Question

Enumerate any four advantages of branding.

Answer 1

Following are the advantages of branding:

(i) Enables marking product differentiation: Branding helps a firm to distinguish its product from the other competing products available in the market.

(ii) Helps in advertising and display programmes: Without a brand, the advertiser cannot promote and create awareness for and sale his product.

(iii) Differential pricing: By building brand acceptance and brand loyalty, a firm can change a different price for its product than that of its competitors.

(iv) Ease in the introduction of a new product: If a new product is introduced under an established brand name, it is likely to be accepted easily and get a quick start.