By the same token, when one person becomes associated completely with a brand, that person's departure from the company could cause it to suffer. Branding in a commercial environment, while expensive, passes costs to the consumer in terms of higher prices. The more they work on branding, the higher the awareness they are likely to create. It basically exists to distinguish a particular product or service from its competitors’ (Kotler et al. You may also like reading Advantages and disadvantages of sales promotion and Brand identity and brand image. Economists see advertising as inflating the price, religious leaders blaming it for materialism, sociologists blaming it for lowering values of society, and politicians think […] Advantages: a.Gives identity to the product b.Makes it distinguishable from the other products. Advertising reinforces stereotypes: It reduces people or objects into classes based on inferences … However, it’s not always been this way. Some consumers are skeptical of the individual branding process. https://www.bbc.co.uk/news/magazine-11517129, https://money.cnn.com/2015/02/04/news/companies/gm-earnings-recall-costs/index.html, PESTEL analysis of Coca-Cola (The Coca-Cola company). Advantages: a.Gives identity to the product b.Makes it distinguishable from the other products. Even big brands face challenges to bring about changes to some of their features. List of the Disadvantages of Individual Branding 1. Imagine, if this is what happens in remote areas, what happens in urban areas and city centres? For example, China has had many obstacles to overcome in its current attempt to emerge as a branded giant. Joe David has years of experience both in the UK and abroad. Likewise, General Motor’s recall of 30.4 million cars and trucks in 2014 damaged its brand name (Isidore, 2015). Disadvantages of branding. However, viral exposure is unpredictable; no foolproof method for going viral exists. Obviously, these “disadvantages” of branding are actually advantages unless you really don’t want to succeed as a business. d.Creates and maintains organisation goodwill. Having a strong brand name helps companies create barriers for new competitors to enter the market. Other relevant articles for you are: Advantages and disadvantages of trade fairs, PESTEL analysis of the European Union (EU). Advertising has to be done consistently as doing it occasionally does not result in producing the desired result of creating a brand image in the minds of the customers. Advertising is powerful enough to give society cause for concern. A successful brand helps a company enter new product categories more easily. Negative Attributes Brand identities cannot be created overnight either. Brand identities cannot be created overnight either. Customers called the new logo cheapy, tacky, and ordinary (Geoghegan, 2010). According to Kotler & Keller (2009) branding is endowing products and services with the power of the brand. ; Don Douglas, The Wall Street Journal; Michael Vick Has Advice for Chris Brown and Charlie Sheen; Lee Hawkins; April 2011, Tom’s Hardware; Steve Jobs Rumored Terminally Ill; Shares Fall; Jane McEntegart; February 2011, Fox News; Creating and Maintaining Your Brand; Susan Walker; May 2006. On a small scale, a single individual may shoulder the responsibility for maintaining the brand, but larger companies need a brand division. Branding makes a product or service identifiable in the marketplace. Certain costs arise in branding. Distinctive logos and signs instantly remind customers of what these products are and their functionalities. Organisations can create customer awareness through branding. Advantages and Disadvantages of Branding + New Branding Trends Published on February 17, 2017 February 17, 2017 • 23 Likes • 1 Comments Take Facebook, for example, using it was a steep learning curve, and there were too many software updates which altered displays and usability. He has a keen interest in business, hospitality and tourism management. c.Creates customer loyalty. Finding the right balance between maintaining the brand and being heavy-handed is important. Some customers are absolutely brand conscious. For branding to be effective, the maximum number of potential customers must be exposed to it. Brand extension refers to the use of a successful brand name to launch a new or modified product in the same broad market. By: Joe David | Tags: Marketing Essentials. All rights reserved BSSL. For instance, massive product recalls by Volkswagen have severely damaged the company’s brand identity. This is the main disadvantage of social media marketing for business. What are the advantages and disadvantages of branding? Branding is effective for commercial products. Brand identity can be a barrier to rebranding. Copyright ©2017 - 2025. As marketplaces are extremely competitive now-a-days, drawing the attention of prospective customers, and retaining them in the long run are very difficult jobs.

Vegan Crepe Recipe No Milk, Ecba Certification Salary, Msc Construction Project Management Online, Rode M5 Vs Shure Sm57, Beef Linguine Stir Fry, Date Of Birth Icon For Resume, Annie Chun's Maifun Brown Rice Noodles, Dewalt 20v Max Battery, St Michael School, Ranchi Website,