TEXT 1: BRANDING

A brand is a name given by a business to one or more of its products. Branding gives products an identity that distinguishes them from similar products produced by rival firms. It helps to generate brand loyalty, encouraging customers to regularly purchase particular products. The demand for a product with strong brand loyalty tends to become less price sensitive, meaning that price can be increased without losing much demand. Selecting a brand name is therefore a very important part of a firm's marketing strategy.

Organizations can use a number of different approaches to branding:

- Individual or multiple branding, where business uses a range of brand names for a variety of products. For example, Procter & Gamble relies on this branding policy for its range of fragrances, including Hugo Boss, Old Spice and Giorgio Beverley Hills. Such branding allows the firm to develop brands for particular market segments.

- Corporate or overall family branding, where all the firm's products are branded with the same name. Virgin, Kraft, Heinz, Microsoft and Ford employ this approach. This type of branding means that the promotion of one item will promote other products within the family. It can increase consumer confidence in the entire range, so increasing sales and profits.

- A mixture of corporate and individual branding, where products are given individual brand names but the corporate brand name is also prominent, e.g. Nestle and Walls.

A brand name should be snappy, easy to remember, unique and convey appropriate images or values. In addition, popular brands are often supported by advertising catch phrases, such as "A Mars a day helps you work, rest and play".

Vocabulary:

Comprehension questions:

1. What is branding?

2. What are the main approaches to branding?

3. Is branding really important nowadays?