Reasons for Branding?

• Reasons for Branding?• You need to explain why businesses use branding. Why is important to have a

brand • To build a relationship with customers• To differentiate their image from other competitors• Communicates quality and Premium pricing• Product development• increase customer loyalty.

A strong brand gives peace of mind

• This is one of the most basic benefits of a strong brand. Consumers trust the brand owner to deliver (or put things right if they don’t). This trust is based on their own direct experience of the brand, together with everything else they have seen and heard about the brand.

• This gives security and peace of mind to the consumer when buying, and a responsibility to the brand owner to uphold this trust.

Communicates quality and premium pricing• An effective brand that communicates the essence of quality will give

customers the perception that the product or service is better than that of the competition.

• Since it is perceived to be of higher quality, these brands will command higher prices, adding more revenue to the bottom line.

Increase customer loyalty.

• Loyal customers buy brands because they promote a certain lifestyle or image.• No matter how individualistic or different a person tries to be, it is

only human nature to desire to be part of a group, to “belong” to something. Brands convey to others that a person has achieved a certain amount of success, or more often than not, that he or she desires to attain that lifestyle.

How would you link the concept of branding to below benefits?

Benefits of successful brandingBenefit Explanation Example

Image Brand creates an association in peoples minds about the

image of a product Costa Coffee = excellent

customer service

Quality  Brand tells people how good a product is Nike logo on a t-shirt makes it

better quality than own brand

Recognition  People know what it means in every language McDonalds golden arches are

recognised all over the word

Long-lasting perceptions

 Brands create lasting impressions on customers

 Coca Cola and advert for Christmas “holidays are coming” connect with the start of Christmas

Trust  Familiar barnds means meet certain standardsTravel lodge room will be warm

and comfortable anywhere in the country 

Marketing multiple products This is called brand extension. When a brand becomes successful,

it is used to help promote other productsApple and Iphone, Ipad,

Use in your

assignment