. What are the merits and demerits of branding?
4 years ago
Marketing
Merits:
Branding as a product decision is beneficial to both consumers and producers.
Consumers:
- It helps in identifying the product.
- It helps in differentiating the product from rival’s product.
- It ensures a good quality product to the customers.
- Easy recognition of the product is possible through branding in stores and shops
- Purchase of a branded product provides psychological satisfaction to the consumers.
Producer:
- It provides the product a distinct identity.
- Seller gets a competitive advantage over other rival products.
- A good brand name helps in introducing a new product in the market.
- Brand loyalty amongst the consumers helps the company to cut down its marketing cost.
- Seller gets a higher price, as the brand has a higher perceived value.
Demerits:
Consumers:
- Brand development is a costly process and therefore branded products are costly.
- Too many branded products, many times confuse the consumers.
- Once the brand is established, seller may bring down the quality and standard of the product.
Producer:
- Seller is forced to maintain the quality and standard of the branded products otherwise buyers will switch to other brands.
- It is necessary for the produce to invest sufficient resources in promoting the brand name.
Susmita Sah
Jan 17, 2022