C advantages to consumers 1 consumers cannot be

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(c) ADVANTAGES TO CONSUMERS 1. Consumers cannot be charged higher prices by the retailers. Prices of branded products are fixed by the manufacturers and they are well advertised. Thus the consumers know what the price is. Therefore, it is not possible for the retailers to charge higher prices of branded products. 2. Consumers are assured of good quality: Manufacturers have to maintain the quality of branded products, their reputation is to be retained, products of inferior quality cannot be sold. Therefore, supply of quality product is ensured to consumers. 3. Quality goods are easily available : Retailers have to keep ready in stock goods of all popular brands. Therefore consumers can get such goods easily whenever they want. 4. Quality of branded goods is protected : Branded goods are usually sold in sealed packages. Thus they are protected from the effect of heat, moisture and dust. Adulteration by middlemen is also made impossible in case of branded goods. 5. Stability in price : Generally the retail price of branded products is maintained steady because manufacturers do not find it advisable to change the prices as frequently as those of unbranded products. DISADVANTAGES OF BRANDING 1. The severe criticism leveled against branding is that it leads to some kind of monopoly known as “ Brand monopoly”. The brand monopoly is created by gradually creating a brand loyalty to the products in the minds of the customers. 2. It is difficult to establish a brand and the expense of advertising in the initial stages is very high which raises the cost. Annamalai University
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101 3. Brand names do not always assure good quality. Manufacturers sometimes place inferior goods in the market under a glamorous brand name. BRANDING DECISIONS Branding has become a management technique as it involves considerations of alternatives and choosing the best alternative. Some of the practical hints have been discussed above. brand managers have to develop a logical order of action in developing brand awareness and ultimately leading to brand loyalty. These steps nay be as follows: 1. Non-recognition Consumers are unware of the availability of particular brand 2. Brand recognition Making the consumers to realise the availability of a particular brand 3.brand preference Making the consumers buying out of habit a particular brand 4. brand insistence In this stage consumers will not accept any substitute product 5. Brand loyalty Last stage in the Branding process when consumers make repeat purchases of the same brand. Summary : The physical product is only a part of the product image. It cannot stand alone before the potential buyer. There are four elements that surround a product. According to American Marketing association brand name in part of brand consisting of a word or group of words comprising a name which is intended to identify the foods or services a seller to differentiate them from those of competitors.
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