Branded products can command higher prices
A brand is a name, term, design, symbol or other feature that distinguishes one seller’s product from those of others. Brands are used in business, marketing, and advertising. Ferrari has been named the world’s most valuable brand. Brands typically comprise various elements such as a name, or words, logo, catchphrase, shapes, colours, scents, and tastes. For example, the brand Nike also has the catchphrase ‘Just Do It’.
Effective branding is important to a business because:
- It can result in higher sales of not only one product, but of other products associated with that brand.
- It makes the product or services relevant to the target audience as they represent the sum of all valuable qualities of a product to the consumer.
- Branded products or services can command higher prices. Where two products resemble each other, but one of the products has no associated branding (such as a generic, store-branded product), people may often select the more expensive branded product on the basis of the perceived quality of the brand or on the basis of the reputation of the brand owner.
- Brand awareness is of critical importance in competitive situations, since customers will not consider a brand if they are not aware of it.
Brand communication is how a business transmits its brand message, characteristics and attributes to their consumers. Studies have found that consumers classed their relationship with a brand as closer, if that brand was active on a social media site i.e. Facebook.
Branding is so critical to a business’s success that it is imperative that professional branding expertise is sought by businesses to develop their branding. A little expert advice on branding pays big dividends.