Question

Advantage and disadvantage of branding with examples

Answer 1

hi there,

Advantages of Branding..

Branding makes the customer aware about the product or service because without branding how will customer recognize the product, just imagine if there was no branding then all cold drinks would have been same but due to branding many customers prefer to use coke brand while some other prefer to use Pepsi and so on.Branding helps the company in charging a premium price for their product because a good brand commands a higher price than its competitors which in turn leads to higher profit margins for the company. An example would be Sony charging a higher price of their LED televisions than Samsung and Philips because customers have that brand image that Sony has the best quality picture when it comes to televisions...

Disadvantages of Branding

The biggest disadvantage of branding is that it involves huge cost because brands are not created overnight and companies have to spend huge sums on advertising and publicity. Advertising has to be done consistently as doing it occasionally does not result in producing the desired result of creating a brand image in the minds of the customers.Another disadvantage of branding is that if due to some reason brand gets a bad name or reputation than it is very difficult if not impossible to regain the original position or status of the brand...

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