What is a Brand?  A brand is a name, term, design, symbol, or combination of these elements that identifies a product or services and distinguishes it from its competitors

When is a Brand Used?  Identify one product, a family of related products, or all products of a company  Each brand is different Some may want to portray a brand that is known for quality and reliability Some may want to portray a brand that is known for quality and reliability Another may want to portray fun and excitementAnother may want to portray fun and excitement

Elements of Branding  Brand Name  Trade Name  Brand Mark  Trade Character  Trademark

Brand Name  Also called a product brand A word, group of words, letters, or numbers A word, group of words, letters, or numbers Represent a product or serviceRepresent a product or service  An effective brand name: Easily pronounced Easily pronounced Distinctive Distinctive Recognizable Recognizable  Examples PT Cruiser, Pepsi, Barbie, Pop-Tarts, Big Mac PT Cruiser, Pepsi, Barbie, Pop-Tarts, Big Mac

Trade Name  Also called corporate brand Identifies and promotes a company or a division of a particular corporation Identifies and promotes a company or a division of a particular corporation  The legal name that a company uses when it does business  Trade Names support Brand Names  Examples Procter & Gamble, Dell, Disney, Kellogg’s, Nike, Yahoo! Procter & Gamble, Dell, Disney, Kellogg’s, Nike, Yahoo!

Brand Mark  Unique symbol, coloring, lettering, or other design elements  Recognizable visually  Does not need to be pronounced  Examples

Trade Character  Specific type of Brand Mark  Has human form or characteristics  Icons

Trademark  Word, name, symbol, device, or a combination of these elements that is given legal protection by the federal government  Used to prevent other companies from using a similar element that might be confused with the trademarked one  ® means “registered trademark” 1884

Importance of Brands  To build product recognition and customer loyalty  To ensure quality and consistency  To capitalize on brand exposure Introduce new product lines Introduce new product lines

Generating Brand Names  75% of all companies introduce a new product name every year.  250,000 trademarks are registered per year  60% of all companies conduct market research to test new brand names before they are released to the public Once they are established, they are rarely ever changed Once they are established, they are rarely ever changed

Types of Brands  National Brands  Private Distributor Brands  Generic Brands

National Brands  Also called producer brands  Owned by national manufacturers or companies that provide services  Examples Colgate-Palmolive Colgate-Palmolive Hershey Hershey Whirlpool Whirlpool

Private Distributor Brands  Also called private brands or store brands  Developed and owned by wholesalers and retailers  Examples Radio Shack Radio Shack Kohl’s Kohl’s Wal-Mart Wal-Mart

Generic Brands  Products that do not carry a company identity  Their packages usually features a description of the product “Pancake Mix” “Pancake Mix” “Paper Towels” “Paper Towels”  Generally sold in grocery stores  Often priced 10-15% lower than private distributor brands

Branding Strategies  Brand Extension  Brand Licensing

Brand Extension  Uses existing brand name to promote new or improved product in a product line  Ocean Spray drinks Originally just did cranberry juice Originally just did cranberry juice CranApple CranApple CranCherry CranCherry CranGrape CranGrape

Brand Licensing  When companies allow other organizations to use their brand, brand mark, or trade character  This is done to increase revenues and enhance their company image NFL has licensing arrangements with Pepsi and Visa NFL has licensing arrangements with Pepsi and Visa People who like the NFL may use Visa or drink PepsiPeople who like the NFL may use Visa or drink Pepsi