Question

What is the importance of branding in marketing of goods and services.

Options

• Helps in Advertisement

• Enables Differential Pricing

• Facilitates introduction in New Products

• All of the above

Answer 1

All of the above

Explanation - 

The following principles emphasise the relevance of branding in product and service marketing.

1. Aids in Product Promotion: Branding aids a company's product promotion. A product cannot be advertised unless branding is done. A generic product advertisement can only raise awareness of the product category as a whole. It is unable to draw buyers to a single product. Advertisement for a branded product, on the other hand, aids in highlighting the product's unique attributes and benefits.
2. Allows Differential Pricing: Good branding aids in the creation of consumer loyalty to a product. Firms can take advantage of this devotion by charging a higher price for their goods than their competitors. For example, if customers become accustomed to using a product, they may be willing to pay a somewhat higher price for it.
3. Facilitates introduction in New Products: Good branding helps in establishing a base for the introduction of new product. A new product is launched under an established and reputed brand then, it gets an initial boost and benefits from the brand name. Nowadays, many companies such as Samsung, Cadbury, etc. have  multiple products under a single brand name.