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UNIT 3

CONCEPT OF BRANDING
Brand is the name term, sign, symbol, or design or a combination of them intended to
identify the goods or services of one seller or group of sellers and to differentiate them from
those of competitors. It is a trademark or distinctive name identifying a product or manufacturer.
Brands convey even more meanings up to six levels. They are: Attributes, benefits to
customer, producers values, culture, personality, user.
Branding is the process involved in creating a unique name and image for a product in the
consumers mind, mainly through advertising campaigns with a consistent theme.
Benefits of Branding:
1. It helps the seller to process orders and track down problem.
2. It provides legal protection of unique product features.
3. It provides opportunity to attract loyal customers.
4. It helps to build corporate image and make it easy to launch new brands and gain
acceptance by distributors and consumers.
5. It creates trust and emotional attachment to the product and company.
6. It helps in making purchase decisions easier.
7. It helps to sell value and intangibles that surround your products.
8. It builds name recognition for the company or product.
9. It help the company to articulate their values and explain why they are competing in the
market.
10. It can command premium price and maximize the no of units that can be sold at that
premium price.
Traits (qualities) of Successful Brands:
1. The brand stays relevant
2. The pricing strategy is based on consumers perceptions of value
3. The brand excels at delivering the benefits customers truly desire
4. The brand is properly positioned
5. The brand is consistent
6. The brand portfolio and hierarchy make sense
7. The brand makes use of and coordinates a full repertoire of marketing activities to build
equity
8. The brands managers understand what the brand means to customer
9. The brand is given proper support, and that support is sustained over the long run
10. The company monitors sources of brand equity
Brand Positioning:
Brand positioning refers to target consumers reason to buy your brand in preference to others.
It is ensures that all brand activity has a common aim; is guided, directed and delivered by the
brands benefits/reasons to buy; and it focusses at all points of contact with the consumer.
Brand positioning must make sure that:

Is it unique/distinctive vs. competitors ?


Is it significant and encouraging to the niche market ?
Is it appropriate to all major geographic markets and businesses ?
Is the proposition validated with unique, appropriate and original products ?
Is it sustainable - can it be delivered constantly across all points of contact with the
consumer ?
Is it helpful for organization to achieve its financial goals ?
Is it able to support and boost up the organization ?
Brand Positioning can be defined as an activity of creating a brand offer in such a manner that it
occupies a distinctive place and value in the target customers mind.
There are various positioning errors, such as1. Under positioning- This is a scenario in which the customers have a blurred and unclear
idea of the brand.
2. Over positioning- This is a scenario in which the customers have too limited a awareness
of the brand.
3. Confused positioning- This is a scenario in which the customers have a confused opinion
of the brand.
4. Double Positioning- This is a scenario in which customers do not accept the claims of a
brand.