BRAND MANAGEMENT

ASSIGNMENT ON
ADVANTAGES OF BRAND

SUBMITTED BY

VELMURUGAN.S
09MBAA55

BRAND

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 A brand is a product, service, or concept that is publicly distinguished from other
products, services, or concepts so that it can be easily communicated and usually marketed. A
brand name is the name of the distinctive product, service, or concept. Branding is the process of
creating and disseminating the brand name. Branding can be applied to the entire corporate
identity as well as to individual product and service names.
A brand is the identity of a specific product, service, or business. A brand can take many
forms, including a name, sign, symbol, color combination or slogan. The word brand began
simply as a way to tell one person's cattle from another by means of a hot iron stamp. A legally
protected brand name is called a trademark. The word brand has continued to evolve to
encompass identity - it affects the personality of a product, company or service.

ADVANTAGES OF BRANDS
1. Brands provide multiple sensory stimuli to enhance customer recognition. For
example, a brand can be visually recognizable from its packaging, logo, shape, etc. It
can also be recognizable via sound, such as hearing the name on a radio
advertisement or talking with someone who mentions the product.
2. Customers who are frequent and enthusiastic purchasers of a particular brand are
likely to become Brand Loyal. Cultivating brand loyalty among customers is the
ultimate reward for successful marketers since these customers are far less likely to
be enticed to switch to other brands compared to non-loyal customers.
3. Well-developed and promoted brands make product positioning efforts more
effective. The result is that upon exposure to a brand (e.g., hearing it, seeing it)
customers conjure up mental images or feelings of the benefits they receive from
using that brand. The reverse is even better. When customers associate benefits with a
particular brand, the brand may have attained a significant competitive advantage. In
these situations the customer who recognizes he needs a solution to a problem (e.g.,
needs to bleach clothes) may automatically think of one brand that offers the solution
to the problem (e.g., Clorox). This “benefit = brand” association provides a
significant advantage for the brand that the customer associates with the benefit
sought.
4. Firms that establish a successful brand can extend the brand by adding new products
under the same “family” brand. Such branding may allow companies to introduce
new products more easily since the brand is already recognized within the market.
5. Strong brands can lead to financial advantages through the concept of Brand
Equity in which the brand itself becomes valuable. Such gains can be realized through
the out-right sale of a brand or through licensing arrangements. For example,
Company A may have a well-recognized brand (Brand X) within a market but for
some reason they are looking to concentrate their efforts in other markets. Company
B is looking to enter the same market as Brand X. If circumstances are right

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 Company A could sell to Company B the rights to use the Brand X name without
selling any other part of the company. That is, Company A simply sells the legal
rights to the Brand X name but retains all other parts of Brand X, such as the
production facilities and employees. In cases of well developed brands such a
transaction may carry a very large price tag. Thus, through strong branding efforts
Company A achieves a large financial gain by simply signing over the rights to the
name. But why would Company B seek to purchase a brand for such a high price tag?
Because by buying the brand Company B has already achieved an important
marketing goal – building awareness within the target market. The fact the market is
already be familiar with the brand allows the Company B to concentrate on other
marketing decisions.

BENEFITS OF GLOBAL BRANDING:

1. In addition to taking advantage of the outstanding growth opportunities, the
following drives the increasing interest in taking brands global:
2. Economies of scale (production and distribution)
3. Lower marketing costs
4. Laying the groundwork for future extensions worldwide
5. Maintaining consistent brand imagery
6. Quicker identification and integration of innovations (discovered worldwide)
7. Preempting international competitors from entering domestic markets or locking
you out of other geographic markets
8. Increasing international media reach (especially with the explosion of the
Internet) is an enabler
9. Increases in international business and tourism are also enablers

EXPANDING ROLE OF BRAND:

When the technique of branding first started, it was meant to make identifying and
differentiating a product easier. Over time, brands came to embrace a performance or benefit
promise, for the product, certainly, but eventually also for the company behind the brand.

Today, brand plays a much bigger role. Brands have been co-opted as powerful symbols
in larger debates about economics, social issues, and politics. The power of brands to
communicate a complex message quickly and with emotional impact and the ability of brands to
attract media attention, make them ideal tools in the hands of activists--and hacktivists.

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BRAND NAME AND ITS IMPORTANCE:

Brand name associated with any firm and other organizations has been termed as most
valuable asset connected with their products and services. Today, customers are
with more options and choices to make decisions but again they have less and
less time to make the decision for it. The strong brand has ability to simplify
consumer decision making, reduce risk and set expectations is thus invaluable.

Though, it is difficult for one to differentiate between the products and the brand.
Product is can be said as anything offered to a market for attention, acquisition, use
or consumption that might satisfy consumer need and wants. So product can be
physical good, services, retail store or idea. Where, brand is a product, but
one that adds other values which differentiates it in some way from other
products designed to satisfy same needs.

Brand is important for consumers and manufactures in equal sense. Consumers it takes as
identification of source of product, cost reducer and symbolic device. It is a
promise, bond or pact with maker of product. For manufactures it is means of
identification to simplify handling or tracing, legal protection of unique features
signal to quality level to satisfied customers. It is a major source of
competitive advantage for them in particular market.

It is now becoming important for organization to take care of brand in managed way.
Today developed organization are offering new logo and changing concept to offer new
feeling to their customers. You can take illustration of Bank of Baroda which
had spent higher amount of rupees by changing their logo and renovating brand
image. Videocon has just come up with new logo to dilute old image of company.

Brand is become more powerful tool now to identify business with eyes of trust and
quality in products. Consumers will buy a product or services based on how they view and
respect particular brand. Brand itself tells whether products would be a good or bad enough
before using it in real sense. If one has not used product or service before then brand will be
useful to new consumers to choose and purchase respective product. Brand does
not only help businesses to keep repeated consumers but also assist consumers
in filtering out product from generic items.

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