The internet boom came as a blessing driving the wheel of innovation and evolution. It can also be accounted for the overtly use of the word ‘branding’ in the present age. But the irony lies in the fact that the highly exploited word contributes to the economy of the business immensely. If handled strategically with the perception it can add to the life of the company and otherwise it can cost the entire fortune.
Branding is that psychological entity that gives recognition to the product or company in the market. It is that element that is crucial in developing the image and perception amongst the consumers. By portraying a clear idea and enhancing the consumer experience, the companies can emerge as a strong brand, eventually securing consumers as loyal customers who are a source of security in terms of earning, income and employment.
Thus, the brand personifies economic value that is realized by value creation. This was well perceived by the companies in the 1950s and 1060s when they saw the onset of product standardization in the mid-20th century. They realized the need to stand out from their contemporaries which encouraged them to adopt smart marketing – a more practical and self-explanatory term for branding.
They were shrewd enough to decipher the resultant enhanced market mix of branding but did not fail to acknowledge the benefit they would get in terms of a rise in the overall reputation of the brand. But to reap the results, the companies were required to establish the “branded proposition” which not just catered to the functional value but also the emotional value, emphasizing the need to develop a deep understanding of the target consumer.
Hence, there was the emergence of a new marketing mechanism, keeping consumers central to their existence for developing the right brand mix that goes beyond the logo or product price and encompasses other elements like promotions, packaging, and advertisement. It calls for companies to come up with an effective vision, mission, and values.
The benefits can bring about a revolutionary change in the company and can magnificently add to the life of the company.
1) Prospective Premium Pricing
Consumers readily pay for the branded items as they have faith in the higher value the brand offers and at the same time are sure of lower damage risk.
2) The subsequent reduction in the cost of sales
Establishing the brand among the consumers result in loyal customers who make the repeated and frequent purchase. Hence, the cost of acquiring the consumers is lowered considerably contributing towards building the long-term brand-client relationship.
3) Amortization in promotional costs
When contended with the brand service and product, the consumers unconsciously don the role of ambassadors who promote the brand through word of mouth, giving considerable relaxation in the cost of promotion.
4) Higher market share
Having acquired loyal customers leads to the attraction of more customers that shields the brand against competitive attacks while lowering the costs of customer development. Eventually, having a positive impact on the brand’s share in the market.
5) Adding credibility to the existence
Brands have an overwhelming impact on consumers, community leaders, news editors, industry leaders, financial analysts, and investors. It drives the state of awareness and esteem in them, deeming it as the highly preferred choice ultimately contributing to its prominence in the marketplace.
Hence, it can be perceived that brands play an imperative role in the earnings of the company. Ultimately, influencing the economic control responsible for the security of the business.
It is evident that value forms an essential component of the economy which remains vested in the presence of the customer. The retention of the customers is marked by the valued, innovative, trustworthy, and relevant experience which is key for customer satisfaction.
In the present age, brands shoulder the responsibility of representing the entire existence of the business. Bygone are the days when brands were popularized with the help of logo. Brands are sustainable assets having emotional and cultural connotations responsible for creating secure demand which ha wealth-creating, wealth defending, and immortal impact on the sustainable value creation.
By: Nilay Ankur
The author is the Founder & Director of Twenty7 Inc.