Advabtage and disadvantage of branding
10 advantages of branding
The increased expense of wages and professional fees to develop a brand may or may not exceed the financial benefits of branding. The advantages and disadvantages of individual branding apply to all businesses. Disadvantage: Negative Attributes If a product or service experiences a negative event, that will become attached to the brand. When individual branding is pursued for multiple products, then it allows a corporation to position its brands in several different ways. That's all? Large corporations tend to experience the most advantages as multiple brands work together to generate multiple revenue streams. When combined with effective cost-control measures, your profit margins are optimized in this scenario. After a few good years, its market share dropped by a full percentage share in just 12 months. Sharing economy is the trend and probably will be the solution to any future world economic crisis that might happen in the future. If an organization is juggling multiple brands under the same umbrella, then it will require more human resources. It requires more human capital. However, this can also be a disadvantage in several situations. Every product is able to develop its own identity, brand message, and personality. Brand Maintenance In order for a brand to succeed, much effort must be expended in maintaining the brand presence.
If a company undergoes a public scandal, a strong brand only makes it easier for consumers to associate the business with past wrongdoings.
List of the Disadvantages of Individual Branding 1.
E branding advantages and disadvantages
The red color and shape of the bottle is an immediate trigger in many minds as to the fact that the drink is a Coca-Cola product. We got that. Finding the right balance between maintaining the brand and being heavy-handed is important. About the Author Lynn Lauren has been a professional writer since , focusing on the areas of weddings, professional profiles and the banking industry. Actions such as this have the potential to tarnish a brand image. The increased expense of wages and professional fees to develop a brand may or may not exceed the financial benefits of branding. That means you have unique advertising and sales promotion costs which are associated with each product instead of having one basic cost associated with the home organization. That's all? As one can see from the above that branding has both advantages as well as disadvantages, however its advantages outweigh its disadvantages and that is the reason why companies go for branding and makeover if the company is in financial trouble or it wants to establish itself in the market. When branding takes place in a social arena, the costs get passed to the donors, resulting in the organization's being less effective fiscally. When individual branding is used, consumers can be served in different ways by each brand being offered. Advantages and Disadvantages of Branding Vinish Parikh May 8, When we go to school and colleges the professor often asks to give an introduction of yourself so that all others can know your name and background in the same way in the corporate world there is branding. Disadvantage: It's Tough to Change One of the major benefits of a brand is that it creates a strong product association for customers. Having more brands creates more risk in this area.
Branding also helps the company in sustaining in the market for the long term because just imagine a company which has no brand and if the owner dies or some major problem happen in the company then company will be in trouble, however if the company has brand then company will keep running because brand goes on and on for ages and it negates majority of problems happening in the company.
Those involved with the successful brands may be viewed as having more power within the organization, even though all brands might be profitable. If consumers are satisfied after purchasing the product, a strong brand makes it easy for them to make repeat purchases without much reconsideration.
Advantage: Protection From Competition Brands offer a certain amount of legal protection from the competition because of trademark law. Branding helps the company in charging a premium price for their product because a good brand commands a higher price than its competitors which in turn leads to higher profit margins for the company.
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.
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