a) What is branding? b) State three advantages of branding to each of the following: Manufacturer; Retailer; Consumer

(a) What is branding?

Branding is the practice of giving a product a distinctive name, mark, symbol, sign or design (or a combination of these) that identifies the goods of one manufacturer and distinguishes them from those of competitors. Examples of brand names are Peak, Omo and Coca-Cola.

(b) Three advantages of branding

To the Manufacturer

• It distinguishes his product from rivals' goods and builds customer loyalty, leading to repeat sales.
• It aids advertising and sales promotion, since the brand name is easy to advertise and remember.
• It enables the manufacturer to fix and maintain his own price and to build a good reputation (goodwill).

To the Retailer

• Branded goods are easy to sell because they are already known and demanded by customers, reducing selling effort.
• They reduce the need to weigh, measure or grade, since they come pre-packed and standardised.
• Advertising of the brand by the manufacturer helps the retailer to sell more with less cost.

To the Consumer

• It makes it easy to identify and ask for a product of consistent, known quality.
• It guarantees uniform quality, so the consumer knows what to expect each time.
• It simplifies shopping and, through competition among brands, can help keep prices reasonable.