1. Compare services to products, and
examine the difference and/or similarities in their branding process. A product is tangible item and a service is intangible. “products, for the most part, are a sum of tangible features meant to
satisfy a functional purpose and need, whereas a service, though meant to
satisfy a need as well, is intangible, emotional, and generally experiential.”
(Fashion Branding Unraveled pg. 139)
Products are usually made to perform the same way, services vary because the service
is not performed by the same person every time.
2. Define retail concept, and
briefly discuss its role in the positioning strategy of a retail brand. “The retail
concept is the business model and retail philosophy adopted by the
brand.” (Fashion Branding Unraveled pg. 182)
An important part of the retail concept is the service mix; merchandise,
price range, location, and service.
Merchandise is the products that are for sale. The price range is the range in which the merchandise
is priced. The location is usually in a
spot that is most visible and available or in a busy area where customers have
easy access to, or where customers frequent.
The service refers to the way staff treats the customers. It’s the customer service aspect of the
operation.
3. What are the advantages and
disadvantages of franchising as a global growth strategy? “Franchising simply refers to a retailer (the
franchisor) offering a store owner (the franchisee) the rights to emulate the
retailer's business model or system of conducting his business” (Fashion
Branding Unraveled pg. 205) The advantages of opening a franchise include
expansion of an already existing brand to areas or people who may not know much
about the brand, increased revenues if the business does well, and an increase
in exposure. Other advantages include
the opportunity for entrepreneurship for someone who may not want to start
their own business from scratch, the freedom of self-employment, and the
ability to use guidelines given to you instead of creating your own guidelines
and rules of how to run your business. The
disadvantages of opening a franchise include, lack of control, lack of freedon
due to constraints, legal actions, failure to operate properly, and financial
burden.
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