1.3.2 Branding

Question 1

What is branding

Answer 1

Branding refers to any feature that allows consumers to instantly recognise the product and differentiate it from those of competitors e.g. name

Question 2

What are the three types of branding

Answer 2

Manufacturer brands - created by the producer
Own-label brands - products manufacture red for retailers by other firms
Generic brands - products sold with only the actual product name

Question 3

What are the advantages and disadvantages for the consumer of manufacturer brands

Answer 3

Advantages:
- Customers feel more comfortable buying recognisable brands

Disadvantages:
- Consumers are charged a higher price

Question 4

What are the advantages and disadvantages for the producers of manufacturer brands

Answer 4

Advantages:
- Branded products can command higher prices than non – branded
- Businesses therefore can expect higher profits

Disadvantages:
- Product branding may require a high investment, increasing costs
- Product branding may take many years to build up

Question 5

What are the advantages and disadvantages of own-label brands for consumers

Answer 5

Advantages:
- Cheaper for consumers
Disadvantages:
- Store brands are of varying quality

Question 6

What are the advantages and disadvantages of own-label brands for producers

Answer 6

Advantages:
- Boosts customer loyalty to the supermarket
- Competes well with manufactures’ brands
- Fills gaps left by the competition
Disadvantages:
- Profit margins may be reduced due to lower prices

Question 7

What is rebranding

Answer 7

A marketing strategy in which a new name, symbol, design is created for an established brand.

Question 8

What is the aim of rebranding

Answer 8

To develop a new, differentiates identity in the minds of consumers, investors or competitors

Question 9

What are the beneifits of strong branding

Answer 9

Added value
Ability to charge a premium price
Reduced price elasticity of demand

Question 10

What are the 4 ways to build a brand

Answer 10

Develop a USP
Advertising
Sponsership
The use of social media

Question 11

What is viral marketing

Answer 11

Any strategy that encourages people to pass on messages to others about G/S or a firm.

Question 12

How does social media effect branding and promotion

Answer 12

Companies are increasing their social networks

Question 13

How do companies use emotional branding

Answer 13

The practice of using the feelings, needs & aspirations of consumers to build a brand.