branding

Branding

The process of creating differentiation between a product and other products of the same kind. Branding is a marketing strategy to create the impression that one product is better than the other, whether or not that is true. Branding makes a product more recognizable and therefore is likely to attract customers and customer loyalty. There is often a sense among consumers that brand products are somehow better than off-brand or generic products; as a result, brand products are usually more expensive. Examples of brands include logos, catchphrases, symbols, or even the name of the company itself.

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branding

a means of helping consumers to identify a particular firm's BRAND of product, and to create and maintain consumer confidence in the performance of the brand.

This is achieved by ensuring consistent brand quality and reinforcing this by appropriate ADVERTISING and SALES PROMOTION in order to foster consumer goodwill. Once the supplier has created significant BRAND LOYALTY this enables him to exert greater control over the advertising, sales promotion and distribution of the brand, and may well enable him to command a premium price over competitors' offerings. A well established brand has considerable value in giving a supplier COMPETITIVE ADVANTAGE over rival suppliers and such brands can have a significant impact upon the valuation of a business. See BRAND VALUATION.

Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson