Nature of Product Branding Product/Service Management LAP 6

Nature of Product Branding It’s a Brand, Brand, Brand World Nature of Product Branding Objectives: Describe the characteristics of effective product brands. Explain the branding process. Product/Service Management LAP 6

Describe the characteristics of effective product brands.

Society is drowning in brands. Some questions to think about: Why are we surrounded by brands? Why do companies develop brand names and logos? How do they come up with those brands? What makes a brand successful?

Made up of trade names, brand names, brand marks, and trade characters What Is a Product Brand? A name, term, symbol, or design (or combination of them) that identifies a product and distinguishes it from competitors’ products Made up of trade names, brand names, brand marks, and trade characters

The name that identifies the company What Is a Trade Name? The name that identifies the company

What Is a Brand Name? The part of the brand that can be spoken Word Phrase Letter Number Any combination of these

What Is a Brand Mark? A distinctive symbol Design Sound Group of letters Can be seen or heard Cannot be spoken

Tony the Tiger (Kellogg’s) Roaming Gnome (Travelocity) What Is a Trade Character? Brand marks that have been made to seem lifelike Tony the Tiger (Kellogg’s) Roaming Gnome (Travelocity)

Types of Brands Manufacturer’s brand A brand that the manufacturer has assumed all the responsibility of branding The manufacturer will make all the decisions. Sometimes called a national brand

Types of Brands Private brand A brand owned by an intermediary A supplier produces a product and places an intermediary’s (middleman’s) brand on it. Sometimes called a store brand

Types of Brands Family brand Involves using the same brand for related products in a product line

Types of Brands Individual brand Involves using different brands for products owned by one company

Characteristics of Effective Brand Names Describe the product’s benefits and uses The name should convey what a product does for the consumer or show how it works. The name should: Be easy to read, pronounce, and remember Many effective names are short, even just one syllable.

Create appealing images Characteristics of Effective Brand Names Create appealing images A brand name should be pleasant and make people want to buy that product. Be distinctive The brand name should set the product apart from the competition.

Characteristics of Effective Brand Names Be adaptable A good brand name should be easy to pronounce in all countries where the product will be marketed. It should also have an acceptable meaning in these foreign countries. It should also be a “classic” name that won’t go out of style.

Be legally available for use Characteristics of Effective Brand Names Be legally available for use A business needs to make sure its chosen brand name is not the property of another company. Be appropriate for packaging and advertising The brand name should not be too long, due to space limitations. Shorter names are likely to be more graphically pleasing and noticeable.

Why Brands Are Used For identification and differentiation To signify a certain quality, price level, and performance To aid in developing brand loyalty

Stages of Brand Loyalty Brand recognition Consumers become aware of a brand and know a bit about it. Brand preference Consumers prefer to purchase a certain brand but would accept a substitute. Brand insistence Consumers insist on “their” brand and will not accept a substitute.

Explain the branding process.

To Brand or Not to Brand A business must ask itself: Can the product be easily identified by a brand? Are there funds to promote the brand? Will the brand be profitable? Does the firm have the necessary personnel to support the brand?

To Brand or Not to Brand If the answers to these questions are “no,” the business may sell the product as a generic item. Generic items are: Unbranded Plainly packaged Of lower or standard quality Sold at lower prices than branded products Likely to receive little or no promotion

Stages of the Initial Branding Process Determining brand objectives What are the goals of this brand? What should the brand stand for? How should the brand function?

Stages of the Initial Branding Process Brainstorming A company should develop a lengthy list of brand name possibilities. Brand ideas can come from many sources. After reviewing all of the possibilities, a company may narrow the list down to a more manageable number, maybe five to ten possibilities.

Stages of the Initial Branding Process Determining the acceptability of brand possibilities among different cultures Marketers must determine whether brands would be acceptable in different cultures and countries. How would this brand name be pronounced in other languages? What is the literal translation of this name in other languages? Would this brand name be culturally taboo in certain areas of the world?

Testing the brands with consumers Stages of the Initial Branding Process Testing the brands with consumers Which of the brand candidates is most memorable? Which brand fits best with the product? Which brand(s) should not be considered at all?

Checking the legality of brands Stages of the Initial Branding Process Checking the legality of brands A business needs to determine whether someone else owns the trademark for the potential brands. Trademark: a word, name, symbol, or device used by a manufacturer or merchant to identify and distinguish its goods from those manufactured and sold by others

Determining what URLs are available Stages of the Initial Branding Process Determining what URLs are available Any company that wants its brands to be successful really needs to have a web presence. Most companies search out or create URLs (web addresses) which represent their brands.

Selecting the best brand for the product Stages of the Initial Branding Process Selecting the best brand for the product The brand that the company considers to be the most appropriate and effective in persuading consumers to buy is the one which the business should choose.

Branding Strategies Brand Positioning Brand position is the way that consumers see the brand as compared to competitive brands. Marketers must ask themselves the following questions to create the right brand image: Branding Strategies What makes this brand special? What are its benefits?

Brand Extension Brand Licensing Branding Strategies Brand Extension An existing brand name is used for a new or improved product line. Brand Licensing Allows one company to use another’s brand name, logo, or character for a fee

Branding Strategies Co-branding Two companies joining forces to increase recognition, customer loyalty, and sales for both brands Broadens both companies’ target markets and increases their profits

Look around the school building. What brands do you see? Which three brands do you think are the most effective? Why?

Imagine a well-known, successful airline. Airplane malfunctions and minor mishaps start to occur. One of its airplanes crashes, killing everyone on board. The airline’s brand is tarnished. The airline purchases a new brand. Did the airline act in an ethical manner? Or, was it trying to deceive the public?

April J. Miller, Lelia Ventling Acknowledgments Original Developers: April J. Miller, Lelia Ventling MBAResearch Version 2.0 MarkED Copyright ã 2009

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