Branding Flashcards
What is Branding?
Branding is a business’ attempt to create a distinct identity for itself
How does branding influence consumer purchasing decisions?
Branding creates automatic associations in consumer’s minds, making them more likely to buy from that company due to familiarity
How is branding achieved by companies?
Most likely gained through promotion
What are the advantages of branding?
- Stimulates sales
- Weakens economic threats (sales remaining consistent through recessions)
- Adds value to the company
What are disadvantages of branding?
- HIgh costs
- Lack of flexibility (hard to react to social changes)
- Takes a lot of time and effort
How can branding aid new product development?
Having a strong brand aids consumer’s willingness to trust a company’s new products due to existing trust and familiarity
How can a strong brand name affect pricing strategies?
A company with a strong brand name can increase prices of their products due to the higher perceived quality of the company and trust.
How does good branding affect competition
A strong brand name can demotivate new competitors to appear
What advantage does a strong brand have during economic downturns?
Having a strong brand helps to maintain sales better during an economic downturn due to the fact that consumer trust the product
What is Product Branding?
The use of a Unique name, design or symbol given to a product
Own Brand product?
When the company’s name is associated with a product of theirs
Corporate branding
What is emotional branding?
It is the creation of brands that appeal to customer’s emotional side rather than their logical side
