Glide Ltd. sells its pens under the name ‘Glidex’ and not just as ‘Pen’. Buyers can now tell its pens apart from the pens of rival firms. What has the brand name helped Glide Ltd. to create?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Product differentiation
Option (1) Standardisation of the output — Incorrect. Standardisation means producing goods of predetermined specifications. It gives uniform and consistent output. A brand name does not set the specifications of the pens.
Option (2) Product differentiation — Correct. Product differentiation means giving buyers a basis to tell one firm’s product apart from its rivals’ products. The name ‘Glidex’ does this, so buyers can pick out Glide’s pens. This in turn helps to build customer loyalty and sales.
Option (3) Grading of the products — Incorrect. Grading means sorting products into groups by quality, size and similar features, as with wheat or oranges. It does not set one firm’s product apart from a rival’s.
Option (4) A market offering — Incorrect. A market offering is the complete offer of a product: its features, its price and the outlet where it is sold. A name is only one part of such an offer.
NCERT (2026-27 Edition): “6. Branding: A very important decision area for marketing of most consumer products is whether to sell the product in its generic name (name of the category of the product, say Fan, Pen, etc.) or to sell them in a brand name (such as Pollar Fan or Rottomac Pen). Brand name helps in creating product differentiation, i.e., providing basis for distinguishing the product of a firm with that of the competitor, which in turn, helps in building customer’s loyality and in promoting its sale. The important decision areas in respect of branding include deciding the branding strategy, say whether each product will be given a separate brand name or the same brand name will be extended to all products of the company, say Phillips bulbs, tubes and television or Videocon washing machine, television, and refrigerator. Selection of the brand name plays an important role in the success of a product.” |