chapter 18: branding
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Chapter 18: Branding. chapter. Brand. A name, term, symbol, design, or combination thereof that identifies a seller’s products and differentiates them from competitors’ products. Value Proposition of Brands. - PowerPoint PPT PresentationTRANSCRIPT
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Chapter 18:Branding
Brand
A name, term, symbol, design, or combination thereof that
identifies a seller’s products and differentiates them from competitors’ products.
Value Proposition of Brands
Value Proposition: Set of benefits or values the brand promises to deliver to consumers to satisfy their needs.
Why should I buy your brand rather than your competitors’ brand?
Brands
Represents Ownership
Distinguishes from Competitors
Adds Value
Delivers a Promise
OffersConsistency
For the manufacturer
For the consumer
Brand Equity
Brand Equity is the power of a brand, through creation of a distinct image, to influence customer behavior.
Croft & Barrow$20.00
Cutter & Buck$62.00
Ralph Lauren $150.00
BW Top 100 Brands2008Rank
2007 Rank Company Brand Value
1 1 Coca-Cola $66.7
2 3 IBM $59.0
3 2 Microsoft $59.0
4 4 GE $53.1
5 5 Nokia $35.9
6 6 Toyota $34.0
7 7 Intel $31.3
8 8 McDonald’s $31.0
9 9 Disney $29.3
10 20 Google $25.6
Source: Business Week / Interbrand study
Why is Brand Important
Product identification Repeat sales (brand loyalty) Generate new product sales Quality or image association Product differentiation
Building Strong Brands
Starts with positioning
High Quality
Low Quality
High Price
LowPrice
Perceptual Map
Connecting to the Consumer
Values
Benefits
Attributes
Increasing Difficult for
Competitors to copy Positioning
Higher
Emoti
onal
Conn
ection
with
Cons
umer
s
Brand Constellations and Positioning
BrandingBrand Name
BrandMark
Brand Equity
MasterBrand
That part of a brand that can be spoken, including letters, words, and numbers.
The elements of a brand that cannot be spoken.
The value of company and brand names.
A brand so dominant that it comes to mind immediately when a product category,
use, attribute, or benefit is mentioned.
Master BrandsBaking Soda Adhesive Bandages
Rum
Gelatin
Soup
Cream Cheese
Crayons
Petroleum Jelly
Arm & Hammer Band-Aid
Bacardi
Jell-O
Campbell’s
Philadelphia
Crayola
Vaseline
An Effective Brand Name
Is easy to pronounce Is easy to recognize and remember Is short, distinctive, and unique Describes the product, use, and benefits Has a positive connotation Reinforces the product image Is legally protectable
OnlineLevesque Design(Portfolio, Logo Design)
Brand Names and Cars
Phonetic Symbolism: small units of sound and the meanings they convey
Used two fictitious words to test what sounds consumers prefer (e.g. “gimmel” and “gommel”)– (Short) “i” or “ee” sounds for products that are fast or
sharp (convertible, knife)– (Short) “a” or “oo” sounds for large, slow or dull
products (SUV, hammer) – “yoo” or “un” sounds are negative
“You may be buying a vowel”, Philadelphia Inquirer, 10/1/2007, Colleen Dunn
Branding Strategies
Brand No Brand
Manufacturer’s Brand Private Brand
IndividualBrand
Family Brand
Combi-nation
IndividualBrand
Family Brand
Combi-nation
Private Brand
GenericBrand
The brand name of a manufacturere.g. Ford Mustang, Starbuck’s Coffee
A no-frills, no-brand-name, low-cost product that is simply identified by
its product category.
Manufacturers’ Brands VersusPrivate Brands
Manufacturers’ Brand
The brand name of a manufacturere.g. Ford Mustang, Maxwell House
Coffee, Shredded WheatA brand name owned by a wholesaler
or a retailere.g. Sam’s American Choice
(Wal-Mart)
Advantages of Private Brand
Earn higher profits Less pressure to mark down prices Manufacturer may drop a brand or
become a direct competitor to dealers Ties customer to wholesaler or retailer No control over distribution of
manufacturers’ brands
Advantages of Manufacturers Brand
Develop customer loyalty Attract new customers Enhance prestige Offer rapid delivery, can carry less
inventory Ensure dealer loyalty
Branding Strategies
Brand No Brand
Manufacturer’s Brand Private Brand
IndividualBrand
Family Brand
Combi-nation
IndividualBrand
Family Brand
Combi-nation
Individual Brands VersusFamily Brands
Individual Brand
Family Brand
Using different brand names for different products
e.g. Procter and Gamble products
Marketing several different products under the same
brand namee.g. Sony products
Examples
P&G Brands (Individual)– www.pandg.com
Sony Brands (Family)– www.sony.com
Kellogg’s Brands (Individual and Family)– www.kelloggs.com
Pepsico’s Brands (Individual and Family)– www.pepsico.com
Individual Branding at P & G
Cobranding
Placing two or more brand names on a product or its package– Ingredient branding: part of the product
(Intel Inside)– Cooperative branding: brands get equal
treatment and borrow brand equity (Coach version of Lexus)
– Complimentary branding: marketed together, with a suggested usage (Bacardi and Coke)
Works best when two brands are equal in strength and target same customers
Onlinehttp://www.bose.com (Automotive Section)
Hampton Inn and Steak and Ale and
Bennigan’s
Cooperative Branding