BRANDS IN CONTEMPORARY WORLD

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BRANDS HAVE BECOME A UBIQUITOUS PHENOMENON IN OUR CONTEMPORARY WORLD

Branding has virtually taken over the business world today. Every entrepreneur and business, whether old or new are first and foremost concerned with creating a brand. In the past, many businesses considered branding a trademark. A brand just covered the logo of the business but did not penetrate the intricacies of the business. Today, however, branding has taken the science of psychology and produced a new tradition that requires a business to give up traditional practices in favor of growing a powerful brand. Consumers are often thought to purchase not the product itself but the brand name. Many companies invest a large percentage of their income in creating a brand name that secures their present and future income as well.

Randall (1997) and Coomber (2002) goes further to indicate that even acquisitions of other companies and investment in particular industries are decisions driven mainly by branding. For example, in the Tata Industries based in India purchased Jaguar and Ford, they did not purchase unique materials that they did not have or even secrets to products they were unable to develop. The investment was directed at building a new brand name. The more than two-billion-dollar investment is allowed Tata to purchase a completely built and structured brand name. The cost was not based on the value of assets by Ford or even the proceeding income from products but rather on the importance and influence of the brand name. Cliffton et al (2003) Concluded that consumers today are more attracted to the branding of a company. They are sometimes willing to pay more, even undergo some inconveniences just to get access to the products of a particular company, not because of quality but because of the faith they have in the brand.

Branding is the psychology of recognition

Miletsky and Smith (2009) conducted a study where they found that majority of the consumers often shy away from anything new. Many consumers feel more secure about something they know, have experienced, or at least have heard of. Stroud (2005) in a concurring study, packaged known products and put brand names that were non-existent but kept the same elements of the product including the price. It was concluded that consumers, at least a majority of them were unwilling to try the new products. Those who did give the products low grading despite the product being the same. Both studies concluded that consumers often turn to something they recognize, even though the product may not be of good quality or even better price.

The soft drink industry has been dominated by the presence of two large companies that is, coca-cola and Pepsi cola. Despite, the introduction of many other soft drinks some of which are better tasting, healthier, and even better price, the average consumer will still market during promotion times. Getting a cut off discount on a certain amount of purchase coca-cola. Branding is vital for purposes of recognition and because recognition is what builds a business and increases sales for the business, branding more often than not takes precedence over other matters in the business. However, it is important to note that branding only leads to recognition through consistency. Branding is not a haphazard art of throwing together what the business imagines the consumer needs. It is actually psychology (the study of human behavior) and science (analysis of branding strategies that work) put together to create a formidable team that appeals to the market (LePla and Parker 1999; Bevan and Wengrow 2010).

Increased competition

In the business world today, there does not exist a business that is not facing increased growth of competition. Companies are continually fighting for the attention of the consumer. While today a company may have a large share of the market, tomorrow a new start-up could invade the same share dragging off the majority of the clientele (Davis 2009). Many companies that have stood the test of time are constantly trying to wade off competition. Another percentage has fallen into the hand of carefully structured and well-organized competition. Mathieson (2005) states that the science of benchmarking is built on the need for consumers to poverty was measured with the parameter of basic needs. Adam Smith, for instance, defined poverty as the inability to purchase brands and companies to create them. Successful brands such as Coca-Cola and General Motors have been studied widely, in an attempt to recreate their success stories. This is why branding requires to be unique and structured so that it curves out a niche for the owner. For example, the Jaguar brand is not just any other vehicle brand such as Toyota and Ford, the brand is built on provision and providing acc.............


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