Course Hero 22

Course Hero 22 - packaging can be protected through...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
1 . Describe the functions a brand provides for the firm. A brand is a name, term, sign, symbol or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competitors. A brand is thus a product or service whose dimensions differentiate it in some way from other products or services designed to satisfy the same need. For example, Coke, Nestle and Microsoft are well renowned brands. In technical speaking whenever a marketer creates a name logo symbol he or she has created a brand. Brands really matter for both consumer and manufacturer. First, they simplify product handling or tracing. Brands help to organize inventory and accounting records. A brand also offers the firm legal protection for unique features or aspects of the product. The brand name can be protected through registered trademarks; manufacturing processes can be protected through patents; and
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: packaging can be protected through copyrights and proprietary designs. These intellectual property rights ensure that the firm can safely invest in the brand and reap the benefits of a valuable asset. Brands signal a certain level of quality so that satisfied buyers can easily choose the product again. Brand loyalty provides predictability and security of demand for the firm, and creates barriers to entry that make if difficult for other firms to enter the market. Loyalty also can translate into customer willingness to pay a higher price – often 20% to 25% more than competing brands. Although competitors may duplicate manufacturing process and product designs, they cannot easily match lasting impressions left in the mind of individuals and organizations by years of product experience and marketing activity. In this sense, branding can be a powerful means to secure a competitive advantage....
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online