however

for some cases/markets, branding may not be as important to consumers,

such as plants. Ultimately business is only as good as the identity

that underpins it, as 'branding' allows businesses attract new

customers and make "established" customers return time and again.

Thus, increases ones' profit.