Understand the Importance of Branding and Promotion to Retail Businesses

Understand the importance of branding and promotion to retail businesses

Branding

Meaning: A brand can be a business name, a symbol, a logo or any feature that is used to identify and differentiate the products of one business from the products of another business. Branding should identify the features and benefits of the product and help to show why a product is more appropriate than those offered by competitors. For a business to succeed, it will need to know the needs and expectations of its customers and introduce a brand that satisfies these needs. The brand needs to be easily recognisable by customers but must be a brand that customers will associate with good quality products or services. An imaginative and creative name, symbol or logo may be remembered by customers but the business will need to ensure that customers link the name, logo or symbol with quality and value for money. When the branding has been designed, the next step is to get it recognised and established in the market place. The business will need to use appropriate advertising and promotions to help get the brand recognised by customers and suppliers.

Why businesses use branding:

The brand must deliver a true, clear message to customers. Businesses will want branding to motivate the customer to purchase their goods or services and then encourage repeat purchases. If a brand is successful and customers associate the branding with excellent quality products that are value for money or an excellent service, this will encourage customer loyalty, repeat purchases will take place and business profit margins will increase.

Benefits achieved from successful branding:

A company will benefit if the branding is successful and reflects a true image of the business and its products. The business will want the customers to associate and link