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Outline three advantages of branding for a business - Leaving Cert Business - Question A - 2020
Question A
Outline three advantages of branding for a business. 1. **Identification and Differentiation**: Branding helps identify the product and makes it more recognizable. ... show full transcript
Worked Solution & Example Answer:Outline three advantages of branding for a business - Leaving Cert Business - Question A - 2020
Step 1
Outline three advantages of branding for a business.
Answer
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Identification and Differentiation: Branding helps identify the product and makes it more recognizable. It differentiates it from competitors' products, allowing consumers to distinguish between various offerings in the market.
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Customer Loyalty: Strong branding increases customer loyalty. Consumers tend to stay loyal to a brand that they have an emotional or satisfactory connection with. This satisfaction can lead to repeat purchases and increased profits for the business.
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Market Perception and Quality: A well-known brand often conveys a sense of higher quality. Customers may associate established brands with reliability and prestige, which can justify a higher price point compared to lesser-known competitors. This perception reduces the risk of trying new products for consumers.
Step 2
Explain, using an example, the term 'target market'.
Answer
A target market is the specific group of people at whom a product or service is aimed. This group is typically characterized by shared attributes such as age, income level, location, and lifestyle. For instance, Kinder Chocolate targets children as its main audience, using branding and marketing strategies that appeal to young consumers.
Step 3
List two advertising media that a business could use.
Answer
- Television: Advertisements on TV allow businesses to reach a wide audience effectively through visual and audio content.
- Radio: This media is particularly useful for local businesses to reach specific demographics through targeted messages.
Step 4
Outline two factors a business would consider before deciding which advertising media to use.
Answer
- Finance available/Cost: The business must evaluate its advertising budget, as some media options like TV can be significantly more expensive than others such as local radio.
- Target Market: The business needs to understand which media channels effectively reach its target market, ensuring that advertising is seen by the right audience.
Step 5
Explain what is meant by Public Relations (PR).
Answer
Public Relations (PR) is a strategic communication process that builds mutually beneficial relationships between organizations, their publics, and the media. It involves actions intended to create goodwill and positive perceptions towards a business or organization among its stakeholders and the general public. Examples of PR strategies include sponsorships, press conferences, and trade fairs.
Step 6
Outline one benefit of using Public Relations (PR) as a method of promotion.
Answer
One major benefit of utilizing PR is that it helps to improve relationships between the business and its customers or general public. This enhanced relationship fosters loyalty as customers perceive the business as being more engaged with the community, building goodwill and trust over time.
Step 7
Name two suitable types of Sales Promotion a business could use to boost sales.
Answer
- Buy one, get one free: This promotion encourages customers to purchase more by providing additional value.
- Loyalty cards: These reward repeat customers with discounts or free products, encouraging them to continue shopping with the business.