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25 Major Benefits or Advantages of Branding (Explained)

Last Modified: 25 March, 2020 Leave a Comment

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
Benefits or Advantages of Branding

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.

Related: 14 Importance of Study Consumer Behaviour (Explained).

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.

Related: 13 Needs and Characteristics of Motivation Research.

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.

objectives and advantages of branding
Objectives and advantages of branding

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.

Bonus: 8 Advanced Techniques of Motivation Research (Explained).

 

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.

Related: 9 Advanced Strategies for Building Maximum Customer Satisfaction.

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.

Bonus: 21 Importance and Role of Entrepreneurs.

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. 

Related: 10 Main Factors Affecting Marketing Environment (Explained).

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.

Read More

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