What is a brand? Describe the value of branding for both the buyer and the seller.
Brands hold great meaning and value for both the buyer and the seller. Brands are centred on what the seller promises to deliver to its customers and the consumer’s expectations of a particular product.
A brand can be defined as a name, slogan or anything that can be used to identify and differentiate a particular product or service. Strong brands such as Harley Davidson and Starbucks evoke sound emotional and physiological responses from customers.
Branding has several benefits for sellers. By having brands for their products, sellers get product recognition and product differentiation. This means that consumers would be able to accentuate the value they receive from one seller’s product in comparison with other products of a similar nature and they would also be able to easily spot these products among other products. Branding aligns the seller’s advertising and promotional activities. It allows the seller to form emotional relationships with their customers which is important because people base their purchasing decisions mainly on emotions and not logic. Within the business, brands serve as guidance for employees since they clearly dictate what the company/ product is about. Branding is also of value to sellers in terms of profitability. A product with a well-known brand attached to it would bring more revenue to a seller than a product without a brand. For example a cup of coffee without a brand could cost $4; however a cup of coffee with the Starbucks brand attached to it could cost $10. For the seller, a good brand increases the perceived value of its product and allows it to have a better price and better sales.
For the buyer, a brand represents the satisfaction and value that he or she anticipates and desires from the process of buying and using a product or service. Brands often appeal to buyers emotionally; this in turn helps build relationships between buyers and sellers. Brands provide buyers with value which is why they are often times prepared to pay more for branded products. Among buyers, brands are often a key factor behind purchasing decisions; people often gravitate toward brands that they are familiar with and that are trusted because there is often times the reassurance of quality.
In conclusion, brands exist as feelings and experiences that extend beyond the product or service which create relationships between the buyer and seller and have great value for both parties.