2 Branding Elements & Strategies What you’ll learn:The nature, scope, and importance of branding in product planningThe various branding elementsThe different types of brandsHow to classify branding strategies
3 A brand is a name, term, design, or symbol (or combination) that identifies a business or organization and its products.
4 Brands can include a number of elements: Brand name – the word, group of words, letters, or numbers representing a brand that can be spoken. Ex: Mountain Dew, PT Cruiser, SnackWellsAlso called a product brand
5 Trade name – identifies the company or a division of a particular corporation – the legal name a company uses when it does business. Ex: Kellogg’s, Dell, XeroxAlso called a corporate brand.
6 Brand mark – the part of the brand that is a symbol or brand name – it may include distinctive coloring or lettering. It usually is not spoken
7 Trade character – a brand mark with human form or characteristics Trade character – a brand mark with human form or characteristics. Ex: Jolly Green Giant, Pillsbury Doughboy, Kellogg’s Tony the Tiger
8 Trademark – a brand name, brand mark, trade name, trade character, or a combination of these that is given legal protection by the federal governmentTrademarks are followed by a registered trademark symbol
9 Characteristics of a Good Brand Name The name should describe the product's benefits and use(s)The name should convey what the product does for the consumer or how it works.EXAMPLE: The name Jiffy Lube gives consumers the impression that their motor oil will be changed quickly, which benefits them by saving time.The name should be easy to read, pronounce, and rememberMakes the product easy to recognizeEffective names are often briefEXAMPLES: Joy, Raid, Tide
10 Deciding Whether or Not to Brand Without brands, consumers couldn’t tell one product from another, and advertising would be nearly impossible.Since branding is an expensive process, companies must make sure that their investment will be worth the effortInvolves researching, developing, and marketing new brandsCan cost $20 to $50 million
11 Use of BrandsBrands must be built on differences in images, meanings, and associationsWhen consumers feel good about brands, they buy themEXAMPLE: Compare your feelings about a Jaguar with your feelings about a Yugo
12 Importance of Brands in Product Planning To build product recognition and customer loyaltyTo Ensures quality and consistencyTo Capitalize on brand exposure
13 Generating Brands Hard to find the right name Generated by employees, computer programs, PR agenciesMost companies do research to determine if the brand name is effective
14 Types of BrandsNational Brands –owned and initiated by manufacturers. Ex: General Electric, Heinz, and Motorola.When consumers buy food products, they buy manufacturer brands nearly 75 percent of the time.
15 Private Distributor Brands – also called Private Brands, Store Brands, or Dealer Brands – owned and initiated by wholesalers and retailers. Ex: Radio Shack and Kmart, Craftsman, KirklandThis type of brand can be controlled by retailers and it yields the highest profits.
16 Generic Brands – represent a general product category and do not carry a company or brand name. The packaging only describes the product – “pancake mix” or “paper towels”Often priced below branded products
17 Branding Strategies – the ways companies use brands to meet sales and company objectives
19 Branding StrategiesBrand Extension – uses an existing brand name for an improved or new product in the product line.Ex: Cheerios
20 Branding StrategiesBrand Dilution occurs when the original brand loses its strength in brand identity because it has been stretched to too many products.
21 Brand Licensing – legal authorization by a trademarked brand owner to allow another company (the licensee) to use its brand, brand mark, or trade character for a fee (royalty)Ex: McDonald’s pays Disney to associate Disney related toys in Happy Meals
22 Mixed Brands – simultaneously offering a combination of manufacturer, private distributor, and generic brandsEx: Michelin manufactures tires for Sears as well as under its own brand name
23 Co-Branding – combines one or more brands to increase customer loyalty and sales for each individual brandEx: Ford creates the limited edition Harley Davidson pickup truckEx: Starbucks Coffee opens outlets in Barnes & Nobel Bookstores
24 Brand Image One of the most important strategic purposes of marketing. All advertisements in all media should present the same brand image.
25 Businesses Benefit from Brand Loyalty This is evidence by repeat sales and pre-sold itemsWhen consumers get into the habit of buying certain brands, they automatically buy them again, thereby reducing the amount of time needed to make a saleThe obvious goal of all marketers is to build a high degree of loyalty for their brands