• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Evaluate the importance of Branding to an organisation

Extracts from this document...

Introduction

Evaluate the importance of Branding to an organisation "Branding", is like setting names for products. Nobody would set up in business or launch a new product without giving it a name. Branding is a very important part of promotion. It can help a business to establish an identity to the product. Furthermore, 'Branding' contributes to the value and financial viability of businesses, just like their products, fixed assets and input. Businesses therefore would spend large amounts of money on TV and newspaper advertising campaigns, in order to end up with name that foremost in everyone's mind. Just think of 'Coca-cola' and 'Pepsi' competition, they both spend an obscene amount of money in promoting their brand each year, in order to become the dominant brand. We can also notice that many of their ads don't even contribute to its product, but rather, selling their brand and try to create "brand awareness" as well as "brand loyalty." ...read more.

Middle

Branding is also like the reputation of a company, which also effects business' publicity. Often the choice of setting up an industry or a business is often directly linked to this notion of reputation. As a company has a good reputation, it may attract new customers, which would create ones' demand and 'brand loyalty'. Customers tend to purchase products from companies that have a good reputation. This is because as the firm have a good publicity, consumers tends to 'trust' their products, hence, consumers will be more willingly in trying their products, which would increases the amount of new customers for the business. As the business have more new customers, its demand and loyalty would eventually increase. As consumers try the products, satisfy with its quality, most of them will be used in using the product and are unwilling to change to another brand. ...read more.

Conclusion

Furthermore, "branding" is a very expensive promotion tool. Therefore, it requires large amount of financial resources, which businesses may not have the ability to pay. For instance, businesses would have to pay for registration cost for trademark, which avoids other competitors to 'steal' your idea, as called as 'legal' cost. Even for a well-established brand name, it can be easily forgotten in consumers' mind, therefore, it would be costly for businesses to pay for 'continuous' promotion of the brand. Nevertheless, 'branding' is a very powerful tool in promotion and also very important tool for developing businesses. Although it is an expensive tool, which some businesses may not be able to afford the amount of money for 'branding.' Such businesses might results with some disadvantages when compare with a well-branded business, however for some cases/markets, branding may not be as important to consumers, such as plants. Ultimately business is only as good as the identity that underpins it, as 'branding' allows businesses attract new customers and make "established" customers return time and again. Thus, increases ones' profit. 1 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Marketing & Research section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Marketing & Research essays

  1. The importance of having a business plan and the factors that can affect it.

    To find out the amount of demand for this product/service 5. To Determine the amount of competition and if there is anything that your company can do to stay ahead of the competition. Internally 1. To set goals and objectives For this, the business needs a clear idea as

  2. For this assignment I have been asked to produce a new marketing strategy for ...

    S Social change involves changing attitudes and lifestyles. The increasing number of women going out to work, for example, led to the need for time-saving products for the home. Many citizens are practicing healthier lifestyles. This has affected the non-alcoholic beverage industry in that many are switching to bottled water and diet colas instead of beer and other alcoholic beverages.

  1. Business Studies Company Profile

    to be reasonably placed around, and people aren't going to purchase cars that have to be imported through several different countries first. * Inventory, this is very important so that customers know exactly what they're buying, and any alternatives from BMW they could purchase that would also suit their needs.

  2. I am going to be writing about the concepts of marketing distinctiveness of the ...

    Another one is the Amnesty international (www.amnesty.org.uk) which pressures companies to change their way of marketing and become more aware of where there clothes comes from. Example would be the Zara store which used to get their shoes from Portuguese companies that used little children as their labour.

  1. Business studies, product development

    are either Blue or Black depending on what I decide later on. I could use Navy Blue for school colours if I was interested. I would have to do some questionnaires to find out the final colour scheme because I have to know what want because I don't know what everybody wants.

  2. Assessment Brand Management

    At last, based on the firm industry and Renault's situation, strategic recommendations appropriate to improve this business will be proposed. The end of this study is formed by a conclusion considering the main contents of this report. I - Renault Plan 2009 In 2005, Carlos Ghosn released the Renault Plan 2009.

  1. Unit 2 Investigating business

    In some cases, partial ownership is given. In the case of creditors, interest payments are made. Source: (http://www.wisegeek.com/what-is-a-stakeholder.htm) The employee's are very interested in the business as their job security depends on how well the business does, if they are involved with the business and know what is going on they will also feel safer about working within the business.

  2. The purpose of this assignment is to provide a marketing strategy for a new ...

    may consider buying the drink due to the fact that it is made by The Coca-Cola Company. This is a competitive market as there are already sports drinks made by companies such s Lucozade sports, but i have a unique selling Point.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work