Branding is defined in various ways. In the case of engineering, technological and high value products the brand name plays an important role. Customers are ready to pay premium for a brand due to the intrinsic value and trustworthiness attached to it. They trust particular brand that’s the reason they buy it. In business-to-business buying consumers or professional buyers rely on the strong and positive image of the brand.
The products or services these consumers buy have impact on their business and operations. Ethical branding enhances corporate reputation over a period of time, it helps them retaining their consumers and creating long term and strong relationship with consumers in the present competitive market place. There are several ways companies are operating in the global market. Company like Toyota has different strategies for developed countries and developing countries depending upon consumer group and market.
Consumers in country like Europe are more concerned about environmental friendly and fuel efficient products whereas consumers in developing countries are concerned about mileage and affordability. Toyota is one of the most reputed global brands for its ethical practices in every area from recruitment to branding. Consumers pay premium for the preferred brands. Positive brand image like ethical branding will definitely encourage consumers to buy the product over competitors.
It depends on the target consumers and market place where a company is operating whether or not, consumer will be ready to pay more for ethical brands. Different technological products and services like software, Operating Systems and E-commerce activities like banking and finance, high Technology products like pharmacy, biotechnology products consumers rely on the reputation and brand image for their buying decisions. The products where the consumer has low level of knowledge and high level of requirements consumer will probably take decision in favor of ethical and more reputed brand over the other.
A strong and positive brand image helps organisations to not only be on the top of the mind of consumers but also contribute to the long-term success of the product. This is the reason companies like Cola and Pepsi use advertising strategies to gain maximum of market share. Some companies adopt practice like they communicate themselves to be an ethical brand rather than adopting ethical practices. This limits realty of ethical branding. However, regulatory bodies, active consumer groups and other organizations keep an eye on such companies and their practices and investigate the matters.
Active consumer groups put pressure on the corporate to adopt ethical practices. Companies become more accountable for their acts with their ethical branding efforts. Consumers worldwide are being more sensitive about ethical practices adopted by companies and the numbers of consumers ready to pay premium for the ethical brands are growing. This phenomenon is encouraging professionals and engineers to adopt ethical practices and comply with the ethical branding campaign of their companies.
Ethical branding is more acceptable in the social groups where price sensitivity of the consumers is low. Professional engineers have many opportunities with ethical branding. The intellectual property rights will help them protecting their copyrights and patients, trade marks and trade secrets. They will have better protection for their innovations and will be encouraged to adopt ethical practices that can add value to the branding efforts.