Required fields are marked *. When a brand becomes associated with a person or group, negative events surrounding the person or group have the potential to “rub off” on the brand itself. Advantages & Disadvantages of Branding. Branding is effective for commercial products. Particularly, small sized companies cannot afford it. However, branding suffers when applied to social industries. A restaurant bearing the name “Little Mac” changed its name when McDonald’s corporate lawyers threatened legal action. Discourages from Trying other Products. Related: 18 Major Factors Affecting Capital Structure (Complete List). Branding is the marketing term often used when one is talking about companies introducing and establishing themselves in the minds of the consumers. Updated on: March 25, 2020 Leave a Comment. Health Benefits of Brandy. Sleeping Aid. Thus, now you know the Limitations or Disadvantages of Branding. Introducing any brand to a new marketplace entails risk. Small businesses may not have the capital available to start multiple brands. It leads to some kind of monopoly known as brand Monopoly. Following are the demerits or disadvantages or limitations arguments against branding. Your email address will not be published. Another disadvantage of branding is that if due to some reason brand gets a bad name or reputation than it is very difficult if not impossible to regain the original position or status of the brand. Due to his behavior, the team (as well as the National Football League) suffered a blow in public perception. Brand loyalty discourages the consumer from trying out other new brands which possibly be more satisfying. Branding also helps the company in sustaining in the market for the long term because just imagine a company which has no brand and if the owner dies or some major problem happen in the company then company will be in trouble, however if the company has brand then company will keep running because brand goes on and on for ages and it negates majority of problems happening in the company. The retailers and the wholesalers may not be willing the stock the goods if the brand is not popular. eval(ez_write_tag([[336,280],'googlesir_com-medrectangle-3','ezslot_2',105,'0','0']));It leads to some kind of monopoly known as brand Monopoly. Lets take a closer look at the important health benefits of brandy when consumed in moderation: Traditionally, brandy, because of its anti-inflammatory properties, had been used as an … Actions such as this have the potential to tarnish a brand image. 25 Major Benefits or Advantages of Branding (Explained), 14 Importance of Study Consumer Behaviour (Explained), 9 Advanced Strategies for Building Maximum Customer Satisfaction, 18 Major Factors Affecting Capital Structure (Complete List), 12 Methods of Forecasting the Demand for Manpower, 17 Main Reasons for Slow Growth of HRM in India, 15 Key Elements of Total Quality Management in a Business, 11 Key Benefits and limitations of Benchmarking, 5 Competitive Priorities in Operations Management, 22 Key Advantages and Disadvantages of Privatization, 12 Methods to Correct Disequilibrium in Balance of Payments (BOP) – Step-by-Step, 19 Essential Elements of Good and Effective Planning, 17 Major Problems of Public Sector in Economy, 10 Difference and Similarity between Innovation and Creativity, 18 Major Advantages and Disadvantages of Supermarkets, 11 Advantages and Disadvantages of Functional Organizational Structure, 10 Objectives of Entrepreneurial Development Programmes, 14 Principles of Planning in Management (With Examples), How to Become a Successful Salesman? Related: 9 Advanced Strategies for Building Maximum Customer Satisfaction. While branding creates distinct advantages, such as brand loyalty and recognition, branding also has disadvantages. A brand is name, term, symbol or design to identify the goods or services and to differentiate them from those of the competitors. Branding is the process of communicating the value of your company and its products to a target market. In order for a brand to succeed, much effort must be expended in maintaining the brand presence. Brand loyalty discourages the consumer from trying out other new brands which possibly be more satisfying. ; Don Douglas, The Wall Street Journal; Michael Vick Has Advice for Chris Brown and Charlie Sheen; Lee Hawkins; April 2011, Tom’s Hardware; Steve Jobs Rumored Terminally Ill; Shares Fall; Jane McEntegart; February 2011, Fox News; Creating and Maintaining Your Brand; Susan Walker; May 2006. 2. If the quality deteriorates or supply of adulterated goods is increased due to brand popularity, the customer may switch over to other similar product. Another disadvantage of branding is that company’s scope become limited or in simple words company losses flexibility to some extent as consumer tend to associate a particular brand with particular product only and if the company sells some other product then it is not sure that the other product will perform equally well in the market. When we go to school and colleges the professor often asks to give an introduction of yourself so that all others can know your name and background in the same way in the corporate world there is branding. It affects the cost adversely. Consumers are often confused in in product selection on account of the methods of plethora offered in the market. If the quality deteriorates or supply of adulterated goods is increased due to brand popularity, the customer may switch over to other similar product.eval(ez_write_tag([[250,250],'googlesir_com-large-mobile-banner-2','ezslot_14',107,'0','0']));eval(ez_write_tag([[250,250],'googlesir_com-large-mobile-banner-2','ezslot_15',107,'0','1'])); Building up brand recognization and loyalty is very expensive. eval(ez_write_tag([[250,250],'googlesir_com-medrectangle-4','ezslot_6',101,'0','0']));eval(ez_write_tag([[250,250],'googlesir_com-medrectangle-4','ezslot_7',101,'0','1']));The situation becomes all the more difficult when all the brands carry as Assurance of similar quality and value satisfaction. Let’s look at some of the advantages and disadvantages of branding –. When the brand name becomes popular, manufacturers sometimes place in, 7. Advertising has to be done consistently as doing it occasionally does not result in producing the desired result of creating a brand image in the minds of the customers. On a small scale, a single individual may shoulder the responsibility for maintaining the brand, but larger companies need a brand division. Maintaining a brand entails tracking stories and comments about the brand in question, answering and addressing all concerns. Branding in a commercial environment, while expensive, passes costs to the consumer in terms of higher prices. A good brand reflects the benefits of a product or service and builds recognition and loyalty in customers. When pro football player Michael Vicks was arrested on charges of dog fighting and illegal gambling, the Atlanta Falcons cut him from his contract. Brand imposes responsibility for maintaining consistent quality and delivering proclaimed value satisfaction.

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