Issues 1 Branding & Brand Building

Definition
A name, sign, symbol, design or a combination of them intended to differentiate one from rivals and that it is mixed with tangible and intangible attributes that can influence and generate value. A promise Stands for something in the mind of shoppers (ALDI = low prices, Wools = fresh food people)

4 Dimensions of a brand
1. Brand Loyalty Cheaper to retain cust than attract new cust Reduces vulnerability to competitors 2. Name Awareness People more comfortable with familiar Familiar= guarantee of quality, reliability, service and support 3. Perceived Quality Create positive attitudes Stimulate confidence Create barriers to competition 4. Other Considerations: ie protection and distribution Trademark protect brand from a competitor Patent prevent direct competition

How to build a strong brand?

1. Staff as brand builders 2. Organization 3. Communicating brand values Common approach to strategies and tactics Understand buyers approach to improve communication Brand positioning, personality, strategy and audit 4. The brand idea Link brand with something recognisable Good idea, vivid and enduring

Linkage between brand and CA theories

Porters 5 forces
Provide barriers to entry and chance of entering new market Reduce bargaining power of suppliers, buyers Offset threat of substitutes Should reduce intensity of rivalry

Porters Generic Strategies

Usually associated with differentiation (invest in creativity, innovation, quality and R&D) May help support a cost leadership strategy

Kanter and brand

Brand can be core competence (MARS, Coke) Continual improvement Good relationships with suppliers and distributors- stakeholder alliances

Kotlers Positioning and Brand

Building brand is used by market leaders to defend their position Help market challenger to take market share from others Difficult to be cloned by followers

Day & Wensley

KSF (brands communicate with buyers and build trust & perceived value to inspire purchase) Superior Resources: wider distribution coverage+ large scale of manufacturing Superior Positional Advantage: cust prepared to pay premium price Superior Performance Outcome: greater cust satisfaction, loyalty, market share, profitability