Branding
A business will brand its products so that those products have a strong identity. This makes the product more recognisable to customers and making it stand out from competitors.
Well known products often have memorable brandingThe process of creating a unique name or image in the mind of the consumer.
Branding uses and promotes logos, slogans and unique design. The image of the brand is all important and this image is created through advertising. Brands cost a lot of money to build up.
Branding is often associated with delivering a high quality product. This can relate to premium or in some cases luxury items. For example Rolls Royce or Gucci are brands that are presented as luxurious and therefore expensive to buy.
Branding can also be used to promote cheaper products or budget services. A customer paying for an inexpensive hotel room will still expect a certain level of comfort and cleanliness from a trusted budget brand but won鈥檛 expect the same level of service or comfort found in a branded luxury hotel.
Advantages | Disadvantages |
Customer loyalty | High advertising costs |
Good image | One mistake can tarnish brand reputation |
Premium pricing | Loyalty can be fickle |
Can add to family of products |
Advantages | Customer loyalty |
---|---|
Disadvantages | High advertising costs |
Advantages | Good image |
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Disadvantages | One mistake can tarnish brand reputation |
Advantages | Premium pricing |
---|---|
Disadvantages | Loyalty can be fickle |
Advantages | Can add to family of products |
---|---|
Disadvantages |