BRANDING

Ch1: What is brand?

BRAND? (traditional definition)

brand is a name, term, sign, symbol or design or combination of them to identify the goods and services from one seller and to differentiate them from their competitors
American Marketing Association (AMA)

Focus: tangible

BRAND? (new definition)

In industry Brand is something that has created certain amount of awareness, reputation, prominence etc in the marketplace.
Set of associations or known descriptions stored in peoples mind Focus: intangible

Creating a brand

Choose a name strategy

Create brand elements to differentiate

creating a brand: name

Can be different from company name strategies 1. Name: Estee Lauder, Porche 2. Under P&G: Pampers, Pantene 3. Places: Santa Fe cologne, British Airways 4. Animals: Mustang, Dove, Tiger Airways 5. Others: Apple, Shell, Carnation 6. Inherent product meaning: Lean Cuisine ,100% Juice Blend 7. Important attributes: DieHard auto batteries, Mr Muscle detergent

Physical goods cereal, car, Airlines, bank, etc More than a product Satisfy customers needs/want & solve solutions it has dimension tht diff from other brands which satisfy same need/solve same problem

Brand v. Product
Rationale/tangible Performance some brand create Competitive advantage with Performance. e.g: Gillette leader

Emotional/intangible What brand represents Understand consumers Motivation & desires Create appealing image e.g: Coke, Channel no5

Strong brands sometimes Has created association Outside marketers control e.g: Coke taste heritage, American icon

A brand comprises of

TANGIBLE ATTRIBUTES
Product Packaging Labeling Attributes Functional benefits

INTANGIBLE ATTRIBUTES
Quality Emotional benefits Value Culture Image

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Why does brand matter??

Risk & search cost reducer Identification of source - xp with same maker

Symbolic device

CONSUMERS
Assignment of responsibility to product maker

Consumer offer loyalty expect Brand to behave in certain way, Provide utility tru consistent Performance & right pricing & distribution - Satisfy cont buying

Signal of quality

Promise, bond or pact with product maker

Why does brand matter??

Brand reduce risk in product decisions. Types of risk:1. Functional risk product doesnt perform as expected 2. Physical risk product poses a threat to the users physical well being or health 3. Financial risk not worth the price paid 4. Social risk results in embarrassment from others 5. Psychological risk affects users mental well being 6. Time risk failure of product results in an opportunity cost of finding another satisfactory product

Consumers can handle these risk, but best way is to buy wellknown brands Brands can change expectation and experience Consumers life is more complicated and rushed ability of brand to simplify decision making and reduce risk is invaluable

Source of financial returns

Identification simplify handling and tracing

Legally protect unique features

FIRMS
Source of competitive advantage

Endow products with unique association

Signal of quality level to satisfy customers

What can be branded??

Ideas and cause Physical goods b2b, hightech

Services professional svces

Geographic locations

brand

Retailers & distributors

Sports, arts and entertainment

Ppl & organisations

Online products & services