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Submitted to: Mr. Zia Ul Haq Dept of management studies Submitted by: Akshay Patidar 110103
or the worth of the brand." They are worth a small fraction of what you can sell that brand for. customers will think of your business first when they think of your product category. you can be certain that somebody will copy it before long. It is often the brand that a business owner has to sell in such cases. As a result. And not only will they follow your lead. Likewise." The importance and value of branding becomes apparent when an entrepreneur wants to sell his or her company or take it to Wall Street for a public offering or other infusion of capital. but they may also be able to do a better job or sell the product or service at a lower price. It creates a lasting value above and beyond all the other elements of your business. Wis. The question then becomes. Brand equity. you think of the Kleenex brand. For example. patents. you would begin to value the firm by looking at the assets tied to the Marlboro brand. Stone and Briggs Advertising in Madison. "A brand is the one thing that you can own that nobody can take away from you.The Importance of Branding One of the truths of modern business is that there is almost nothing that your competitors can't duplicate in a matter of weeks or months. But your brand can go on and live. ." says Kosgrove. And when you're looking for tape to wrap a present. can be quantified. "The value of that brand is huge compared to those actual physical assets. unlike other abstract marketing notions. vice principal of marketing at Lindsay. "What competitive edge do I have to offer that cannot be copied by anyone else?" The answer? Your brand. more likely than not. Scotch is the brand that springs to mind. when your child wants a hamburger. trucks. your patents will expire. machines and staff. when you think of tissues." That value is often called brand equity. Eventually. Technology will change. they can steal. he will often say he wants to go to McDonald's. Your physical plant will wear out. You would then identify the cost of the factories." says Howard Kosgrove. For instance. "Everything else. if you owned the Marlboro Company and wanted to sell it. They can steal your trade secrets. If you have a great idea. The reason behind these strong brand-product associations is that these companies have built rock solid brand identities. Creating a strong brand identity will build mind share — one of the strongest competitive advantages imaginable.
which were one of the last frontiers. nearly all industries can benefit from a branded product. are being forced to continue to brand heavily — perhaps even more strategically than they ever have in the past. restaurants and consumer goods. All of the traditionally brand-conscious industries. Even industrial markets. has seen brand names creep in. are even beginning to see the importance of branding by tagging banking packages and even mutual funds with catchy names. Other industries in which branding is a must include: Fast food High-tech Beverages Packaged Goods Petroleum Entertainment Retail Auto Pharmaceutical . where cost is usually more of a loyalty building factor. Tyvek. When Should You Brand? Because of the competitive nature of business today. improbably one of the best known industrial branded products. For example. Financial services. including fashion. a DuPont fiber.II.
This is a company's core brand or umbrella brand. Brands can be separated into three categories: primary. Although most industries and products or services can benefit from a brand. This is why many brands broaden and widen their appeal by creating tertiary brands or line extenders. Primary Brands . usually a modifier to the brand name will suffice and strengthen the core brand. but just descriptors. On the contrary. Therefore. a toothbrush called the Crest Deep Sweep.These are often line extenders. For example. Line extenders are characterized by having a descriptive term that allows the base brand to be the true selling proposition and the flanker to really designate to the audience what that particular product's key feature or benefits are. The generic line may bring in minimal revenue for the company. Crest is the core brand. Secondary Brands . for instance. By definition. or "flankers.III. branding is based on the concept of singularity — targeting individuals in a personal manner— and therefore precludes the concept of universal appeal. and Deep Sweep is the secondary brand. but they contribute to the company's overall image in some way.These brands typically have insignificant revenue potentials or expectations. they sometimes don't sport registered brand names. Tertiary brands . a garbage bag manufacturer may make a generic-brand bag in addition to its flagship brand. but it fills a need within a niche market so the company continues to manufacture it under the unregistered name Household Trash Bags. not every product needs its own stand-alone brand. Types of Brands A brand cannot be all things to all people. no one brand is going to appeal to all customers. Therefore. Secondary brands don't need to have their own name. . Primary brands typically garner a large percentage of a company's revenue potential and therefore need to be given priority and have a sufficient amount of advertising in order to root them firmly." for a core brand. Take. the generic line is considered a tertiary brand for this company. secondary and tertiary.
it will be easy to manipulate customer attitudes.increased market share is a direct result of a successful branding campaign. What Goes Into a Brand? If your product or service is new or unique. it probably soon will. image is difficult to change once established. products that may be roughly equivalent in terms of their features need to have a brand identity that will impact consumer choice. higher prices may signify to consumers higher quality. obviously.enduring public opinion of brand character. Like reputation. products or services with a high-profile market presence will lead to brand recognition and increased sales.prominence in the paid and unpaid media. Presence .IV. which is established by a combination of all elements of the brand. the better your sales results will be. which are directly related to presence. Quality .perceptions of brand traits or prototypical buyers.top-of-mind awareness. thetas of branding is made easier.which impacts satisfaction. these may be warranted or unwarranted.differentiation from the competition. More often. Image . Therefore. often represented by qualities the consumer relates to. Customer commitment . which is built over time and difficult to change once established. Distribution . Share of market . the higher your offering's awareness. residual awareness and recognition.loyalty is built through long-term branding and close consumer contact. your product or service will have been in existence for a while and have direct competition. Positioning salience .availability. Benefits . Since there are no preexisting biases toward the product or service. and lower prices may suggest decreased value. limited distribution of a product or service may imply exclusivity to discerning consumers. Awareness .a component of value. And if it doesn't.consumers may equate certain positive and negative consequences with use of your product or service.a predisposition to buy displayed by consumers who are establishing brand loyalty. Preference . . Reputation . higher quality will translate to more satisfied customers who come back again and again to purchase your offerings. Brand identity is comprised of: Pricing .
99 shoes. a brand name can help propel a product or service through the marketplace. marketers at Reebok obviously didn't do their homework when they named their women's running shoe "Incubus. as the vehicle's name in Spanish means" It doesn't go. America Online. Calvin Klein. it will be your brand name against the brand names of your competitors in the marketplace. Tide laundry detergent). has positive associations. "It has to be easy to pronounce and have neutral to positive associations around the world. of their child. By the name alone. Aleve. how can you create a name that will stand the test of time? "First. it should also be memorable and easy to communicate in packaging and advertising.V. . the name has no meaning at all until broader identity building programs are built around the name (such as ESPN. What's in a Name? The foundation of your brand is its name. In other instances. The name is easy to say.. it should be able to communicate on its own without a lot of advertising.e. Performa). no one at Reebok was aware of the nightmarish nature of the name: An evil mythological spirit believed to descend upon and have sexual intercourse with women as they sleep. The company was mortified and looked into ways it could wipe out the offending name. Besides making sure that people from all or most ethnic backgrounds will accept your brand's name. If possible." Some extremely successful brand names include Google. Besides that. One of the most popular instances was the marketing mishap with the Chevy Nova." Apparently. McDonald's and Nordstrom. In cases of large companies. So. but on boxes. particularly with younger brands. After its uniqueness wears off. The car didn't go over well when the Latin consumers. the name should also complement the overall core values of the company. the descriptiveness of the name can have a strong influence on how well it's accepted (i. For instance. or at least in various languages. and links to the performance of the product. Many companies have committed translation faux pas when they failed to cross reference the brand's name in other languages or cultures. For others. Evian. which didn't appear on the $57. mothers could make the switch to disposable diapers that were more convenient without feeling that the product would compromise the comfort. Pampers was a perfect name for the diaper line that Procter & Gamble launched in the late 1970s. president of the Brand Institute in Boston. the brand came out at a time when cloth diapers were still largely popular with mothers. or pampering. Because of the high ethnic influences here in America." says James Dettore." More recently. Foster's Lager. you still have to have a name that crosses over many ethic and language barriers.