Branding provides enormous advantages and benefits to a company. The brand is a very wide term. It includes any symbol, term or word which is used for the purpose of product identification. Branding has a unique and vital role in the effective marketing of products.
Benefits or Advantages of Branding
The advantages or merits or utility of branding from the point of view of consumers and manufacturers/distribution may be summarised as under:
1. Easy to Identify
Brand name renders product identification much easier.
Thus, a lot of time energy of the consumer is saved in shopping and good and services.
2. Assurance of Quality
The branded goods assure a certain quality and standard, which are consistently maintained by the manufacturer.
3. Fixed Prices
The brand name Assures fixed prices to the consumers.
Even the distributors cannot charge high prices because prices are usually printed on the container.
4. Satisfaction of Prestige and Status
Certain brands acquire great popularity in the market, such as Pears Soap, BMW Cars, Bajaj scooter, etc.
The customer buying these branded goods desires the immense satisfaction of prestige and satisfaction.
5. Easy Selection
Brand distinguishes the goods of different manufacturers, and this fact enables the consumers to select their products easily and conveniently.
6. Easy to Lodge Complaint and Make Clams
It is easier to lodge a complaint and make claims against marketers when a branded product fails to live up to its proclaimed value satisfaction.
7. Easy Shopping
Shopping becomes easy and pleasurable, especially if the customer has developed brand loyalty.
8. Discourages Price Competition
It discourages price competition because every product has a distinctive image in the market as well as in the public mind.
It ensures manufacturers independence in pricing decisions.
9. Builds Product Loyalty
The brand helps to be build loyalty for the product among the customers. It is a source of repeated orders by the customers.
10. Identifiers and Distinguishes
A brand identifies, distinguishes and differentiates a product from the products of competitive manufacturers.
11. Maintenance of Control
Branding assists in the maintenance of proper control over the market as well as price, quality and other features of the product.
12. Antidote to Middlemen’s Hostility
It services to antidote to wholesalers and retailers possible hostility, particularly when their margins of profit are reduced.
13. Facilitates the Introduction of New Products
It facilitates the introduction of new products in the market.
14. Widens Market
It widens the market for the product on account of its popularity.
15. Assists Advertising and Sales Promotion
It assists in advertising and sales promotion. When a brand becomes popular, advertising and sales promotion cost is automatically reduced.
16. Resists the Temptation to Change the Brand Product
Brand loyalty customers resist the Temptation to change the brand product.
17. Eases to Selling Process
The widely popular brands ease the selling process. The middleman is saved from the botheration of separate weighing, measuring, packing, etc. He merely displays the brand and product is sold.
18. Reduces Bargaining and Price Flexibility
Branding Reduces Bargaining and Price Flexibility as the prices are already printed on it. This, in turn, reduces the risk also.
19. Helps Advertising Sales Promotion
Branding helps advertising and sales promotion is to a great extent.
20. Reduces Distribution Cost
Special selling efforts need not be undertaken by the middleman as the consumer demands the product by quoting the special brand name.
This reduces the cost of distribution considerably.
21. Quick Money Products
The middlemen can easily find out the quick moving products. strategies of branding.
22. Increase in Sales
When the brand gains popularity in the market, sales of the middleman are automatically increased.
23. Increase in Profits
Middlemen’s profits are increased due to 1. The rapid increase in sales, 2. reduction in per unit selling cost.
24. Sales Stability
It helps in gaining sales stability through product loyalty.
25. Builds Up Reputation and Image
A brand enables the manufacturer to build up the reputation of his products and create an image in the public mind.
Thus, Benefits or Advantages of Branding.