Read the following passage and answer the question.

Shahu Ltd. started the product offering with ACs. They have now started to sell the appliances as well including audio systems, TVs, washing machines, water purifiers, etc. The company also handles complaints and offer after sale services. But later on it somehow ignored after sales services leading to a tamished image of company. The top management quickly took the rectifying measures and protected as well as promoted the favourable image in the eyes of public. The company also started selling mixer- grinders. To ensure better protection these mixers were packed in a transparent polybag and then they were kept in a coloured cardboard box. All the packages of all the products of the company has following details-

• Price
• Method of use
• Caution
• Manufacturer's address
• A red square with a blue circle outside it

Which of the following refers to a process of assigning a distinctive name, by which it can be known and identified?

Branding

The correct answer is option 1- Branding.

The process of assigning a distinctive name, logo, or symbol to a product or company is known as "branding." Branding aims to create a unique identity and differentiate a product or company from its competitors in the marketplace. It involves not just naming but also creating a consistent and recognizable image and message.

One of the most important decisions that a marketer has to take in the area of ‘product’ is in respect of branding. He has to decide whether the firm’s products will be marketed under a brand name or a generic name. Generic name refers to the name of the whole class of the product. For example, a book, a wristwatch, tyre, camera, toilet soap, etc. We know that a camera is a lens surrounded by plastic or steel from all sides and having certain other features such as a flash gun and so on. Similarly book is a bunch of papers, which are in a bound form, on which some useful information about a subject is printed. Thus, all products having these characteristics would be called by the generic name such as camera or book. If products were sold by generic names, it would be very difficult for the marketers to distinguish their products from that of their competitors. Thus, most marketers give a name to their product, which helps in identifying and distinguishing their products from the competitors’ products. This process of giving a name or a sign or a symbol etc., to a product is called branding.