Edexcel Business A Level Revision

Branding - A promotional methods that involves the creation of an identity for the business that distinguishes that firm and it's products from other firms. Corporate branding - attaches a perception and promise to the goods and services associated with that brand e.g. quality, customer service, corporate culture. Branding can add value to a product allowing firms to charge higher prices. Ultimately leads to brand loyalty whereby customers will continue to buy products from that firm. Organisations spend enormous amounts of time and money branding their company and products. Brand recognition come in many forms including: • Celebrity endorsement • Font • Shape • Character • Colour • Jingle • Logo • Image • Slogan • Strapline Branding is traditional in business associated with giving a unique recognisable characteristic to a product or corporate image e.g. Toblerone's unique shape or Heinz's shade of green. Th...

Product differentiation - arises when customers perceive a distinct difference between your product and the alternatives provided by competitors. Where products has a value proposition that is sustainably different from the competition. Effective differentiation allows a business to : - Compete effectively (a source of competitive advantage and ideally hard to copy) - Protect and build a brand (build intangible value which will also strengthen customer loyalty) - Add more value (strong differentiation should allow a higher price which means high profit margins) Requirements of a product for effective product differentiation : - capable of delivering what is important to customers - distinctive  (compared with competition) - not easily copied by competitors - affordable for target customers - profitable A product that is effectively position is often said to have a unique selling point (USP). USP - something that sets a product apart from its competitors i...