BRANDING

BRAND
• The word "brand" is derived from the Old
Norse brandr meaning "to burn”.

• Ownership of livestock (Stamping with Hot Iron)

 What is a brand?
 A product is anything that is capable of
satisfying consumer needs.

 A brand gives a product a distinctive

identity through the creation of a name,
design or, more usually, some
combination of these.
Brand reflection

Consumers use brands to

Reflect their self-identity
And project it to other
people
 Branding terms

• Brand name - word or illustration that distinguishes one

seller’s goods from another.
• Trade name - the legal name of an organisation, which
may or may not relate directly to the branding of its
products.
• Trade mark - brand name, symbol, or logo which is
registered and protected for the owner’s sole use.
 Why strong brands are
important
1. Consumer perceptions and preferences
are affected by brand names. (Pepsi, Coke)
2. Barrier to competition. (Sony)
3. High market share, brand loyalty and
profits (customers are often willing to pay
20 – 25% more). (River Island)
4. Base for brand extensions. (Bahria Town)
5. Quality certification.
6. Trust.
• For branding to be successful the
consumers must be convinced that there
are significant differences amongst the
brands in the product and services.

• Coca Cola & Pepsi ?

 Brand Equity
• Added value endowed on products & services (Kotler & Keller).

Brand
Equity

Product
Or
Service

• Combination of the trust a brand earns & an identity that allows

consumers to feel emotionally connected to it. (Hallmark
Loyalty Group)
 Hallmark way of developing
Brand Image
(Page 44 – 48)

Company Customer Brand Image

• Interpretation of
•Brand Qualities brand message
•Opinion
•Brand Promise •Perception
•Experience with
the brand
 Customer Based Brand Equity
• Power of brand lies in what customers
have:
– Seen Brand
– Read Positioning

– Heard
– Learned
– Thought Experiential

– Felt
 Creating a brand (Jobber)

Brand
Brand name Brand
potential and Service potential
images

Core
Delivery product Guarantees

Quality and
design Packaging

Brand potential
 Brand Equity Model
• BAV (Brand Asset Valuator) – measures brand value
– Five pillars of brand equity:

• Differentiation
• Energy - sense of momentum
• Relevance - breadth of brand appeal
(penetration)

• Esteem - respect & regard of brand

(Quality & Popularity)

• Knowledge - Familiarity with brand

 Brand Equity Model
• BAV (Brand Asset Valuator)
– Five pillars of brand equity:

Energized
• Differentiation Brand
• Energy Strength

• Relevance

• Esteem Brand Stature

• Knowledge (Report card on past
performance)
 BAV
Un realized Leadership
potential or
Differentiation/Relevance/Energy

niche
Energized Brand

Declining
Strength

New
Eroded

Unfocused
Brand Stature
Esteem/Knowledge
 Building Brand Equity
• Choosing brand elements

• Designing holistic marketing activities

• Leveraging secondary associations

 Choosing Brand Elements
• Brand name

• Slogans (“Just Do It”)

• Logo

• Symbols

• Characters (Kellogs),

• spokes people (Brand Ambassadors)

• Jingles
 Choosing Brand Elements
• Main criteria for choosing brand elements:
• Memorable
• Meaningful
• Likable
• Transferable
• Adaptability
• Protectible
 Brand name considerations
(Jobber)
A good brand name should:
1. Evoke positive associations
2. Be easy to pronounce and remember
3. Suggest products benefits
4. Be distinctive
5. Use numerals or alphanumerics when
emphasizing technology
6. Be transferable
7. Not infringe an existing registered brand name
 Holistic Marketing Activities
• Personalization
• One-to-one marketing

• Integration
• Combining efforts

• Internalization
• Employee’s motivation
 Leveraging Secondary
Associations
• Linking brand to other information in
memory. (Borrowing brand Equity)
 Branding Strategies
• When a firm uses an established brand to introduce a
new product is called brand extension.

• When marketers combine a new brand with an existing

brand, the brand extension can be called a subbrand.

• The existing brand that gives birth to brand extension or

subbrand is the parent brand.

• If the parent brand is already associated with multiple

products through brand extensions, it can also be called
family brand
 Branding Decisions
• Individual names.
• Head & Shoulders, Pantene, Capri

• Blanket family names.

• Heinz
• Separate family names for all products.
• Sears
– Allstate - Automobile parts and insurance
– Celestial Star - Diamond Jewelry
– Cheryl Tiegs - Clothing
– Coldspot - Appliances
• Corporate name combined with individual product
names.
• Toyota Corolla, Honda Civic
 Brand extension and stretching
Potential Benefits.

 Positive association of core brand rubs off on

brand extension.
 Awareness of core brand helps to reduce costs.
 Lower perceived risk of purchase on the part of
consumers and distributors.
 Established brand name raises willingness to try
new brand.
 Brand extension and stretching
Potential Limitations.

 Poor performance of brand extension rebounds

on core brand.

 Loss of credibility of brand name if stretched too

far.
 The world’s most recognized
brands
1 2

5
Thank you
 Strong brand names affect
perceptions and preferences
Blind %

Prefer Diet Pepsi 51

Prefer Diet Coke 44

Equal / Can’t say 5

 Strong brand names affect
perceptions and preferences
Blind % Open %

Prefer Diet 51 23
Pepsi
Prefer Diet 44 65
Coke
Equal / Can’t 5 12
say