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.

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