Marketing Management is a crucial process in every organization as effective marketing allows any company to reach out to target customers. There are various processes in marketing management with branding being its most crucial component.
According to stats, about 77% of marketers believe that branding is essential for their growth.
Branding refers to the establishment of the company’s name to create a positive image. Branding creates a completely different identity of the company in such a way that it attracts and retains potential customers. A symbol, name or logo of a company separates it from others and creates a brand image. The consumers remember and connect with a brand through its logo. As per a survey, more than 94% of people recognize the logo of Coca Cola. This exemplifies the power of branding.
Significance of branding
Branding is important for the success of any company. Be it a small, medium or large business, branding has always been successful in creating a positive relationship between a customer and a company. Let’s look through its main importance:
Attract investors
Every business needs investments to ensure the inflow of cash and to support infrastructure and other activities. Branding helps companies to impress investors.
According to a survey, 82% of investors agreed that brand recognition influences their investment decision.
Branding helps in defining a company’s vision
While starting a business, the main question that arises in front of an entrepreneur is the vision behind his/her venture. When a company’s vision is clear, it facilitates effective collaboration between team members necessary to achieve set goals. In addition to this, a vision enhances business activities, business decisions and all other actions that are necessary for a company.
Edge competition
In the long run, it is necessary to maintain the image of a brand, gain a major edge in the competitive environment and manage difficulties to be faced by product differentiation. Branding helps companies to maintain their image and remain competitive.
Generates increased revenue and market share
With better marketing and branding efforts, companies can increase their market share. Thus, branding strengthens businesses. With an increased market share, a firm can easily enter geographical markets, opt for co-branding and take advantage of enhanced distribution opportunities.
Increases worth of an organization
An organization’s market value is not affected by the assets or resources it has but through its brand equity. If a company loses its brand value, it will stand nowhere, no matter how big or resourceful it is. Hence, branding augments the worth of an organization.
Closing Note
Branding is essential for the growth of business and it is an integral part of Marketing Management. Every business needs branding. Hence, there is an impressive scope for marketing experts who can take the company’s branding to a different level. If you wish to enter this lucrative field, then you can pursue courses offered by MIT School of Distance Education (MIT-SDE).
MIT-SDE offers an 18-month Post Graduate Diploma in Management (PGDM) and a 24-month Post Graduate Diploma in Business Administration with a specialization in Marketing Management. The courses are equivalent to MBA and impart industry-specific knowledge and skills. The candidates are trained in such a way that they can get immediately absorbed in the industry. So, apply for this course and gain a competitive advantage.
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