Brand

Brand

  • Submitted By: TimVV
  • Date Submitted: 02/24/2009 4:19 PM
  • Category: Business
  • Words: 490
  • Page: 2
  • Views: 359

A brand is something that can differentiate a seller’s product from their competitions products. This could include a name, symbol, design or any other combination of items. According to Lamb et al. (2004), “Branding has three main purposes: product identification, repeat sales, and new product sales. The most important purpose is product identification.” (p. 297). I could not agree more to this assessment. Some of the best companies have been very successful in branding their products or services. Coca-Cola, Microsoft, and IBM are some the world’s most valuable brands. Branding can be very important for smaller companies that are in a niche market. The company that I work for, Gerber Technology, had the first mover advantage in the late 1960’s and 1970’s. The automatic fabric cutters became known as the Gerber’s even though today there are numerous automatic fabric cutters. Customers have repeatedly purchased cutters from Gerber just because they recognize the name and the quality that it stood for. However, Gerber is no longer is the leader in new technology or quality.
Successful branding generates repeat sales. This is what the best branding companies count on for future business. There are many soft drinks that are similar to Coca-Cola but due its name recognition and familiarity, consumers continue to purchase their product worldwide. This is brand loyalty. Due to brand loyalty consumers are willing to buy the same product over and over again. According to Kotler & Keller (2009), “Loyalty also can translate into a willingness to pay a higher price – often 20% to 25% more than competing brands.” (p. 129). If consumers are willing to pay 20% to 25% more for a product that has been branded then the firm can make more profit. This profit then can be used for more research and development, marketing and other functions to run the business. When the company comes out with a new product or service, costumers will associate it with a previous...

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