*brands and own brands

Question 1

what is a brand?

Answer 1

a logo, name or symbol that is given to a product that makes it instantly recognisable

Question 2

advantages of branding

Answer 2

• higher prices can be charged for branded products
• generate “brand loyalty” and mean greater sales
• perceived to be of a higher quality
• instantly recognisable
• reduce need for advertising
• make it easier for businesses to launch a new product under the same brand as they are perceived to be of high standard and reliable

Question 3

disadvantages of branding

Answer 3

• if a product within the brand develops a poor reputation it can damage the whole brand name
• establishing a brand is a time consuming, lengthy and expensive process

Question 4

what is an own brand?

Answer 4

products sold under the same name of a supermarket or other retailer, rather than under the name of the manufacturing firm

Question 5

features of an own brand

Answer 5

• often cheaper than branded products
• often seen of inferior quality
• appeals to the sector of the market to whom price is important