One of the most important decisions that a marketer has to take in area of ‘Product’ is in respect of branding. Branding refers to the act of assigning a name, term, sign, symbol to the product.  Branding is creating a corporate brand entity for consumers and making sure it gets imprinted in the minds of the consumers.

The importance of branding cannot be underestimated. Branding helps in differentiating the company’s product from that of their competitor’s. Branding helps facilitates advertising. Without branding, the company would only be spreading awareness about the generic name. It also helps in easy introduction of a new product that the company wished to add to its product line. This is the reason why many companies with strong brand names decide to launch a new product under the same brand name. From the consumer’s point of view, branding helps them to identify the product. It ensures a particular level of quality, builds up confidence among customers and increases level of customer satisfaction.

It is important to realize branding can either prove to be advantageous or have a negative impact. A negative impact can distort consumer’s confidence and hence decisions related to branding must be taken with utmost care, keeping your company’s image in mind.