The definition of branding that makes most sense to me comes from the textbook. A brand makes a promise by portraying the product’s personality, which is reflected on the people who buy it. It’s a shorthand for all the product’s attributes, which can either be good or bad. It’s all the emotions, thoughts, images, history, possibilities and gossip that exist in the marketplace about a certain company.
Companies that are competing on price means their branding strategy isn’t sufficient, and work needs to be done. If price competition is the only way your company is keeping sales then they have shied away from what brand strategy truly consists of. The company has forgotten about the products position, personality and promise to its customers. In such a situation, customer loyalty will become an issue at an alarming rate. At this point, the company needs to start thinking of ways to differentiate their brand and stay ahead of the competition.
There are all kinds of companies that don’t need to spend a bunch of money on branding. One that specifically pops in my head would be a generic brand. Such a company isn’t going to out-beat their non-generic competitors, so why spend a bunch of money to brand your company. Generic brands know their place in the marketplace, and so do the consumers who buy their products.