Branding helps to build the identity of the product & create loyal customers. Branding increases public awareness and helps to associate customers with the company’s products or items. An organization uses the existing brand name to introduce new products or services. These aspects show how brands are important for the company. 

Let’s gather an extensive knowledge of Branding through this article.

What is a brand?

American marketing association (AMA) represents the brand as 

‘A name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other sellers’. 

The trademark is a legal term for the brand. A brand can recognize by one Product/Service, a family of products/Services, or all products/Services of that seller or service provider. If we use the firm as a whole, then trade name is the preferred term.

Like: It Firm means we understand the whole IT industry.

Example of the Brand definition 

A brand is a name: BMW, TCS, Reliance, Biswa Bangla. 

A brand is a term: TVS automobile company launched its first scooter in September 2013 with the term Jupiter. Now TVS Jupiter is recognized for its famous scooter.  

A brand is a design: the exteriors of a “Wow! Momo”, helps the customer to identify the outlet very quickly. 

A brand is a symbol: BMW is identified by its authentic symbol.

A few Advantages and disadvantages of branding


1. It helps us to recognize the products or services of a company.

2. It stimulates the buying decision of the customer.

3. It helps to build customer loyalty.

4. It helps the market leader company to sustain the leadership position in the own market segment.


1. Establishing a brand, requires a huge investment.

2. An average customer may not like to pay an extra penny just because of its brand.

3. An unsuccessful brand creates a negative impact on the company towards the consumer.

Brand equity:

The components of brand equity are brand loyalty, brand awareness, brand association & perceived quality.

Brand loyalty:

Brand loyalty defines the consumers’ commitment to buy the same brand’s products or services again. True brand loyalty indicates the consumer’s willingness to repurchase the same brand’s product instead of his/her desires brand. It reduces the organization’s promotion cost. Still, now many Bengali women use Boroline as an Antiseptic Cream.

Brand awareness:

The extent to which consumers can recognize a product by its name. Higher brand awareness means, we assume higher brand equity.

Perceived quality:

The customer’s opinion about the actual quality (in terms of feature, style, and price) level of the product.

Brand associations:

The characteristic of the brand associates with the customer’s belief. A person may correlate one brand for emotion, power, or protectiveness.

Brand valuation:

The following are the significant factors, which help to judge the brands’ potential value.

Superior products & services:

Providing superior products and/or services from the competitors extend the brand value of the company, towards the consumer. The consumers always distinguish the company band for its quality, style, or cheapness.

Country of origin:

The brand identity of the country of origin can either Boost or diminish its value. Air India is recognized as the National Carrier of India.

Market domination:

An established brand helps a company to obtain extensive coverage in the market, and maintain a dominant position in the distribution channels.


A brand can carry its contemporary appeal to the customer over a long time. It helps the company to establish itself as a key player in the market.

The “Anand Milk Union Limited” or Amul has established in 1948. For the last 70 years, every Indian consumer is enjoying its omnipresent presence in the dairy products segment.


Due to mass appeal or brand identity, a company is able to extend into a related market or enter a new segment as well as in the new market. In 1868 the Tata group has started as a trading company. Now it’s extending its wings in all the major Indian market segments and is established as a global brand.

Global presence:

Brands extend the company’s presence into the global market rather than only the domestic market. In addition, international brands obviously carry more value than local or domestic brands. Example: Due to international brands, many people prefer to buy online through the ecommerce website The seller also uses this multi-vendor online marketplace to sell online, for its global presence.

Brand Name selection:

 A Brand makes an impression of the product to the consumer. Therefore, the Brand manager should be responsible and careful when selecting the brand name.

The American marketing author, Philip Kotler has suggested six points to choose a successful brand name.

1.  It should suggest the benefits and qualities of the product; “Maaza”, “Sugar and spice”.

2. The Brand name should be easy to pronounce, identify, & remember:  KitKat, Amul.

3. It should be distinctive: Mainland China, VIP

4. The name should be extendable: Fortune, Wills.

5. The brand name should be easily translated into a foreign language: Subway.

Brand sponsorship

Brand managers have four options to sponsor the brand.

Manufacturer brand:

This type of brand is owned by the manufacturer company which is promoted directly or indirectly. This kind of strategy is followed for a few years.

Private Brand:

This brand is also known as the store brand. These types of brands holding the store name or store merchant name.

Brand licensing:

It is the legal authorization by the trademarked brand. It gives authority to the brand owner to allow other companies to use its brand for a fee.

Co­ Branding:

Using this marketing strategy, multiple companies use the same brand name on a single product or service.

Brand Development

On the basis of product category & brand name, one company can develop the brand.

Line extension: 

In this strategy, a Company uses its reputed brand name when introducing additional items in a distributed product category.

Brand extension:

The company uses its familiar brand names when launching a new product or category’s items in the market.
In earlier days, Apple only built personal computers. Now it produces iPhone, iPod, iPad, Apple Watch, Apple TV, etc.

Multi brands:

When a company introduces a new product or items in the same existing product category, then use a new brand name. ITC Limited has multi cigarette brands like Silk Cut, Gold Flake, Navy Cut, etc.

New brands: 

Many companies introduce new brands when launching a new category product. Those companies believe that existing brands are not suitable for the new category. 


From the above discussion, we may conclude that proper branding enhances brand awareness & loyalty to the customer. It extends the company’s presence in the local as well as global market. It also helps to obtain new customers.

Therefore if you want to establish your brands, or enhance the brand value, you can contact Digital Infotech. They will help you to plan accurate online & offline brand marketing strategies to achieve the company’s branding goals.

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