Role of Brands
In a world where products, markets, and industry boundaries are in flux, a well-managed brand can be a prime source of strategic direction and competitive advantage. Today branding is such a strong force that anything from salt to lemon juice and water is branded. The following are the roles of branding which serve many purposes
1) A brand identifies the seller or maker.
2) A brand protects both the consumer and the producer from competitors who would attempt to provide products that appear to be identical.
3) A brand reduces the primacy of price upon the purchase decision.
4) It accentuates the bases of differentiation.
5) A brand is essentially a sellers promise to consistently deliver a specific set of features, benefits and services to the buyers.
6) A brand gives the seller the opportunity to attract a loyal and profitable set of customers. Brand loyalty gives sellers some protection from competition and greater control in planning their marketing programs.
7) Strong brands help build the corporate image, making it easier to launch and gain acceptance by distributors and customers.
8) Managing a positive brand image creates opportunities to introduce new products that build on brand equity. It helps to attract and retain good employees and it improves the stockholders