Branding Elements and Strategies Chapter 31- Section 1 What you will Learn Nature, scope and importance of branding in product planning Various branding elements Different types of brands Branding strategies

Branding Brand is a name, term, design or symbol or combination that identifies a business or organization Two Categories: Corporate and Product Reflect quality, value and reliability Builds customer relationships and loyalty Have tremendous value and is an important asset (ex. Coca-Cola $83.8 Billion)

Elements of a Brand Brand Name – words, letters and numbers that can be spoken (Mountain Dew) Brand Mark – Symbol or Design (Apple – Apple Computers) Trade Name – Legal name for company (ex Dell) Trade Character – brand mark with human characteristics (Jolly Green Giant) Trademark – Any of the above that is legally protected by Federal Government can include sound, color and smell (ex Harley Davidson sound)

Importance of Brands Helps build customer loyalty Assures customer’s of consistent quality Vital to address new target markets Establishes an image for a product and company

Generating Brands Requires research to determine if name is already used (79,000 trademarks) Often generated internally by employees Software programs can help create brands Branding agencies, naming consultants or public relations firms may be hired

Types of Brands Products classified by who owns them Manufacturer’s Brands/Producer’s Brands Owned and initiated by manufacturers Examples: General Electric, Heinz Private Distributors Brands Also called private, store or dealer brands Owned and initiated by wholesalers and retailers Examples: RadioShack, Kenmore and Craftsman Generic Brands General product category-no company or brand name Lower priced items usually carried in Supermarkets

Branding Strategies Ways companies use brands to meet sales and company objectives Brand Extension Uses existing brand name for a new or improved product – may lead to brand dilution Brand Licensing Allows another company to use the brand for a fee Mixed Brands Offer a combination of manufacturer, private distributor and generic brands Co-Branding Combine two or more brands to increase customer loyalty and sales for each brand