When it comes to the actual word 'branding', its origins can be connected to the activity of marking of milk-giving animals. Animal owners often branded their cows and buffaloes with their signature brands. The milk of animals was always in demand and of course, costly. Though many of us may feel that this kind of branding does not have any connection to the modern-day phenomenon, I definitely have to disagree. Since milk was from a family of very well-cared and well-tended animals, it was recognized to be of very high quality and people were ready to pay more for it.
The same principle of branding is applied today. A set of related products that are manufactured by a company and are sold as a family of products under the marquee or banner of a brand, have a certain recognition and a place of respect within that very market. Branding the product, thus, is a means of identification and recognition in the market. It is not just a process of getting a trademark and logo, but it is process of evolving as a well reputed name on the market and field. A very well-known brand that has become the identity of the market itself is the office equipment manufacturer 'Xerox'. Though it is a company's name, the act of photocopying is termed as 'Xeroxing'.
Branding your Business
From the point of view of a business, the process of branding involves making of a trademark and a good name. A registered trademark and a name ensures individuality and uniqueness of a particular product or family of products. The lawful registration of the trademark means that a competitor cannot copy any of the elements and names of the products. Branding can be done for anything that can be promoted in the consumer market, right from a simple label, to a family of products or even an umbrella. People can also have a personal brand. The primary advantage of branding is that it is safeguarded from unlawful activities and at the same time, it is also a way of developing a good reputation in the market.
Often you might see some new product carrying a tag that says 'from the makers of ... brand'; well, this is another advantage of branding. When a business who owns an already famous brand wants to launch a new brand in the market, they can use the pre-earned goodwill and reputation for the new launch. The advantage is that, people are bound to purchase the new products out of curiosity.
Branding in Marketing
Marketing primarily involves the study of demand in a market and creating a response in the form of supply. In the field of marketing, the brand name plays an important role, as it helps the people to promote the brand name and its merits quite easily. Apart from that, it also becomes possible for the marketing people to generate intelligence information about the brands popularity, and also what people exactly want from the company. As a result of a brand loyal group of consumers, it also becomes easier for the marketing department to asses regular and promised demand. Apart from that, schemes, such as free gifts and discounts, often boost the sales as the brand is an important icon of the market.
Branding in Advertising
Advertising is often considered to be a part of marketing, however, branding a particular product helps advertisers to provide catchy logos and advertisements. As a brand name can never be copied, advertisers face lesser heat from unauthenticated advertisements, effectively, their advertisement creation gets protected. Apart from that, advertisers can initiate fearless and independent advertising, as due to the process of branding, consumers are already well aware of the product, its identity, and nature.
In short, the importance of branding can be summed up in simple words―successful branding is a process that generates revenue that cannot be counted, it creates a reputation that is felt, not seen, and is an asset that one cannot show on a balance sheet.