Branding - Significance and Influences - Literature review Example

Branding is not a modern business strategy although this is recently subjected to law, not only for regulation but also to institute intellectual property rights to all products introduced in the market (Interband, 2004). Branding is considered very significant for business leveraging. Products are advertised and purchased regularly by consumers using its brand as a basis to determine good’s quality and services offered (Interband, 2004). Those brands that have gained significant figures of loyal consumers increased the value of good’s production.

Quality clothes, milk, shoes, kitchen wares, appliances and the likes are often the most popular brands, thus, business managers handling these products enjoy a high return of investment (Interband, 2004). With a very good yield coupled with satisfactory business performance, the share price can therefore be positively swayed. Branding commands discrimination of purchase. It also justifies the increase of products’ prices using the presumption that these are all produced in accordance with quality standards.

This experience is true for all pharmaceutical industries, in biotechnology, in liquor and other non-essential goods. At times due to the inability of people to purchase these medicines, petitions and protests are done by the government by threatening to overrule patents and permit local pharmaceuticals to produce desired medicines (Interband, 2004). Fearing that local competition will affect sales and profit, multinational pharmaceuticals will prefer to cooperate and concede with domestic market requests following negotiations to maintain their leverage and control in the market.

Economists have made some guidelines to highlight the significance of branding. Design to protect its brand, trademark policies also include securing the logos, color, names and the features of packaging products, its smells, and even the music used in advertising it (Interband, 2004). Patent and copyright laws have been effective in protecting the producer’s universal rights over his products and the method of how these are marketed (Interband, 2004). As customers mostly prefer a diversity of products and services that will cater for their needs and expectation, companies want to engage in producing different products but are also in consideration to the interest, reputation, and values of their shareholders.

Hence, companies work with innovation, accountability and social responsibility to maintain their brand image (Interband, 2004). They treat brands as both an asset and an investment for business sustainability (Interband, 2004). They correlate marketing products with business integrity and effectiveness. In case there is strong market competition, companies also delve at the opportunities of co-branding, franchising and licensing as profitable dealings to exploit their brands (Interband, 2004). Strong and strategic branding is derived from shareholders sense of values.

Branding details are also defined by corporate business managers and is managed by brand marketers (Interband, 2004). It is often derived from an integrated component of the entire organization and is valued as an investment hence, assessed in financial terms. 

Nowadays, as branding becomes an international norm, brands can be utilized as collateral and financial loans or can be sold like an asset (Interband, 2004). The latter is realized through franchising and or through direct sale. Another characteristic of branding is that it can exact customer loyalty and transform their lifestyle, hence, developed personal attachments or relationships (Interband, 2004). Those who are emotionally attached to its quality would become its most loyal customer and prefer this product albeit the presence of cheaper goods. The last characteristic of a brand is the recognition that it’s a trademark, thus, it’s secured by the company’s corporate lawyers. 

Branding influences the market, revenues and profitability. With increased consumer loyalty, stock price, sales and profit will increase more and may encourage further expansion as well as scale-up opportunities for employment (Claudia-Ioana & Brunello, 2011). Customers, as allied in business management, are the primary factors of popularizing a brand. As clients adopt some products, customers play indirect ambassadors of products promotion (Claudia-Ioana & Brunello, 2011). Aside from this, the production of quality merchandise and standard business operation also significantly influence branding. Other noteworthy influences are creative commercial advertisements that promote a good’s usefulness, its health contribution and the composition (e.g. ingredients) (Claudia-Ioana & Brunello, 2011). Users of the product can also make testimonies and stories about the taste, effectiveness or comfort and the likes derived from this product. Communication and better articulation of the merchandise can also be undertaken through social media and online networks. Through mass media, promotions of goods are attained in wider coverage and global scale.

Experts have time and again explicated that a brand with social values guarantees success in commercial endeavours. Aside from quality, if a consumer sees that a product could significantly enhance their freedom of choices and the possibility of enjoying a variety of preferences, they will likely buy the product to enhance their personality. Thus, companies who are adherent to brands should also invest in conducting research on consumer taste, preference, values, and ethical rules in choosing products to satisfactorily meet this demand. After all, it’s the satisfaction of customers’ wants that can attune products to what they perceived worthy of buying. The company, therefore, must sustain the process of improving and developing their respective products and in a parallel manner should address consumer behaviours and attitudes on their purchases.