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Essay / The Importance of Branding in Marketing - 3270
Literature ReviewAs an increasing number of people focus on brand names rather than products, brands are becoming important allowing customers to choose products (Carroll, 2008). When customers trust the brand, profits are generated for manufacturers. First, brands can be used by products as a tool to identify and differentiate themselves from various products. Second, brands help companies create competitive advantage (Bick, 2009). Therefore, organizations are paying more attention to branding. BrandingBranding is a tool for making one producer's products different from those of another producer (Keller, 2003). Carroll (2008) states that brand image is a sign of quality and is useful in increasing customer loyalty, financial performance and maintaining competitive advantages. “It’s not grounded in theory, in the strict sense of the term.” (Kay, 2005, p.743) Chernatony and McDonald (2003) stated that branding will bring profits to companies when companies add value to products that are accepted by consumers and consumers are happy to pay for it. Furthermore, according to Schultz and Patti (2009), branding also occupies a crucial place in the postmodern world. The objective of branding is no longer just diversification. According to Key (2005), creating a “brand sense” is widely accepted, which has been identified as one of the main tasks in building a strong brand. It seems that a brand is powerful for customers because it can generate a complex cognitive response and shape customer behavior. Understanding responses and community context are two challenges in building a strong business brand (Kay, 2005). Elements of branding, such as logo, packaging, design, advertising, have all contributed to building a strong brand. ...... Research in Marketing, 20: 153-175 Sriram, S. & Balachander, S. & Kalwani, MU (2007), Monitoring the Dynamics of Brand Equity Using Store-Level Data, Journal of Marketing, 71 (April ): 61-87 Srinivasan, V. (1979), “Network Models for Estimating Brand-Specific Effects in Multi-Attribute Marketing Models,” Management Science, 25 (1), 11–21 Stewart, David W. ( 1996), Market-Backward Approach to Designing Integrated Marketing Communications Programs: A Paradigm Shift and a Focus on the Determinants of Success, Journal of Business Research, 37 (3), 147-153. Swait, J. & Erdem, T. & Louviere, J & Dubelaar, C. (1993), The Equalization Price: A Measure of Consumer-Perceived Brand Equity, International Journal of Research in Marketing, 10 (March): 23-45Varian , H. R (1983), Nonparametric tests. of consumer behavior, Review of Economic Studies, 50 (1): 59-110