What are the roles of branding?

To buyer:
1. It helps buyers identify the marketer of the product .
2. Gives easier product identification
3. Branding increases buyer’s efficiency by reducing the time needed for purchase by making evaluation easier i
4. Helps buyers evaluate quality of products especially if unable to judge a product’s characteristics-it communicates features and benefits .i.e. it provides reassurance of the product’s quality . Branding forms a quality image of the product and to your business.
5. Helps reduce buyer’s perceived risk of purchase through product evaluation i.e. Strong brands reduce customers’ perceived monetary, social and safety risks in buying goods/services
6. Buyer may derive a psychological reward from owning the brand. It helps to raise or create customer expectations IE Rolex or Mercedes
7. Establishes product's position in the market.
8. Brand name calls buyer's attention to new product that may benefit them in terms of special qualities.
9. Symbolic device i.e. brands also play a crucial role in signifying/communicating certain product features and benefits to consumers.
10. Brands simplify consumers purchase decision. Over a period of time, consumers discover the brands which satisfy their need. If the consumers recognize a particular brand and have knowledge about it, they make quick purchase decision and save lot of time.
11. Creates loyalty to the consumers and this saves them on search costs . Consumers remain committed and loyal to a brand as long as they believe and have an implicit understanding that the brand will continue meeting their expectations and perform in the desired manner consistently. As long as the consumers get benefits and satisfaction from consumption of the product, they will more likely continue to buy that brand.

To seller:
1. Provides the means of product identification/ differentiation . A strong brand differentiates your products from the competitors. A brand gives particular information about the organization, good or service, differentiating it from others in marketplace. It differentiates product offering from competitors which in turn defends the product against competition
2. Helps segment market by creating tailored images.
3. Helps targeting or positioning. Positioning helps to create a distinctive or differential place in the mind of the consumers in the market
4. Brand helps firms to introduce new products that carry the name of one or more of its existing products...half as much as using a new brand, lower co. designs, advertising and promotional costs,
5. Easier cooperation with intermediaries with well known brands that attract customers i.e. facilitates efficient distribution
6. Facilitates promotional efforts.
7. Provides the means of bestowing products with unique associations which establishes an emotional connectivity with the customers
8. It is a sign or symbol of quality to satisfied customer
9. Brand management helps in building a corporate image
10. Helps foster or create brand loyalty. Branding makes customers committed to your business. Brand identifies the company’s products, making repeat purchases easier for customers
11. It helps to stabilize market share. Strong brands persuade buyers for the product to purchase and may raise organizations’ market share.
12. Firms may be able to charge a premium for the brand. It allows premium pricing
13. Provides legal protection for unique product features that may otherwise be copied by competitors.
14. It creates differential advantage. It forms the basis of competitive advantage

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Lellah answered the question on November 5, 2021 at 11:26