The growth of completion and the increasing importance of packaging and advertising have made branding necessary for marketing. The practice of selling goods under a brand name brings advantages to manufacturers, wholesalers, retailers and consumers alike. More important of these benefits are described below:
Benefits of the manufacturers
1. Easy identify
Branding facilitates the manufacturer to isolate his product from those of others and then to make it popular in the market. Branded products enjoy spate status and identity.
2. Helps publicity
A brand aids advertising and display programs. It enables producers to publicize their goods and create awareness and preferences for their products.
3. To win competition
Once the branded product is properly advertised, producers can stand the completion in the market with great strength as customers prefer only branded product only.
4. Pre-sold goods
Due to national publicity, a branded product is willingly stocked by the retailers and distributors. Channel cooperation is greater for well-known brands. Also, a strong brand management allows the producer to make use of greater control of the channel.
5. Control over prices
The manufacturer can directly control the price of the article. Price comparisons are also reduced when customers perceive distinct brands.
6. Brand loyalty
Branding creates brands loyalty among consumers. A brand gives the product an image which plays a great part in product acceptance. This product neutralizes any price disadvantage that a product may have.
7. Price stability
A brand leads to stability of prices as every change in the price of a genuine product will not directly affect the price of a branded product.
8. Easy to sell a new product
A brand can be used to enter a new product category. It helps in expansion of a product line. If a new product is introduced under a known family brand, it enjoys the glory of previous products and gets off to an excellent start.
9. Product prestige
Product prestige is an increase, as social visibility becomes meaningful. Therefore a brand helps to sell an entire line of products.
Benefits to wholesalers and retailers
1. No selling efforts
Consumers often know and accept many branded products. They themselves come to the retailers for buying such products. Hence no efforts for promoting sale are necessary.
2. Less risk
Less risk is involved in the case of the branded product of a manufacturer for the retailer.
3. Good turnover of sales
In the case of products with manufacturer brands, less time is required to sell them. This may help in the turnover of sales in retail shops.
4. Standards for quality
Quality standards are fixed or branded products. In another way, branding aids in standardization of managing quality and saves retailer’s trouble in choosing and buying his stock
5. Steady demands
Distributors are assured of a more or less steady demand for the branded products which have been brought to the notice of the consumers.
Benefits to consumers
1. Quality assurance
Customers are secure that a product has a certain level of quality and that they will gain comparable quality if the similar brand is recorded. Manufacturers also remain alert to maintaining the quality of branded products.
2. Not charged higher prices
Prices of branded products are fixed by the producers and they are well advertised. Consumers also knew what the price is. Thus, it is not possible for retailers to charge higher prices for demanded products.
3. Easy availability
Retailers have to keep in ready stock goods of all popular brands. Hence, the consumer has conveniences to get such products whenever they desire.
4. No cheating
The firm responsible for the product is known. The producer of unbranded items cannot be directly identified.
5. Less risk
Consumers feel less risk when purchasing a brand with which they are familiar and towards which they have a favorable attitude.
6. Status satisfaction
Most consumers perceive branded products as conferring status or prestige. This fulfills their status needs.
7. Protected and unadulterated product
Branded products are usually sold in sealed packages. Hence, they are protected from heat, moisture, and dust. Adulteration is also not possible in the case of branded products.
8. Stability in price
The retail prices of branded products are maintained steady because it is not beneficial for producers to change the price as frequently as those of unbranded products.
Other Assignments
