A brand is considered as an aggregation of emotions and functions association of a certain product or service. It acts as a customer’s assurance that the product or service to be purchased will perform as anticipated. Brands are very important aspects of the business as they greatly influence the sale of products. Firms that possess strong bands do not face a lot of problems while marketing their products as a customer easily make decisions when buying products or services from such firms. Examples of such brands include Сoca-Сola and Virgin Airways. Companies invest a lot of resources to build their brands. This is essential since those firms that succeed in establishing strong brands create a competitive advantage over their rival firms. Building a brand for service-oriented businesses is more important than that of.
Companies build their brands from the kind of services or products they offer to their customers. Those companies that present very high services and products are able to establish strong brands that are long-lasting than their counterparts who offer inferior products or services. In those companies that sell services, the quality of their services is very important since it dictates whether they will be able to survive the completion or not. This is because most of these service businesses are luxury-oriented and thus not mandatory. Examples of such businesses include airways, salons, gym, and dry cleaners. Most of these services are things that one can do without or substitute since they are not necessities. For instance, one may postpone traveling using the airways if the services offered by the existing companies do not meet his/her standard. Similarly, individuals may consider washing their garments if the services they receive from dry cleaners do not meet their expectations.
Thus any company that plans to invest in service businesses should ensure that the services they provide to their clients are of very high quality. This is because most of the people that use these services look for quality when making their choices on where to purchase, unlike for products businesses whereby most people consider prices of the products when making their choices due to their poor economic status. They opt to buy substitute products if they realize that the price of the desired brand is higher, but this is not the case for service-based brands. Therefore brands that are service-based should ensure that very offer the best services over their rivals even if this the cost incurred will translate into a higher price for their prices.
On the other hand, brands that sell products are forced to compromise their qualities to enable them to sell their products at lower prices than their rivals. This is because most of these products are necessities that are common to all, and they maximize on quantity sold, which is often dictated by prices of their products more than their quality. Thus, it is common to see many companies that sell products thriving despite their brands being weak since they may be selling their products at lower prices, while some cases where those companies with strong brands do not perform very well as they might be selling their products at an elevated price. This is not the case with service-oriented industries. The nature of their brand is vital to market their services.
The position of a brand is another important element to consider as far as the success of any brand is considered. This entails the perception the customers have concerning a given brand. Strong brands are well-positioned and tend to win a greater market share. The positioning of brand results from the way the marketing department is successful in marketing its brand. A good marketing team can sell its brand successfully so that people are instilled with a positive perception concerning the brand. This is most important in situations where we have a first-mover advantage. This occurs in a situation where a brand is successful in establishing its brand in a certain market niche.
When this occurs, it becomes very difficult for any other brand from a different firm to compete with such a brand. This is made worse when the business happens to be service-oriented. For instance, many companies and especially mobile phone companies that sell air times, face a lot of problems to compete with such a brand since many people are not willing to change their mobile numbers even when they are offered better discounts by the new entrant brand. This is not the situation with brands that sell products as they are successful in surviving such a market. They copy the best elements of the dominant brand and offer their products at lower prices. Through this method, they are successful in establishing their brands eventually.