“A name, term, sign, symbol, or design, or a combination of these, intended to identify the goods or services of one seller or group of sellers and to differentiate them from the competition.” Brand Decisions
– Name – Logo – Colors – Tagline – Symbol • Consumer experiences create brand bonding, brand advertising does not. Brand Decisions
• Aaker identified five levels of customer
attitudes toward brands: – Will change brands, especially for price. No brand loyalty. – Satisfied -- has no reason to change. – Satisfied -- switching would incur costs. – Values brand, sees it as a friend. – Devoted to the brand. Brand Decisions
• Brand equity refers to the positive differential
effect that a brand name has on customers. • Brand equity: – is related to many factors. – allows for reduced marketing costs. – is a major contributor to customer equity. Brand Equity – Competitive Advantages • Reduced marketing costs • Trade leverage • Can charge a higher price • Can easily launch brand extensions • Can take some price competition Advantages of branding • Easy for the seller to track down problems and process orders • Provide legal protection of unique product features • Branding gives an opportunity to attract loyal and profitable set of customers • It helps to give a product category at different segments, having separate bundle of benefits • It helps build corporate image • It minimises harm to company reputation if the brand fails Brand Decisions
Key Challenges • Advantages of branding:
– Facilitates order processing – Trademark protection • To brand or not – Aids in segmentation • Brand sponsor – Enhances corporate image • Brand name – Branded goods are desired by retailers and distributors • Brand strategy • Brand repositioning Brand Decisions
Key Challenges • Options include:
– Manufacturer (national) • To brand or not brand • Brand sponsor – Distributor (reseller, store, house, private) • Brand name brand • Brand strategy – Licensing the brand • Brand repositioning name Brand Decisions
Key Challenges • Strong brand names:
– Suggest benefits – Suggest product qualities • To brand or not – Are easy to say, recognize, • Brand sponsor and remember – Are distinctive • Brand name – Should not carry poor • Brand strategy meanings in other languages • Brand repositioning Brand Decisions
Key Challenges • Varies by type of brand
– Functional brands – Image brands • To brand or not – Experiential brands • Brand sponsor • Line extensions • Brand name • Brand extensions • Brand strategy • Multibrands • New brands • Brand repositioning • Co-branding Brand strategy • Line extension – existing brand name extended to new sizes in the existing product category • Brand extension – brand name extended to new product categories • Multibrands – new brands in the same product category • New brands – new product in a different product category • Cobrands –brands bearing two or more well known brand names Umbrella Brand
• Products from different categories under
one brand • Dangerous to the brand if the principal brand fails • Sometimes the company name is prefixed to the brand. In such cases the company name gives it legitimacy. The product name individualises it. Brand Decisions
Key Challenges • A brand report card can
be used to audit a brand’s strengths and • To brand or not weaknesses. • Brand sponsor • Changes in preferences or • Brand name the presence of a new competitor may indicate a • Brand strategy need for brand • Brand repositioning repositioning.