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Definition Of Branding :-

Literature gives several definitions of the term brand. The commonthemes are that a brand is more than just a combination of a name, a design, asymbol or other features that differentiate a good or a service from others. (Dibb1997). It is a unique set of tangible and intangible added values that are perceivedand valued by the customer. In addition a brand is said to have personality, anemotional bond to the customer that grows out of the perceived characteristics.

Meaning :-

Branding

A brand is a name, term, sign, symbol, or design intended to indentifygoods and services of one seller or group of sellers and to differentiate them fromthose of competitors. All organizations and their products can be considered brandsonly that these brands differ success- some brands are better known and respectedthan others, even though this success is not a permanent feature.

Marketing communication aims at developing and delivering messages on differentobjects like products, services, stores, events or even people. All these objects canbe described as brands. A well known and respected brand is an asset. The brandenables an organization to enjoy economies of scale , creates barriers to entry forcompetitors, and differentiates a companys produ cts from those of competitors.

From a consumers point of view, brands offer an assurance of consistentperformance, and provides signals of benefits whatever benefits (such as prestigeand status) for users that consumers seek when buying such a product.

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Branding is the new key challenge in the financial services industry. Lifein the 21st century will be longer with more choice in more fields of activity. Thefinancial consequences of an increased life span are particularly likely to be tough.Inevitably, this will lead to more complexity which in turn necessitates greaterclarity and appeal from the service providers.

Branding is more relevant in the financial services market which not only faces theproblem of securing and retaining customers in an increasingly competitivemarketplace but also experiences the need for heightened relevance of the brandproposition in a world where brand has been termed the new religion.

Focus and strategy are essential to the development of brand in any sector but theless tangible world of financial products historically has escaped the brandingissues that have governed development and culture in other industries.

If there was one industry which least considered branding as an essentiality itwould be the insurance industry. It was always felt as an abstract service or afallback, more like a safety net. But it is more often than not sold throughintermediaries who have already done the task of sifting through competitiveproducts to select the most appropriate one.

But with liberalization of the industry, players have to realize the need for brandingin a competitive environment. Insurance companies need to strive for greatercustomer focus regardless of whether the customer is the end user or the

intermediary.

The global insurance industry itself is witnessing a period of consolidation andcompanies are thinking about how brand equity can work to their advantage. TheEuropean trend for banc assurance that created giants like AXA and Winterthur seta precedent followed in Lloyds TSB's acquisition of Scottish Widows.

But in turn, increased competition and customer choice mean greater expectationsand the medium of channel delivery cannot be overlooked. With the Internetredefining the way business is done, the brand proposition needs to be convincingin a new dimension. In cyberspace, clear corporate branding is even more vital inthe absence of physical presence and issues of trust and reliability are moreimperative.

In India, the LIC has been successful in creating a strong brand. In rural India, theLIC is especially synonymous with insurance. But in the wake of competition ithas to do a considerable brand building exercise at least in urban India.

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On the other hand the general insurers have a lot of work to do. There is hardly anybrand identity and leave alone loyalty. If the general insurers do not realize theimportance of branding they would be definitely knocked off their feet by thestrong foreign brands.

Adequate time, investment and longer-term management of the brand are essential,not only for success but also survival. All brands need to be built around well-differentiated and credible positioning that springs from the organizations history.The brand must not only be believed but lived by management and employees.

An additional factor is the strong sales orientation that defines the way insurancecompanies operate. More often than not the industry fails to be marketing-driven.Equally, lack of direct contact with the end user compounds targeting difficultieswhich leads cyclically back to the question of whether the brand should be focused

at the intermediary or customer.

Finally the same principles apply whether it is branding a cigarette or an insurancecompany. Customers want and expect good service. They need to be presentedwith credible and attractive propositions that deliver value whether it is aneveryday or once-a-lifetime option.

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