GK
MARKETING MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It is risky
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It is costly
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It is negative
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It is competitive
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Detailed explanation-1: -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. Often the brand marketers calculate the ROBI (Return of Brand Investment) as they tend to predict and justify the brand development process.
Detailed explanation-2: -Without branding, there is no brand loyalty, and there is no concept of marketing either. For example, Apple and Samsung both try be better than the other every year by creating the best smartphone. Without branding, there would be no way for these companies to mark their products and claim a victory in innovation.
Detailed explanation-3: -Higher Retail Prices As a result, the retail price of branded products can be 20 to 30 percent higher, according to the book “Principles of Marketing, ‘’ by Ashok Jain. This is a disadvantage for consumers, who must pay higher prices. It’s also a disadvantage for producers, who must justify higher prices to the public.
Detailed explanation-4: -Advantage: Awareness. Advantage: Consistency in the Marketplace. Advantage: Customer Loyalty. Disadvantage: Can Become Commonplace. Disadvantage: Negative Attributes. Disadvantage: Pigeonholes.
Detailed explanation-5: -Discourages from Trying other Products. Leads to Monopoly. Create Confusion. Commands Premium. Substandard Goods. Imposes Responsibility. Some Products Do Not Lend Themselves to Branding. Switch to Another Product. More items •25-Mar-2020