Theory question 109
MarketingCommerce 2 (answer five questions)
(a) Describe five reasons why a manufacturer may brand his products.
(b) Outline five services rendered by the wholesaler to the manufacturer.
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(a) Any five, described: to distinguish his product from competitors'; to make advertising easier and more effective; to build brand loyalty and repeat buying; to make it possible to charge a higher or stable price; to give assurance of quality and standard; to protect the product from imitation (with a registered trade mark); to make the product easy to identify and order; to introduce new products under a known name.
(b) Any five: buys in bulk, saving the manufacturer the cost of many small orders; gives market information about consumers' tastes and complaints; stores (warehouses) goods, relieving the manufacturer of storage costs; bears risks of price change, damage and theft; may finance the manufacturer by paying promptly or in advance; distributes goods to retailers over a wide area; helps advertise and promote the products; may pack, grade and label goods; enables continuous production by placing regular orders.
Five points in each part, with a short explanation for (a).