Saturday, June 1, 2013

EOC: Chapter 6 Discussion

1.Products serve to fill a need for a consumer such as purchasing a bottle of water to quench thirst. It is easy for a consumer to measure a product for being good or bad based on wether is satisfied their needs. A service fill s a different type of need because the consumer is not actually receiving a physical item for them to own. "Accordingly, many believe that a service possesses a higher level of risk than a product, so branding becomes even more relevant" (Fashion Branding Unraveled). It makes sense that branding needs to be stronger for s service because there isn't a product that will be carried by a consumer for others to see. 
2. The retail concept is defines as the business strategy, model, values, and philosophies that a company will use in order to build a brand identity. "A retail brand needs to compete by establishing an emotional value for its customers built on a strong identity" (Fashion Branding Unraveled). The challenge for a retail company is that they have to place position themselves in the market so that the company can be successful. The company must offer products and services that interests or fill the needs of consumers. The location must also be in a place where there are few competitors but there is also consumers to buy the product. 
3. One of the first advantages that a company or retail has when trying to expand globally with the franchise is that they have instant recognition. A franchise business model allows an employer to place an operation that is already has a history of success. The disadvantage of a franchise is that it might be something that consumers don't need or don't want. Walmart is a brand that has a successful business model but there are areas where consumers don't want them to open up. Walmart has a history of putting small business out of work and that is something that hurts their brand image. There can also be legal issues if there is a issue that rises at one of the franchise locations. 'There are many brands that adopt the franchise model or a mix of franchising and other models' (Fashion Branding Unraveled). People will continue to establish franchises because they are successful. 

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