What is meant by 'branding'?

Branding refers to the creation of a unique identity for a product, which encompasses elements such as the name, logo, design, and overall messaging. This identity helps to differentiate a product from its competitors in the marketplace, allowing consumers to easily recognize and connect with it. Effective branding establishes an emotional connection with consumers, builds trust, and fosters loyalty, ultimately influencing purchasing decisions.

The significance of branding lies in its ability to convey a product's values, quality, and purpose, thus creating a perception that aligns with the target audience's preferences and needs. A strong brand identity can create lasting impressions and, over time, can lead to higher market share and profitability.

Other options, while important aspects of marketing, do not capture the essence of branding. Establishing a product's price, developing physical features, or planning marketing budgets are all crucial business activities, but they do not focus on creating the unique identity that defines a brand in the eyes of consumers.