Branding Chap. 31.1

Importance of Branding Build product recognition and loyalty –Easily recognizable by satisfied customers. To ensure quality and consistency – Communicate quality and consistency to customers To capitalize on brand exposure – Helps when companies expand or launch new products.

Elements of Branding Brand – name, term, design, symbol or combination that identifies a product or service and distinguishes it from its competitors. Brand name – Word, group of words, letters, or numbers that represent a product or service. Ex. Pepsi, Mustang, Barbie, Pop-Tarts, Big Mac, Whopper.

Elements of Branding Trade name – Identifies and promotes company. Ex. Nike, Yahoo, Disney, Dell. Brand Mark – Symbol, coloring, lettering, or other design element.

Elements of Branding (Cont.) Trade Character – Brand mark with human form or characteristics. Ex. Jolly Green Giant or Pillsbury Doughboy. Trademark – word, name, symbol, etc. given federal legal protection. fault.aspxhttp:// fault.aspx

Generating Brand Names 75% of companies introduce a new product every year. In 1999, U.S. Patent and Trademark Office registered over 79,000 trademarks.

Types of Brands National Brands – Ex. Hershey Foods, Whirlpool and Ford. –Generate the majority of sales for most consumer product categories. 70% of all food products, 65% of all appliances, 80% of all gasoline, and 100% of all automobiles. Store brands – manufacturer’s name doesn’t appear on product. Popularity is increasing. Generic brands – simply says “paper towels”

Branding Strategies Brand Extension – uses existing brand name to promote new brand. Ex. Ocean Spray expanded into new flavors. Brand Licensing – Allows other companies to use their brand for a fee (royalty). Ex. Visa has licensing arrangement with the NFL.

Branding Strategy Mixed Brands – Company sells under its brand name and others regionally or through chains. Co-Branding – Pop-Tarts with Smucker’s fruit filling or Starbuck’s in a Barnes & Noble.

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