Question

1. What is branding for? Give an example to clarify your answer and explain.

   What’s private brand? What’s the purpose(s) of private brand.

2. Explain the primary difference between a wholesaler and sales agent. Who has more active

roles in finding customers and customers’ wants?

3. Let’s say, after 15% increase in selling price, a burger shop found 5% drop in number of sales of burger. Is the demand for burger sensitive to changes in price this case? What do you recommend to keep or increase sales revenue?

    

    

Answer 1

1. What is branding for? Give an example to clarify your answer and explain.    What’s private brand? What’s the purpose(s) of private brand.

Branding is endowing products and services with the power of a brand” (Kotler & Keller, 2015). Branding is the process of giving a meaning to specific company, products or services by creating and shaping a brand in consumers’ minds. This helps to identify a product and distinguish it from other products and services. The objective is to attract and retain loyal customers by delivering a product that is always aligned with what the brand promises. For example, Fiji water and Niagara water bottles are different companies who offer water. However, for some reason, some people feel more connected to purchasing Fiji water and others to Niagara water. Packaging design, pricing, and advertising are perhaps the most powerful tools used by marketers to grasp onto consumer’s attention.

-A private brand product is manufactured by a contract or third-party manufacturer and sold under a retailer’s brand name. As the retailer, you specify everything about the product such as what goes in it, how it’s packaged, what the label looks like, and pay to have it produced and delivered to your store. Private branding is a cost-effective way to produce a product without the investment into large manufacturing facilities, designers, quality assurance personnel or a specialized supply chain. By using outside manufacturing help a retailer, it can offer a wide range of private label goods that appeal to both cost-conscious shoppers as well as premium-product consumers.

2. Explain the primary difference between a wholesaler and sales agent. Who has more active roles in finding customers and customers’ wants?

Merchant wholesalers are the first of two basic types of wholesalers within the industry. These wholesalers buy and sell goods to retail establishments for a profit. Agents and brokers differ from merchant wholesalers in that they do not purchase or take ownership of the goods they buy and sell. Instead, the agent or broker will arrange for the sale of goods between the merchant wholesaler and the retailer and will generally earn his money by receiving a fee for the arrangement of the sale.

3. Let’s say, after 15% increase in selling price, a burger shop found 5% drop in number of sales of burger. Is the demand for burger sensitive to changes in price this case? What do you recommend to keep or increase sales revenue?

If demand has a unitary elasticity at the chosen quantity, then a moderate percentage change in the price will be offset by an equal percentage change in quantity. The price elasticity of demand also plays a key role in determining if a firm can pass the cost of key input price increases to consumers or benefit from reductions in input costs.