Branding as an Act of Product Marketing - Essay Example

In a fairly competitive product/service market, product branding is an essential marketing tool for building consumer trust and loyalty to a product (Aronczyk and Devon 75). Effectiveness of branding in a price competitive market The concept of branding would is a marketing principle that is used by companies both in the product and price-competitive industry.

However, depending on the nature of competition in the marketplace, the effectiveness of branding is determined by either price or commodity nature of competition. In a price-competitive market economy, product branding is rendered ineffective since it is cost-ineffective. This is because consumers are price elastic, therefore, they are more sensitive to price differential property than to building image and brand loyalty. This implies that in a price competitive market, unlike a product competitive market, consumers’ purchasing parity and choices are highly influenced by their ability to buy and hence product insensitive (Aronczyk and Devon 56).

Advertising or any product promotional methods aimed at winning consumers’ trust and building product image among the consumers is uneconomical in a price competitive market but effective in a commodity competitive market.