Branding involves decisions that establish an identity for a product with the goal of distinguishing it from competitors’ offerings. In markets where competition is fierce and where customers may select from among many competitive products, creating an identity through branding is essential. It is particularly important in helping position the product (see Product Positioning) in the minds of the product’s target market.
While consumer products companies have long recognized the value of branding, it has only been within the last 25 years that organizations selling component products in the business-to-business market have begun to focus on brand building strategies. Intel, maker of computer component products such as computer chips, was one of the first business market companies to brand its products with its now famous 1990s “Intel Inside” slogan. Intel’s success has led many other business-to-business marketers to incorporate branding within their overall marketing strategy.