The Role and Scope of Branding in Modern Business Strategies

Brand

A brand as “a name, term, sign, symbol or design, or a combination of them indented to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors” thus, a product or services that adds dimensions that differentiate it in some way from other products or services designed to satisfy the same need. Brand is the seller’s promise to deliver the same bundle of benefits or services consistently to buyers.  On the other hand, a name becomes a brand when consumers associate it with a set of tangible and intangible benefits that they obtain from the product or service. 

The popular Starbucks has earned its brand image from the opinions of its customers. The brand Starbucks stands for bolder, more flavourful coffee. Thus, you can see that Brands are “what the consumers buy”, while products are “what concern/companies make”. Brand is a promise that the product will perform as per customer’s expectations.

What is Branding?

Branding means to distinguish the good of one producer from those of another. Branding is endowing products and service with power of a brand. So, branding is all about creating a difference.

Branding is more than a name and symbol. A brand is created and influenced by people, visuals, culture, style, perception, words, messages, PR, opinions, news media and especially social media. Like when a child is born and given a name, a brand needs nurturing, support, development and continuous care in order to thrive and grow. Some brands have a life cycle and grow old like people. Some brands are timeless and never die, are “born again” or reinvented, while some brands live a short but powerful life and have an iconic legacy.

Branding, to me, is the identity of a product or service. It’s the name, the logo, the design, or a combination of those that people use to identify, and differentiate, what they’re about to buy. A good brand should deliver a clear message, provide credibility, connect with customers emotionally, motivate the buyer, and create user loyalty.

In layman language, Branding is discovering things that make a firm unique and differentiating it from its competitors. 

6 levels of meaning for a product to be called as brand

1. Attributes: A brand brings to minds of customers a certain attributes. Eg: Mercedes- well-built, high-end automobile, durable etc.
2. Benefits: Attributes must be translated to functional as well as emotional benefits. Eg: Mercedes-durable attribute- functional benefit; expensive- emotional attribute.
3. Values: The brand also say about the producer’s values Eg: TATA group of companies- for their honesty
4. Culture: Brand may represent certain culture. Eg: Mercedes-A German company- Germany known for organized, efficient and high quality products.
5. Personality: A brand can project a certain personality.Eg: Armani- known for style, classic, austere person etc.
6. User: The brand suggests the kind of consumer who buys or use the product. Eg: Mercedes used by 55 year old company executive rather than a college student.

Focusing on your Target Audience 

It does not matter what your Brand mission is identifying and gaining the devotion of your target audience is the necessary means to reaching those objectives. To achieve your brand marketing goals it is important that you know your target market inside and out. This requires conducting a market analysis. 

This market analysis must be as in-depth as possible providing you will all the data you need to reach your target effectively. By knowing your target audience, you will be more confident in the steps to take to connect with that audience. The power of your brand relies on the ability to focus. That is why defining your target market will help to strengthen your brand's effectiveness. There are two steps in Lesson four of the Developing Your Brand's Strategy course. The first is to conduct and informal market analysis of your target market and the second is to write a target audience definition for your company. The instructions below will walk you through the process of completing both of these steps.

The objectives that a good brand will achieve include:

1. Delivers the message clearly
2. Confirms your credibility
3. Connects your target prospects emotionally
4. Motivates the buyer
5. Concretes User Loyalty

Function or role of a Brand 

1. Brands can signal a certain level of quality so that satisfied buyers can easily choose the product again.
2. Brand offers the firm legal protection for unique features or aspects of the product.
3. Brand name can be protected through registered trademark; manufacturing processes can be protected through patents and packaging can be protected through copyrights and designs.
4. Brand loyalty can translate into willingness to pay a higher price often 20 to 25 percentage or more.

The scope of Branding

1. A brand is something that resides in the minds of consumers. A brand is a perceptual entity that is rooted in reality but reflects the perception of consumers.
2. To successfully brand a product it is necessary to teach consumers
• Who the product is giving it a name and using other brand elements to help identify it
• What the product does
• Why consumer should choose that particular brand
3. A branding strategy shall be considered successful only when the consumers have an answer to the above three question which is strong enough to make them believe that there are significant differences in the products or services provided by brand than others.
4. Branding can be applied virtually anywhere a consumer has a choice. For example – 
• Physical goods – like soap, Parle G biscuits, Tata tea etc.
• Services – like Indigo airlines, ICICI bank, Taj Hotel etc.
• Stores – like Jio mart, amazon, flipkart etc.
• Persons – like Virat Kohli, Salman Khan etc.
• Place – like Bengal tourism etc
• Organization – World trade centre, world health organization, UNICEF etc.
• Idea – like Child education, freedom of speech

Brand Equity

Brand equity refers to the value of a brand. Brand equity is based on the extent to which the brand has high brand loyalty, name awareness, perceived quality and strong product associations. Brand equity also includes other intangible assets such as patents, trademarks and channel relationships.

1. Brand equity is the value of your brand for your company
2. Brand equity is the worth of a brand in and of itself social value of a well-known brand name
3. The owner of a well-known brand name can generate more revenue simply from brand recognition as consumers perceive the products of well-known brands as better than those of lesser-known brands
4. Brand equity is the added value endowed to products and services. Brand equity is an important intangible asset that has psychological and financial value to the firm.

Brand elements

Brand element are the unique aspects of your brand like name, logo, colour schemes etc. that create a recognizable image for your business and extend into everything you create Brand elements are those trade marketable devices that serve to identify and differentiate the brand from the competitor Most strong brands employ multiple brand elements for example Nike has the distinctive logo, the empowering ‘Just do it’ slogan and the methodology “Nike” name based on the winged goddess of victory. A brand element provides a positive contribution to brand equity.

Brand element choice criteria 

1. Memorable – how easily is the brand element recalled? For example, short brand names such as Lux, LG, and Taj, Nike etc.
2. Meaningful – to what extent is the brand element credible and suggestive of the corresponding category? Suggest about product ingredient or type of person who use for example Taj hotels royal Ness and luxury, Mother’s recipe pickles
3. Likeability – how aesthetically appealing do consumers find the brand element? For example – maharaja, splendor etc.
4. Adaptable – how adaptable and updatable is the brand elements? For example, lifebuoy launched 1895, major change in 2002.
5. Protectible – How legally protectible is brand elements? How competitively protectible? Can it be easily copied?

FAQ's

What are the objectives that you hope to achieve with your brand?

Your brand should be comprised of the company personality, image, core competencies and characteristics. The impressions that you make as well as the words people will use to describe your company to others, are the basic framework of your brand. With a strong brand you build credibility, have more influence on your market, and motivate customers and clients to purchase from you. If done correctly your company will be looked at as a leader not a follower. To determine your brand objectives ask yourself the following question: • What is it that you want your brand to do for your company? • What do you want others to know and say about your products or services?

What is Brand Awareness?

Brand awareness is the likelihood as to how aware a customer is about a brand, product or service. Brand awareness is how much a customer or prospect recalls or recollects about a particular company & its goods. Brand awareness is one of the key dimensions of brand equity & its includes a customer’s ability to remember the product, logo, tagline, name etc. • Brand awareness is basically of the following types: 1. Brand recall: Customers are able to identify the brand themselves without any aid, known as unaided recall. 2. Brand recognition: In this type of brand awareness, aided recall helps customers remember a particular brand. 3. Top of the mind brand: Any brand which a customer recalls without any help and is the first thing on their mind is top of the mind brand.

What is Internal Branding ?

Internal branding is activities and processes that help to inform and inspire employees. It is critical for service companies and retailers that all employees have up to date, deep understanding of the brand and its promise.

What is Positioning?

Positioning refers to the place that a brand occupies in the minds of the customers and how it is distinguished from the products of the competitors. In order to position products or brands companies may emphasize the distinguishing feature of their brand what it is, what it does and how etc. or they may try to create a suitable image.

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