• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Googlesir Logo

Googlesir

  • Home
  • Guest Post
  • Employee Training
  • Marketing and Sales
  • Investment & Earning
  • Managerial Economics
  • Entrepreneurship and Career

11 Limitations or Disadvantages of Branding (Explained)

Last Modified: 25 March, 2020 4 Comments

Branding should be helpful in advertising and identifying. A brand is name, term, symbol or design to identify the goods or services and to differentiate them from those of the competitors.

Limitations or Disadvantages of Branding
Limitations or Disadvantages of Branding

Limitations or Disadvantages of Branding

Following are the demerits or disadvantages or limitations arguments against branding.

1. Discourages from Trying other Products

Brand loyalty discourages the consumer from trying out other new brands which possibly be more satisfying.

2. Leads to Monopoly

It leads to some kind of monopoly known as brand Monopoly.

It is created by gradually creating brand loyalty and image of the product and the manufacturer in the minds of consumers.

Related: 25 Major Benefits or Advantages of Branding (Explained).

3. Create Confusion

Consumers are often confused in in product selection on account of the methods of plethora offered in the market.

The situation becomes all the more difficult when all the brands carry as Assurance of similar quality and value satisfaction.

4. Commands Premium

The popularity of brands renders them out of the common man’s reach because they command premium prices, such as Hercules Cycles, Crompton fans, etc.

Bonus: 14 Importance of Study Consumer Behaviour (Explained).

5. Substandard Goods

When the brand name becomes popular, manufacturers sometimes place in inferior and substandard goods in the market.

6. Imposes Responsibility

Brand imposes responsibility for maintaining consistent quality and delivering proclaimed value satisfaction.

arguments against branding
arguments against branding

It fails to do so, the customer will easily identify the brand owner and file the complaint under the relevant law, such as the Consumer Protection Act.

7. Some Products Do Not Lend Themselves to Branding

Some products, such as raw materials, pins, fruits, and vegetables, do not lend themselves to branding on account of their very nature.

Related: 9 Advanced Strategies for Building Maximum Customer Satisfaction.

8. Switch to Another Product

If the quality deteriorates or supply of adulterated goods is increased due to brand popularity, the customer may switch over to other similar product.

9. Expensive

Building up brand recognization and loyalty is very expensive. Particularly, small sized companies cannot afford it.

It might promote market monopolies also.

10. Increase Cost

Branding needs heavy and widespread Advertising, attractive packaging and effective sales and widespread Advertising, attractive packaging, and effective sales promotion.

This raises the retail prices of branded goods given by 22 to 30%. It affects the cost adversely.

Related: 18 Major Factors Affecting Capital Structure (Complete List).

11. Opposition of Middleman

The retailers and the wholesalers may not be willing the stock the goods if the brand is not popular.

On the contrary, in the brand is very popular, they may refuse to stock and sell the goods on the ground that their margin of profit has been reduced considerably due to an increase in competition.

They even prepare to sell adulterated and inferior goods at a lower price.

Conclusion

On the basis of the above criticisms, it will be entirely wrong to conclude that brands are socially undesirable.

If we honestly compare the overall advantages with the disadvantages of branding, we make conclude that its advantages and much more powerful.

It certain more legislative measures are undertaken to improve the situation, such as strict enforcement of consumers Protection Act, Trademark act, etc., the brand name may prove more useful to consumers, distributors and the producers alike.

Thus, now you know the Limitations or Disadvantages of Branding.

Read More

  • Product Orientation and Consumer Orientation – Explained (Marketing)
  • 10 Main Factors Affecting Marketing Environment (Explained)
  • 14 Importance of Marketing in Modern World (Update)
  • 21 Benefits and Limitations of E-Commerce Businesses
  • 13 Needs and Characteristics of Motivation Research

Share Now:

  • Share
  • WhatsApp
  • Tweet

4 Comments

Reader Interactions

Comments

  1. Akansha Gupta says

    May 10, 2021 at 9:16 AM

    Thanks for the information. Great Article.

    Reply
    • Jennifer theron says

      May 19, 2021 at 10:38 AM

      how can i help you again

      Reply
  2. SSEWAGUDDE MARVIN ROBERT says

    October 9, 2022 at 11:02 AM

    Thank u so much great work I appreciate

    Reply
  3. Muhangi says

    November 10, 2022 at 8:01 PM

    How to go through such a suituation and i become a good business man

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

More to See

process of forecasting in supply chain management

6 Steps in Process of Forecasting in Supply Chain

opportunities for reduction of physical distribution costs

7 Tips for Reduction of Physical Distribution Costs

factors affecting logistics cost

Top 5 Factors that Affecting Cost of Logistics

duties and responsibilities of logistics manager

Top 10 Duties and Responsibilities of Logistics Manager

impact of lack of coordination on supply chain

7 Impacts of Lack of Coordination on Supply Chain

types of information technologies in supply chain management

10 Types of Information Technologies Used in Supply Chain or Logistics

importance of information technology in supply chain management

7 Key Importance of Information Technology in Supply Chain

E-mail Newsletter

Footer

Search Here

Know Us

  • Home
  • Guest Post
  • Blogs
  • About US
  • Contact Us
  • Privacy Policy

Goals to Achieve

  • Business Finance
  • Learn Management
  • Business Growth
  • Know Entrepreneurship
  • Run SuperMarket
  • Decision Making

© 2023 Copyright - Googlesir.com