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Question
State any two advantages of branding to marketers of goods and services?
Solution
Branding implies giving a unique name, sign, symbol, or term for the identification of a product. The following are the advantages of branding to marketers.
- Branding enables a firm to distinguish its product from the product of other firms.
- It facilitates the advertising of the product. Only when a product is given a brand, it can be advertised and thereby, attract customers. A product with a generic name cannot be advertised.
- Through good branding manufacturers can create loyalty and habitually for their product. Thereby, the firm can benefit from this and charge a different price for its product.
- It helps in establishing the base if a new product is to be launched. This is because if a new product is launched under a good and established brand, it is expected to get a good boost and benefit from the reputation of the brand.
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RELATED QUESTIONS
ABC Crackers Ltd., a fire-cracker manufacturing company launched some new products on the eve of Diwali in the market, which attracted many buyers. To meet the increased demand, the company employed people from nearby villages where there is a lot of unemployment. Because of the good behaviour of the management with the employees, more and more people wanted to join the company. As the products were in great demand in the market, a competitor imitated the products. The products of the competitor were not accepted by the consumers as it was a status symbol to buy the products of ABC Crackers Ltd. because of their quality.
1) Identify and explain the product-related decision because of which consumers preferred the products of ABC Crackers Ltd
2) Also, identify any two values which ABC Crackers Ltd. wanted to communicate to the society.
How does branding help in differential pricing?
How does branding help in creating product differentiation? Does it help in marketing of goods and services? Explain.
Answer the following question.
JTM Ltd. launched 'Buddy line', an exercise book and comprehensive stationery brand name comprising of ball pens, gel pens, and geometry boxes after identifying the target market and understanding the needs and wants of the consumers of that market. All their products were of good quality and eco-friendly but expensive. They wanted to distinguish their products from that of their competitors. They spent a lot of effort, time, and money in creating the brand name, as they knew that without a brand name, they can only create awareness for the generic products and can never be sure of the sale of their products. The effort paid off and the demand for the products started growing. The customers liked the brand and became habitual to it. They did not mind paying a higher price. Over a period of time, it became a status symbol to buy the 'Buddy line' brand because of its quality. The consumers felt pride in using them.
Explain the advantages of branding to the marketeers highlighted in the above case.
Which of the following is the example of Dunlop?
A brand or part of the brand that is given legal protection is called ______.
What are the characteristics of a good brand name :
What is the importance of branding in marketing of goods and services.
That part of a brand which can be recognised but which is not utterable is called ______.
A name, term, sign, symbol, design or some combination of them used to identify the products — goods or services of one seller or ‘group of sellers and to differentiate them from those of the competitors is known as ______.
