Branding as a Contemporary Issue in Marketing - Report Example

Marketing: Brand Introduction The consumer goods industry was first to come up with the term branding ; thus it inspired later works that developed models to explain how businesses can engage in successful branding of their products (Kimpakorn & Tocquer, 2010). Therefore, the consumer goods industry is the origin of branding thus the service industry has a lot to learn from the consumer goods firms. The nature of products and services industry requires proper service branding because the products are intangible, and the consumption is inseparable in nature. Nonetheless, few literatures recommend various approaches to building strong brands when marketing services. In most of the studies, interaction with the employees is the basis for building strong brands since it helps in building strong relationships with the consumers. Another important issue to tackle when discussing branding is the increased focusing on generation Y since businesses are increasing targeting the segment because they have a way of relating with their preferred brands. Therefore, modern business entities are recognising that the generation Y has a good spending power and also has the potential to increase their spending power in future. It is also important to note that organisations are choosing the generation Y because failure to do so may put a business in a compromising state especially when trying to maintain competition. By definition, branding refers to process or activities aimed at creating unique image and name for a given product in the minds of the consumers through appropriate marketing initiatives like advertising campaigns(So & King, 2010). In this case, branding aims at establishing the significance of the product and also a differentiated presence in the market as a way of attracting and retaining the loyal customers. In the hotel industry, for instance, the main of building strong hotel brands is to identify as well as differentiate the services in the minds of the loyal consumers thus leading to better performance in terms of revenue generated and profits gained. Branding as a contemporary issue in marketing Branding has become a new way of influencing or encouraging customers to like a product or a service. There are different definitions of branding though the term simply refers to use of elements such as names, signs, symbols, designs and terms with the aim to identify the a good or a service and also to differentiate from the strong competitors (Kimpakorn & Tocquer, 2010). Therefore, the main for branding is not for the business to encourage consumers to choose the product but acts as a way of ensuring that the product is the only one that stands out for the consumers. When developing a brand name or a strategy, the focus is to make sure that there are clear objectives being met (Lazarevic, 2012). In this case, a good brand must deliver the marketing message clearly and coherently, confirms the credibility of the organisation and emotionally connects with the target customers. Besides, a good brand must have the potential to motivate the customers and also cement the loyalty that the consumers have on the product (So & King, 2010). On the other hand, branding of a product or service is only possible if the marketers are able to identify the needs, as well as the expectations of the target customers. As a new approach to gaining competitive advantage, branding has entirely changed the phase of marketing since it focuses on the service provided to the customers. The implication is that organisations are now more focused on the customer experience more that the goods and services they sell to the consumers (So & King, 2010). Besides, banding has changed the service industry like the hotel sector because organisations now understand that only a good name and a perfect image is the basis for gaining competitive advantage. Therefore, branding has changed marketing in the sense that organisations marketing strategies are now focused on portraying businesses as concerned about customer needs and expectations. In the hotel industry, for instance, branding takes place on the premises where the employees, as well as the executive management, must ensure that the organisation has good corporate image relative to other competitors (Kimpakorn & Tocquer, 2010). Though marketing initiatives are entirely meant to help organisations in gaining competitive advantage, product branding has become the new way of doing so because businesses believe that it is the only way of differentiating themselves from competitors. Besides, the way modern businesses brand their products imply that social trend has a huge effect on such business decisions since most brands reflect the tastes and preferences of the modern consumers including the hotel and services industry. LITERATURE REVIEW Branding services The existing literature describes branding as the main focus on the service marketing in the twenty-first century (Kimpakorn & Tocquer, 2010). The importance or the increased focus on branding in the services industry is because the services have inherent characteristics like inseparability, heterogeneity, and intangibility. In this case, the literatures are of the opinion that branding is the most important in the service industry than the physical products or goods and services. Though it has always been difficult to differentiate between goods and services, one fact remains that is an emergence of new perspective in marketing where organisations focus on service provision rather than the physical goods they provide to the esteemed customers (So & King, 2010). Therefore, service marketing is now a fundamental element in the economic exchange. Putting the importance of service quality in mind, organisations should appreciate different approaches to effective marketing of their services so as to gain competitive advantage (Kimpakorn & Tocquer, 2010). In the context of marketing services, there are few tips to help customers to making appropriate decisions while purchasing for their services thus research shows that a good brand name is a tool that modern customers are using to make their purchasing decisions. So and King (2010) confirm that the advent of technology especially the internet and other digital mediated communication tools have changed how customers evaluate services before making service purchases though the improvements are also being used by organisations to build their brands and also improve service quality to the customers. For instance, the internet provides platforms for communicating brand messages thus it has become a significant tool that organisations use to improve the perception of their brands relative to those of the competitors. The underlying assumption is that the internet has increased access to information thus reducing the risks that consumers may have when making their purchasing decisions especially for services (Kimpakorn & Tocquer, 2010). Kimpakorn and Tocquer (2010) suggest that the internet cannot be used to influence the brand name of intangible and inseparable services like hotel stay. In such situations, there is need to build strong brands that can help in reducing challenges that the customers have with regard to making proper decisions on the best hotel service to purchase. Therefore, for customers, brand loyalty services as the promise for future satisfaction while at the same time increasing the trust that consumers have or associate with the invisible purchasing thus a prerequisite for understanding and visualising the intangible products (So & King, 2010). Brand equity It is evident that a strong brand enhances the market share of an organisation, improves customer loyalty and profits, it qualifies to be an important or valuable asset of the company thus managers ought to identify the brand equity that builds up the brand (So & King, 2010). Brand equity, according to Kimpakorn and Tocquer (2010) can be defined in both financial and marketing perspectives where the former refers to the monetary value attached to the brand that can help the organisation in case of mergers and acquisitions. On the other hand, in a marketing perspective, brand equity refers to the perspectives of the consumers relative to a particular product or service and marketers use such information to design the most appropriate marketing programs useful for building the brand (Lazarevic, 2012). By definition, brand equity refers to group of assets as well as liabilities that link directly to the brand name and serves the purpose of adding or subtracting value from the particular product or service (So & King, 2010). Brand equity can also be viewed from the perspective of the customers because positive equity is achieved when the customers show good response to the marketing activities. In this case, consumers are more responsive to branded products as opposed to products that have not been branded in any way. Therefore, conceptualising brand equity from the customers perspective provides the guideline for developing marketing strategies (Kimpakorn & Tocquer, 2010). Besides, the perception helps in carrying out research that can assist in making managerial decisions. Brand differentiation Brand differentiation is also an important issue to consider when trying building strong brands that can lead to customer loyalty. Therefore, marketers have to understand that brand differentiation an important factor to consider when using the brand as a way of gaining competitive advantage (Kimpakorn & Tocquer, 2010). On the other hand, brand differentiation applies to both service and consumer goods. In hotel service context, brand differentiation refers to the degree to which consumers perceive a hotel brand to be unique or different from the competitors. Therefore, to build a brand through differentiation, marketers should focus on the features, emotional as well as psychological benefits of purchasing the hotel service or product (So & King, 2010). According to So and King (2010), one of the most effective ways of differentiating a brand in the hotel service industry is by ensuring that the customers get unique experience from the organisation. In this case, factors like quality of service as well as the organisational atmosphere are prerequisites for differentiating a brand from the competitors. Nonetheless, two measures have been recommended for differentiating brands in the hotel industry. The first approach is the hotels ability to ensure that customers are able to do the differentiation holistically (So & King, 2010). The implication is that the dominant trend in the hotel industry is now to ensure that service design results in differentiation. Secondly, brand differentiation can be achieved if the customers are able to identify various aspects or attributes of the hotel that qualify to be unique as a hotel service brand (So & King, 2010). Youth market, Generation Y and brand loyalty In the marketing discipline, academicians are now shifting their focus to the new calibre of consumers known as Generation Y or the youthful generation. Generation Y is defined as the individuals who were born between the years 1977 and 1995 (Lazarevic, 2012). Besides, the consumer segment have been defined to having civic purposes with big ambitions and also highly dependent on the digital media. As part of the consumers, Generation Y is a well-informed group and always bargaining for better goods and services. Besides, the generation is highly dependent on computer and is most likely to have used the computers in the early stages of life. Nonetheless, Lazarevic (2012) explains that the Generation Y also has the characteristics of using internet for important purchasing decisions. Therefore, modern businesses have a myriad of opportunities to target the younger generation since they have been found to be having strong attachments with their preferred brands and also show high levels of loyalty. However, brand services for the generation Y is a complex given that the younger generation has unique tastes and preferences. The implication is that the generation possesses unique attitudes relative to brands. Brand Loyalty According to Kimpakorn and Tocquer (2010), brand loyalty refers to the positive attachment or feeling towards a brand thus resulting in a strong dedication to indulge in repeat purchases for the product. Brand loyalty, therefore, is a situation where consumers consider purchasing a product over and over again and would even do so in the future. In this case, consumers become loyal to the brand irrespective of the actions by the competitors or changes in the business environment or the marketplace. Lazarevic (2012) posits that loyalty comprise both behavioural and attitudinal components. In this regard, attitudinal components refer to the willingness of the consumers to purchase a brand even at higher prices thus overcoming obstacles that might prevent other consumers from purchasing the particular product or service. On the other hand, behavioural loyalty refers to the action of re-purchasing a product. Moreover, both the two aspects influence loyalty of the generation Y to a particular brand thus the factor must be considered when focusing on improving or building on the loyalty of the youthful consumers (Lazarevic, 2012). Brand image Lazarevic (2012) posits that also important aspect of branding is the image that the market or the consumers accord the particular brand. In this case, a brand image is a true reflection of the brand in the market place thus leads to relationship building and also crucial in judging the brand relative to competitor brands. Therefore, the brand image acts like a judgement and this very crucial aspect of building the brand loyalty. Other academicians have come up with the Brand Theory and confirm that a brand can only be appealing if the image it portrays is congruent with those or the customers (Kimpakorn & Tocquer, 2010). Moreover, the true reflection of oneself in a brand is the behaviour of the generation; thus marketers can use it to influence their dedication and loyalty to consume the product or the service. For the hotel and service industry, brand image is entirely built in the premises as opposed to other services that are highly dependent on the digital media for purchases. Kimpakorn and Tocquer (2010) recommend that another important determinant of brand image is the extent to which the employees are committed to interacting and associating with the customers. The hotel and service industry depends on the lasting impression that employees leave on the customers. In this case, the aim is to ensure that employees put the needs of the customers before anything else in the organisation. Therefore, high commitment to serving employees leaves a good lasting impression thus improves the image of the brand, and eventually customers stay or become loyal to the particular brand. Analysis The information about branding from the literature search is conferring with what most sales and marketing directors would recommend as the importance of branding. According to the literature search, branding serves the purpose of building a good image about the product or service being marketed through promotion (So & King, 2010). On the other hand, the sales and marketing managers interview confirms that branding involves using tools like designs, logos, signs, as well as symbols influencing consumers perception of the particular product or service. A sales and marketing manager also understands that employee commitment to interacting with the consumers is one of the prerequisites for building brand loyalty and dedication to consider repurchasing the brand in future. In this case, the sales and marketing managers interview has confirms that employee are integral part of branding since their interactions with the customers must leave a good lasting impression about the business being branded or marketed. Same is the case with the literatures that recommend that for organisations to be successful in ensuring customer loyalty, they have to refocus their efforts to service quality since the modern consumers are more concerned with the kind of services they encounter during their purchase behaviours (Kimpakorn & Tocquer, 2010). Nonetheless, another issue for consideration or comparison from the literature and the interview is that Generation Y is being given attention as one of the market segments influencing the marketing activities and strategies in the modern business environment. As the head of the sales and marketing, the manager confirms that the generation Y as one of the high spending consumer segments that also has the potential to become future customers for the organisations. On the other hand, the literature confirms that Generation Y is a potential market segment to build and strengthen a brand owing to the fact that they have strong attachments with the brands they interact with (Lazarevic, 2012). Another important issue to consider is that branding is just a way of differentiating a product from the competition. Therefore, the sales and marketing managers interview confirms that a good brand must stand out in the eye of the consumers and this is only possible through differentiation through unique service encounters as well as proper explanation of the benefits accrued from using the particular brand. The same exists in the literature where all academicians recommend that branding services help in the differentiation of the particular product thus useful in gaining competitive advantage (Kimpakorn & Tocquer, 2010). Personal reflection Individuals interested in marketing as a discipline has a lot to gain by undertaking this project. Firstly, the project teaches about the important components or aspects of marketing especially branding. In this case, an individual is able to learn and understand how branding is the act of using various approaches to building or cement good perception about the product relative to other consumers. On the other hand, the project also teaches individuals the importance or roles that employees have in building brand image since they are the ones interacting with the customers (Kimpakorn & Tocquer, 2010). In this regard, one gets to learn how employees have the obligation to meet customer expectations by providing services that meet their expectations. Nonetheless, it is imperative to note that branding has taken the marketing arena by storm since it focuses on influencing the loyalty of a new breed of consumers known as Generation Y (Lazarevic, 2012). Therefore, learning the project is a chance to get to know the trends in marketing where the target is now on gaining the market segment that puts a strong relationship with the products in the market. The same approach to targeting Generation Y can also be used to influence customer loyalty in the service industry like the hospitality and hotel sectors. Finally, in future learning, the information can help in identifying market segments that build strong brands. On the other hand, the information can help in determining how to build brand image, focus on service quality, and ensure equity in service provision especially for the intangible and inseparable products like the hotels and their services. Conclusion In summary, marketing has taken a new twist owing to new approaches for gaining competitive advantage like branding. From the discussion, branding refers to the act of using appropriate strategies and approaches to building good customer perception about a particular product. Besides, the discussion has referred to some of the recommendable concepts to learn about branding like brand equity, image, differentiation and loyalty. Moreover, the discussion confirms that the generation Y is now the target of modern organisations since they are perceived to be having strong attachments to their preferred brand and also potential future customers as their spending rates will increase. Therefore, the main aim of branding a product is to leave a lasting impression to the customers that their needs and preferences are well taken care of and that the services delivered truly reflect what the business promises to offer. References Kimpakorn, N., & Tocquer, G. (2010). Service brand equity and employee brand commitment. Journal of Services Marketing, 24(5), 378-388. Lazarevic, V. (2012). Encouraging brand loyalty in fickle generation Y consumers. Young Consumers, 13(1), 45-61. So, K.K.F., & King, C. (2010). "When experience matters": building and measuringhotel brand equity The customers perspective. International Journal of Contemporary Hospitality Management 22(5), 589-608. Read More