Purpose of Corporate Branding


There are many people in business that have not fully grasp the importance and purpose of corporate branding. A few would view it as pure capriciousness and a total waste of company resources. But behind the overstated and highly embellished fa├žade of a corporate brand, lies as carefully and scrupulously conceptualized idea designed to generate more interest from the buying public.

However, creating awareness and interest is not only the sole purpose of corporate branding. Unknown to many an effective brand name of a product or service is not a short-term project that has to be conceptualized and developed, introduced to the market and that’s it. It is a constant and ongoing process, a steady interaction between the consumers and the company. This is another purpose of corporate branding – accumulating and gathering collective impressions in the mind of consumers and somehow nudge them into buying and choosing the product or service over the other competitors.

Since everyone would agree that the buying community could be quite fickle, a company should be sensitive to even the slightest erratic change. If for example the company has worked on over the years to create an image of supreme excellence but with a slightly more expensive brand. However, if consumers have began to put more priority to the affordability rather than the durability, the potential market for the said product would marginally decline. The company has to work on changing the consumer’s impression of the product if they ever hope to retain a significant fraction of their market share and at the same time still compete with other brands.

By creating a very strong corporate identity based on the concept of how you would want to portray a particular product or service to consumers, one can say the company has certainly maximized the most important purpose of corporate branding. Having established a certain reputation will not be enough. Through the years, a lot of companies have made some very costly mistake of neglecting and failing to maintain their identity in the consumer market. And once subtle changes have developed on the perceptions of a certain brand product, it can be quite difficult to undo the damage and would often require a lot of money.


Undoubtedly, corporate branding is a very important tool in the world of business marketing and advertising. When properly handled and maintained, it can prove to be one of the greatest asset of the company. This is the reason behind the flourishing of the franchising business. Instead of simply putting up a new product or service and introducing it to the market, some businessmen are more than willing to pay a hefty amount of money for the intrinsic value of the brand name of the product.
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