A consumer develops loyalty to a branded product. He not willing to change his brand. A branded product is comparatively costly bue to attractive packaging, labeling, extensive advertising and use of sales promotion measures.
The company has to choose its brand name. Each product can have a separate brand name or one family name and can be extended to all the product. Cipla brands the individual products where as Nimcip follow the family brand name strategy.
According to American Marketing Association, Branding is a name, word, letter or group of words or group of letters placed by the manufacture on the particular product to identify its goods and services to the customer or seller and differentiate them rest of the competitors.
Brand management is the application of marketing techniques to a specific product, product line, or brand. It seeks to increase the product’s perceived value to the customer and thereby increase brand franchise and brand equity.
Marketers see a brand as an implied promise that the level of quality people have come to expect from a brand will continue with future purchases of the same product. This may increase sales by making a comparison with competing products more favorable. If may also enable the manufacturer to charge more for the product.
The value of the brand is determined by the amount of profit it generates for the manufacturer. This can result from a combination of increased sales and increased price, and/or reduced COGS (cost of goods sold), and /or reduced or more efficient marketing investment.
All of these enhancements may improve the profitability accountability for a brand’s P & L (profit and Loss) profitability, in contrast to marketing staff manager roles, which are allocated budgets from above, to manage and execute. In this regard, Brand Management is often viewed in organizations as a broader and more strategic role than Marketing alone.
Some people distinguish the psychological aspect of a brand from the experiential aspect. The experiential aspect consists of the sum of all points of contact with the brand and is known as the brand experience. The psychological aspect, sometimes referred to as the brand image.
A good brand name should:
1) Be easy to remember.
2) Be easy to recognize.
3) Be easy to translate into all languages in the markets where the brand will be used
4) Attract attention.
5) Suggest product benefits or suggest usage
6) Suggest the company or product image.
7) Distinguish the product’s positioning relative to the competition.
8) Be attractive.
9) Stand out among a group of other brands.