Question

State any two advantages of branding to marketers of goods and services?

Answer 1

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.

1. Branding enables a firm to distinguish its product from the product of other firms.
2. 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.
3. 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.
4. 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.