The advantage and disadvantage of branding

Topics: Brand, Trademark, Branding Pages: 4 (1643 words) Published: January 18, 2014


In today’s business environment, branding is recognizable by more and more people and identified with certain service or product. It is the foundation of most organizations and the core behind all business development. When people want to buy or determine something they always think about the brand that they know before other brands. Most people who use branded products go to companies that have a famous brand name to show people that they are in a higher class status and because of familiarity as well as trust in some brands over others. Three types of branding are brand, brand name and brand mark. Brands are a name, symbol or a combination of both that identifies a company and its products, brands also link products to its customer. The part of a brand that is the words, letter and number (7-eleven) is the brand name. The owners of the company always protect their brand name by registered trademarks to prevent competitors from copying. The brand mark is a design element such as a symbol, logo, a character or sound that allows people recognition for their products (Adam, Armstrong, Brown & Kotler, 2003). For example, Nike is brand name and brand mark is “swoosh”. People just look at their brand mark, they will recognizable although without Nike. Branding makes product identification, customers who wish to buy the products that they identified so branding helps them avoiding buying the product they do not want. Moreover, also saving consumers’ time to walk around and look at the product details for multiple times at markets. In addition, if a certain brand becomes brand loyal to customers who are frequent, the repurchase of the same brand will increase. Strong brands can increase their price higher than competitor because brands create the perception into customers and industry partners. Such as Nestle brand is a company with high quality of milk and holds about 50% of the world breast milk. Although the price of Nestle is higher than other brand in the...

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