Introduction
Branding is a tool effectively used in marketing for an organization to succeed. Branding entails; choosing the brand name, coming up with an advertising method that will bear the name, and ensuring that the brand continues to have a dominant position in the market. ( Keller et al,2019).In this essay, we will emphasize how different branding levels, that is, brand equity, customer satisfaction, and internal branding contribute to organizational profitability.
Brand equity
Brand equity is of great importance when finding royal customers. According to (He et al. (2020), brand equity is how customers understand, perceive, and become aware of the products and services an organization produces. There are two ways in which brand equity affects an organization’s production. One, brand equity involves a lot of organizational innovations (Matthyssens, 2019). These innovations can improve speed and efficiency in product development, improving organizational performance. High brand equity persuades customers to pay an installment for the product or service, enhancing its brand performance (Nana et al.,2019). Second, brand equity enables an organization to create an economic value that no other branding organization could create, giving a firm a competitive advantage (Poturak & Softic, 2019). Brand equity, therefore, gives merit to the organization by improving the products hence organizational profitability.
Internal branding
Internal branding is usually applicable to the administrative staff. Staniec et al. (2021) define internal branding as a constant process to inform current and future employees that the workplace is desirable and has many benefits; this will increase employee loyalty and dedication. When organizations aim at employee satisfaction, constructive effects on profitability are observed (Khaskheli et al., 2020). An organization does internal branding by involving its employees in long-term assignments (Qaisar & Muhamad, 2021). Long-term engagement of employees in the brand-building process positively impacts the brand’s qualities. Therefore, Internal branding is a method of cultivating high-level employee performance, resulting in employee satisfaction and organizational profitability.
Customer satisfaction.
The extent to which customers are satisfied depends on an organization’s ability to meet the customers’ expectations. Customer satisfaction helps an organization find loyal customers (Lie et al., 2019). Lie et al. (2019) say that when consumers are satisfied with the product or the service, they will most likely return and make another purchase. The continuous buying done by the consumer builds a long-term relationship between the customer and the product (Pei et al.,2020). Satisfaction with previous buying, therefore, plays a significant role in establishing a future purchase practice (Dangelico et al.,2021). Therefore, Greater customer satisfaction creates a continuous purchase behavior vital to organizational profitability.
Conclusion
Branding plays a vital role in the profits of any organization. An organization earns many returns through brand equity when customers pay installments to the products with stronger brands, hence an increased profit. Also, when customers are satisfied with a product or a service, they become loyal. Loyal customers have a behavior of purchasing the product continually. The continued purchase of a product by a customer adds to organizational profitability. In internal branding, employee engagement gives the staff unusual satisfaction in the organization, which leads to effective and efficient production and positively impacts an organization’s profitability.
Reference
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