The humans have frequent needs as well as occasional needs in the life. They are varied in number of ways such as day-to-day living needs, social needs, health and medication needs, contemporary lifestyle needs, to name a few. According to this need-based market segmentation, the brands are diversified in different sectors such as personal care, home care, commodities, entertainment, healthcare, pharmaceutical, luxuries, and services.
Basic Approaches of Branding
There are two basic approaches of brands according to ownership −
| Manufacturer’s Brands | Private / Store Brands |
| They are created and owned by the producers. | They are created and developed by retailers, distributors, or wholesalers. |
| Manufacturer promotes its own brand extensively. | The retailer does not promote one single brand extensively. He can put the products of different brands on the shelves. |
| Their budgets of research and development, ads, sales promotion, distribution channels depth etc. are huge. Hence, there can be less profit margin. | There is very less budget allocated for ads. Similarly, research and development, distribution channels depth are lower. Hence, these brands can have higher profit margins. |
| They are more advanced and work innovatively on manufacturing technology. | There is no manufacturing technology involved, hence they can be less innovative. |
| They do not communicate with the consumers directly. | They work very closely with consumers, hence they have a better idea on what consumers demand. |
The brands can be further categorized depending on the human needs or the context as given −
