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Introduction To Brand Development

In the last decades, branding has become very important strategy of the marketing. Companies spend a major share of the marketing budget in brand development. Brand is one of the most important assets of the companies. With the development of international business, companies from all over the world have started to develop their own brands to differentiate them from the others. This race has not only increased the competition among companies but also eases the customers to make a better decision. Brand is not only the product or service which a company offers in the market but also tells us about the company and its status in the market.

Strategies of Branding

There is a wide range of strategies to develop a brand. Companies need to consider their nature of industry, target market, available resources and time before choosing a particular strategy. Generally there are two strategies for branding: building and acquiring. Building a brand is a time taking, costly and risky strategy. On the other side, acquiring an already developed brand is less risky and fast way of banding. Companies choose one of these two strategies based on their resources and time. Both strategies have their own advantages and disadvantages. Choose one of these strategies depends upon the business strategy and vision of the company.

Benefits of Brand Development

The core purpose of brand development is not only to give brand awareness in the target market but also to associate a perception and value to the product or service. Positive perception in favour of a brand is considered the asset of that company. In the development of a brand, companies differentiate their product or service with the others just to create their own market portfolio. This differentiation can be a different name, design, symbol or product features. This attracts the customers to get attachment with a particular brand or a product.

Brand development helps to increase the market share and profit margin. Branding highlights the attractive features, reliability and quality of the product or service that increases the interest of the customer to purchase that thing. Profitability is linked with the market share; more the market share, more will be the profitability of the company. Therefore, brand development increases the attachment of customers with the company which, ultimately, increases the market share.

One of core benefits of developing brand is to associate high price with the product or service without losing the sales. It is easy for brands to resist pressure from the customers to lower the price. In this way, a company can be able to generate higher profit margin than usual.