Marketing Knowledge: Branding and Packaging for IBPS, SBI and Other Bank Tests

Marketing Topics: Branding and Packaging

Branding:

Branding is the management process by which a product is branded. It is a general term covering various activities like giving a brand name to a product, designing a brand mark and enforcing it. Brand is a perceptual entity rooted in reality which ultimately resides in the minds of consumers. Branding is all about creating difference between products.

It creates mental structure that help consumers to organise their knowledge about products and services in a way that clarifies their decision making which also provides value to the firm. Marketers can apply branding virtually anywhere a consumer has a choice. It is possible to brand a physical good (Maggi noodles, Lux soap) a service, (ICICI's banking service) a stores like Bigbazar, West side an organisation (UNICEF) or an Idea (Family Planing). Brand often relate to attributes or benefits of the product itself.


Functions of Branding

• Branding helps in product identification and gives distinctiveness to a product.
• It indirectly, it denotes the quality or standard of a product.
• It eliminates imitation of products.
• Branding helps in legal right on the product.
• It helps in advertising and packaging activities.
• It is also helps to create and sustain brand loyalty to particular products.
• Branding helps in price differentiation of products.

Advantages of Branding:

The advantages of using brand names could be easily recognised for each group of participants in the marketing via manufacturers, consumers, distributors as follows.

1) To the Manufacturer: It identifies the product and distinguishes it from other competing products. Thus, it protects the interests of the manufacturers. It saves advertising cost if the brand name is popular. If properly promoted, brand name creates confidence and goodwill for the products.

2) To the Consumers: It provides an easy way for purchase by easy identification of a product. The branding name indirectly assures certain quality by identifying the manufacturer with the product.

3) To the Distributors: Widely popular brands ease the selling process and lead to large sales. It helps in advertising and sales promotion programmes. The distributor can easily find out quick moving products. Branding reduces price flexibility. Thus, in turn, reduces the risk in business. Special selling efforts need not be undertaken. This reduces the cost of distribution and thus, the final price.

Packaging

Packaging is the technology of enclosing or protecting products for distribution, storage, sale and use. It means putting the products in suitable containers or packets such as tin, plastic jar or card board box etc. Packaging should be such that product is protected and can be easily handled. It should be attractive and eye-catching and as far as a eco-friendly.

Functions of Packaging: First, packaging must protect the product it also has a promotional role which has become more important. It helps to identify the contents, the brand and the maker. To facilitate transporting, storing and warehouse handling. It helps to encourage repurchase. Packaging helps to assemble and arrange the contents in the desired form.