How does branding help in creating product differentiation? Does it help in marketing of goods and services? Explain.

Branding means creating unique name or image for a product in consumers mind. It aims at establishing a significant and differentiates presence in the market.

According to American Association "A brand is a name, term, symbol or design or combination of all which is intended to identify the goods or service of a seller or group of sellers and to differentiate them from those of competitors."

Branding helps in marketing in the following manner –

1. Promotion: Promotion is an important "P" of marketing. Branding helps the organisation in promoting the product by disseminating the information about features, price, style and advantages of product.

2. Legal protection: A brand name provides legal protection to the special feature of the product. Inclusion of brand name helps the goods to be totally protected.

3. Saves from competition: A business organisation can easily advertise and promote the branded goods. They can attract the consumers towards their products. Branding helps business organisations from competition.

4. Builds corporate image: Branding helps in building a corporate image. Strong brands are the brands that are known for their quality, performance and standards and they help in building a corporate image which provides a long term advantage to the business.

5. Differential pricing: Good branding helps in creating a loyal customer and the seller can charge different price from their competitors for his product.

6. New product introduction: Branding makes it easy for a company to introduce new product, it will not take a lot of marketing efforts.