What is Branding? The way in which a firm differentiates itself and its products from those of their rivals. A brand is a name, sign, color, or symbol used to identify items or services of the seller(s) and to differentiate them from goods of competitors.

Branding Three types of branding: – Manufacturer: products produced by a manufacturer are labeled under their own name, rather than that of a distributor – Intermediary: carries a name developed by the wholesaler or retailer. – Generic: represents a general product category and does not carry a company or brand name.

Brand Names Forms of brand names: – Acronym – name made up of initials; BMW, KFC, BP, IBM – Descriptive or functional – represents a product benefit; Sparkle window cleaner or Mop and Glo floor cleaner – Personal names – named after the original founder; Ford, Chevrolet – Abbreviations – Xerox is short for xerography

Brand Names – Foreign Language Terms – Volkswagen literally means “the people’s car” in German – Mistakes – Google is a misspelling of Googal (a very large number) – Myth – names of mythical creatures; Nike, the Greek goddess of victory – Association – Apple was named after Steve Jobs worked on a community farm in Oregon

Importance of Branding Customers can identify products quickly – Recognized from: packaging, logo, color, shape – Recognized through sound: TV advertisements, radio commercials, conversations with friends. Brand loyalty – Increased revenue and market share – Customers are less likely to switch to competitors – Customers are prepared to pay a premium price for a particular brand

A truly successful brand is when that brand name becomes interchangeable with the generic name of the product. “I’m going to sneeze – pass me a Kleenex.” (tissue)

How a Brand Makes You Feel Brand experience: customer’s thoughts, feelings, perceptions, beliefs, and attitudes when they are making a purchase Brand image: customer’s emotions combine to build a reputation with which loyal customers identify

Protecting the Brand Name An unregistered trademark is recognized by the letters “TM.” – Protection may only operate within the geographical area where it has been used. Once legally protected, a brand name becomes a registered trademark. – The owner may take legal action for trademark infringement to prevent unauthorized use

Rebranding A marketing strategy where a new name, term, symbol, design, or combination is created for an established brand Purpose: develop a new, differentiated identity in the minds of consumers, investors, and competitors

Why Rebrand? Identify with a new target market – McDonald’s  “Mickey D’s” Entering into a new line of business/market – Ex. Apple Computers  Apple Relevancy – Yellow Pages  YP Negative Publicity Legal Issues

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Licensing An agreement that gives a company the right to use another’s brand name, patent, or other intellectual property for a fee.

Licensing Licensor: the company or individual granting the license for a fee in this legally binding contract. Licensee: the company or individual paying for the rights to use the licensor’s name or property.

Licensed Products In sports marketing, a company must pay a fee to use a league’s, team’s, or individual’s name, image, or logo on a product or its packaging. NFL grants product licenses to companies that want to use the NFL logo

Sponsorships & Endorsements Sponsorships – Promotional vehicles that financially support sporting events – Operating sports events and leagues requires a significant amount of money – Salaries for players alone cost hundreds of millions of dollars

Sponsorships & Endorsements Endorsements – A statement or approval of a product, service, or idea made by an individual or organization speaking on behalf of the advertiser Can simply be an association with a product – Michael Jordan – Hanes A company may choose a sports figure who matches the demographic profile of its customer base.

Why Product Licensing? Money Percentage of the revenue from the licensee goes to the licensor. Example: Calvin Klein Inc licenses the designer’s name to makers of underwear, jeans, and perfume. They only make women’s apparel lines. They are receiving money from the sales of everything