branding

Question 1

what is branding?

Answer 1

• branding is the name, logo or symbol given to product

• it distinguishes a product from competitors

• makes a product instantly recognisable

• its linked to quality and reliability

• attracts loyal customers - keep coming back

Question 2

why would a firm brand?

Answer 2

• so it is recognisable to customers - customers distinguish them from competitors

• to encourage customers to become brand loyal so they repeat buy the same brand - this can increase market share

• higher prices can be charged because people see them as higher quality - this can increase sales and profits

• if the brand is well know then products can be introduce into the market easier - this means a business may no + have to do as much advertising or promotion

Question 3

what happens when branding goes wrong?

Answer 3

• if a product within the brand is poor or gets a bad reputation then this can damage the reputation of the whole brand name. thus resulting in reduced market share, reduced sales and reduced profits

• fakes - some people copy brands and produce fake products. some consumers think this is a real branded and it is not

• establishing a brand is time consuming and expensive. this might have an impact on the profitability of the business as a lot of money will be spent on this process