What is meant by the term 'brand image'?
Brand image means The impression in the consumers mind of a brands total personality (real and imaginary qualities and shortcomings). Brand image is developed over time through advertising campaigns with a consistent theme, and is authenticated through the consumers' direct experience. For e.g. Nike's brand image is the image of a 'tick' sign.
What brand image might businesses want for the following products:
a) Helmets for building sites - a helmet with a building next to it
b) A club in town centre - a club showing people dancing and singing
c) A local taxi service - a picture of a taxi/taxis
What is meant by the term 'after-sales service'?
After-sales service means periodic or as-required maintenance or repair of equipment by it's manufacturer or supplier, during and after a warranty period. For e.g. if your phone gets damaged, you can go back to the place you bought it from so that thy can replace the phone or repair it.
State two types of after-sales services that could be given in a garage:
a) Fixing the problems with the car
b) Giving a discount on the MOT for the car
Explain why a business might want to develop a brand:
A business may want to develop a brand because when/if they get really popular then they might want people to notice what brand that it it. For e.g. People recognize the brand Nike because it has the 'tick' sign, so a business may want people to recognize them.
Using an example, explain the term 'product range' of a business:
Product range of a business means A set of variations of the same product platform that appeals to different market segments. For e.g. Coca-Cola is the worlds leading and best known drinks supplier.Their product range consists of non-alcoholic drinks, diet coke etc. Coca-Cola has a broad range of over 80 products.
Lists two benefits to customers from competition:
a) With the innovation of the £ shop, market brand leaders have been forced to lower prices, and reduce profit margins, therefore the customer benefits from multi branded top goods being available under one roof.
b) Price undercutting, resulting in cheaper brand/own brand products
State three strengths and three weaknesses to a business from opening a small independent sports shop:
a) Might not be other sports shops around (making more money)
b)More customers coming into the shop
c) Selling a different variety of sports equipment
a) Shop may go bankrupt
b) After a year from opening, the shop may lose it's customers
c) People around the area may not be into sports
Explain why someone with experience of the coffee trade might set up a specialist store:
Someone with experience of the coffee trade may set up a specialist store because they'll know what they are doing and they'll be making lots of money if they get their facts right. They'll have to know lots about the coffee trade to open up a specialist store in order to get a lot of customers and make lots of money.
State two reasons why a business might choose to set up a shop near to a rival:
a) So there can be competition between the two businesses
b) Compete between each other in order to get more customers