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Good branding gives a company several

advantages including establishing a positive


reputation and building an image attractive
to consumers.
LEARNING OBJECTIVE[ EDIT ]

Explain the components of a strong brand

KEY POINTS[ EDIT ]

Branding develops an image of a company's products in the minds


of consumers, attributing goods with certain unique qualities or characteristics
that, if done effectively, are attractive to the target audience.
o
A brand widely known in the market has brand recognition and builds
up positive sentiment which further strengthens the company position amongst
competitors.
o
Benefits of a strong brand include: being able to command
higher prices, speeding up new product acceptance, enabling market
share penetration by advertising, and resisting price erosion.
o

Benefits of a Strong Brand


A brand is the personality that identifies a product, service or company
(name, term, sign, symbol, design, or combination thereof); it also
represents a relationship to key constituencies: customers, staff, partners,
investors etc. Proper branding can yield higher product sales, and higher
sales of products associated with the brand (or brand association). For
example, a a customer who loves Pillsbury biscuits (and trusts the brand) is
more likely to try other products the company offers, such as chocolate chip
cookies.
Some people distinguish the psychological aspect of brand associations
(e.g., thoughts, feelings, perceptions, images, experiences, beliefs, attitudes,
etc.) that become tied to the brand from the experiential aspectthe sum of

all points of contact with the brand, otherwise known as brand experience.
Brand experience is a brand's action perceived by a person. The
psychological aspect, sometimes referred to as the brand image, is a
symbolic construct created within the minds of people, consisting of all the
information and expectations associated with a product, service, or
company providing them .

Brands
Good branding gives a company several advantages, including establishing a positive
reputation and building an image attractive to consumers.

The branding process seeks to develop or align the expectations behind


the brand experience, creating an impression that a product or service
associated with a brand possesses certain qualities or characteristics that
set it apart from other (e.g., competitor) products or services. A brand is
therefore one of the most valuable elements in an advertising theme, as it
demonstrates the uniqueness of what the brand owner is able to offer in
the marketplace. Orientation of the whole organization towards its
brand is called brand orientation. Brand orientation is developed in
response to market intelligence. Brand strength analysis describes efforts to
determine the strength a brand has compared with its competitors. The art
of creating and maintaining a brand is called brand management.
Careful brand management seeks to make the product or services appealing
and/or relevant to the target audience. Brands should reflect more than

mere differential of product cost versus selling price. They should represent
the sum of all valuable qualities of a product to the consumer.
A brand which is widely known in the marketplace acquires brand
recognition. When brand recognition builds to the point of a critical mass of
positive sentiment in the marketplace, it is said to have achieved
brand franchise. Brand recognition is most successful when a brand is
recognized independent of the company's name, but rather
through visual signifiers like logos, slogans, and colors. For example,
Disney has been successful branding with their particular script font,
originally created for Walt Disney's "signature" logo, and which it now uses
in the logo for the website GO.com.
Consumers may view branding as an aspect of products or services, as it
often serves to denote certain attractive qualities or characteristics. From
the perspective of brand owners, branded products or services also
command higher prices. Where two products resemble each other, but one
of the products has no associated branding (such as a generic, storebranded product), people may often select the more expensive branded
product on the basis of the quality or reputation of the brand or brand
owner. Benefits of good brand recognition include facilitating of new
product acceptance, enabling market share penetration by advertising, and
resisting price erosion.

Source: Boundless. The Benefits of a Good Brand. Boundless Business. Boundless, 26 May. 2016.
Retrieved 05 Aug. 2016 from https://www.boundless.com/business/textbooks/boundless-businesstextbook/product-and-pricing-strategies-15/product-packaging-and-branding-99/the-benefits-of-agood-brand-465-7936/