Question

What are the advantages of branding?

Answer 1

1. Branding clearly differentiates a product from others. Thus it protects the interests of the manufacturer and increase the chances of consumer recall.
2. If properly promoted, brand name creates confidence in and goodwill for the product and allow for the establishment of a family of closely associated products with the same brand name. For example, Dabur honey, Dabur red toothpaste, Dabur lal tel and Dabur chyawanprash.
3. It reduces the price elasticity of demand as consumers are shown to have preference for well-known brands. Loyalty to certain brands is a major marketing benefit. It widens the market for the products.
4. Branding helps consumers to identify and recognise a product hence, they cannot be fooled by dishonest traders. Brand promotion saves the people's valuable time and efforts involved in purchase of the goods.