ZIMSEC O Level Business Studies Notes: Marketing: Branding

  • A brand is a unique name, term, symbol or design which is intended to signify the goods and services of one seller or group of sellers and to differentiate them from competitors’
  • The main purpose of a brand is to give identity and differentiate products for example Colgate and Aquafresh are both toothpastes with different brands
  • Over time, this image becomes associated with a level of :
  • credibility,
  • quality,
  • and satisfaction in the consumer’s mind
  • Brands help a business to position its products in the market relative to those of competitors
  • Brands also act as a signature summary of what the product is all about
  • They provide a sense of security and assurance about the quality of the product
  • It adds value to the product making it more appealing for example a Samsung branded phone has more perceived value when compared to an unbranded/generic phone
  • Branding allows a business to cultivate and create loyalty of customers thus obtaining repeated sales
  • There are different types of brands:
  • Individual brands-covering a single product e.g. Pampers, Nappies, iPhone
  • Family brands-  those that contain family names for example Heinz, Mohammed Mussa. These can cover a single product of a wide range of products
  • Divisional brands- these cover a large division of the company for example Coca Cola covers a division of Delta Beverages International
  • Distributor brands- when a retailer or wholesaler creates their own brand in an attempt to create loyalty
  • It also allows the seller to exert greater control over the product they sell
  • Examples of distributor brands include Mohammed Mussa

To access more topics go to the O Level Business Notes

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