1.3.2 Branding and promotion (2/2) - Branding

Question 1

Branding

Answer 1

A characteristic, name or symbol that allows customer to distinguish your product/service from another supplier/competitor

Question 2

Manufactured brands

Pros and cons?

Answer 2

Brands created by the producers of goods and services

e.g walkers crisps, Kellogg cornflakes ( It’s not fake stuff like fake Nutella + cornflakes you see at Aldi)

Question 3

Own label brands

Pors and cons ?

Answer 3

products that are produced and stocked for and by a particular retailer and cannot be bought elsewhere.

e.g tesco beans, Aldis flakes ( Btec cornflakes)

Question 4

Generic brands

Answer 4

products that only contain the name of the actual product e.g aluminium, foil , carrots

Question 5

Benefits of strong branding

1) elasticity

2) recognition

3) Pricing

4) loyalty + values

Answer 5

• Reduced price elasticity - if you have a strong brand a price increase will not affect demand because customers will still be loyal to you (they’ll be willing to pay no matter what to be associated with you e.g nike, apple)
• Customer recognition - strong brand builds customer recognition. When shopping for a product customers are likely to go for a product that they recognise instead of one they are unfamiliar with
• Ability to charge premium pricing. Customer loyalty has been built over time so you can charge more than your competitors. e.g you buying a nike tracksuit.
• Customer loyalty + values. Creating a strong brand that conveys certain values means customers are likely to be loyal to you and less likely to go to substitutes e.g Nike ‘just do it’ . ( motivational + pushing you to limits)

All this leads to competitiveness

Question 6

Ways to build a brand (4)

Answer 6

1) Develop a USP - if a product has a USP it’s much easier to differentiate the brand and make it “stand out from the rest”

2) Advertising - Spreads the work that your brand is out there.

3) Sponsorship - pay ppl/events to use + advertise your brand.

4) Social media - You can advertise and get exposure on apps.

Question 7

What does the advertising do?
What’s the aim of it?

Answer 7

• Spreads the word about a brand
• Communicates functional message of the brand and any values attached to the brand that consumers might identify with.

the more the consumer identifies with the brand the more likely it is they will purchase

Question 8

Benefits of using social media (3)

Answer 8

1) Builds trust - A social media presence suggests businesses care about customers

2) get massive exposure

3) Can interact with customers easily