Why in some markets branding is more important than in others?

Branding matters less in markets where anonymity is ok.

Specifically — branding matters less in:

  • price sensitive markets;
  • markets where uniqueness does not play a major role.

The more close product is to your body — the more branding matters. No one would by no-name tooth paste or no-name lipstick.

Branding matters more in markets where:

  • uniqueness play major role;
  • it’s all about the loyalty and relationship;
  • important is trust (and safety);
  • emotions are important.

Airlines probably are greatly dependent on schedules and locations so indeed brands are of less importance there but on the other hand — airlines are HEAVILY branded — starting form airline-painting to airport lounges and costumes for personnel.

Branding does not consist of sales arguments only:

  • branding works internally by helping align organisation for particular goal;
  • branding gives sense of identity and moulds people together.

So even in the most rational market branding matters if you want your customer loyalty. For loyalty requires relationship but relationship is possible only between two personalities. And what branding does is that it efficiently creates personality customers can be loyal to.

The only only case branding has no role is when buyer completely:

  • does not care who made that product or where it’s from;
  • there is completely no reason to pay any premium because “better” or “safer” or “trustable” is completely impossible or does not matter.

I remember a friend of mine saying that bananas from slightly more premium supermarket taste better than those from the other one. Still they were coming from the same ship. All the tastes are made up in our mind. Take out human factor from the equation and — suddenly brands are of no importance any more.