What is Branding?

Branding is the practice of giving a specified name to a product or group of products from one seller. The specified name creates individuality in the product, hence it can be easily distinguished and recognized in the market from the rival products. The sole purpose of branding is to distinguish your branded products from those of competitors.

Branding is the best means to capture and retain the consumer demand in a competitive market. The marketer can create brand equity, brand loyalty and brand image for his products only through branding.

Branding is the business process of managing your trademark portfolio so as to maximize the value of the experiences associated with it, to the benefit of your key stakeholders, especially current and prospective:


The more your employees value your brands and understand what to do to build them, the more your customers, suppliers, local communities and opinion leaders will value them. The more attractive your brands are to potential employees, the more they are likely to want to work for you.


The more your customers value your brand, the more they will buy your products and services, and recommend them to other people. They will also pay a premium for them and make the lives of your employees easier. This, in turn, will enhance the value of your brands to prospective purchasers and licensees. Research has shown that strong brands are more resistant to crises of reputation.

Stock/share holders

Strong brands multiply the asset value of your company (90% of the asset value of some major corporations lies in their intellectual property), and assure them that your company has a profitable future. They also allow you to afford to give competitive dividends to your current stock/share holders.


Suppliers like to be associated with strong brands as this benefits their own reputation in the eyes of other current or potential customers. You are therefore likely to get better service at a lower total acquisition cost.


Retailers, distributors and wholesalers value strong brands as they improve their own profit margins. They are likely to give you more “air time” and shelf space, thus enhancing further the value of your brands in the eyes of your current and prospective customers.

Opinion leaders

The media, politicians and non-government organizations are more respectful of strong brands.

Local communities

Supportive local authorities can make your life easier in many ways, and offer you better deals, if you have prestigious brands. Your local communities provide you with your work force and can be highly disruptive if they perceive you as damaging their environment.

Purchasers and licensees

The question prospective purchasers and licensees ask is “how much more profit can I get for my products and services sold under this brand than under any brand I might build?” Strong brands can be spectacularly valuable.

The Theory of Branding

1. Create an identity that stands for a set of values.

2. Emblazon your product(s) or service(s) with it.

3. Communicate it consistently.

4. Grow and change with the marketplace and the consumer.

5. Become a way of life for a loyal franchise of customers and consumers.

6. Attract new users and Brand Valuation Basics

2 responses

  1. I like the way you have diagrams for each articles, makes it attractive
    Your diagrams are also very catchy and colorful

  2. Nice blog…liked it

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