MKW1120

MARKETING THEORY
AND PRACTICE

LECTURE 7B: BRANDING

LEARNING OUTCOME:

1.Discuss branding strategy—the decisions

companies make in building and managing
their brands.
2. Describe the decisions companies make
regarding services, product lines, and product
mixes.
Why do you need to build strong brands?
1. Brand equity is the differential effect that knowing the brand name has on
customer response to the product or its marketing.
2. Brand value is the total financial value of a brand.

BUILDING STRONG BRANDS

WHAT IS A BRAND?
1. A ”Perception” (a set of
associations) formed from:
- Experiences
- Communication messages
2. A promise of value to the
customer
3. A cognitive short-cut
4. A valuable asset = brand
equity, brand sponsorship
5. Not the company per se but
the people representing the
company
BRANDING
In branding, firms use a name,
phrase, symbol or logos,
design, or a combination of
these, that identifies the maker
or seller of a product or
service and distinguish its
product offerings from those
of its competitors.
BRAND NAME SELECTION
Brand name – any word (design,
sound, shape, or colour)
ØShould suggest product benefit
ØEasy to remember and simple
ØDistinctive
ØUsed to build brand relationship
ØBeware of cultural mis-
representations
Marketers need to create a clear connection between the product and
the brand name in markets where the product competes.
Marketers can position brands at any of three levels.
­ Attributes: P&G’s Pampers’ early marketing focused on attributes such as
fluid absorption, fit, and disposability. Attributes are the least desirable level
for brand positioning because competitors can easily copy attributes.
Customers are not interested in what the attributes are—they are interested
in what the attributes will do for them.
­ Benefits: Pampers can go beyond technical product attributes and talk about
the resulting containment and skin-health benefits from dryness.
­ Beliefs and values: Pampers is positioned as a “love, sleep, and play brand
where we grow together” that’s concerned about happy babies, parent-child
relationships, and total baby care.

BRAND POSITIONING
Packaging and Labelling
Packaging involves designing and
producing the container or wrapper for a
product.
Labels range from a simple tag attached to
a product to complex graphic that are part
of packaging (identifies the brand, who
made it, where and when it was made, how
is it to be used, package content and
ingredients)
Environmental implications?
Marketing implications?
PRODUCT LINE
DECISIONS
Product line is a group of products that are closely
related because they function in a similar manner, are
sold to the same customer groups, are marketed
through the same types of outlets, or fall within given
price ranges.

Product line length is the number of items in the product

line.
­ Line stretching occurs when a company lengthens its product
line beyond its current range
­ Line filling involves adding more items within the present range
of the line
 Product
(Hair care)

Product Line Product Line Line

stretching
(shampoo) (serum)

Colour Intense Regenerate Pure Care

radiance Repair nourishment Dry Oil

Volume Straight & Hair Fall

Silky Rescue

Hair Fall Line filling

 Dove

Washing and Deodorants

and Hair care
bathing
antiperspirants

Shampoo Serum Hair masks Conditioners

Colour Intense Repair Volume Straight & Hair Fall

radiance Silky
Brand Sponsorship
Manufacturer’s • Owned and managed by manufacturers.
brand
• Called store brands, house brand, or own brand
Private brand are products developed by retailers.

• Contractual agreement between firms whereby one

Licensed brand firm allows another to use its brand name, logo,
symbol in exchange for a fee.

• A practice of marketing two or more brands

Co-branding together on the same package or promotion.
Brand Development Strategies
Line extensions
• When a company extends existing brand names to new
forms, colors, sizes, ingredients, or flavors of an existing
product category.
• Works best when it takes sales away from competing
brands, not when it “cannibalizes” the company’s other
items.
Brand extension
• Extends a current brand name to new or modified
products in a new category.
Multibrands
• Companies often market many different brands in a given
product category.
New brands
• A company might believe that the power of its existing
brand name is waning, so a new brand name is needed.
• May create a new brand name when it enters a new
product category for which none of its current brand
names are appropriate.
 1. Why and how companies build strong
KEY brand?

TAKEAWAY 2. Decisions in product lines and mixes

strategies
LECTURE 3. Types of brand sponsorship

7B 4. Types of brand development strategies