Question

1.         List and explain the three most important roles brand plays in the marketplace.

2.         Why is the concept of service a key source of potential differentiation in a competitive market?

Answer 1

Answer: The three important roles that brands play at the marketplace are

1. Creation of identity: The brand creates a distinct image at the marketplace and these acts as a distinction from the competition.
2. Creation of associations: Brands creates positive associations in the minds of the customers so that they are attracted towards the products and services
3. Creation of loyalty: Positive brand identity and association results in the creation of the customer loyalty which helps in developing a competitive advantage

The primary requirement of any customer is good service. Customers come to the service provider with an expectation of good service. Good service creates a positive experience and enables the service provider to create a positive image in the minds of the customers. This positive image acts as a source of differentiation from the competitors at the marketplace. If a service provider offers a better service as compared to the competitors it will enjoy a differentiated image at the marketplace and this will create a competitive advantage.