INTRODUCTION TO BRANDING

Branding is an image or perception you built for your organization in the minds of the customer/target group.

Perception determines the inclination towards different brands. Mental Association with each brand keep on changing with the business environment, reaction to changing needs and wants of the customer.

There is a particular cycle that has to be followed: -

The companies advertise after analyzing certain factors like target group, demographics, taste and preferences etc. The help in creating a certain experience so that a particular mental connect between customer and the brand can be built. The mental association helps in establishing a certain perception in the minds of the customer about the brand. The result is a profound bran d recall that helps in the final purchase of the product

Brands are conditional assets, It tells us that if the brands are not support by a good product, after sales service, in the long run it would not exist for a prolonged time period .

E.g. Apple as a brand is being supported by its innovative product and commendable after sales service. This is the reason that it is the number one brand at present. Other examples are Amul, Ferrari, Tata etc

Branding and its relevance to a certain extent goes hand in hand, If the brand is relevant in accordance with the need of the customer and the changing trend the brand prospers and vice versa.

E.g. Polaroid filled a case against Kodak of coming out with an instant camera and from then the brand has failed to exist in the market. It was because to survive in the market you need to change and diversify, which is only possible if you have competition.

The choice that has to made amongst the brands depends on a certain evaluation criteria, which includes the features, price, the way it is has built the mental association etc.  

Point of Parity: -

This explains that certain features are essential for any product to enter into a category plus a certain materialistic pull in the form of features, price , bonus etc, to be distinctive.

E.g. Company A provides you detergent for Rs. 28/kg and Company B is providing you the same detergent with a different brand name for Rs. 28/kg plus a chance to win a Swatch watch.

Branding helps in transforming the product category . E.g. – Starbucks – it started with tea, started providing coffee, sandwiches, Wi- Fi connectivity, convenience in payment etc.