Brand

• The AMA definition of a brand:

“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

• Brands can convey six levels of meaning:

– Attributes
– Benefits
– Values
– Culture
– Personality
– User
Brand Decisions

• Brand identity decisions include:

– 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.