1. Section 31.1 Branding Elements and Strategies
Marketing Essentials
n Chapter 31 Branding, Packaging, and Labeling
Section Branding Elements and Strategies

2. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
What You'll Learn
The nature, scope, and importance of branding in product planning
The various branding elements
The different types of brands
How to classify branding strategies

3. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
Why It's Important
The right name is an important part of every successful business. The name and symbols of a business or a product project the personality of the company, product, or service.

4. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
Key Terms
brand
brand name
brand mark
trade name
trade character
trademark
manufacturer brand
private distributor brand
generic brand
brand extension
brand licensing
mixed-brand strategy
co-branding strategy

5. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
Branding
A brand is a name, term, design, or symbol (or combinations of them) that identifies a business or organization and the products that they offer. Brands are divided into two categories:
corporate brands
product brands
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6. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
Branding
Corporate brands identify the business and reflect quality, value, and reliability.
Example: Coca-Cola, Disney, McDonald's, and Citibank
Product brands connote quality and reliability for a particular product.
Example: Pepsi, Coke, Barbie, Whopper, and Big Mac
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7. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
Branding
A brand name is the word, group of words, letters, or numbers of a brand that can be spoken.
Example: PT Cruiser, Mountain Dew, SnackWells, and K2
A brand mark is a symbol, design, or distinctive coloring or lettering that identifies a brand.
Example: U.S. Postal Service's eagle, Apple Computer's apple
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8. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
Branding
A trade name is the legal name under which a company or division of a corporation does business.
Example: Amex, Dell, Kellogg's, and Xerox
A trade character is a brand mark with human form or characteristics.
Example: The Jolly Green Giant, the Pillsbury Doughboy
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9. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
Branding
A trademark is a brand name, brand mark, trade name, trade character, or a combination of these given legal protection by the federal government and noted by the trademark symbol ().
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10. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
Branding
Brand names, brand marks, trade names, trade characters, and trademarks are often combined to form a firm's corporate symbol or name.
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11. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
Top Ten Brands
Rank Brand Company Advertising
(in millions of dollars)
Brands are often a company’s most valuable asset. What is the total 1999 advertising spending for these top ten brands? Do you think these brands would continue to be valuable if the companies reduced or eliminated their advertising?
1 Chevrolet General 762.4
vehicles Motors Corp.
2 AT&T AT&T Corp
telephone services
3 Dodge Daimler
vehicles Chrysler
4 Ford Ford Motor 629.5
vehicles Company
5 McDonald's McDonald's
restaurants Corp.
6 Toyota Toyota Motor
vehicles Corp.
7 Sears Sears,
department stores Roebuck & Co.
8 Sprint Sprint Corp
telephone services
9 Chrysler Daimler
vehicles Chrysler
10 Nissan Nissan Motor
vehicles Co.

12. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
Importance of Brands in Product Planning
The use of brands is important in product planning for several reasons. Branding:
builds customer loyalty
assures customers that products carrying the same brand are of a consistent quality
addresses new target markets
establishes an image for a product or company

13. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
Generating Brands
Seventy-five percent of companies introduce a new product name each year. Brand names are generated by:
company employees
specialized computer software programs
branding agencies, naming consultants, and public relations agencies
Half of all corporate name changes occur because of company mergers and acquisitions.

14. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
Types of Brands
Three classifications of brands are:
manufacturer brands
private distributor brands
generic brands
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15. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
Types of Brands
Manufacturer brands, also called producer brands, are owned and initiated by manufacturers.
Example: General Electric, Heinz, Motorola
Private distributor brands, also called private brands, store brands, or dealer brands, are owned and initiated by wholesalers and retailers.
Example: Radio Shack, Kmart
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16. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
Types of Brands
Generic brands represent a general product category and do not carry a company or brand name. The packaging carries only a description of the product, such as “pancake mix” or “paper towels.” They are usually much cheaper than brand-name products.
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17. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
Brand Strategies
Branding strategies are the ways companies use brands to meet sales and company objectives. Strategies include:
brand extensions
brand licensing
mixed branding
co-branding

18. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
Brand Extension
Brand extension is a branding strategy that uses an existing brand name for an improved or new product in the product line.
Example: Ocean Spray Cranberry Juice extended to Cran-Apple, Cran-Raspberry, etc.
Advantages: Reduces risk of new product failure
Disadvantages: Over-extending a product line can cause brand dilution

19. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
Brand Licensing
Brand licensing is the legal authorization by a trademarked brand owner to allow another company (the licensee) to use its brand, brand mark, or trade character for a fee.
Advantages: Enhance company image, sell more products

20. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
Mixed Brands
A mixed-brand strategy involves simultaneously offering a combination of manufacturer, private distributor, and generic brands.
Example: Union Carbide sells Glad brand garbage bags and generic brand garbage bags.

21. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
Co-Branding
A co-branding strategy combines one or more brands to increase customer loyalty and sales for each individual brand.
Example: Kellogg’s Pop-Tarts are made only with Smucker’s fruit filling. Starbucks Coffee Co. opens coffee shops inside Barnes & Noble bookstores.

22. Reviewing Key Terms and Concepts
ASSESSMENT
31.1
Reviewing Key Terms and Concepts
1. What is the difference between a brand name and a brand mark?
2. Why is branding important to product planning?
3. Name three types of brands.
4. List four different branding strategies.

23. ASSESSMENT Thinking Critically 31.1
Internet service providers are teaming with airlines, financial institutions, media outlets, celebrities, and non-profit groups to offer private-label Web access. Do you think that individuals want to receive their Internet access from the New York Yankees, David Bowie, Pepsi, or their local bank? Why or why not?

24. Graphic Organizer 31.1 Types of Brands TYPES OF BRANDS Manufacturer
Private
Distributor
Brands
Generic
Brands

25. Marketing Essentials
End of Section 31.1