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What is branding - Essay Example

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Summary
Branding is a vital component of any company because not only does it set a business apart from its competitors, but it also helps the company focus on a particular market segment. Advertising campaigns are most often employed to spread the brand among consumers so that the…
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What is branding
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Extract of sample "What is branding"

What definition of branding makes most sense to you? Branding is a vital component of any company because not only does it set a business apart fromits competitors, but it also helps the company focus on a particular market segment. Advertising campaigns are most often employed to spread the brand among consumers so that the brand is recognizable. In order to do this, a brand needs to be clear and defined so it can reach the customers that a company is looking to target. Branding is not a simple process because it requires a great deal of research and planning.

Some forms of branding do not prove to be popular with consumers because they are unable to identify with the brand. More than this, some consumers often do not understand that certain branding is specifically targeted towards them. In these instances, poor branding can negatively impact a companys reputation due to the fact that a brand is wrongly perceived. In taking all of this into consideration, the definition of branding that makes most sense to me is the following: the representation of a company that offers value and benefit to the ideal customer.

Successful branding attracts new customers (and maintains old customers) by offering a product or service that is perceived to be to the advantage of the consumer. What kinds of companies would branding be a bad idea/waste of money for, and why? Branding would not be beneficial to entrepreneurial business due to the fact that there are likely to be limited funds available. Entrepreneurs can sometimes get carried away with branding instead of focusing on building a company up from the ground.

Branding will become important as a business grows and expands, but the initial focus should be to try to ensure the survival of the company beyond the first 12 months. If there is a lack of capital, then entrepreneurs should not spend unnecessary money trying to make their new business look flash. If an entrepreneur has to use credit for branding purposes, then this will only place unnecessary pressure later on when it comes time to repay the debt. Branding is designed to enhance a company, not to saddle it with mountains of debt.

Besides budding entrepreneurs, branding is also a waste of time for companies that have not accurately defined their target market. Without focusing on a select group of consumers, branding is going to go way over the top of most peoples heads and will not bring the desired results. Before branding can be effective, there must be short and long-term strategic objectives in place; otherwise branding efforts are sure to fail.

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