Chapter 4

Question 1

Brand

Answer 1

A brand identifies the seller of the product to the market by means of a name, term symbol, design or a combination of it.
Branding is critical to any company because it differentiates its products/services from those of its competitors.
Branding has become so important that even fruit is branded in an attempt to gain a competitive edge.

Question 2

Components of a brand

Answer 2

Brand name
Brand mark
Brand slogan

Question 3

Trademark

Answer 3

A trademark can be a brand name, a brand mark, a symbol, a logo or a slogan that is registered and protected for the exclusive use of the owner.
Trademarks can be identified by the symbol “®”

Question 4

Copyright

Answer 4

A copyright, however, is the exclusive legal right to reproduce, publish and sell the matter and form of a literary, musical or artistic work. Copyright is identified by the symbol “©”.

Question 5

Brand equity

Answer 5

It is the monetary value of a brand and, a model of brand equity consists of brand awareness, perceived quality, brand association and brand loyalty.
If managed correctly, this can become a valuable asset to a company.

Question 6

Advantages of Branding

Answer 6

Branding has certain advantages for the customer. These include product identification, communication of features and reducing the risk in purchasing.
It also has certain advantages for the supplier such as assisting with new product launches and aiming the product at a particular segment of the market.

Question 7

Disadvantages of Branding

Answer 7

The disadvantages include quality maintenance, creation of demand and legal responsibilities.

Question 8

The three major types of branding in the:

Answer 8

generic brands
manufacturer or retailer brands
family or individual brands

Question 9

Generic brands

Answer 9

Generic brands are low-cost products with no identifiable branding. An example of such a product would be a box of tissues with only the word “Tissues” written on it, with no retailer or manufacturer name, or “Cola”, as indicated in the image below.

Question 10

The retailer or manufacturer brand

Answer 10

The retailer or manufacturer of these products is clearly indicated on the packaging.
An example of a manufacturer brand would be Nestlé products.
Nestlé manufactures a variety of products such as Nestlé Mineral Water, Nestlé Ice Tea and Nestlé Kit Kat.
Examples of retailer brands would be the Woolworths range of products. Woolworths has a variety of products such as food, clothes and cosmetics.

Question 11

Family brands

Answer 11

Family brands are all clearly associated with the same family but are different products (eg Sunlight liquid and Sunlight soap by Unilever). Individual brands are manufactured by the same company but have different marketing strategies for each product.
An example of individual brands would be Coke, Sprite, Fanta and Coke Light, which are all manufactured by ABI.

Question 12

Brand extensions

Answer 12

Manufacturers or retailers that have established a successful brand sometimes make use of brand extensions.
Because developing a successful brand is extremely expensive, retailers and manufacturers use brand extensions to extend the brand name to other products.
Customers will then link the successful product’s brand to the new product.