In the simplest sense possible, branding is recognition. In a more business oriented sense, branding is a marketing exercise wherein a product or a service is marked with a symbol, name, or an image, in order to differentiate it from other similar products. Imagine living in a world without brands. It’s difficult to even imagine such a thing because of how far we’ve come. Brands are extremely important to consumers. When they need to purchase a product or avail a service, they think about the various brands at their disposal. Suppose a person wishes to buy a bottle of shampoo. They would think about the brands that manufacture shampoos, like Tresemme, Sunsilk, Pantene, etc. and not about the random bottle kept in the convenience store without a brand name or logo on it. This is because people prefer brands, they trust brands. Branding is therefore a major form of communication. Through a brand, a company communicates its ideas to the consumers. The fact that brands are of such extreme importance to consumers today, sheds light on the fact that they’re far more important for businesses. Following are a few pointers as to why branding is important for every business. But branding isn’t the only thing important for the success of a business. A proper professional education, along with the right guidance is just as important. WLCI College, one of the best MBA colleges in Delhi, offers many business management courses, including short term business management courses, and part time business management courses.
Branding helps customers distinguish various products from one another. It helps people recognize mere products as something more. It sets a company apart from its competitors and helps it create for itself a special identity which it knows can’t be cloned.
2. Gaining New Customers
It’s easier for companies to communicate through their brands. If a branded product is good, people will definitely talk about it. This way, through the age-old concept of word of mouth, and the relatively new concept of electronic word of mouth, a brand reaches a wide audience and wins itself new customers.
3. Retaining Customers
It takes only a few good trials before a person starts to trust a brand. Businesses that sell their products without branding them first hardly ever retain customers because people wouldn’t know where to find what they’re looking for. Once a brand earns its customers’ loyalty, it’s unlikely for them to choose any other brand.
4. Employee Motivation
Sometimes, employees of a company don’t see eye-to-eye with the company’s ideals and visions. But the employees working in companies which are home to big brands are always more motivated to perform better, and try and understand the company’s vision. Employees working in companies that aren’t already famous are also quite motivated because they know the scope for success is more when a company is branded
5. Expanding the Business
For companies that have already established a brand for themselves, it isn’t hard to retain customers. This is why it’s also easier for them to expand their business and introduce new ranges or styles of products. They know for a fact that their loyal customers will try their new product even if the old and the new line of products have nothing to do with each other.