Question

Brands are used in business, marketing and advertising for recognition and to create a store value. Based on this statement list any five advantages of branding.

Answer 1

1. Branding helps consumers to identify and recognise the product. It simplifies, therefore, purchase and sale and reduces the time and effort involved therein.
2. Branding is a means of differentiating the product from the competitors' products. A producer can create a marked preference for his product (brand loyalty) by constantly repeating the brand name to the public.
3. Branding is the basis of advertising and other techniques of mass selling. Gradually, the brand itself becomes its own advertisement. Dalda, Coca-Cola and Lux have become household names because of brand advertising.
4. Branding helps to minimise selling costs by reducing dependence on middlemen. Dealers are ready to handle branded products at lower margins.
5. Branding ensures uniform standards of quality and design to consumers.
6. Prices of branded and standardised products are fixed by the manufacturer. They are printed on the product and become well-known to consumers. As a result, unscrupulous retailers cannot exploit consumers by overcharging.
7. Branding tends to widen the market as need for inspection and sample is eliminated. Goods can be sold by description and they fetch better pnces.
8. Branded products are invariably packed which prevents adulteration and helps to preserve the quality of the product. A registered brand becomes the exclusive property of its owner and protects him from imitations.