Question

Explain the concept of branding and describe two or three ways that producers position branded goods in the marketplace.

Answer 1

Branding can be said to be the set of communication and marketing methods that can be used for distinguishing the offering(s) of a company and/or the company itself from the rest/competitors. Branding has a goal to create a lasting positive impact on the customers and their minds.

Branding is one of the most important concepts of the field of marketing, others being the product (and other elements of marketing mix), positioning, market segmentation, selling, value, relationships, production etc. Branding, when done properly, gives more meaning to the name of the company and also generates more value for the products of the company. Small businesses may get to be bigger by developing their brand value and recognition through marketing.

Branding involves communicating to the consumers and the market company’s messages and emotional appeals, through which the consumers can differentiate the offerings on the basis of benefits that may include services, better quality, better product features, or tools. It may also enhance the brand value and make the brand/offerings appear unique, through the use of catchy slogans, attractive logos, phrases, and images, among other symbols and memorable names. The brand is inseparable from the offering (product or service) and may also provide the necessary identity which a generic offering may require.

Traits/Concepts Of Branding

A brand can also be said to be the overall experience that a customer has/gets while dealing with a company or using its offering(s), and the customer uses this experience to distinguish the product of the company from the competitors. Branding therefore also includes certain traits and has unique concepts of its own. These may include:

Brand Association- These intangible elements include the ambassadors, colour schemes, logos, and other elements that may be associated with a product.

Brand Name- The brand name provides an offering and company with the required spoken identity.

Brand Attributes- The core values or characteristics of any given brand are its attributes. These may include credibility, sustainability, appeal, relevance or consistency among others.

Brand Identity- This is the companies own image of its brand. Brand identity is how the company wants the customers in the market to perceive it.

Brand Image- The Brand image is the image of a company or its offering in the market. This is how customers view the brand.

Brand Personality- The human personality attributes and traits may also extend to brand and these may include carefulness, honesty, lavishness and others. “Brand Voice” or the way a brand interacts with its customers may also be included in brand personality.

Brand Positioning- Positioning of a brand is the highlighting of its unique and distinctive features so that it can stand better in the marketplace and stay ahead of the competitors.

Brand Recognition- The extent to which the customers recognise a brand.

Brand Value- This is again an intangible element. It is the financial significance of a brand. Brand Value reveals how much the customers can pay extra over other similar products to choose the brand offering.

3 Ways That Producers Can Use To position Their Branded Goods In The Marketplace

Market Positioning can be termed as the designing of the brand image and/or the offering (product or service) of a firm so that it can occupy a distinctive place and value within the memories and minds of the target customers in the target market. The 3 ways (among others) through which the producers can position they are branded goods in a marketplace are given below.

1. Positioning In Accordance To The Benefits Offered By A Product

Highlighting the unique/distinctive/new/modern/technologically improved features of the offering is one of the most popular ways of positioning the branded goods. The producers can market their goods on the basis of the new or unique features that they possess, and which can differentiate them successfully from the offerings of the competitors. Leading technological firms including Siemens and Bosch highlight the technological innovations and advantages that their offerings have for the target customers. Customers can literally lineup for the branded products having the new, useful, and modern features, which can be found in the case of the Apple iPhones, among other products. Apart from the premium quality, Apple describes to its customers and the market the exclusive, new, and advanced features that its phones have.

2. Pre-emptive Positioning

A producer can also position its branded goods by claiming to be the first/early provider of a feature or benefit. Smith’s Chips (the original, and still the very best!) uses pre-emptive positioning for marketing and positioning its offering. Other brand and producers that assume/carry a certain degree of legacy may use pre-emptive positioning method, which benefits the company to easily position its goods.

3. Positioning Using An Attribute Of A Product

A brand may also highlight a single attribute of its offering or branded good, which would enhance the appeal and make the product capture the imagination and memories of the target customer base. For instance, Dove uses the phrase “Dove is one-quarter moisturizer” for positioning its branded offering.