Definition of Branding

According to American Marketing Association - Brand is A name, term, design, symbol, or

any other feature that identifies one sellers good or service as distinct from those of other sellers.
The legal term for brand is trademark. A brand may identify one item, a family of items, or all
items of that seller. If used for the firm as a whole, the preferred term is trade name.
According to Philip Kotler - Brand is a name, term, sign, symbol, design, or a combination of
them, intended to identify the goods or services of one seller or group of sellers and to
differentiate them from those of competitors
Branding is a sellers promise to deliver a specific set of features, benefits and services
consistent to the buyers.
Meaning of Branding
Branding is a process of creating a unique name and image for a product in the mind of
consumer, mainly through advertising campaigns. A brand is a name, term, symbol, design or
combination of these elements, used to identify a product, a family of products, or all products of
an organisation.
Branding is an important component of product planning process and an important and powerful
tool for marketing and selling products.
Elements of Branding
Brand includes various elements like - brand names, trade names, brand marks, trade marks, and
trade characters. The combination of these elements form a firm's corporate symbol or name.

Brand Name - It is also called Product Brand. It can be a word, a group of words, letters,
or numbers to represent a product or service. A brand name consists of words, letters or
numbers which may be vocalized or pronounced. For example, LG, BPL, Onida, Sony,
etc.

Trade Name - It is also called Corporate Brand. It identifies and promotes a company or
a division of a particular corporation. For example - Dell, Nike, Google, and etc.

Brand Mark - It is a unique symbol, colouring, lettering, or other design element. It is

visually recognisable, not necessary to be pronounced. For example - Apple's apple, or
Coca-cola's cursive typeface.

Trade Mark - It is a word, name, symbol, or combination of these elements. Trade mark
is legally protected by government. Trade mark is a legal term. When a brand is
registered and legalized it becomes a trade mark. A brand is registered under the Trade
and Merchandise Mark Act, 1958. Thus, only those brand names are termed as trade
marks which are registered with the government.For example - NBC colourful peacock,
or McDonald's golden arches. No other organisation can use these symbols.

Trade Characters - Animal, people, animated characters, objects, and the like that are
used to advertise a product or service, that come to be associated with that product or
service. For example - Keebler Elves for Keebler cookies

Branding Strategies
There are various branding strategies on which marketing organisations rely to meet sales and
marketing objectives. Some of these strategies are as following :

Brand Extension - According to this strategy, an existing brand name is used to promote
a new or an improved product in an organisation's product line. Marketing organisations
uses this strategy to minimise the cost of launching a new product and the risk of failure
of new product. There is risk of brand diluting if a product line is over extended.

Brand Licensing - According to this strategy, some organisations allow other

organisations to use their brand name, trade name, or trade character. Such authorisation
is a legal licensing agreement for which the licensing organisation receives royalty in
return for the authorisation. Organisations follow this strategy to increase revenue
sources, enhance organisation image, and sell more of their core products.

Mixed Branding - This strategy is used by some manufacturers and retailers to sell
products. A manufacturer of a national brand can make a product for sale under another
company's brand. Like this a business can maintain brand loyalty through its national
brand and increase its product mix through private brands. It can increase its profits by
selling private brands without affecting the reputation and sales of its national brand.

Co-Branding - According to this strategy one or more brands are combined in the
manufacture of a product or in the delivery of a service to capitalise on other companies'
products and services to reach new customers and increase sales for both companies'
brands.

Reasons for Branding

1.

It facilitate to identify the particular product or service.

2.

It facilitate easy advertising and publicity.

3.

It creates special consumer preference about the product.

4.

It ensures standard quality and satisfaction to buyers.

5.

It increases die sales of the (branded) product.

6.

It is an instrument for sales promotion in a competitive market.

7.

It makes market segmentation easier.

8.

It facilitate the launching of other products with same brand.

9.

It leads to more ready acceptance of a product by the middlemen.

10.

It reduces personal persuasive selling efforts.

Therefore, branding is essential to bring to the immediate attention to consumers and make it
distinctive in the eyes of the customers. It helps to create goodwill of the firm as well as gain the
goodwill of the consumers.

Benefits of Branding
Advantages or importance of Branding to the Manufacturers:
The manufacturers obtain the following advantages/benefits from branding:
1. Builds up reputation and image: A brand enables the manufacturer to build up reputation of his
products and create an image in the public mind.
2. Helpful in advertising: Advertising of the product with brand name is very easy. The customer
is influenced with brand name. He prefers to use the product with a particular brand name.
3. Easy to identify: Use of brand is very helpful in the identification of the product. Consumer
recognises the features of the product with its brand name.
4. Creation of separate market: Popularity of brand creates a separate market for the product,
because the use of a particular brand differentiate the product from others. It widens the market
for the product.
5. Helpful In the introduction of new products: When the brand of a manufacturer becomes
popular, he can decide to expand his product mix. He can add new' product items and product
lines to his product mix. The existing reputation of brand makes easy acceptance of the new
product. The consumers assume that the new product would be similar in quality to the other
products.
6. Personal contact with customers: When the particular brand becomes popular, the producer
may eliminate the middlemen or reduce the number of middlemen very easily. He will thus come
closer to the customer and the cost of distribution will also be reduced to a great extent.
7. Builds product loyalty: A brand helps to build loyalty for the product among the customers. It
is a source of repeated purchases by the consumers.
8. Maintenance of control : Branding helps in the maintenance of a proper control over the
market as well as price, quality and other features of the product

9. Better price for the product: When consumers like a brand and they start to use the products of
that brand, they do not mind a little increase in the price of such products.
10. Means of promotion: Brand helps in distinguishing and differentiating the products of
various manufacturers. The distinguished product is then popularized through advertising using
brand name. The promotional expenses in case of popu lar brands get reduced as the brand name
itself stimulates the demand.
To Buyer:
Price stability: The prices of standard brands do not fluctuate much, therefore, it brings certainty
in prices. Even the distributors cannot charge high prices because prices are usually printed on
the containers.
Provide status value: The popularity of the brand provides satisfaction of prestige and status to
the consumers. Therefore, the consumer prefers to buy only prestigious branded products.
Consumers also receive mental satisfaction when they uses the product of superior or prestigious
brand.
Guaranteed quality: Generally, guarantee is provided in branded products regarding their
usefulness. Brand provides legal protection to consumers against unfair trade practices.
High quality packing: The packing of the products of standard brands is always of high quality.
The brand name and all other relevant features of the product are printed on packing itself. The
packing of such products is very attractive, convenient and durable.
Easy shopping: It distinguishes the goods of different producers and this fact enables the
consumers to select their products quite easily and conveniently. Shopping becomes easy and
pleasurable, especially if the customers have developed brand loyalty.
Easy to lodge complaint and make claims: Consumers find it easier to lodge complaints and
make claims against the marketers of branded products in case their products fail to meet the
declared claims of consumer satisfaction.

Help buyers identify the product that they like/dislike.

Identify marketer

Helps reduce the time needed for purchase.

Helps buyers evaluate quality of products especially if unable to judge a products

characteristics.

Helps reduce buyers perceived risk of purchase.

Buyer May Derive A Psychological Reward From Owning The Brand, IE Rolex Or
Mercedes.

To the Seller/Middlemen:

Helps in understanding the consumer behaviour. The consumers generally purchase the
products by telling the brand names. Even if

Differentiate product offering from competitors

Helps segment market by creating tailored images

Brand identifies the companies products making repeat purchases easier for customers.

Reduce price comparisons

Brand helps firm introduce a new product that carries the name of one or more of its
existing products...half as much as using a new brand, lower co. designs, advertising and
promotional costs.

Easier cooperation with intermediaries with well known brands

Facilitates promotional efforts.

Helps foster brand loyalty helping to stabilize market share.

Firms may be able to charge a premium for the brand.

Labeling
Labelling is another significant means of product identification like branding and packing.
Labelling is the act of attaching or tagging labels to the products. Packages and their labels
should give buyers accurate and up-to-date information as to the contents and necessary
guidance regarding the use of the product. Packaging process completes only after giving proper
label to it. It means labelling is an integral part of the packaging. In short, labelling means
putting identification marks on the package.

Meaning of label:
A label is an informative tag/sticker attached to the product or its package. The label can either
be a piece of paper, printed matter, imprinted metal, leather or a seal, which is either a part of a
package or attached to it. It contain verbal information like contents, price, name and place of
manufacturer, brand name, manufacturing and expiry dates and other beneficial and necessary
information.
Definitions of Label
According to William J.Stanton, "The label is that part of a product which carries verbal
information about the product or the seller. A label may be a part of a package or it may be a tag
attached directly to the product."

Types:
1. Brand Label: Such a label contains only the brand name or brand mark of the product. It does
not give any other information regarding the product. This type of label is the part of the product
or the package and generally attached in front of the product or the package.
Brand labels are small in size but of good quality. They are exclusively meant for
identifying the product and popularising the brand name of the manufacturer. Every
manufacturer uses it. Such as : LG, BPL, SONY, Lakme, Pond's, Reliance, Godrej, Tata, Onida,
Videocone, Maruti, Bajaj, Hero Honda, Philips etc.
2. Grade Label: When a manufacturer produces many types of a product, he uses grade labels to
describe the type of the product. Grade label specifies the quality or standard of the product.
Such as: -Grade, Fancy, Imported, Large, Medium, Small, Deluxe model. King-size, Euro II,
Leaf Tea, Dust Tea, Tea Bags, Pure Desi Ghee, Double-refined oil etc.

3.Descriptive Label: These labels are descriptive in nature. They are almost illustrative.
Descriptive label provide full information to consumers about the product and the producer. It
indicate objective information regarding contents, uses, precautions, quantity, quality, date of
manufacturing, date of expiry, price and other features of the product For example, Glycodine
cough syrup label indicates its Brand name, ingredients, dosage, price, manufacturing date,
expiry date, precautions relating to its use and effects, name and address of the manufacturer etc.
4. Combination Labels: These are the labels which include above said three kinds of labels with
them. Use of such labels is rapidly increasing.
Advantages of Labelling
Followings are the objectives and advantages of labelling:
1. A label describe the product specialities which make the product a quick-mover. For example,
products having reputed labels like Reebock, Nike, LG, Sony, Liberty, Titan etc. are easily
accepted by the buyers without confusion.
2. A label provide sufficient information about the product to the user. For example, a bottle
containing poison, if not labelled, it fails to tell about its contents.
3. A label is a strong sales tool that encourages self-service operations. Because label provide
almost all the relevant information to the buyers which helps in their buying decisions.
4. A label helps in avoiding the unwanted confusion among the competitive products available in
the market. This fact is of special importance in case of medicines and chemicals where even a
spelling mistake prove fatal to the users.

Facilitates ID of a product

Descriptive function

Indicate the grade of the product

Describe source of product, its content and major features

How to use the product etc.

Label can be a promotional tool

Needs to fulfill federal obligations.

Universal Product Code for Inventory and Information.