Branding Essay Example | Topics and Well Written Essays - 250 words - 2

Branding - Essay Example In fairly competitive product/service market, product branding is an essential marketing tool for building consumer trust and loyalty on a product (Aronczyk and Devon 75). The concept of branding would is a marketing principle that is used by companies both in the product and price competitive industry. However, depending on the nature of competition in the market place, the effectiveness of branding is determined by either price or commodity nature of competition. In a price-competitive market economy, product branding is rendered ineffective since it is cost-ineffective. This is because consumers are price elastic, therefore, they are more sensitive to price differential property that to building image and brand loyalty. This implies that in a price competitive market, unlike product competitive market, consumers’ purchasing parity and choices are highly influenced by their ability to buy and hence product insensitive (Aronczyk and Devon 56). Advertising or any product promotional methods aimed at winning consumer’s trust and building product image among the consumers is uneconomical in a price competitive market but effective in a com modity competitive