Question

how can branding a product be utilized in business?

Answer 1

In Business, branding refers to a marketing practice in which business creates a name, design or symbol that is easily identifiable as belonging to the business. It can be utilized in business in the following manner:

-- Hike in revenues: A business can leverage the power of their brand in several approaches such as entering to new segments and geographical markets, gaining new distribution, co-branding, or brand licensing.

-- Creates consumer preference: The reputed brands are considered less risky purchases and thus gives the peace of mind to consumer.

-- Asset: A brand is an asset; and will create the difference between sale /revenue and liquidation/ debt.

-- Prevents new rivals from entering the market: A market segment dominated by popular brands is a main barrier to entry for majority of new rivals.

-- Increases business profitability: Business can gain high revenues by commanding a higher price because usually people are willing to pay a premium for an established brand compared to a no-name product

-- Loyalty: A good branding by business will create customer loyalty which supports the business in good as well as bad times. Thus help business to survive the temporary crises.

-- Attract new distributors: A well-known brand of products with proven consumer loyalty will face little problems in finding distribution partners, both locally as well as internationally.

-- Negotiation power: A brand assists business in more negotiation power with its suppliers because vendors want to be involved in projects for a reputed brand