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Importance of Branding: What s in a Name?

Brandingis perhaps the most important market segment. Coca-Cola has used a
facet of any business--beyond combination of directmarketing, give-away
product,distribution, pricing, or techniques, and multi-product
location. Acompany's brand is its cross-branding to achievemaximum brand
definition in the world, the name that recognition and visibility in not only
identifies it toitself and the its immediately competitivemarket, but in
marketplace. A model maybe beautiful, markets as diverse as Coca-Cola branded
but without a name, she's just "that girl race cars and housewares.
in thatpicture." Where would Norma Jean Brandloyalty is an integral part of
bewithout Marilyn Monroe, or who would building a brand, as consumers usually
imagine Coca-Cola as just a have achoice of products in the same
soft-drinkmanufacturer? A brand provides market segment, and so a successful
aconcrete descriptor to customers and company willcome up with a way to keep
competitors alike, a name for a product consumers re-buying their product or
orservice to distinguish it from anything coming back totheir location rather than
else. going to a competitor. These brand
Bob may run a hobby shop, but trying to loyalty-building efforts may comein the
advertise as "The hobbyshop a guy named form of coupons, incentives such as many
Bob runs down the street a ways" is grocery chains' technique of
financial suicide. Each customer will "grocery discount cards" or "loss
have to describe the shop,who Bob is, and leaders," meant to drawconsumers into the
what the shop does every time someone store, where they will hopefully buy
asks about it. This makes the process of products along with thediscounted fare at
recommending a goodhobby shop too much a higher profit ratio.
work for the average customer, and far In exchange for these discounts and
too much work for auser looking for hobby grocery cards, many companiescollect
shops on the Internet. information about buying habits and
A customer looking up Bob's hobby shop average spending amounts, thebetter to
will have an easier time of it ifhe or tailor advertisements and better-focus
she knows to refer to it as "Bob's House future promotionalefforts. Once a
of Hobbies," and thecustomer can then consumer is hooked,brand loyalty tends to
refer others to Bob's hobby shop by name, result in higher sales volume, as well as
increasing thepotential advertising loyalcustomers being less sensitive to
exponentially. price changes of their favorite brands
Developinga brand involves more than just (within reason, of course), as well as
picking a catchy name and placing an ad less sensitive to competitors'incentives.
in thenewspaper--a brand is more than a Studies have shown that ittakes 5 times
unique string of letters denoting as much money to gain a customer as it
aparticular product; a successful brand does to retain one. That's 5 times as
is a mnemonic trigger that makes much money as could havebeen spent on
aconsumer feel a certain way when the other things.
brand is thought of. For those who drink Abrand is who your company is, and what
cola-flavored softdrinks, which is more it is selling--it is as important
appealing on a hot day: a cold cola soda, asnaming a baby, and should require the
or an ice-cold same amount of effort to develop it,
Coke? Coca-Cola has spent 100 butif done well, can mature into a
yearsdeveloping their particular brand of successful and profitable adult.
cola-flavored soda as a refreshing © 2005, Wholesale Pages UK. All
beverageand a seminal representation of a rightsreserved.




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