Branding
What is branding?
Originally branding is the burning of mark on the animals to indetify.In a business context,branding is a name, term, symbol or design (or a combination of them) which is intended to signify the goods or services of one seller or group of sellers and to differentiate them from those of the competitors.branding refers to the imposing of a distinctive identity, a brand, on goods and services.
In everyday life we are surrounded by brandy names,and you may agree,from the customer’s point of view,that the power of branding is never to be underestimated. Firms have recognised the power of brands for many years.During the late years of 19 century, when the names of both Kodak and Kellogg first appeared in shop windows. Their inventors stumbled across a fact not fully recognised until much later: that two of the most powerful elements in a product’s name are the guttural sound (and especially the “k” sound) and alliteration (repetition of the same consonant). Think of Pepsi and Coke; Marmite and Google.
In agree with the power of branding,then in what specific ways do we reap the benefits of branding ?
First,branding reassure the customer’s confidence in the behavior of perchasing,thus companies could gain more value from their product.In that sense branding is a company’s intangible assets.That’ why When Philip Morris bought Kraft, a food company, in 1988 it paid four times the value of Kraft’s tangible assets. Most of the 75% spent on intangible assets represented the value of Kraft’s powerful brands. When Nestlé bought Rowntree it paid more than five times the book value of Rowntree’s assets. Most of that extra (almost £2 billion) was the cost of Rowntree’s well-known names, such as Polo, Kit Kat and After Eight.
Second,branding provide a safe platform where companies could transfer or extend the range of their products much more easier. One example is the Mars chocolate confectionery brand, which has been successfully transferred to an ice-cream product.
Well I do have much more to say about this topic,thus we will continue later in my blog.
