Readings in Services Assignment on BrandsBySiddhanth Nair

Contents

Introduction A) BrandsB) Function of brandsC) Name and logo of brands

Main body

A) Brand ValueB) Brand EquityC) Holistic BrandingD) Managing Brand EquityE) Branding StrategyF) Brand PortfoliosG) Barriers to BrandH) Brand PackagingI) Service BrandsJ) Branding in Nonprofit OrganizationsK) Brand Management

Conclusion

A) Branding beyond MarketingB) Future of branding

References

Introduction

Brands

Any damn fool can put on a deal, but it takes genius, faith and perseverance to create a brand (David

Ogilvy). Well-managed brands live on, only bad brand managers die (George Bull). A brand is either a

name, symbol, design or combination of things that help us to identify goods and services of one or more

sellers and helping to differentiate from competition. Branding started way back in the medieval period

where craftworkers use to carve a unique symbol on their products and creation, trademarking their prod-

ucts. Even artists from back in time have branded their art but the brands of today play a greater role of

enhancing consumers lives. A brand helps firms to build relations with consumers and promises cus-

tomers of unique products and services. A brand adds value to a firm and build up a positive image and

goodwill of the firm and its product and helps consumer remember the products. A brand has been

termed as the heart and soul of a firm as all activities should be involved in building the brand.

Function of brands

A brand gives a company and its products a distinct image which helps to differentiate from the competi-tion. Brands help in defining the benefits that the target market gets. Brand helps to focus on marketing activities and all supporting activities, which work to reflect the brand. Brand promotes a clear message of the credibility and relevancy of a company. Brands can help to connect with consumers on an emo-tional level. Loyalty of customers increases when a brand is develop. All products of a brand can be inte-grated as are part of a same brand extension. Eg. Apple. Brands promotes consistency in product quality and helps consumers skim over other brands towards known brands. A brand can help to communicate benefits a form wishes to give its customers and provide legal protection of their products. Brands are very valuable for firms also they simplify inventory handling and organizing. Brand involves lot of work and is considered as a valuable asset by the firm and high price is paid to buy some of the good brands as the product and processes can be copied but the minds of the consumers is very hard to alter.

Brand Name and Logo

Selecting an appropriate name for your brand is very important as it does more than giving you an iden-tity. An effective name should be able to help set your identity, it should be descriptive about your prod-uct or service and not something random. A name should be able to portray of not only what you do but how you do it. E.g. Quick Spa’s. It should also be different from your competition and excite the interest of the customers but should not be offensive or intimidating.

Brand’s logo should portray values of the business as it helps customers to recognize your brand. Logo should convey the message your brand wants to convey. Logo should be professional in nature. Logo should depict growth and should be able to be used for many years to come. Logo should be tested in the market before launching them. Effective logo will help you create a distinct image and improve your brands strategy and position.

Main Body

A) Brand Value

Brand value is very much like an onion. It has layers and a core. The core is the user who will stick with you until the very end (Edwin Artzt). When the brand has developed, it showed be reviewed and rein-forced into the minds of consumer by continuing to generate value from the brand. This can be done if the product quality is maintained by the firms by having efficient manufacturing processes. Proper pack-aging of products is essential to make the product presentable and handy. Efficient and skilled staff is re-quired in a firm to increase the brands value. The whole outlook of the firm should be of standard, even the stationery is important and can help add value to the brand if everything has logo or name of com-pany on it and is of presentable quality. People in touch with customers and suppliers should be well dressed, have proper etiquette and communication skills to increase the image of the company. Brand value can also be increased by marketing activities like promotions, advertisements, displays, etc. The best brands have a message communicated through everything in link with the brand. Branding in also very important when it comes to business customers, they are less influences emotionally and more inter-ested in your product quality and standards. Healthy and long lasting relations should be maintained by displaying brand attributes like innovation, consistency and standardization. Business customer also looks for reliability and service back up, customization should also be offered by good brands.

B) Brand equity

A brand that captures the mind gains behavior but a brand that captures the heart gains commitment (Scott Talgo). Brand equity is the additional commercial value added to its products and services. This can be seen by consumers attitude towards the brand, profits and market share captured by the firm. Brand equity can also be consumer based in which it depends on the knowledge consumers have of the brand and their response to the knowledge, marketing is also effected depending on the responses of the con-

sumers and their attitude towards the brand. Brand equity therefore consists of brand loyalty, brand awareness, perceived quality, brand associations and other brand assets like competitive advantage. If consumers are brand loyal it is very beneficial for the brand as there are reduced marketing costs and gain trade leverage. If the consumers are aware about the brand they start liking it and can respond by buying these products. There are some models which explain brand equity, lets see the Brand Resonance Model. This model involves a series of steps like a pyramid from down to the top. It begins with Brand Salience, that is how often the brand is remembered during buying decisions. Then comes Brand Perfor-mance and Imagery, that is how effective is the product or service to satisfy the needs of the consumers and how successful is the brand in meeting the psychological and social needs of the consumer. This is followed by Brand Judgements and Feelings, this involves the consumers personal experiences, opinions and the consumers emotional responses related to the brand. Finally comes Brand Resonance, which is the relation that is achieved after the series of steps between the consumer and the brand, consumers become loyal and brand bonding is intense. Example can be Coke and Apple.

Brand equity is not created on its own it has to be build by choosing the right brand elements like logo, slogans, names, which attracts the customers towards the brand and creates resonance. Therefore these elements need hold some meaning and should be adaptable to all products under the brand, they are also be memorable and likable for the brand to attract customers. Elements should also be protectable and hard to imitate for the competition. All supporting activities, marketing and the product also build brand equity, the right strategic choices are very important to develop brand equity. Brand associations also help in building brand equity, it should be linked with the right people, place and thing, this creates a par-ticular image about the brand and can be promoted or advertised through this linkages.

C) Holistic Branding

Mass marketing is no longer followed these days, it is the age of one to one, permission and experimental marketing, and the 4Ps area no longer beneficial if adopted traditionally. Firm now wants to know the name of each of its customers, it has become way more personalized. Thus brands following personal marketing can develop long lasting customer relations as customers are involved and their needs are be-ing served. Marketing in the world of today involves mixing many activities in an integrated manner to de-liver value to the consumers. Marketers must internalize the notions of the brand then only can deliver it to the outside world, it motivates all employees to work for the brand promise and building. By following these holistic marketing activities brand bonding can be ensured because the brand will live up to its ex-pectation, so companies try to carry out internal branding by talks, seminars, workshops, etc. Brand eq-uity can also be built by transfer of the brand image of primary and secondary brand associations, they add value to the existing brand. Associations can include employees, endorsers, alliances, companies, country, events, etc.

D) Managing brand equity

The brand equity may wither over time so the brand has to be effectively managed in the short term keeping the long term view in mind by carrying out successful marketing activities and keep the brand up to date with the dynamic internal and external environment. Value of a brand may decrease over time therefore it should be reinforced in the minds of the consumers through effective marketing activities and by spreading brand knowledge through innovative and creative means. E.g. Volvo and Home Depot. When a brand fails to match the changing environment when there is change in consumer choices, new com-petitors or technology, etc. In this scenario the brand has to be revitalized and brought back to its basic strategies or follow new innovative strategies. Firm should learn from their mistakes and adapt to the dy-namic environment, to bring the brand back to its glory days. E.g. Mountain Dew.

E) Branding strategy

A company can have many existing brands and new products which have to be categorized under brands. So, the company has the choice to either use the existing brand’s elements in the new product or to start a new brand with its own elements. A company can also opt for a mixture of both. If the product is launched under some existing brand it is called Brand Extension or a sub-brand. E.g. Adobe, Hershey. The existing brand which adds a new product is called the Parent Brand. Brand Extension can be of two ways, Line or Category extension. Line extension is to have a new product under your brand which is similar to the existing products and may be used to target different market segments or to increase consumer base. E.g. Dannon. Category extension involves including such a product under your brand which is different from the existing products. This helps bring diversity for the brand and target new markets and attract new customers. E.g. Honda.

Brand extensions can be very beneficial for the company financially and consumers accept new products from existing brands thus reducing risk and can provide response easily. It can sometimes be very benefi-

cial for the parent brand and increase its brand value. It helps in increasing shelf presence and reduce switching of existing customers to other brands. This also promotes healthy competition between differ-ent products under a brand. Economies of scale can be achieved in transportation, marketing activities like advertising and sales. On the contrary having many sub brands under a parent brand can lead to the diffusion of the parent brand and its core product, this leads to brand dilution and lose its reputation. E.g. Cadbury had too many products under its name, so it was losing its image as a chocolate brand. Some products can end up as a failure and end up harming the parent brand.

Some brands are combined with existing brands to be marketed or to form a combined product, this is known as CO-Branding. This can be carried out within the same company, joint venture or retail. This helps to position the brand in the consumers mind, to increase sales or to reduce innovation costs but there are also many risks involved in co branding like dilution of brands, lack of focus and control.There are also some brands which hold the corporate name, these are known as Corporate Brands. E.g. IBM, Ko-dak. All the original products and its extensions together are called Brand line and various brand lines to-gether are known as brand mix. These are some of the branding strategies. A new product’s branding strategy should be first to decide what name should be given to the brand under which the new product is to be launched. Each product can be launched under new brand names thereby it is not connected to the reputation of the company and its other brands. E.g. General Mills. The products may also be provided the brand name which is same for the whole family of products a company has. This way of giving a brand name is much economic and less research has to be done and less expenditure in the marketing of the product as it is under an existing brand. Separate family brand names can be used for new products if the company produces a variety of products or it can be a combination of the corporate name and the in-dividual names used for a brand name. E.g. Kellogg.

F) Brand portfolios

Brand portfolio is the collection of all brands and brand lines a company has and what is offers to sell to the buyers. An optimal mix should be created to maximize equity of the brands. All brands must be re-viewed over time to locate any problems or unprofitable brands and remove them to maintain an optimal mix. Brands in a portfolio can each play a different role, to help other brands be profitable or solve any problems. Some brands are Fighter brands which help fight against the competition by setting up its brand against the competitors brands. These brands are for the benefit of the higher priced brands and should not attack brands in its own portfolio. Brands can also play a role of regular revenue for the com-pany even though no marketing efforts are carried out, these are known as Cash Cows. They continue to give profit despite decrease in sales due to its image, brand equity and customer base. High end brands may launch new brands at a lower level to attract different consumer segments towards their brand and then try to move customers up to the higher end brands. Some high end brands may just be launched by a company to add prestige and goodwill to the company. It also helps to raise the standards and credibil-ity of the portfolio.

G) Brand barriers

When a brand strategy is being formulated analysis should be carried out to find out the barriers that the brand is going to face. Barriers can be internal or external conditions mostly depending upon the market. Some examples of barriers can be Competition, Location, No demand, Timing and Financial. For fighting against this barrier analysis of the product or service should be done throughly. Analysis will help you build your brand and position your brand. Competitors information should be kept updated and stay ahead of your competition. Analysis about market conditions and your target market is required to be done to achieve marketing success.

H) Brand Packaging

Branding is all about your image in the market, it depends upon your packaging. Packaging can attract customers and gain loyalty and on the other hand it can decrease your demand by losing customers. Packaging is more essential incase of a new brand, as a existing brand already has a set image but a new one has to develop an image to attract potential customers so proper packaging is relevant. Packaging here does not mean the box in which your product is packed but as a driving force for a company’s brand. Things to judge effective packaging are stationery, visiting cards, online web site, customer service or re-sponse system and email address. Stationery should have proper logo, company letter head and be of good quality. Visiting business cards should be professional and clear in nature not casual. Websites should be easy to surf and understand and help in attracting customers. Customer should be given impor-tance rather than keeping them waiting .All these elements depict your brands image and should be in tune with it. Your packaging should be such that customers give you a second look and not ignore your messages. These are the small details which can give you huge returns.

I) Service brands

The model for brands have always focused on goods but neglected services, they have attempted to rep-resent both but the marketing principles for both are different. Services are said to be intangible, insepa-rable and perishable in nature. The service sector is very dominant in the western countries. Studies have been carried out recently developing new marketing ideas for service brands. According to Service brand-ing model by Berry (2000), service brand equity includes brand awareness and meaning. Brand aware-ness includes all of company communications like advertising, name and logo of company, facilities for service and customer contact through PR and general word of mouth. Brand meaning is related to the ex-perience the customers have with the company, as a service company is more people oriented and not based on machines, the factors affecting brand awareness also affect meaning.

Even though service brands may be good communication and position but it is the people who are the most important in the service sector. Employees and staff should be well trained and skilled. Reliable and punctual employees is very necessary for service companies. People should have good communication and response to any situation faced. People in the service sector should also be able to assure its cus-tomers and be empathic. Personal appearance is very important as they become the company’s repre-sentatives to the customers.

J) Branding in Nonprofit Organizations

Branding in Nonprofit Organizations helps to gain visibility and the value’s of the company. According to Checco, there are some steps to make branding successful in Nonprofit organizations. It starts with con-ducting a SWOT analysis of the company which help to understand the strengths, weaknesses, opportuni-ties and threats of the company. After the analysis the company will have knowledge about their pro-cesses, products, target markets and their differentiating POD’s. The company will also be aware where they fall short and train people about branding. Analysis will help to identify sources of opportunities for the company to grow and build their brand and about factors that will hinder the organization to achieve the desired results. Brand messages can be identified after you have carried out your SWOT analysis. The brand messages derived should also be such that people want to hear and connect with it, so proper re-search and survey is to be done to find out its effectiveness. A brand package has to be created which would contain logo, name, mission, vision, position and to check this package again conduct surveys to prove its effectiveness, Focus groups can be used. So following this steps will help nonprofit organizations to attain branding which is successful.

K) Brand Management

Brand management involves application of marketing tools to improves customers perception about the brand. Brand management is to build, improve, measure brand equity. Managing the brand increases the sales and profits of the company and increases customer satisfaction by delivering the brand promise. Brand management makes brands become strong, that is the brand should inform the customers about its features, value, etc., should be also differentiable from other brands and should be able to seduce the customers that is to excite and interest the consumers.

Branding has been succeeded by brand management, and the new brand management connects the brand to the consumers emotionally to create loyalty.It also involves making the consumer feel like a part of a community and have a sense of belonging to the brand. Harley davidson and Apple have been successful in doing so. Brands are not only required to de-liver value to the customers by being unique but should be socially responsible in the world of today, should carry out activities to improve the environment, other social causes keeping ethics in mind.All brands are effective in communication but a strong brand should be different and impress the con-sumers and instill the brand not only in the mind but also in the heart of the customers. E.g. Absolut vodka.

Every detail affect the minds of the customers when it comes to brands. These small details sometimes matter more than big campaigns. Brands which go beyond others by focussing on how just to bring a smile to a customer or generate positive word of mouth by not focussing on costs on working on every small detail end up positioning themselves in a very strong manner in the consumers minds. So shouting about your brand has come to an end and listening to your customer has become of utmost importance, communication should be a two way process to be effective. Defining the brand is very important before communicating it, so what a brand is, does and means should be known to be a strong brand. E.g. VW Beetle, BMW and Disney.

An effective brand management strategy ensures consistency between the brand and the organization’s goals and not deter from it. The stakeholders and partners are reflect upon consistency, innovative part-ners should be chosen to improve profitability of the business. It is also preferable for partners in business to have the same culture and goals as your business, it saves time. Brand management should promote healthy and long term relationships.

Conclusion

A) Branding beyond Marketing

Branding is not limited to marketing, you have to follow the thing you preach also. If your brand says it supports the environment it should hamper the environment itself. Wal-Mart believes in customer service and people but they give unfair wages to its employees, so it does not follow what it preaches. Brands and organization should be integrated and work on similar values and beliefs. Actions of the organization should help in building the brand and not harming it. Therefore guidelines must be set to ensure consis-tency, that is the package of the brand. Following these guidelines and setting a culture that helps the or-ganization to be consistent and no problems will occur then. Moreover a brand should also keep cultural differences in mind as in this age of communication and globalization. A brand to gain international reach has to keep the culture issues in mind, so that relations are not affected. There are language and seman-tic differences in cultures which can confusion and many other reason for differences in cultures but a brand had to be such that it can cross borders easily without any complications. Brand is beyond market-ing as stated before it depends on people behind and in front of the brand. Following these will improve and strengthen your equity and position of your brand.

B) Future of Branding

Organizations in the world of today have to face the immense competition and globalization, the firm has to manage the brand effectively and remove all barriers in its development to benefit from this intangible asset. Consumer desires value when it buys brands, so brands should work to deliver value as giving sale on brands is not enough to attract customers as they want value for the money spent by them. Unique-ness has been given prime importance due to immense competition, differentiation will result in sales and profits for the firm. Brand promise has to be genuine as consumers have become more knowledgeable and aware about the products in the market, so only such a brand will grow which delivers what is promised to the consumer as their expectation has risen a lot, and consumer involvement is also very im-portant also in brand building. Consumers are up to date with all the innovations being carried out and want more of it everyday to make their life easier. So such brands will survive who understand and capi-talize on such unmet desires of the consumers.

Old tricks of using emotions to attract customers to brands do not work anymore as consumers cannot be taken for granted and fooled easily. Using the financial downturn to their benefits some brands tried to emotionally connect with the consumers but were not successful. Endorsers of brands also should be logi-cal and sincere, like Tiger Woods and Accenture. With online trading being the way to go these days, brands can attract customers quite quickly in a short span of time, so reputed brands have to continue delivering value or the new brands can catch up easily. Feedbacks of customers is also very important these days as customer has to be taken care of, for the word to be spread widely about the brands through consumers. To create effective brand engagement firms have to give up their outdated modes to engage customers. Firms need to accept certain methods to engage brands to customers, this can be done through Television and Online, that is the Platform method of engaging or Context method which in-volves programming and web paging. Effective message is very important to engage customers and can be projected though advertisements and promotions. Using the Event and Experience method also helps engage customers.

Being easy is a benefit for your brand research shows, so keep it real and simple is the way to go. The reason behind it is cognitive fluency which means to face ease in understanding a situation. So a brand should for an easy and simple name, tag line, fonts, logo and advertisement to say a few. As it becomes easier for the consumer to interpret and understand and brands should try to create a distinct visual and audio identity to help consumer retain information for a longer time. The basic thing is to make marketing transparent.

Social Media advertising is catching up fast these days, all firm are using this platform to reach cus-tomers. Sites like facebook, twitter, myspace and youtube have become very popular to promote brands. These sites have to be monitored regularly to increase customer satisfaction and loyalty. Even mobile and

smart phones have become an avenue to promote brands and connect with consumers, moreover social media and phones can be linked so using this media is very effective in reaching people.

Brands should aim to build their brand’s equity but some problems are either created by competitors or there may be some internal hiccups. If competition is tough, customer loyalty can be a big problem for the brand, as there is competition is not only the products but also in aspects of marketing. So research should be carried out to stay ahead of the competition. Production problems can lead to prices of prod-ucts being very high this can lead to consumer switching over to other products. If the brand fails to de-liver value to customer as promised, then brand equity will fall. Positive networking and partnerships should be made which benefits your organization, effective distribution channels should be created. Awareness of the product is very important, so important steps are to be taken to reach the customers through many media available today. So if these problems are effectively managed then the brand equity if the firm will surely rise and the firm will develop and grow successfully and marketers get one step closer towards building a strong brand.

These trends have to be accepted by firms if they have to succeed in the future, so if a brand wants to last it should be responsive to the changes taking effect today. Future of brands is very bright. “A product is something made in a factory; a brand is something that is bought by the customer. A product can be copied by a competitor; a brand is unique. A product can be quickly outdated; a successful brand is time-less.”(Stephen King)

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