3.3.4 (Branding) Making marketing decisions: using the marketing mix

Question 1

Define branding.

Answer 1

The process of differentiating a product from its competitors, through the name, sign, symbol, design or slogan linked to that product.

Question 2

Outline the benefits of demand.

Answer 2

Increased demand.
Increased price.
Reduced competition.
Protection against downturns.

Question 3

Outline how increased demand is beneficial.

Answer 3

Will attract more consumers and therefore increase the volume of sales - giving opportunities to produce on a large scale and reduce unit costs - this leads to a higher profit margin on the branded product.

Question 4

Outline how increased price is beneficial.

Answer 4

Popularity makes it more valuable - convince consumers that there is no close alternative because the product is so well differentiated from its competitors - can increase price without losing customers.
Price increase - increased value - higher revenue - costs cut (reduced sales volume) - fewer products need to be produced.

Question 5

Outline how reduced competition is beneficial.

Answer 5

Brands can become so popular - eliminate or take over competitors. Create barriers to entry, discouraging small competitors from entering the market.

Question 6

Outline how protection against downturns is a benefit.

Answer 6

Popular brands can survive recessions and economic difficulties more than others - customers will buy known trusted products.

HR will find it easier to recruit staff - popular to work at well known companies.