Question

1. Why is banding relevant to the company’s products and services?

Answer 1

Why branding is relevant to the company's product and services?

Meaning : Branding is a decision about the choice of identification of company's product or service which make the product or service distinctive from competitors products . Branding not only identify the product, service or manufacturer or service provider , it is also make the product or service more superior in the market. So, basically to gain good market share branding is indispensable.

Apartment from the above some clear cut relevance of branding has been depicted below.

(1) It helps products identification : Branding makes the product or service different. Branded products are easily identifiable by customers every where. In self service outlets branded products can increase the volume of sales .

(2) It makes advertisement more successful : Branded products advertisement is easy and more successful. Because brand specks about the products or services quality . It helps advertisement more effective which ultimately reaches in to a mass population .

(3) Differential pricing for branded items : To cover up all cost and earn a good margin of profit, company may wanted to set a price of the service or product slightly higher in short term. Branding gives the way to set a slightly higher price , because it speaks about the quality of the products. Quality conscious customers can pay more if their requirements satisfied .

(4) Introduction of new product of a reputable company : When reputable company is launching a new product then for publicity they may use their company's brand name or logo to attract more prospective customers . Before launching Hector an SUV in India , Morris garage used their brand name first to promote the product .

(5) Brand ensures quality : Branded products or services are more reliable than any generic products or services. Brand specks about higher quality assurance.

(6) Communication of status symbol : Branded products or services make the status of the users sky rising. Like the Patek Phillippe  watches make the status of the users high.