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What do brands and branding do for firms in business markets?
Brands and branding puts the name of a firm out there, this is because a brand is unique to a specific firm. It is the name and the slogan that the firm uses when marketing and attracting consumers (Kunde, J. 2002). It broadens markets and increases the expected sales as well. Branding also helps to identify a product in a monopolistic market structure where the products are similar.
Suppliers in business markets use branding for several purposes. Identify and discuss five or more reasons for B2B branding efforts.
B2B branding means business to business branding; the main reason is because it promotes awareness of the consumers because while using it businesses can get more channel margins and loyalty to their consumers. Secondly it enables for the businesses to reach the targeted market and consumers easily and achieve their initial goal. Thirdly B2B it makes it easy to partner with other channels of advertising because they always want to advertise a popular and known brand, which B2B helps in (Kunde, J. 2002).
Fourthly it offers higher marginal revenues and lower marginal costs; this lowers risks that are bound to be experienced from the sale and advertising of goods and services. Fifthly B2B branding has proven to be of great help when it comes to maximizing opportunities offered by direct sales force used in advertising and creating awareness (Richardson, Paul, Alan S. Dick, 1994).How should Exelon implement is Eco-Preferred Power offering? In developing your response, address the following:What is the trade off between the percentage that customers must purchase to avoid potential brand dilution and the price premium that will be asked for Eco-Preferred Power?
Potential brand dilution has been a root cause of disappearance of firms and brands from a market. The best way to avoid it is by avoid bringing together too many businesses into the brand production as all of them will want to be recognized. Maintain a similar brand over time without major changes as this creates familiarity with the consumers. There should be consistency in the brand to avoid line extension traps that lead to brand dilution.
The price premium should be a reasonable percentage that falls within the brackets of the benchmark price. This is because there are other competing firms that may offer a price that may result in complete loss. This means a proper survey of the market should be conducted before hand.
The implementation of the Eco-Preferred Power offering should ensure that there is at least a 12% increase in the customers from the target market to ensure there is no dillusion, the price should be enough to cater for potential losses as well.What are the upsides and downsides to co-branding? Explain your answer.
The upsides are that there will be added value for both brands and that they will also experience expansion in their market coverage. The main disadvantage is dillusion of the brand can take place and also brand disparities (Richardson, Paul, Alan S. Dick, 1994). This is whereby there are losses due to association of a local brand and an international brand.What should be the price premium? Provide a rationale.
The price premium should be well within the set benchmark. It should however be higher to ensure that no losses will be experienced and that any capital overheads are completely catered for by the higher price.Should Exelon offer initial user discounts in order to promote Eco-Preferred Explain your answer.
Yes it should offer initial user discounts as this will be attracting more and more clientele and a form of incentive. This should be however closely included in the budget and promotional costs.Should Exelon provide limited exclusivity to some customers? Explain your answer.
Yes there should be limited exclusivity to some customers; these should include the habitual ones and the wholesale who buy in bulk. This is because being exclusive to them is part of the promotional strategy as the brand name will have positive publicity.Will Exelon be successful at branding electrons? Justify your answer.
Yes they will be successful in branding electrons, this is because they have ample information and already know the precautions needed in order to be successful. They are very much aware of what could lead to brand dillusion and how to avoid it, as it is the major threat to them.
References
Kunde, J. (2002), Unique Now or Never;The Brand is the Company’s Driver, Financial Times, Prentice Hall. London.
Richardson, Paul, Alan S. Dick, (1994), Extrinsic and Intrinsic Cue Effects on Perceptions of Store Brand Quality, Journal of Marketing
