This essay explores whether branding, or the creation and marketing of a brand image is of benefit to the consumer, or to the company, or both.
But there are disadvantages to brand loyalty, too. Because the companies spend heavily to promote a brand to the market place, those costs have to be passed on to the consumers. So, the cornflakes might be fresher or the Cola might have a nicer flavour, but we are paying for that perceived better quality, and maybe could be saving money without loss of satisfaction.
Another aspect of mounting a successful brand campaign, particularly on the launch of a new product or product range, is that the company must ensure that those products are actually in place for the consumer to buy on the launch date. Remember the global launch of the new iPhone 4S? Had Apple not had sufficient stocks available that day, the initial buying fervor, pumped up by marketing, would have soon faded, meaning fewer sales in total.
Overall, I would say that branding does much more for the company than the consumer. Whilst buying a known brand can and does create consumer confidence or psychological status, we consumers are usually paying a premium for “the name”, which means that in the long term the company is in a win-win situation. With branding costs factored in to the product selling price, the brand image benefits them in terms of higher sales volumes and greater profits.
Works Cited
Advantages and Disadvantages of Branding. Web. 4 June 2012.
The vital role of Sales at Kraft Foods UK. The Times 100 Business Case Studies. Web. 4 June 2012.
