Branding has a very important role to play not only in the marketing of products but also
in the case of services. Nowadays, consumers demand much more than a basic product,
and are willing to switch brands for better product features and improved services. The
focus of marketing has therefore shifted from just selling a product to building a strong
brand that enjoys customer loyalty. Brand loyalty (i.e., customers’ loyalty towards the
brand) is very important to marketers, because loyal customers frequently purchase the
same brand, remain longer with the product/brand, commit a higher share of their
category spending to the firm, and are more likely to recommend others to become
customers of the firm (Reichheld and Sasser, 1990; Zeithaml, 2000; and Keiningham
et al., 2007).
In the past, producers sold various commodities or goods to meet basic functional
needs. These did not have any identification marks on them. In other words, they were
unbranded. The first step towards branding a commodity is to package it. The marketer
enhances the value of the commodity’s functionality through packaging. Branding began
in a formal way when craftsmen put their trademarks on the products to protect
themselves against inferior quality imitations, when artists began signing their art works,and so on. Long ago, David Ogilvy said, “A brand is the consumer’s idea of a product.”
A brand is a name, term, sign, symbol, design, or the combination of these that identifies
the maker or seller of the product or service and also differentiates it from those of the
competitors (American Marketing Association’s definition quoted by Aaker, 1995; and
Kotler and Armstrong, 2008).
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