Brands and Branding

Branding is a strategy that is used by marketers. Pickton and Broderick (2001) describe
branding as Strategy to differentiate products and companies, and
to build economic value for both the consumer and the brand owner.

A brand is an identity that includes all sorts of components; depending on the

brand e.g. Body Shop International encapsulates ethics, environmentalism and
political beliefs.

A brand is an image where the consumer perceives a brand as representing a

particular reality e.g. Stella Artois Reassuring Expensive.

A brand is a relationship where the consumer reflects upon him or herself through
the experience of consuming a product or service.

Brand occupies space in the perception of the consumer, and is what results from the
totality of what the consumer takes into consideration before making a purchase decision
(Pickton and Broderick 2001).
So branding is a strategy, and brand is what has meaning to the consumer.
There are some other terms used in branding. Brand Equity is the addition of the
brands attributes including reputation, symbols, associations and names. Then the
financial expression of the elements of brand equity is called Brand Value.
There are a number of interpretations of the term brand (De Chernatony 2003). They
are summarized as follows:

A brand is simply a logo e.g. McDonalds Golden Arches.

A brand is a legal instrument, existing in a similar way to a patent or copyright.

A brand is a company e.g. Coca-Cola.

A brand is shorthand not as straightforward. Here a brand that is perceived as

having benefits in the mind of the consumer is recognised and acts as a shortcut
to circumvent large chunks of information. So when searching for a product or
service in less familiar surroundings you will conduct an information search. A
recognised brand will help you reach a decision more conveniently.

A brand is a risk reducer. The brand reassures you when in unfamiliar territory.

A brand is positioning. It is situated in relation to other brands in the mind of the

consumer as better, worse, quicker, slower, etc.

A brand is a personality, beyond function e.g. Apples iPod versus just any MP3
player.

A brand is a cluster of values e.g. Google is reliable, ethical, invaluable,

innovative and so on.

A brand is a vision. Here managers aspire to see a brand with a cluster of values.
In this context vision is similar to goal or mission.

A brand is added value, where the consumer sees value in a brand over and
above its competition e.g. Audi over Volkswagen, and Volkswagen over Skoda
despite similarities

Advantages

Enhances Product Recognition - Brands provide multiple sensory stimuli to enhance

customer recognition. For example, a brand can be visually recognizable from its packaging,
logo, shape, etc. It can also be recognizable via sound, such as hearing the name on a radio
advertisement or talking with someone who mentions the product.

Helps Build Brand Loyalty - Customers who are frequent and enthusiastic purchasers of a

particular brand are likely to become Brand Loyal. Cultivating brand loyalty among customers
is the ultimate reward for successful marketers since these customers are far less likely to be
enticed to switch to other brands compared to non-loyal customers.

Helps With Product Positioning - Well-developed and promoted brands make product
positioning efforts more effective. The result is that upon exposure to a brand (e.g., hearing it,

seeing it) customers conjure up mental images or feelings of the benefits they receive from using
that brand. The reverse is even better. When customers associate benefits with a particular brand,
the brand may have attained a significant competitive advantage. In these situations the customer
who recognizes he needs a solution to a problem (e.g., needs to bleach clothes) may
automatically think of one brand that offers the solution to the problem (e.g., Clorox). This benefit
= brand association provides a significant advantage for the brand that the customer associates
with the benefit sought.

Aids in Introduction of New Products - Firms that establish a successful brand can extend
the brand by adding new products under the same family brand. Such branding may allow
companies to introduce new products more easily since the brand is already recognized within the
market.

Builds Brand Equity - Strong brands can lead to financial advantages through the concept of
Brand Equity in which the brand itself becomes valuable. Such gains can be realized through the
out-right sale of a brand or through licensing arrangements. For example, Company A may have a
well-recognized brand (Brand X) within a market but for some reason they are looking to
concentrate their efforts in other markets. Company B is looking to enter the same market as
Brand X. If circumstances are right Company A could sell to Company B the rights to use the
Brand X name without selling any other part of the company. That is, Company A simply sells the
legal rights to the Brand X name but retains all other parts of Brand X, such as the production
facilities and employees. In cases of well developed brands such a transaction may carry a very
large price tag. Thus, through strong branding efforts Company A achieves a large financial gain
by simply signing over the rights to the name. But why would Company B seek to purchase a
brand for such a high price tag? Because by buying the brand Company B has already achieved
an important marketing goal building awareness within the target market. The fact the market is
already be familiar with the brand allows the Company B to concentrate on other marketing
decisions