At the core of any successful business is a world class product or service. Every business strives to be the first choice of its customers. This can be possible when you build a strong brand where a customer aspires to be a part of your brand. A customer will always trust a strong brand because they know that their expectations will be fulfilled.
Using a particular brand is a statement made by a customer. It could be to others or himself. You can find brands in various categories like automobiles, electronics, clothing and accessories etc. Companies that produce goods in these categories use branding in a way that other people can see it. This is for two main reasons- 1- To promote their brand. 2- To portray exclusivity.
Branding is an easy way for companies to promote themselves. It is among the cheapest options. Also, it shows other people that the person using their brand is part of a higher social circle than they are. For example, a person using an iPhone 6s is perceived to be a part of a higher social class than a person using a simple phone.
Now imagine a person with an iPhone 6s without the apple logo behind it. Or imagine a person driving a Mercedes without the symbol on the car. The value of the product in each case suddenly drops because then others seeing it wouldn’t know what phone or car you own. You know yourself that you have an iPhone, but others do not. Hence, branding is done so that other people are aware that you possess a branded product and for this you pay a premium price.
Hence, a person (customer) makes a statement when they use a particular brand. This gave rise to the concept of having models. When you have an Amitabh Bachchan or a Sachin Tendulkar endorsing your product, the customer can attain a persona that is already attained by a known figure. The company facilitates the customer to attain this role through the process of branding. ‘Christiano Ronaldo endorsing Nike football shoes’ is an attempt by Nike to appeal to aspiring football players across the world who idolise Ronaldo to buy the shoes. Therefore, this is the significance of a brand.
Originally Published on: Learning Curve
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