B207B

Shaping Business Opportunities II

 Block 2
Session 14: Introduction to
branding
‫ مقدمة عن العالمة التجـارية‬:14 ‫الجلسة‬
Make some notes on how you would define a brand.

How you defined a brand will depend on your perspective

and experience of marketing. Your definition probably
included identifying a brand as a mark or label that
distinguishes the offerings of an organization from those
of others.
However, there is much more to a brand than you might first
think, as we will explore.

Session 14: Introduction to branding

Block 2- Reading 22
Introduction to branding
Defining a brand
A name, term, sign, symbol, or design, or a combination of them
intended to identify the goods and services of one seller or group of
sellers and to differentiate them from those of competitors.
(American Marketing Association, 1960)
An identifiable product, service, person or place, augmented in such a
way that the buyer or user perceives relevant, unique added values
which match their needs most closely.
(de Chernatony and McDonald, 1998, p. 20)
The latest definitions of a brand underline the role of communities.
Web 2.0 obliges. A brand cannot be reduced to benefit; it has to create
a community. No fans, no brand!
(Kapferer, 2012, p. 11)

Reading 22: Introduction to branding

Brand identity and brand image
Brand identity is the formulation of a brand in terms of
what it stands for from the perspective of the organization
that created it;
brand image is the perception or interpretation of a brand
from outside the organization by, for example, consumers.
‘Identity is on the sender’s side’, whereas ‘brand image is
on the receiver’s side’.
It’s possible for there to be a mismatch between the two,
owing to noise in communication and other influences.

Reading 22: Introduction to branding

The six facets of Kapferer’s prism
Brand identity has been conceptualised by Kapferer, as a
prism having six facets

Reading 22: Introduction to branding

The six facets of Kapferer’s prism

Reading 22: Introduction to branding

Nike example
Physique- state of the art
Personality- dynamic
Culture- innovative
Relationship- inspiring
Reflection- trendy
Self-image- cool

Reading 22: Introduction to branding

Brand reputation
Brand reputation represents an external evaluation of a brand.
It may be defined as ‘a collective representation of a brand’s past
actions and results that describes the brand’s ability to deliver valued
outcomes to multiple stakeholders’.
Consumers can have an idea about a brand’s reputation even if they
have never consumed that brand.
This brand reputation might be derived from a variety of sources, such
as
 their own perceptions from viewing the brand,
who they have seen consuming the brand,
any marketing of the brand to which they may have been exposed
and media articles about the brand.

Reading 22: Introduction to branding

Brand equity
Brands have come to be considered organizations’ most
valuable assets.
Brand equity is the monetary value of the psychological
goodwill which the brand has crated over time.
It includes brand recognition, spontaneous recall of the
brand, being part of a buyer’s consideration set and brand
consumption.
Ex: Nestle paid nearly three times the stock market value
for Rowntree, which owned a number of established
successful brands, such as KitKat.

Reading 22: Introduction to branding

Brand content
Brand content engages consumers to relate to the brand,
because it does not talk about its products, but about a
domain of mutual interest between the brand and its public.
Brand content is not limited to the online medium; a range
of channels may be used. It also requires continuously
refreshing to maintain interest.
In the past, brands sought out opinion leaders to popularize
their brands to followers; now brands seek to be opinion
leaders in their own right, shaping tastes and opinions
directly through their brand content.

Reading 22: Introduction to branding

The role of brands for organizations
guarantee future income through brand equity
enable premium pricing to be charged
deter market entry from potential competitors
facilitate their own entry into new markets
increase bargaining power with distributors
command royalties through licensing
act as a communication device to consumers through a brand’s
identity
benefit sales through identification and familiarity among
consumers because familiar brands tend to be preferred
encourage consumer loyalty

Reading 22: Introduction to branding

The role of brands for consumers
facilitate identification and the cost to consumers of searching among
offerings
act as cues to information about products
facilitate consumers’ decision-making
inspire trust and increase consumers’ confidence in their purchase
selection
reduce perceived risk of a purchase (such as financial, performance
and social risks)
communicate brand associations or activate brand inferences that
contribute to consumer satisfaction
stimulate emotional rewards such as nostalgia, a sense of identity and
fulfillment of personal values.

Reading 22: Introduction to branding

Brand architecture and naming
There are four main categories of brand name
formulation, which may be arranged along a spectrum:
 Company as a brand name: IBM, Emirates
 Strong company endorsement: Apple: Apple iphone, Apple ipad, Apple
Watch
 Weak company endorsement Nestle: Nestle Kitkat, Nestle Carnation
 Individual brand name: P&G: Pampers, Ariel, Crest
 Mixed approach: Ferrero
 uses the company name for its signature Ferrero Rocher chocolates,
 a weak endorsement for is Nutella chocolate spread

 Individual brand names for Kinder and TicTac

Reading 22: Introduction to branding

Brand architecture and naming
‫بنية العالمة التجارية وتسميتها‬

Reading 22: Introduction to branding

Brand naming types
coined – a name that uses a made-up word (for example, the insurance brand
AXA)
arbitrary – a name that uses an existing word that has no prior meaning
associated with the company or product which it names (for example, the
online retailer Amazon)
suggestive – a name that infers the nature or benefits of the product or
company (for example, the bread brand Sunblest)
descriptive – a name that describes the characteristics of a product or company
so that what it offers can be understood without prior knowledge (for example,
the London-based gutter cleaning company Gutter Cleaning London’)
generic – a name that is synonymous with the product category (for example,
cellophane was deemed to be the generic name for ‘a sheet of transparent
regenerated celluloid’ and could not be trademarked as a brand)

Reading 22: Introduction to branding

Meaningful vs. non-meaningful brands
Using a meaningful brand name through words,
symbolism or phonetic associations to convey meaning
has been referred to as the ‘Joyce Principle’.
Using a non-meaningful brand name that has no prior
associated meaning has been called the ‘Juliet Principle’

Reading 22: Introduction to branding

Brand naming process
 Research has shown that companies have been found to follow the five-step brand
naming process

Reading 22: Introduction to branding

Logos
In addition to a brand name, organisations also use a logo
and often particular colours to augment the distinctiveness
of their brand and help to make them readily recognisable.
For example, the chocolate brand Milka is readily
associated with its cow logo and the colour lilac.

Reading 22: Introduction to branding

Packaging and labeling
Packaging and labelling also contribute to the communication and
perceptions of brands. The imagery and information on the
packaging and label can feed into consumers’ purchase decision-
making about whether the product appears appealing and is likely to
meet their needs.
Secure packaging can also reassure consumers that the contents are
safe and have not been damaged or tampered with; this is likely to be
particularly important for products such as food (that is not already
packaged by nature), drink, medicines and technological products.
Increasingly, the sustainability of packaging is an important
consideration and consumers may seek out products with recyclable
packaging or avoid excessive packaging.

Reading 22: Introduction to branding