Branding As A Way To Grow A Business - Admission/Application Essay Example

Branding As A Way To Grow A Business Introduction What do Sony, Apple, Toyota, Max Factor, among others, have in common? All of them are brand sthat most people immediately recognize and create a picture in their minds of products that are known for its quality and companies known for its sustainability. When one is bombarded with a multitude of products through ads and endorsements by various people, it is the branded products that are familiar to them that are noticed first. This is because they may have previous experience in using a product with the same brand, or because the brand’s reputation is very popular that it creates recall in people. With all competing products being equal in quality and durability, the brand name of a product can still put an edge to its saleability. Among branded products, it is still the one that has been established in the market that reaps the highest sales, unless the less known product overtakes it in terms of new features and a much better quality. Hence businesses that sell their products or services build up their brand names with a variety of marketing strategies to turn it into a household name that consumers seek when they go shopping. People who are just starting their businesses may not give much emphasis to the brand name they will create and opt to concentrate on creating a high quality product or service that will sell in the market so that eventually, when the market notices it, the brand recognition follows. Either way, one cannot discount the fact that branding is essential in any business. This paper will delve deeper into the world of business, specifically to find out how important branding is in modern day business. If in the past, brands were not as important as the quality of the products, as long as the products suited the needs of consumers, contemporary business seems to favour the etching of brand names into high quality products and services. Factors affecting product sales and marketing success shall be explored and how such factors affect branding. Body Products and services sold in the market are usually stamped with the brand name of the business selling it. Stine (2002) defines branding as a sign or specific symbol that represents the company and determines the position of any business in the global world of business. Brady et al. (2005) further describes branding as an art, psychology and science brought together as a promising mark and in an effort to convince the clientele that a product is better than a competitor’s product. To differentiate a brand from a product, Clifton (2005) explains that a product has a life cycle and sometimes, it is on limited production, while a brand, when well-established, outlives its products. Products can change according to changing customer preferences and loyalty to cope with the competition and sustain customer interest, but with such changes, there is no accompanying change in branding as long as the brand has firmly held onto its reputation over the years. Business that offer products and services that target specific needs of customers prosper especially if they are the first ones available in the market. For example, in Canada, big box pet stores and similar businesses have managed to accrue a very large percentage of total market share (Horst, 2014). This is because few other entrants have created a market presence over the past several years and the lack of competition makes such pet store businesses very much sought-after. Large firms have been able to stand alone and seek to leverage their own market evolution in a way that speaks to the direct needs of the consumers. Such businesses take advantage of a disorganized and empty landscape of competition and strive to make their products and services more valuable to their customers because of the high quality they provide and the competitive prices they maintain. Branding creates awareness and appeal. When customers shop and make choices on which product to purchase, they choose the brand which they believe would provide the answer to their needs. For example, if a company is known for the durability of its products, a reputation it has earned through the years, then its brand name immediately delivers that message to consumers. Hence, if durability is what the consumer is looking for, then the product at hand is chosen over its competitors, thanks to its brand’s reputation of durability. This is also asserted by Keller & Webster (2004) when they contend that the perception of quality of a brand reflects the credibility of the company who created it. Thus if Nike shoes are dependable in terms of its durability and comfort, then the Nike company must be dependable as well or vice versa. The establishment of brand credibility is guaranteed to save a company from ruin. A perfect example is the Levi’s brand of jeans. A few years back, Levi’s was facing closure due to the huge competition from other clothing brands. However, recently, fortunes have changed for this particular brand through effective advertising and reinvention. The most important point is that before its dwindling successes, the brand had created and confirmed its credibility to the customer base, and that is why it was easy for the clothing line to revamp its market success (Pride & Ferrel, 2007). Today, franchises work on the credibility built through their products. It is expensive to franchise entities such as McDonald’s, Kentucky Fried Chicken, Caltex, among other brand names, especially in developing countries. This is because the franchisee is sure of getting a huge turnover and securing customer loyalty since the product credibility has been confirmed through the efforts of the franchisor. Branding becomes more valuable and indispensable due to the intense competition of businesses for the attention of their prospective markets. In order to ensure a company’s sustainability, it is important to attract and hold the attention of potential customers with branding and effective marketing strategies (Pride & Ferrell, 2007). Branding communicates to the consumers a clear message to enable them to distinguish between a certain commodity from a rival commodity. Producers make sure their products have an edge in quality, quantity, taste, cost, image and any other aspect they may share with their competition (Mudambi, 2002). They exert effort in creating product awareness to the public if they are to make more sales (Mudambi et al., 1997). Branding distinguishes the market it chooses to serve. For example, higher end products target consumers from higher socio-economic classes who can very well afford its steep price. How various markets react to price, prestige and quality determines the prospective customers of a certain brand. This implies that the more discriminating, brand-conscious elitist customers will prefer to buy signature brands rather than cheaper versions which cater to the general public. This is more palpable in the fashion world where class and category greatly impact the sale of fashion items (Horst, 2014). Signature labels cost more than the generic labels because of the reputation of the designer. It does not matter if the quality and style are comparable. Customers who choose signature labels do so because of the perception that it has better quality than the generic items as reflected in the price. With jewelry, however, it is different. Although brand names can both belong to a high end category, what would differ is the price due to the value of the item. For example, DeBeers and Tiffany & Company may serve the same clientele, however, DeBeers sell genuine jewelry at a much higher cost because of the value of the jewelry and Tiffany and Company sells its jewelry pieces at a lower price because most of their items are costume jewelry and do not have the same value as the genuine ones (Chang et al., 2012). The product at stake (jewelry) is directly tied to the category, brand or reputation presented to the customer with the classification that has already been referenced. In short, the brands are segmented based upon the market appeal and image they seek to possess. Another example is from the food industry. Some fast food restaurants opt to adopt a mobile food cart business in order to reach out more customers. This was also prompted by a need for busy people to stop and have a quick lunch or snack in convenient spots near their workplaces instead of travelling to their favourite sit-down restaurants for a full meal just so that they can save time and money (Pike, 2013). This form of market penetration in the form of mobile food trucks and carts have been sought by some restaurants 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, 2014). However, more upscale restaurants have refused to join the bandwagon to integrate with the common market (Foxall, 2010). 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 (Marland and Flanagan, 2013). They do not want their upscale image to be identified with street food. Social and cultural identification have much to do with defining the market of a business. As people identify street vendors and food trucks as part of the local community, restaurants that have chosen to forgo the opportunity to reach out to more people by selling their food in food carts and trucks risk alienation and a more homey, cultural appeal that food trucks and/or street vendors can provide. No matter how good the food and no matter how welcoming the environment their upscale restaurant has, a great potential for engaging with further consumers is lost for shunning this new market trend. It is plain to see that they are more interested in maintaining their high end image and catering to consumers who can afford them rather than reaching out to more and varied customers. Customer loyalty may be attributed to the emotional attachment consumers develop for a certain brand. According to Stine (2002), customer loyalty is among the primary elements in a market base that allows good turnover for a business. Stine explains that people buy certain products since they feel like they derive emotional identity with it. When consumers’ initial experience with product usage is positive and they are very much satisfied with its quality, then they develop an emotional attachment to it and see no replacement for the product in the market. This realizes the first and foremost objective of branding, to enable customers believe that only one product that takes care of their needs (Stine, 2002). Businesses such as hotels, shopping centers and food outlets strive to make their customers feel that they can only derive satisfaction from their offerings to develop customer loyalty. Customers feel like only that hotel or store can provide what they need with the convenience of time and flexibility of location that they seek. For example, Kentucky Fried Chicken has been successful in promoting positive experiences for their customers with regards to the quality and taste of its products and customer service, hence developing an emotional connection with their customers and in turn, loyalty of customers to their products. Having chicken at another outlet will not feel the same to these customers, as being served in KFC. Motivation for customers to use certain brands is one formula for success. One motivation is the opportunity to find unique services delivered with a certain brand. When customers experience such special services, they feel inclined to keep returning to the brand and re-live the unique experience they had with it (Stine, 2002). Martin et.al, (2005) argue that a strong brand with consistent good customer care services that reinforce the uniqueness and superiority of the brand is a major compelling factor in motivating customers. If the brand has strength and excitement, it gives the consumers a feeling of belonging and makes them feel positive whenever they access the commodities. This motivates them to use the products repeatedly, therefore, increasing the sales turnover of the company or business unit. People who use specific brands understand what the producers promise and understand the benefits of using the products. Therefore, when they see the product being presented in an advertisement, public relation forums, marketing literature, they find a connection with it and it builds their self-esteem and further motivates them to continue using the products. Motivation of customers, which is usually accompanied by customer loyalty, mostly turns customers into advocates of the product, which in turn means a larger market base for the business. Customer loyalty is one factor responsible for repeat business (O’Loughlin et al., 2004). When customers keep ‘coming back for more’, it increases the volume of sales of a product especially when good rapport has been established between the seller and the buyer. It is easier to sell larger volumes to loyal customers. This is seen in shopping malls where loyal customers are inclined to buy all that they need from a single outlet. Not only do they buy the usual products they consume and believe in, but they also try out other products from a credible brand they are loyal to because of the trust they have in the brand. They can even develop the courage to try different brands by the same producer. This kind of solid customer loyalty protects the producer from the competition and provides greater sales for the producer’s over-all business. Conclusion It has been established from the foregoing discussion that branding is indeed a very important aspect of businesses today. Being the face of the company it represents, brand names reflect the company’s values especially in the provision of high quality products and services for its loyal customers. Hence, it should maintain such quality in order to establish and sustain its credibility. The information discussed in this paper is valuable to business owners. It gives an overview of how they can utilize branding together with effective marketing strategies to boost their sales enabling them to be in the company of high achieving, successful businesses whose brands have become household names. Aside from maintaining quality in their products and services, they should also be vigilant in monitoring customer preferences and changes in market trends so they can continue to be competitive. Widening their horizons to include more drastic and daring strategies such as the example of fast food restaurants adopting mobile food trucks and food carts to reach more potential customers should be seriously considered. With the way businesses are being more aggressive in their approaches to acquire a larger market share, everyone should be on their toes and keep an open mind in protecting their interests and keeping their brand name’s integrity and credibility intact. References Anisimova, T., and Mavondo, F. (2014) Aligning Company And Dealer Perspectives In Corporate Branding: Implications For Dealer Satisfaction And Commitment, Journal Of Business-To-Business Marketing 21.1: 35-56. Brady, M. K., Bourdeau, B. L., & Heskel, J. (2005). The Importance of Brand Cues in Intangible Service Industries: An application to Investment Services, Journal of Services marketing, 19(6), 401-410. Chang, W.& Kuan-Chi, C. (2012) Estimating The Value Of Jewelry Store Co-Branding Synergies, Kybernetes 41.1/2: 239-253. Clifton, R. (2010) Brands and Branding. London: Profile Books. Foxall, G. R., et al.(2010) Product Substitutability And The Matching Law, Psychological Record 60.2: 185-215. Horst, H. A. (2014) From Roots Culture To Sour Fruit: The Aesthetics Of Fashion Branding Cultures in Canada." Visual Studies 29.2: 191-200. Keller, K, & Webster, F. (2004). A Roadmap for Branding Industrial Markets. Marland, A. and Flanagan, T. (2013) Branding within the Canadian Paradigm, Canadian Journal Of Political Science 46.4: 951-972. Martin, G., Beaumont, P., Doig, R., & Pate, J. (2005). Branding: A New Performance Discourse for HR? European Management Journal, 23(1) 76-88. Mudambi, S. M., Doyle, P, & Wong, V. (1997). An Exploration of Branding in Industrial Markets. Industrial Marketing Management, 26(5) 433-446. Mudambi, S. (2002). Branding Importance in Business-to-Business Markets: Three Buyer Clusters. Industrial Marketing Management, 31(6), 525-533. O’Loughlin, D., Szmigin, I., & Tumbull, P. (2004). Branding and Relationships: Customer and Supplier Perspectives. Journal of Financial Services Marketing, 8(3) 218-30. Pike, A. (2013) Economic Geographies Of Brands And Branding in the Mobile Food Industry, Economic Geography 89.4: 317-339. Pride, W., & Ferrell, O. C. (2007). Marketing (LL Version). US: Cengage learning. Stine, G. (2002). The Nine Principles of Branding. 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