Branding:

1)Branding: is the process of stamping a product with some identifying name or mark or combination of
both.

In other words branding means giving a distinct individuality to a product. Business firms generally use
three types of branding.

1) By symbols ii) By special names iii) By name of the product

2)Generic name:

Generic name refers to the name of the class of product

ex: a book, a watch, tyre, camera etc.

If the products are sold by generic name it would be very difficult for the marketer to distinguish their
product from that of their competitors. For that sake the branding exists.
3)Brand: A brand is a name , term, symbol, design or some combination of them used to identify the
products, goods, or services of one seller or a group of sellers to differentiate them from those of the
competitors.

Ex: Bata, Lifebuoy etc

4)Brand Name: The part of a brand which can be spoken is called a brand name. It is the verbal component
of a brand.

ex: Asian paints, Saffola oil etc.

5) Brand Mark:

The part of a brand which can be recognized but which is not utter able is called a brand mark.

It appears in the form of symbol, design, distinct colors etc.

ex: Devil in Onida, Angry bulls image in Lamborghini

 6)Trade mark/Brand:

A Trade mark is a legal term . IT refers to a brand which is registered with the Govt. under the Trade
and Merchandise Act , 1958. Thus all brand names or marks cannot be termed as Trade marks. Only
those brand names or marks which are registered with the Govt. are known as Trade Mark.

Functions of Branding:

1) Product differentiation:

It helps in distinguishing a product from other similar products in the market.

2) Advertisement: If a brand name attains goodwill, it will serve as a useful medium of advertisement.

3) Protection from imitation: It protects the firm from imitation of the product by other manufacturers.

4) Better quality: Branding ensures products of better quality to the buyers. Branded goods can also be
sold on the basis of description only. If the firm has one or more line of goods it can add new items easily.
5) Protection of goods:

Generally branded products are packed in suitable containers or wrappers which afford
protection to the goods against heat , moisture and facilitates convenient handling.

6) Consumers protection:

The prices of branded goods are fixed by the manufacturers and are printed on the packages
and the retailers cannot charge more than the printed price.

7) Bridge between the seller and buyer.

Advantages of Branding or Brand Name:
1) To Manufacturers or company:

a) Distinctiveness:

A brand name creates a distinctive impression among the customers. For instance, different
brands of soaps like- Hamam, Pears, Lux etc creates different impressions upon the users though
the article is same i.e soap. Thus branded products enjoy individual existence.

b) Publicity:

A brand name enables its holder to advertise his product without any difficulty. Once a brand
name becomes popular , people remember it for long.

c) Protection:

A registered brand name and mark is a protection against imitation by other manufacturers .
d) Wide market:

Branded products are quite popular and command wide market. The wholesalers and
retailers are also ready to handle the branded products which are advertised.

e) Brand loyalty:

A brand gives consistent assurance of quality and therefore it attracts loyal and profitable
customers.

f) Market segmentation:

Branding helps segmentation of the market on the basis of benefit sought and provided to the
customers.

Maruti 800 was introduced for the middle income groups, Videocon has its name in providing
value for economy class .
2) To Wholesalers and retailers:

The benefits of branding to traders i.e, wholesalers and retailers are as follows:

a) Goodwill: The branded products enjoy good status among the customers. And the image of
the seller also increases.

b) Quality: The task of wholesalers and the retailers becomes easy because the manufacturer of
branded products maintains a good quality. They need not to handle much complaints from the
buyers.

c) Advertisement.: The traders need not to spend much on advertising since the manufacturer
undertakes the promotion of branded products. So the overhead expenditures less.

d) Higher turnover: Wide advertising, quality and sales promotion helps consumer identify the
product and it leads to higher turnover.
e) Ease of sale:

The customer comes well informed about the brand and the product. Thus , not many questions
are asked by customer at the time of buying the product.

3) To Consumers:

Consumers derive several advantages:

a) Indication of source:

Brand gives an indication of source of manufacture. Therefore it helps buyer in identifying and
locating the product.

b) Easy to sop:

It makes shopping easier because the consumer knows what product to buy.

Ex: If MR. A wants to buy a Philiphs T.v he can go to that particular dealer and buy.
c) Consistent Quality:

Brand provides an assurance of consistent quality of the product.

Ex: Bajaj auto Ltd. Introduced Sunny the scooter and was accepted by the people since they know
the quality they produce.

d) Psychological Satisfaction:

Consumer by buying different brands feel satisfied not only with the physical product or service
but also psychologically .

e) Uniform price:

The retail price of a branded item is written on it packet. Thus the consumers cannot be cheated
by the traders. Moreover the price remains same in all retail shops.
f) Status:

Some brand names are advertised heavily and they create some sort of status consciousness
among the consumers. The status conscious consumer gets higher satisfaction from these
products.

g)Packaging:

Branded goods are generally packed in suitable wrappers or container which facilitate easy
handling by the customers.
Disadvantages of Branding:

1) Brand development costs are very high and as a result selling price will also be charged high.

2) Brand monopoly: It becomes very difficult for new firms to enter the markets because of the
control of the large firms.

3) Certain Unscrupulous manufacturers they may reduce the quality of the product and still
charge the same price because of the reputation that they have in the market.
Types of brand:

Brand can be classified on the basis of Owners brand, market area and no. of products.

Owners Brand Market Area No. of product

i) Manufacturers brand i) Local i)Individual name

ii) Private/store/Middle men ii) national ii) Family name

1) Owners brand:

i) Manufacturers brand :

When the ownership lies with the manufacturers and he provides name to a product.

ex: Nike, Mcdonalds, Kellogs- where manufacturer is responsible for its marketing , building reputation
and brand name