3.1.5 Branding and differentiation

Branding A promotional method that involves the creation of an identity for the business that distinguishes the firm and its products from other firms Branding can add value to a product allowing firms to charge higher prices Leads to brand loyalty whereby customers will continue to buy products from that firm 3.1.5 Branding and differentiation

Branding to aid product trial and repeat purchase Established business such as Apple can use their brand name, image and reputation to help in product trials Consumers are likely to be repeat purchasers of branded product as they believe in the quality of the good or service 3.1.5 Branding and differentiation

Brand Brands can take a number of forms as shown below. Can you think of an example for each? BRAND Design Colour Symbol Shape Term Name 3.1.5 Branding and differentiation

What makes one product different from competitors? In order to make a product stand out from competitors a business may have a USP Why would a USP help a business be successful? Can you list 3 products with a USP? What is the relationship between a USP and the price a customer is willing to pay? _ _ _ _ _ _ / _ _ _ _ _ _ _ / _ _ _ _ _ Unique selling point

Unique selling points A Unique Selling Point (USP) is something that distinguishes a firms product from those of its competitors. Firms try to make their product different to the competition by adapting the actual product in some way or by distinguishing the product through advertising and branding. This is known as product differentiation. A USP can allow a firm to charge a premium price. A USP at Dragon’s Den! waterbuoy on dragons den 3.1.5 Branding and differentiation

Product differentiation A business might have a product range selling a variety of goods or services to meet consumer needs With high competition in most markets it is important that a business tries to differentiate itself from the competition in order to sell Draw a mind map for fashion shops (or the car industry) e.g. Top Shop, Next, Zara etc. Plot price (low to high) against quality (low to high). 3.1.5 Branding and differentiation

Product differentiation A business might differentiate its products through: Quality Design Promotion Branding Packaging How have the fashion (or car) businesses that you have produced a mind map for differentiated their products? 3.1.5 Branding and differentiation

Question time SuperGroup is a UK fashion retailer offering quality clothing and accessories. They are the company that own the street wear brand Superdry. SuperGroup sell through physical stores and online. Which one of the following elements of the marketing mix does this represent? Product Place Price Promotion (1) Identify two methods SuperGroup might use to differentiate its products from its competitors. (2) Describe why developing a well known brand is important to the success of a business such as SuperGroup. (3) 3.1.5 Branding and differentiation