� Branding is significant in building business relationships: The strength of the customer’ s relationship with a brand is central to that brand’ s growth. The relationship established is normally between the customer and the brand, and not between the customer and the brand owner, which even can be an organization that the customer has never heard of.
� Facilitates product differentiation: Branded goods are easily distinguished from the nonbranded ones since they usually“ stand out.” A brand is a particular product or characteristic that identifies a particular producer. But majority of the mass-produced products are almost identical. For example, beers are similar, as are different kinds of washing powders. These goods are often produced by two or three large organizations that encourage sales by creating a brand that differentiates the products in the consumers’ minds.
� Enables a firm cut its operational costs: The establishment of a strong brand name enables a business firm save on promotion and marketing. This is because branded goods are easy to advertise and market or promote in general since it is easy to make them“ known” to those they appeal.
� Facilitates product-line extension: Branding allows room for a range of different products to be offered to different market segments( or target customers). This not only enables manufacturers reach out to a particular segment of the market but to also realize a high degree of increase in their sales volume.
� Enables the farmer attract repeat business: Most people instinctively avoid unnecessary risk. Buying things represents at least a financial risk in that funds may be wasted once the product is not fit for the purpose. A brand that has been bought before and found to be satisfactory reduces these risks and so people are most likely to buy that trusted brand again and again. A good experience of a brand results in a happy and contented( or satisfied) customer unlike a bad experience. In fact, a bad experience is likely to make customers reject future offerings bearing this brand, regardless of how the offering( or product) appears to be. Thus, attraction and retention are key words when thinking about the development of a brand.
Page 144 of 163