Question No. 11 - Principles of Marketing BCOE - 141

Solutions to Assignments 

BCOE - 141 - Principles of Marketing

Question No. 11

Write short notes on the following: 

(a) Cash discount        (b) Branding 

a) CASH DISCOUNT

Cash Discounts are the discounts or incentives given by the seller to the customer for paying dues on or before the due date as per the company’s terms and conditions.

The company offers it to its customers to make the early payment in cash. It is known as a sales discount from the perspective of the company selling the goods and purchase discount from the perspective of the buyer purchasing the goods.

Cash discount reduces the chances of the bad debts that might arise in the future due to non-payment of dues by the customers of the company. Thus with such a discount, the company generally gets more amount of money when calculated for the overall business.

In the case of a business unit where a sufficient amount of the cash reserves is available in the company, they only lead to fewer profits because the earlier recovery of cash is of no use and will not give any benefit to the seller when checked on an overall basis.

b) BRANDING

Branding is the process of creating a strong, positive perception of a company, its products or services in the customer’s mind by combining such elements as logo, design, mission statement, and a consistent theme throughout all marketing communications. Effective branding helps companies differentiate themselves from their competitors and build a loyal customer base.

This means that customers expect that your tone of voice is the same over email, your website, customer service, and every other touchpoint in your business. If you rebrand, you need to change your logo, and styling everywhere both online and offline. Make sure you create a consistent brand so that your customers revel in your omni-channel presence. 

Branding in store can be very different to online branding as in store you have to worry about positioning of products and props that can effect how a customer experiences your brand. Branding in store is more experiential as people can walk around and pick things up, whereas customers online are experiencing a two-dimensional scene. Of course certain elements of branding are consistent with both online and in store. These include consistent imagery and logos.