The Importance of Branding in Business - Essay Example

Literature Review: Branding For purposes of this discussion, the following analysis will consider the class, category, forms, and brands as has been understood and engaged by prior scholarship. The underlying purpose of engaging such a discussion is to provide the reader with a more informed understanding of the level of strategic grouping, competition, and consumer behavior takes place within different sectors of the economy. The articles that will be discussed will focus upon branding and its relevance within 5 distinct sectors of the economy; namely women’s clothing, jewelry stores, pet stores, mobile food services, and hotels/motels. Furthermore, the discussion between these five industries will analyze class, category, forms, and brands that exist within each; helping the reader to gain a further level of interpretive understanding that relates to the way in which these entities compete and exist within the current environment. Through an analysis of these metrics, the author will be able to provide the reader with a more in depth analysis of the way in which previous scholarship has provided these markets with invaluable tools for understanding the importance that branding plays with respect to attracting customers defining consumer choice, substitutability, and competition that exists within each one of these. Though it might be understood that competition is guaranteed, the reality of the fact is that differing levels of competition create unique opportunities and help to define markets that would otherwise be incorrectly categorized. The first article that will be analyzed is entitled, “From Roots Culture To Sour Fruit: The Aesthetics Of Fashion Branding Cultures in Canada." As such, the research begins to discussing the impact of class and category of this particular industry is that of consumer goods relating to fashion. However, the article quickly delves into issues of measurement with respect to the extreme diversification that exists with respect to the forms and brands of actual industries that compete within this sector. The article further denotes that this extreme competition creates an extremely differentiated hierarchy of brands and allows for an extreme level of differentiation between these offerings to be exhibited to the end consumer. Price and quality further help to define what markets will be approached and what consumers will be courted. The core boundary that exists, and is defined by the research, is with regard to the strategic players in this market and how they react to price, prestige, and quality. Likewise, an additional article that was engaged with respect to the research is entitled "Estimating The Value Of Jewelry Store Co-Branding Synergies”. As has been referenced above with respect to branding, a range of diversity exists within the metrics of the retail trade and within the industry in question. In much the same way, the following article was concentric upon jewelry stores. Within this sector there exists a wide degree of differing classes, categories, forms, and brands. For instance, the author denotes that costume jewelry stores such are categorized within the same list as would be that of Tiffany and Co (Chang et al. 243). In an almost identical way to which brand recognition and prestige defined the market for women’s clothing listed above, the separation and specialization that exists within the jewelry market behaves in a very similar way. Ultimately, the authors measure the fact that competition within the market is differentiated based upon the value of the jewelry being sold. This stands in stark contrast to the way in which the value of clothing between low price brands and high priced brands are exhibited. Ultimately, the value of the clothing is something that is predicated within the mind of consumer; not with respect to the actual value of the product being sold. Yet, with respect to the jewelry market, the authors denote that the value of the product being sold is directly tied to the category, brand, or reputation that is being presented to the customer within the classification that has already been referenced. The brands are segmented based upon the market appeal that they seek to engage. The further industry that will be analyzed within this brief response is that of pet supply sector. In the article entitled, "From Roots Culture: The Aesthetics Of Pet Store Branding in Canada”, the authors present her reader with a research question that is contingent upon branding and the overall impact that this has with respect to consumer choice. As such, big box pet stores and similar entrants into this market have been able to accrue a very large percentage of the total market share within the Canadian economy (Horst 197). However, the ultimate reason for this has to do with the fact that few other entrants have created a market presence over the past several years. Because of this, the authors point to the fact that large firms have been able to stand alone with and seek to leverage their own market evolution in a way that speaks to the direct needs of the consumers. Although this is not a unique approach, the manner through which such pet stores have grown and experienced brand definition over the years is indicative of a lack of competition that has existed from a disorganized and ultimately empty landscape of competition. Within the research, the authors also denote that substitutability for such firms products are of course available; however, the convenience and the lack of competition that exists for them has allowed the classification and categorization of the current market to be exhibited in the way that it is. Cultural elements or considerations do not have a powerful role to play in this particular industry; due in part to the fact that satisfying the consumer’s need is indirect. What is meant by this is the fact that as long as prices are competitive and the product is of an expected quality, the consumer has little concern for the way in which shopping at this particular industry might impact upon a definition of self culture or upon the means by which the industry itself is exhibited within the community. A fourth industry that will be discussed is that of the accommodation industry; namely hotel and motel chains. This industry is discussed at length with regard to the article entitled “Product Substitutability And The Matching Law”. Just as with other products that have been referenced, the authors note that operational competition exists within various substructures of this industry. Further, a measurement of the dynamics of the competition is storied and contrasts into niche markets. For instance, taking the example of a high priced offering, the obvious forms of direct completion will be evident from other high priced entrants into the market. Likewise, the authors point to the fact that low threats come from the likes of low cost leaders; specifically due to the fact that these hotels operate within their own niche and do not compete for clientele within the same market as do the luxury brands (Lehner & Halliday 22). With this being said, perhaps more than any of the other of the industries that have thus far been referenced, the need to understand the authors point to the need to understand the importance of category and forms of competition within this market; as a means of truly determining whether or not markets will overlap or represent a relevant alternative to the consumer and/or threat to one another (Pasquinelli and Teras 1612). Yet, as can be seen within the case in point, the market that has been defined and described is saturated with a litany of different offerings; completely unlike the market for pet superstores such as was previously discussed. Within an economic understanding of this, it can be said that further entrants into the market will have a difficult time defining themselves based upon class, category, forms, or brands in an effective way that is capable of accruing a degree of consumer loyalty in a market such as this. Finally, the article ends by analyzing the cultural considerations that impact upon branding (Clifton 1977). This is an element that provides a powerful competitive advantage for certain offerings over others. With this in mind, the increased price and the focus on the culture that high priced entrants into the market represent makes it very difficult for such firms to effectively take market share from or challenge more established brands in a meaningful manner. The final industry that will be discussed is that of food services and mobile food trucks. As such, the article that was analyzed to draw inference upon how branding affects this market is that of the article entitled, “Economic Geographies Of Brands And Branding in the Mobile Food Industry” The author notes that within the recent past, the increasing level of competition that exists between traditional brick and mortar restaurant ventures, coupled with the decreasing lack of time that businessmen and women have for lunch, has created a unique and growing opportunity for mobile food trucks and carts to proliferate the market. Further, a unique form of market penetration and engagement that has been utilized by established and incorporated restaurant chains is to enter into this food cart bonanza with their own offerings (Pike 329). The likes of fast food restaurants and others have sought to leverage the “down home” appeal that food carts have and represent themselves as very much in touch and part of the communities that they serve (Anisimova & Mavondo 39). Different brands have chosen to integrate with the food cart market in different ways however. For instance, more upscale restaurants that cater to a sit down and eat crowd such have passed the opportunity to utilize food carts as a means of integrating with the market (Foxall 189). The underlying reason for this has to do with the fact that these restaurants have judged such behavior to be outside of their brand image and not beneficial to the overall profitability that they could otherwise achieve following tried and proven methods of competitive advantage over their rivals (Maryland and Flanagan 971). Once again, the issue of substitutability is raised; as it is clear that certain restaurant chains can afford to allow their image to e equated with street food – whereas others attempt to distance themselves from such an interoperation. Social and cultural identification is a powerful component that cannot be ignored with respect to defining this market. Ultimately, as individuals view and identify with street vendors and food trucks as part of the local community, those restaurants that have chosen to forego this market trend risk separating themselves further from a more “down home” cultural appeal that food trucks and/or street vendors can provide a given region. The fact of the matter is that no matter how good the food and no matter how welcoming the environment, a great potential for engaging with further consumers is lost for those firms that are shunning this new market trend. However, as has been briefly discussed, the rationale behind many restaurants seeking to differentiate themselves in a new direction is also plainly evidenced. Works Cited Anisimova, Tatiana, and Felix Mavondo. "Aligning Company And Dealer Perspectives In Corporate Branding: Implications For Dealer Satisfaction And Commitment." Journal Of Business-To-Business Marketing 21.1 (2014): 35-56. Academic Search Complete. Web. 9 June 2014. Aziz, Haris, Markus Brill, and Paul Harrenstein. "Testing Substitutability Of Weak Preferences." Mathematical Social Sciences 66.1 (2013): 91-94. Academic Search Complete. Web. 20 May 2014. Chang, Wei-Lun, and Kuan-Chi Chang. "Estimating The Value Of Jewelry Store Co-Branding Synergies." Kybernetes 41.1/2 (2012): 239-253. Academic Search Complete. Web. 9 June 2014. Clifton, Nick. "Regional Culture In The Market Place: Place Branding And Product Branding As Cultural Exchange." Marketing Studies 19.11 (2011): 1973-1994. Academic Search Complete. Web. 9 June 2014. Foxall, Gordon R., et al. "Product Substitutability And The Matching Law." Psychological Record 60.2 (2010): 185-215. Academic Search Complete. Web. 20 May 2014. Horst, Heather A. "From Roots Culture To Sour Fruit: The Aesthetics Of Fashion Branding Cultures in Canada." Visual Studies 29.2 (2014): 191-200. Academic Search Complete. Web. 9 June 2014. Lehner, Matthias, and Sue Vaux Halliday. "Branding Sustainability: Opportunity And Risk Behind A Brand-Based Approach To Sustainable Markets." Ephemera: Theory & Politics In Organization 14.1 (2014): 13-34. Academic Search Complete. Web. 20 May 2014. Marland, Alex, and Tom Flanagan. "Branding within the Canadian Paradigm." Canadian Journal Of Political Science 46.4 (2013): 951-972. Academic Search Complete. Web. 9 June 2014. Mazurek, Marica. "Branding Paradigms And The Shift Of Methodological Approaches To Branding." Kybernetes 43.3/4 (2014): 565-586. Academic Search Complete. Web. 20 May 2014. Pasquinelli, Cecilia, and Jukka Teräs. "Branding Knowledge-Intensive Regions: A Comparative Study." European Planning Studies 21.10 (2013): 1611-1629. Academic Search Complete. Web. 9 June 2014. Pike, Andy. "Economic Geographies Of Brands And Branding in the Mobile Food Industry." Economic Geography 89.4 (2013): 317-339. Academic Search Complete. Web. 9 June 2014. Yin, Yuyu, and Shuiguang Deng. "Analysing And Determining Substitutability Of Different Branding Practices." International Journal Of Computer Mathematics 90.11 (2013): 2201-2220. Academic Search Complete. Web. 20 May 2014. Read More