Page 1 - Lesson Note 3
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SAI INTERNATIONAL SCHOOL
CLASSS XII
SUBJECT: BUSINESS STUDIES
CHAPTER -11, MARKETING MANAGEMENT
Topics: Branding, advantages, packaging, types, functions
(Lesson note-42)
Brand:
A brand is a name, term, sign, symbol, design or some combination of them, used to identify
the products—goods or services of one seller or group of sellers and to differentiate them from
those of the competitors. Brand Name: That part of a brand, which can be spoken, is called a
brand name. In other words, brand name is the verbal component of a brand.
Advantages to the Marketers
(i) Enables Marking Product Differentiation: Branding helps a firm in distinguishing its
product from that of its competitors. This enables the firm to secure and control the
market for its products.
(ii) Helps in Advertising and Display Programmes: A brand aids a firm in its advertising
and display programmes. Without a brand name, the advertiser can only create
awareness for the generic product and can never be sure of the sale for his product.
(iii) Differential Pricing: Branding enables a firm to charge different price for its
products than that charged by its competitors. This is possible because if customers
like a brand and become habitual of it, they do not mind paying a little higher for it.
(iv) Ease in Introduction of New Product: If a new product is introduced under a known
brand, it enjoys the reflected glory of the brand and is likely to get off to an excellent
start. Thus, many companies with established brand names decide to introduce new
products in the same name.
