Branding – 

Basic Concepts
1. Brand Name – The brand name is often used interchangeably with “brand”, although it is
more correctly used to specifically denote written or spoken linguistic elements of a
brand. In this context a “brand name” constitutes a type of trademark, if the brand name
exclusively identifies the brand owner as the commercial source of products or services.
A brand owner may seek to protect proprietary rights in relation to a brand name through
trademark registration.
2. Brand identity – Brand identity is fundamental to consumer recognition and symbolizes
the brand’s differentiation from competitors. Brand identity may be defined as simply the
outward expression of the brand, such as name and visual appearance.
3. Brand Personality – It is the attribution of human personality traits to a brand as a way to
achieve differentiation. Such brand personality traits may include seriousness, warmth or
imagination. Brand personality is usually built through long-term marketing, as well as
packaging and graphics.
4. Brand Promise – It is a statement from the brand owner to customers, which identifies
what consumers should expect from all interactions with the brand. Interactions may
include employees, representatives, actual service or product quality or performance,
communication, etc. The brand promise is often strongly associated with the brand
owner’s name and/ or logo.
5. Brand Equity/Value – It measures the total value of the brand to the brand owner, and
reflects the extent of brand franchise. Brand value, especially in the case of consumer
product brands, may arise out of customer loyalty. Brand value may also arise in terms of
staff retention benefits (e.g., the ability of the company to attract and retain skilled and/or
talented employees offering competitive salaries.)
6. Awareness – The percentage of population or target market who are aware of the
existence of a given brand or company.
There are two types of awareness:
i. Spontaneous – It measures the percentage of people who spontaneously
mention a particular brand when asked to name brands in a certain category.
ii. Prompted – It measures the percentage of people who recognise a brand from
a particular category when shown a list.
7. Brand Architecture – How an organisation structures and names the brands within its
portfolio.
There are three main types of brand architecture system:
 i. Monolithic – Where the corporate name is used on all products and services
offered by the company. For example, Sony uses its corporate name for all
product categories.
ii. Endorsed – Where all sub-brands are linked to the corporate brand by means
of either a verbal or visual endorsement. For example, Tata Indica, Tata
Safari.
iii. Free Standing – Where the corporate brand operates merely as a holding
company, and each product or service is individually branded for its target.
For example, HUL using Lux for soap, Clinic Plus for shampoo, etc.
8. Brand Association – The feelings, beliefs, and knowledge that consumers (customers)
have about brands. These associations are derived as a result of experience and must be
consistent with the brand positioning and the basis of differentiation. For example, LIC.
9. Brand Differentiation – It is the process of creating a perceived difference, in the mind of
the consumer, between a brand and its competition. The critical issue in differentiation is
that consumers perceive a difference between brands. If consumers do not perceive a
difference, then whether real differences exist or not does not matter.
Further, if a firm’s brand is not perceived as distinctive and attractive by consumers, then
consumers will have no reason to choose that brand over one from the competition or to
pay higher prices for the “better” or “more meaningful” brand.
10. Brand Commitment – The degree to which a customer is committed to a given brand in
that they are likely to repurchase/re-use in the future. The level of commitment indicates
the degree to which a brand’s customer franchise is protected from competitors.
11. Brand Earnings – The share of a brand-owning business’s cash flow that can be attributed
to the brand alone.
12. Brand Essence – The brand’s promise expressed in the simplest, most single-minded
terms. For example Volvo=safety; Saffola = heart care. The most powerful brand
essences are rooted in a fundamental customer need.
13. Brand Experience – The means by which a brand is created in the mind of a stakeholder.
Some experiences are controlled such as retail environments, advertising,
products/services, websites, etc. Some are uncontrolled like journalistic comment and
word- of-mouth. Strong brands arise from consistent experiences, which combine to form
a clear, differentiated overall brand experience.
14. Brand Extension – Leveraging the values of the brand to take the brand into new
markets/sectors.
15. Brand Image – The customer’s net “out-take” from the brand. For users this is based on
practical experience of the product or service concerned (informed impressions) and how
 well this meets expectations; for non-users it is based almost entirely upon uninformed
impressions, attitudes, and beliefs.
16. Brand Licensing – The leasing by a brand owner for the use of a brand to another
company. Usually, a licensing fee or royalty rate will be agreed for the use of the brand.
17. Brand Positioning – The distinctive position that a brand adopts in its competitive
environment to ensure that individuals in its target market can tell the brand apart from
others. Positioning involves the careful manipulation of every element of the marketing
mix.
18. Brand Strategy – A plan for the systematic development of a brand to enable it to meet its
agreed objectives. The strategy should be rooted in the brand’s vision and driven by the
principles of differentiation and sustained consumer appeal. The brand strategy should
influence the total operation of a business to ensure consistent brand behaviours and
brand experience.
19. Brand Valuation – The process of identifying and measuring the economic benefit –
brand value – that derives from brand ownership.
20. Co-Branding – The use of two or more brand names in support of a new product, service
or venture.
21. Power Branding – A strategy in which every product in a company’s range has its own
brand name which functions independently, unsupported by either the company’s
corporate brand or its other product brands. Power branding is resource-intensive
strategy, since each brand must be commercially promoted and legally protected. Mainly
manufacturers of consumer goods use this strategy. Lever’s and Procter & Gamble’s
detergents are good examples of power brands.
22. Re-Brand – When a brand owner re-visits the brand with the purpose of updating or
revising based on internal or external circumstances. Re-branding is often necessary after
an M & A or if the brand has outgrown its identity/market place.
23. Re-Launch – Re-introducing a product into a specific market. The term implies that the
company has previously marketed the product but stopped marketing it. A re-launched
product has usually undergone one or more changes. It may, e.g., be technically
modified, re-branded, distributed through different channels or, re-positioned.
24. Service Brand – A product consisting predominantly of intangible values. “A service is
something that you can buy and sell, but not drop on your foot.” (The Economist). In this
sense, a service is something that you do for somebody, or a promise that you
25. Sub-Brand – A product or service brand that had its own name and visual identity to
differentiate it from the parent brand.
26. Mass Marketing – Simultaneous standardized marketing to a very large target market
through mass media. Other names for this are market aggregation and undifferentiated
marketing.
27. Master Brand – A brand name that dominates all the products or services in a range or
across a business. Sometimes used with sub- brands, sometimes used with alpha or
numeric signifiers. Example, Audi, Sony, Nescafe and LG are all used as master brands.