Branding (SQA National 5 Business Management): Revision Note

Exam code: X810 75

Lisa Eades

Written by: Lisa Eades

Reviewed by: Steve Vorster

Updated on

Types of brands

  • Branding is the process of creating a unique identity for a product or business so that it is easily recognised and remembered by customers

  • A brand can include a name, logo, slogan, packaging style, colours, or even a particular reputation or feeling, associated with the product

Common approaches to branding

Approach

Explanation

Product branding

  • Each product has its own identity, separate from the company’s name

    • E.g. Irn-Bru is a product brand of A.G. Barr, easily recognised for its orange colour and Scottish humour

Corporate (company) branding

  • The business itself is promoted as the brand, giving all products a shared reputation

    • E.g. John Lewis & Partners' company name alone represents quality and good service across all departments

Own-brand / retailer branding

  • Retailers create their own product ranges, often cheaper than major brands

    • E.g. Tesco’s “Finest” and Aldi’s “Specially Selected” products are examples of supermarket own-brands

Family branding

  • Several related products are marketed under one brand name

    • E.g. Walkers crisps sells different flavours and styles under the same brand identity

Methods of building a brand

  • Businesses use different methods to create strong, recognisable brands that connect with customers and stand out from competitors

Unique selling points (USPs)

  • A USP is a feature that makes a product or service stand out from its competitors

  • Brands build their reputation by highlighting these distinct qualities in their marketing

    • E.g. Harris Tweed has built its brand around authenticity and craftsmanship

      • Every metre of fabric is hand-woven by islanders in the Outer Hebrides and stamped with the famous Orb mark

      • This legal protection and heritage give Harris Tweed a unique global identity based on quality and tradition

Advertising

  • Advertising helps brands raise awareness, communicate a message and build emotional connections with customers

  • A creative campaign can make a brand instantly recognisable and encourage customer loyalty

    • E.g. Tunnock’s, maker of Caramel Wafers and Tea Cakes, uses nostalgic and humorous advertising that celebrates its Scottish roots

    • Its red-and-gold packaging and cheeky slogans have become instantly recognisable symbols of Scottish culture

Sponsorship

  • Sponsorship allows businesses to increase visibility and associate their brand with positive values such as community, education or achievement.

    • E.g. ScottishPower sponsors environmental initiatives, school science programmes and sporting events linked to sustainability

    • These partnerships reinforce its image as a company committed to renewable energy and community wellbeing

Social media

  • With a well-planned social media strategy, brands can build online communities, share updates and respond quickly to customers

    • E.g. Glencoe Outdoor Adventures, an adventure-tour company based in the Highlands, uses Instagram and TikTok to share dramatic photos, customer stories and safety tips

    • Its interactive posts and behind-the-scenes videos attract outdoor enthusiasts and help the brand build a reputation for excitement and trustworthiness

Emotional branding

  • Emotional branding builds strong personal connections by appealing to customers’ beliefs, values or lifestyles

    • E.g. The Scottish Seabird Centre in North Berwick promotes conservation, education, and family experiences

    • By focusing on Scotland’s wildlife and coastal environment, the organisation creates an emotional link with visitors who care about nature and sustainability

Evaluation of branding

  • A strong brand is one that customers recognise instantly and associate with positive qualities such as quality, reliability or value

  • Strong branding can give a business a major competitive advantage, but must be protected and managed carefully

Advantages and disadvantages of strong branding

Advantages

Disadvantages

  • Customer loyalty and repeat sales

    • Customers who trust a brand are more likely to buy it again and recommend it to others

  • Easier to launch new products

    • A trusted brand name helps new products gain acceptance more quickly because customers already have confidence in the company

  • Allows premium pricing

    • Well-known brands can charge higher prices, as customers often associate the brand with higher quality or status

  • Differentiation from competitors

    • Strong branding helps a business stand out in crowded markets, making its products easier to identify

  • Increased sales and market share

    • Positive brand reputation can lead to strong demand and high profits

  • High development and advertising costs

    • Building and maintaining a strong brand requires investment in marketing, packaging and promotion

  • Difficult to change image

    • Once a brand is established, it can be hard to reposition it if customer tastes or market trends change

  • Risk of bad publicity

    • If a brand suffers from negative publicity, product recalls or ethical issues, the damage can spread across the entire business

  • Brand imitation

    • Successful brands are often copied by competitors, which can confuse customers and reduce loyalty

  • Pressure to maintain quality

    • Customers expect consistent standards, and any drop in quality can quickly harm reputation and sales

Examiner Tips and Tricks

Don’t confuse a brand with just a logo – it’s the overall identity that makes a product stand out. Strong brands build loyalty and allow higher prices

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Lisa Eades

Author: Lisa Eades

Expertise: Business Content Creator

Lisa has taught A Level, GCSE, BTEC and IBDP Business for over 20 years and is a senior Examiner for Edexcel. Lisa has been a successful Head of Department in Kent and has offered private Business tuition to students across the UK. Lisa loves to create imaginative and accessible resources which engage learners and build their passion for the subject.

Steve Vorster

Reviewer: Steve Vorster

Expertise: Economics & Business Subject Lead

Steve has taught A Level, GCSE, IGCSE Business and Economics - as well as IBDP Economics and Business Management. He is an IBDP Examiner and IGCSE textbook author. His students regularly achieve 90-100% in their final exams. Steve has been the Assistant Head of Sixth Form for a school in Devon, and Head of Economics at the world's largest International school in Singapore. He loves to create resources which speed up student learning and are easily accessible by all.