Marketing Aptitude Study Material – Branding, Packaging & Labelling

Marketing Aptitude Study Material – Branding, Packaging & Labelling

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Branding

Branding is the management process by which a product is branded. It is a general term covering various activities like giving a brand name to a product, designing a brand mark and enforcing it.

Importance of Branding

•  Brand is a perceptual entity rooted in reality which ultimately resides in the minds of consumers.
•  Branding is all about creating difference between products.
• Branding creates mental structures that help consumers to organize their knowledge about products and services in a way that clarifies their decision making which also provides value to the firm.
•  Brand difference often relate to attributes or benefits of the product itself.
• Marketers can apply branding virtually anywhere a consumer has a choice. It is possible to brand a physical good (Maggi noodles, Lux soap) a service, (ICICI’s banking service) a store, (Big bazar, West side) a person (celebrities, like Amir Khan, MS Dhoni) a place (Goa, Kerala) an organisation (UNICEF) or an Idea (Family planning).

Functions of Branding

• It helps in product identification and gives ‘distinctiveness’ to a product.
• Indirectly, it denotes the quality or standard of a product.
• It eliminates imitation of products.
• It ensures legal right on the product.
• It helps in advertising and packaging activities.
• It helps to create and sustain brand loyalty to particular products.
• It helps in price differentiation of products.

Advantages of Branding

The advantages of using brand names could be easily recognized for each group of participants in the marketing viz manufacturers, consumers, distributors, as follows

• To the Manufacturers
  1. It identifies the product and distinguishes it from other competing products. Thus, it protects the interests of the manufacturers.
  2. It saves advertising cost if the brand name is popular.
  3. If properly promoted, brand name creates confidence and goodwill for the products.
• To the Manufacturers
  1. It provides an easy way for purchase by easy identification of a product.
  2. The brand name indirectly assures certain quality by identifying the manufacturer with the product.
• To the Distributors
  1. Widely popular brands ease the selling process and lead to large sales.
  2. It helps in advertising and sales promotion programmes.
  3. The distributor can easily find out the quick moving products.
  4. Branding reduces price flexibility. Thus, in turn, reduces the risk in business.
  5. Special selling efforts need not be undertaken. This reduces the cost of distribution and thus, the final price.

Different Terms Related to Branding

There are some important terms related to branding.

Brand

A brand is the identification of a product e.g., Nike, Reebok, LG, etc.

Types of Brand

We can classifiy the brand into following two broad categories

• Manufacturers Brands
  •  National Brands: The same brand used on a national level.
  • Regional Brands: Brand for particular region.
  • Advertising Brands: Brands stressing symbols.
  • Blanket Brands or Single Brands: or Family Brands One brand name for all the products of a manufacturer, eg., Godrej products which includes locks, refrigerator, furniture range, safes, etc.
  • Multiple Brands or Individual Brands: Brand name given for each variety of product, eg., various brand soaps of TATAs.
• Distributors Brands
  •  Private brand
  • Dealer brand
  • Store brand
  • House brand

Distributors brands stress on the identity of the retailer.

Brand Name

The part of a brand, which can be spoken, is called a brand name. It is the verbal component of a brand e.g., Uncle Chips, Vivel, Maggie, Safola, Maruti Suzuki, etc.

Characteristics of a Good Brand Name 

At the time of choosing a brand name, various aspects require careful consideration.

The following are some of the general considerations

• Easy to pronounce
• Easy to read and understand
• Appropriate for the product
• Easy to remember
• Most descriptive in nature

Brand Awareness: It means the extent to which consumers are familiar with the qualities or image of a particular brand of goods or services.

Brand Mark: Brand mark appears in the form of a symbol, design, distinct colour scheme or lettering, e.g., the Gattu of Asian Paints, Zuzu of Vodaphone or Devil of Onida TV.

Brand Cover: To conquer a new market, when any company launches its new series of product by converting the old appearance of its own products, it is called brand cover.

Brand Loyalty: When customer buys a brand, not only because of habit but due to the likings or preference towards a particular brand, then it is known as brand loyalty.

Brand Equity: Brand equity should be defined in terms of marketing effects uniquely attributable to a brand. That is different outcomes result in the marketing of a product or service because of its brand compared to the results if that same product or service was not identified by that brand.

Trademark: Any name, symbol, figure, letter, word or mark used to indentify or distinguish a product produced by a particular manufacturer, is called trademark. A trademark must be registered with a government patent office to assure its exclusive use by its owner.

Logo: A logo is a graphic mark or emblem commonly used by commercial enterprises, organisations and even individuals to aid and promote instant public recognition.It can be a drawing, image or symbol that identifies and represents a company but this does not necessarily mean, the logo has been registered as a trademark.

A business logo is often used on websites, pamphlets or any type pf advertising material offered by a company.

Some Brands and Trademarks

Packaging

Packaging is the technology of enclosing or protecting products for distribution, storage, sale and use.

It means putting the products in suitable containers or packets such as tin, plastic jar or card board box, etc.Packaging should be such that product is protected and can be easily handled. It should be attractive and eye-catching and as far as a eco-friendly.

Objectives of Packaging

Packaging must achieve a number of objectives which are as follow

• Identify the brand
• Convey descriptive and persuasive information.
• Facilitate product transportation and protection.
• Assist at home storage
• Aid product consumption

Functions of Packaging 

First, packaging must protect the product. It also has a promotional role which has become more important.Some of the important functions are

• To assemble and arrange the contents in the desired form.
• Helps to identify the contents, the brand and the maker.
• To facilitate transporting storing and warehouse handling.
• To enable the display of contents.
• To encourage repurchase.

Types of Packaging

On the basis of convenience, packaging is categorized as follows

• Primary Packaging: It is the material that first envelops the product and holds it. This usually is the smallest unit of distribution or use and is the package which is in direct contact with the contents.
• Secondary Packaging: It is outside the primary packaging, perhaps used to group primary packages together.
• Tertiary Packaging: It is used for bulk handling, ware house storage and transport shipping. The most common form is a palletised unit load that packs tightly into containers
• On the basis of nature, packaging is classified into
• Family Packaging: The products of a particular manufacturer when packed in an identical manner is known as family packaging. The shape, color, size, etc of packaging will be similar for all his products.
• Reuse Packaging: Packages that could be reused for some other purpose after the packed goods have been consumed is known as re-use packaging. This aspect increases the sales value of the product considerably.

Functions of Packaging 

First packaging must protect the product. It also has a promotional role which has become more important.

Some of the important functions are

• To assemble and arrange the contents in the desired form.
• Helps to identify the contents, the brand and the maker.
• To facilitate transporting storing and warehouse handling.
• To enable the display of contents.
• To encourage repurchase.

Multiple Packaging

It is the practice of placing several units in one container.

Characteristics of Packaging

• It is very important for packaging to be visually appealing to the consumer.
• Packaging should be cost effective.
• It should have distinctive and unique design or logo.
• It should contain the necessary information about the utility of a product.
• It should be convenient to handle.
• It should be able to absorb humidity, temperature, etc.
• It should not be fraudulent in giving any information

Importance of Packaging

•  Security/safety of the product
• Convenience in advertisement
• Facilitate the use of product
• Facilitate marketing
• Facilitate easy storage and transportation
•  Facilitate product identification

Labelling

The label can be a simple attached tag or an elaborately designed graphic that is a part of the package. It serves the purpose of indicating the contents, weight or measure, instructions for use, price, name of the producer, data of manufacturer and expiry, etc.

The information on the label is essential for various reasons e.g., the date of expiry in case of medicines and date of manufacture in the case of eatables prevent the sale of products which may prove harmfil.

Types of Labels

There are three types of labels that are as follows

1. Brand Lable: In this type of lable, only brand name is used on package of a product. This brand name is either producer’s name or any word, symbol or design. e.g., Lux, Lifebuoy, etc.

2. Grade Label: Product classification in this label is based on standards quality. Products are classified into A, B, C or 1, 2, 3 categories based on quality.

3. Descriptive Label: This labelling is used for the branded products that furnishes detailed information about the product attributes and quality.

Functions of Labelling

• A label describes the product and specify its contents.
• It helps in identification of the product or brand.
• It helps in grading the products into different categories.
• It aids in promotion of the products.
• It provides information required by the law.

Tit-Bits

• Manufacturer brands usually require a producer to become involved in distribution, promotion and pricing decisions.
• Copyright is applicable in the case of books.
• A companys ability to perform in one more way that competitors cannot or will not match is known as its competitive advantage.
• Logos can be explianed as the visual icons that give an exceptional recognition aspect to a product.
• A good brand can be built up by the way of consistant offering of goof services.

Check Your Skills

1. Brand image is partially derived from a

1. price image
2. product image
3. company image
4. place image
5. None of these

2. A package which has a secondary usefulness after its contents have been consumed, is called [SBI Clerk 2008]

1. Dual use package
2. Bulk package
3. Both ‘1’ and ‘2’
4. Consumer package
5. Industrial package

3. The process of branding covers

1. giving on identify to a product
2. designing a brand mark
3. establishing the product
4. popularising the product
5. All of the above

4. The collective perceptions and impressions people have formed about an organisation, its product and or its services is known as its [SBI Clerk 2012]

1. brand image
2. brand value
3. brand alert
4. brand attribute
5. brand architecture

5. Trademark is the legal word of

1. brand
2. product
3. patent
4. All of these
5. None of these

6. Which of the following is the type of distributors brand?

1. Private brand
2. Store brand
3. Dealer brand
4. House brand
5. All of these

7. One distinguishing factor between a brand name and a brand mark is that a brand name

1. creates customer loyalty
2. implies an organisation’s name
3. consists of words
4. identifies only one item in the product mix
5. None of the above

8. Product design is a function of [SBI Clerk 2011]

1. front office staff
2. back office staff
3. management
4. marketing and research team
5. loan section

9. The function of branding includes

1. product identification
2. ensuring legal right on product
3. price differentiation of products
4. sustaining brand loyalty
5. All of the above

10. Which of the following constitute a trend?

1. Name
2. Term
3. Symbol
4. Design
5. All of these

11. Which of the following can have the advantage of brand names?

1. Manufacturers
2. Consumers
3. Distributors
4. All of these
5. None of these

12. What is a logo?

1. Picteral representations of what the company stands for
2. Graphic or emblem used by a company to trigger instant recall
3. The short form of the name of the company
4. All kinds of advertisements used by the company
5. All of the above

13. Branding is the … process.

1. marketing
2. management
3. static
4. technical
5. None of these

14. A brand is best defined as a

1. name of the manufacturer of the product
2. name, symbol, design or combination of these, that identifies a seller’s products
3. registered design or symbol that is displayed on the product
4. related group of words that described the product
5. copyrighted words that give the manufacturer exclusive ownership

15. When a brand name is registered and legalised, it becomes

1. trademark
2. brand mark
3. trade right
4. brand right
5. None of these

16. Which of the following is the type of manufacturers brand?

1. National brand
2. Regional brand
3. Advertising brand
4. Blanket brand
5. All of the above

17. brands usually require a producer to become involved in distribution, promotion and pricing decisions.

1. Retailer
2. Wholesaler
3. Manufacturer
4. Own label
5. All of these

18. Which of the following is not a desirable feature for a brand name?

1. It can help develop brand loyalty amongest buyers
2. It can facilitate the introduction of new. products
3. It can make it possible for the firm to engage in non-price competition
4. It can become used as the generic name for all products in the category
5. None of the above

19. A brand can be helpful for the manufacturers to

1. distinguish the product from other competing products
2. save advertising cost
3. widen the work for products
4. create goodwill for the product
5. All of the above

20. The objectives of packaging are

1. Identify the brand
2. Aid product consumption
3. Assist at-home storage
4. All of the above
5. None of the above

21. A brand can be helpful for the distributors in

1. leading to large selling
2. reducing the price flexibility
3. reducing the cost of distribution
4. costing the selling process
5. All of the above

22. Logos can be explained as the…… that give an exceptional recognition aspect to a product.

1. visual icons
2. good packaging
3. brand
4. Both ‘1’ and ‘2’
5. None of the above

23. Product identification involves

1. branding
2. packaging
3. labelling
4. All of these
5. None of these

24. Which of the following part of a brand can be spoken?

1. Brand name
2. Brand symbol
3. Trade name
4. Trade symbol
5. None of these

25. Which of the following is the characteristic of a good brand name?

1. Easy to pronounce
2. Easy to remember
3. Most descriptive in nature
4. Easy to understand
5. All of the above

26. Multiple packaging is the practice of placing

1. several containers in one product
2. several units in one container
3. several boxes in one container
4. each unit in each container
5. None of the above

27. The package design of a bag of flour would most likely be criticised for being

1. unsafe to the environment
2. well suited for multiple unit packaging
3. unsafe to the user
4. functionally deficient
5. All of the above

28. Characteristics of good packaging is

1. convenient
2. interesting
3. attractive and protective
4. All of the above
5. None of the above

29. In packaging of a new line of fabric conditioner, Proctor and Gamble would be wise to avoid the use of which colour?

1. Blue
2. Black
3. Pink
4. Green
5. Yellow

30. Which of the following may be known as the function of packaging?

1. To assemble and arrange the content
2. To facilitate transporting and storing
3. To identify the content
4. To enable the display of content
5. All of the above

31. Marketers should view packaging as a major strategic tool, especially for

1. consumer convenience products
2. consumer shopping products
3. industrial products
4. speciality products
5. None of the above

32. Good competition helps in [SBI Clerk 2012]

1. improved customer service
2. reduced sales
3. improved brand image
4. more market share
5. better customer profde

33. The types of packaging includes

1. family packaging
2. reuse packaging
3. multiple packaging
4. All of the above
5. None of the above

34. The warning label on a pack of cigarettees is included to

1. promote the product
2. satisfy legal requirements
3. encourage the proper use of the product
4. position the product as being socially responsible
5. None of the above

35. A…….. provides written information about the product.

1. branding
2. packaging
3. label
4. costing
5. None of these

36. Labelling is important for three reasons, first is promotional and second is legal. What is the third reason?

1. Informational
2. Branding
3. Strategic
4. Marketing
5. None of the above

37. The label on a soft drink can reads ‘cool and refreshing’ For what reason are these words used?

1. To promote the product
2. To encourage multiple purchases
3. To satisfy legal requirements
4. To provide information
5. All of the above

38. Labelling is important for informational legal and……. reasons.

1. branding
2. strategic
3. marketing
4. promotional
5. All of these

39. The label on a pack of frozen pears says packed within an hour of picking. These words are used

1. for promotional reasons
2. to encourage multiple purchaser
3. to satisfy legal requirements
4. to provide information
5. None of the above

40. Which of die following is indicated by labelling?

1. Content
2. Weight
3. Measure
4. Price
5. All of these

41. Grade labels are identified by

1. letter
2. number
3. quality
4. All of these
5. None of these

42. A companys ability to perform in one or more ways that competitors cannot or will not match is known as it [SBI Clerk 2012]

1. brand image
2. brand positioning
3. competitive advantage
4. attribute positioning
5. attribute competion

43. A good brand can be built up by way of [SBI PO 2013]

1. customer grievances
2. break-down of IT support
3. old age
4. large number of products
5. consistent offering of good services

Answer Key