DECA Hospitality and Tourism Cluster Practice Exam

A disadvantage of individual brands is that they may?

1. Require more promotion

2. Contaminate each other

3. Be associated with one-of-a-kind benefits

4. Prevent companies from reaching different markets

The correct answer is: Require more promotion

Individual brands often require more promotion because each brand has to establish its own identity, communicate its unique value proposition, and attract its target audience independently. This can lead to higher marketing costs and greater resource allocation because the brand's success is not supported by the recognition or reputation of the parent company or other brands within the portfolio. Each individual brand must stand on its own merits, which often necessitates extensive advertising, promotional strategies, and public relations efforts to build brand awareness and loyalty. In contrast, multi-product branding or umbrella branding strategies can leverage existing brand equity and recognition, making promotion more streamlined and cost-effective. However, with individual branding, companies must invest significantly in each brand to ensure they are successfully positioned in the market. This is why the requirement for more promotion is a notable disadvantage of individual brands.