Explain the importance of brand to the various sections of the society.
Explain the importance of brand to the various sections of the society.
Or
What are the advantages of brand names? Discuss.
Ans.
Selecting the brand name and logo is the first task in brand management. The brand names have their own advantages which are outlined below:
(1) Advantages to the Manufacturers: The first advantage to manufacturer is that the brand name provides an identity to the product. It distinguishes it from the substitutes in the market. A soap is soap like others but Lux is a distinguished quality soap manufactured by Hindustan Lever Ltd.
It saves the advertising cost if the brand name becomes popular. Dalda vanaspati does not need to be advertised very often. The name has become so popular that it has become a synonym of vanaspati ghee.
In case the brand name is properly promoted brand name creates confidence in and good will for the product. Even a child knows that Good Knight is an effective mosquito repellant and Cherry blossoms a trusted polish:
Because of its popularity the brand name widens the market for a product. It does not need much convincing on part of a marketing man.
(2) To Advantages to the Consumers: To customers it affords an easy way for purchase by easily identifying the product. Most companies select brand names which communicate the functions or key features of the product, For Example.
Good Knight – the mosquito repellant offers a good night’s sleep. Boost is the energy booster drink. Fair and Lovely promises fair and lovely skins. Quick fix the gum that fixes quickly. The brand indirectly assumes certain quality by identifying the manufacturer behind it. Some of the most famous brand names belong to this category; Bata, Cadbury’s, Samsung, Philips and Lipton are good examples.
The brand names indirectly assure fixed prices. The consumer knows that though there is no scope for bargaining, he can expect good value for the price paid by him.
(3) Advantages to the Distributors: Widely popular brands make the selling process easier for the distributor. He does not have to exert much efforts to sell them because the brand name itself leads to large sale. The brand name also helps in advertising because advertisement does not need an elaborate copy. Only a small insertion is sufficient in a newspaper. The distributor can easily sell out the quick moving products. He can expect a quick and large turnover on his investments. Moreover the brand name reduces price flexibility and reduces the risk in business.
The distributor does not have to make special selling efforts because a known name itself sells. The cost of distribution is naturally reduced. The saving of the cost of distribution means extra profits.
(4) Advantages to Retailer : Same is the case with retailer as well Brand itself sells and the retailer is saved from exercising his efforts to convince the customer who himself comes to the retailer with reputed brand names on his lips.
