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Meaning, Importance, Types & Qualities of Branding

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  • Things to remember

Meaning of Branding

Branding can be defined as name, term, sign, symbol or design or a combination of them which is intended to identify and distinguish the product of one firm with other. It is the means that differentiates products of one producer with competitors. Business firms generally use three types of branding: Symbols and marks like Rath vanaspati and Surya cigarettes, special names such as Lux soap and LG watch and names of the product, and the manufacturer like Sony television, tata steel, Godrej refrigerator, etc.

According to American Association, “A brand is a name, term, symbol or design or combination of them which is intended to identify the goods or service of one seller or group of sellers and to differentiate them from those of competitors.”.

Source:www.markcoweb.com

  • Brand name

It is part of the brand which can be vocalized. For example, Maruti, Colgate, Sony, Nikon,etc.A brand name consists of words, letters, and numbers that can be vocalized.

  • Brand mark

It is that part of a brand that can be identified and recognized but cannot be vocalized or uttered such as symbol, design, coloring or lettering. A brand mark is the part of the brand that appears in the form of a symbol, design or distinctive coloring or lettering.

  • Trade mark

It is a brand or a part of a brand that is given legal protection for exclusive use by the firm. A trademark presents company’s exclusive right to use the brand name and brand mark. New trademarks are registered with country’s patent offices. A trademark is a brand or part of a brand that is given legal protection because it is capable of exclusive appropriation.All trademarks are brands but all brands are not trademarks.

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Source:www.ralegal.co.in

Importance of Branding

The importance of Branding can be briefly shown below:

1. Importance to customer

The importance of branding to the customers can be described from the following points:

  • Product identification:

A brand helps the customers to identify the product easily. They can easily select the goods among the goods produced by different producer. It helps the customer to get the information about the products easily.

  • Price stability:

Price stability is also the importance of branding to the customer.The price of the branded goods is determined by producer itself. There will be no up-down in the price of such goods. Stability in the price of branded goods provides the goods to consumers in the same price for a long time.

  • Quality stability:

Quality stability is also the importance of branding.Consumers will not accept the goods if the goods are of less quality. The producers of the branded goods are always about the quality of their goods. Then after, the consumers will always get the quality goods.

  • Prestige:

Branded goods help to increase the prestige of the customers. The customers buy the branded goods which help in the increment of prestige of the customers. For example, Apple mobile and computer, etc.

  • Customers’ satisfaction:

Customers satisfaction is very important in marketing.A branded products ensure advantage to the consumer, assuring them better quality, stability in prices and easy availability of the goods. It helps the consumers to get satisfaction by providing such branded goods.

2. Importance to organization

The importance of branding to the organization can be briefly shown below:

  • Promotion:

Promotion is very important for the organization. It helps the organization to get promoted because of the information about the features, prize, style, advantage etc.

  • Legal protection:

A brand name provides legal protection to the special feature of the products. The inclusion of brand name helps the goods to be totally protected.

  • Save from competition:

A business organization can easily advertise the branded goods. They can attract consumers towards their products. Due to branding, a business organization can be saved from competition.

  • Build corporate image:

Branding also helps to build a corporate image in the products.Strong brands i.e. brands known for quality and performance standards build a corporate image that has long term advantage.

3. Importance to society

The importance of branding to the society can be described from the following points:

  • Consumer’s welfare:

Branded goods conserve the consumer’s right. The consumers will not found any defect in the branded goods. If any defect is found in the products, the customers can take any action for that. But the goods are for the consumer's welfare.

  • Social activities:

The producers of branded goods also do some social activities. For example, Ncell football competition. Such activities facilitate both the poducer as well as society

  • Environmental protection:

Producer of the branded goods are conscious towards the environment. They helpto protect the environment from air pollution, water pollution, noise pollution and in turn protect the health condition of society.

Types of brand

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Source:blog.diyprengine.com

On the basis of ownership:

  • Manufacturer’s brand
  • Middlemen’s brand

On the basis of Market area:

  • National brand
  • Regional brand
  • Provincial brand
  • Local brand

On the basis of product line:

  • Family brand
  • Individual brand
  • Separate family brand
  • Mixed brand

Reasons for not branding products

  • Problem of product differentiation:

Those products which are difficult to differentiate are not branded. For example, raw materials, coal, iron, wheat, maize, etc. are not branded.Those products which are differentiate only can be branded.

  • Nature of the product:

The nature of the product does not require branding because it is not easy to differentiate from others nor suitable. Vegetable and fruits are not branded because they cannot be standardized.

  • Different in quality level:

Those product which are different in quality level cannot be branded.There should be similarity among the products produced by different producer having similar nature. For example, rice, wheat, mustard paddy etc.

  • Problem of brand promotion:

The problem in brand promotion also affects in the brand.Brand helps in sales promotion and also increase the demand for the product.It is better to use brand by those manufacturing companies who can fulfill the increasing demand.

  • Perishable product:

Perishable products are not branded because of its shortest life and risk factor. Highly perishable products like meat, egg, fruits and vegetables are also marketed without brand.

  • Legal procedure:

Without legal procedure, the products cannot be branded.The legal procedure should be fulfilled before using a branded product. The producer should consider all the legal formalities. Fulfilling all the legal formalities needs some cost and time. To be away from such legal producer, it is better not to use the brand.

Qualities of Good Branding

Brand name should be carefully selected to make the product successful because selecting a brand name is an important marketing activity. The following are the qualities of good brand name:

  • Easy to pronounce:

A brand should have the words that can be easily pronounced.A good brand name should be simple so that consumer can say and spell the name of the product. The selected brand name should be simple and easy to pronounce for all level people. If the name of the product is complex, people will have difficulties to spell.

  • Short and Sweet:

The name of the brand must be short and sweet. It should not be long and difficult to spell. The brand name must be short so that the consumers can easily find it.For example, Tata, Bata, Rara, etc.

  • Memorable:

The good brand name should be memorable to the consumers if they see and hear it once in the market. The long brand name is difficult to memorize. For example, Rara, Bata, Lux, OK, etc.

  • Projects qualities:

The good brand name should project the quality of the product. All the products which are branded must have a good quality so that the consumers can have them without any difficulties.For example, sun silk, surf, good night, fair and lovely, etc.

  • Easy to promote

The good brand name should be easy for promotional activities like an advertisement, publicity, etc.The brand name is used to sell the product by creating emotional attachment. The good brand name helps to promote it easily.

  • Legally protectable:

The brand name should be legally protectable.A brand name which is legally recognized is known as trademark. Normally, it depends on the will and discretion of a producer, middleman than on brand name. For e.g. Coca-Cola, Nike, Pepsi, etc.

  • Expansion of product line:

The good brand name must be able to expand the product line. It means the same brand name can be used for the other products produced by the same producer. For example, Usha, Godrej, Tata, Hero Honda, etc.

  • Distinctive:

Distinctive qualities is needed in the brand.A good brand name should be distinctive from other brand names. It should not be very common.It must be different from others. For example, Liril soap, Wai-wai noodles, Horlicks, Viva, etc.

  • Clear and attractive

Brand name must be clear and attractive. It must have a good sound and pleasing to hear. It should also create a good image. For example, Commando beer, Blue Bird College, etc. A clear and attractive brand name helps to know about the product easily and use it safely. So, it is essential to have a clear and good brand name.

References:

Koirala, Dr. Kundan Dutta. Elementary Marketing. Kathmandu: Buddha Academic Publishers and Distributors Pvt. Ltd, 2014.

Thapa, Gopal, Dipendra K. Neupane and Dilli Raj Mishra. Introduction to Marketing. Kathmandu: Asmita Books Publishers and Distributors (P) Ltd., 2014.



  1. Branding is the name, term, sign, symbol or design that is used to introduce the product among consumers.
  2. Branding is the means that differentiates products of one producer with other (competitor).
  3. Branding has greater importance for customer, organization and society in this competitive world.
  4. Branding is important for product identification, differentiation, advertising, demand creation and publicity.
  5. Brand name should be carefully selected to make the product successful because selecting a brand name is an important marketing activity.
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