CH 3 - Brand

PowerPoint by
Milton M. Pressley
Creative Assistance by
D. Carter and S. Koger
1-1
www.bookfiesta4u.blogspot.com
Chapter 3
Brand Decisions
by
PowerPoint by
Milton M. Pressley
University of New Orleans
www.bookfiesta4u.blogspot.com 11-2
Brand Decisions
What is a brand?
 A brand is a name, term, sign, symbol or design, or a
combination of them, intended to identify the goods or
services of one seller or group of sellers and to
differentiate them from those of competitors.
 A brand is essentially a seller’s promise to deliver a
specific set of features, benefits and services.
Brand Decisions
A brand conveys up to 6 levels of meanings.
Brand Decisions
Branding is important because
 Buyers are more interested in benefits than attributes.
 Competitors can easily copy attributes.
 Current attributes may become less desirable later.
Brand Decisions
Brand Equity
It is the amount of power and value the brand has in
the market place.
there are brands for which buyers have a high degree
of brand awareness, brand acceptability, brand
preference, and brand loyalty..
The competitive advantages of having higher
brand equity are
 Reduced marketing costs.
 More trade leverage in bargaining with distributors.
 Can charge a premium price over its competitors.
 Launch extensions will be easy under a brand name.
Brand Decisions
Aaker’s five levels of customer attitude:
 The customer will change brands, especially for
price reasons. No brand loyalty.
 Customer is satisfied. No reason to change brands.
 Customer is satisfied and would incur cost by
changing brand.
 Customer values the brand and sees it as a friend.
 Customer is devoted to the brand.
Brand Decisions
Branding Challenges
Branding poses several challenges to the
marketer:
1. whether or not to brand,
2. how to handle brand sponsorship
3. choosing a brand name
4. deciding on brand strategy
5. whether to reposition a brand later on.
Brand Decisions
 Branding Challenges 1
Branding Decision: To Brand or Not to Brand?
 Branding is such a strong force today that hardly
anything goes unbranded
 In some cases, there has been a return to “no
branding” of certain staple consumer goods (paper
towels) (consumers encouraged by the lower price,
marketers can save money spending in advertising
for building brand)
Brand Decisions
Branding Challenges
Branding Decision: To Brand or Not to Brand? 1
 Branding gives the seller several advantages:
 Brand name makes it easier for the seller to process
orders and track down problems
 Seller’s brand name and trademark provide legal
protection of unique product features
 Branding gives the seller the opportunity to attract a
loyal and profitable set of customers.
 Branding helps the seller segment markets.
 Strong brands help build corporate image, making it
easier to launch new brands and gain acceptance by
distributors and consumers.
When is a brand more than just a brand?
Have you ever based a purchasing decision
primarily on the brand? Was it because of
some perceived quality difference, or was it
based on the expectation of how others
would see or treat you? Have you ever seen
someone buying a given
brand of an item in an
attempt to be seen as “cool”?
Brand Decisions
Branding Challenges
Brand-Sponsor Decisions
2
 A manufacturer has several options with respect to brand
sponsorship. The product may be launched as:
 Manufacturer brand
 Distributor brand
 manufacturer produce some output under its own name
and some under reseller labels
 (eg: IBM sell virtually all of their output under their own
brand names, whereas Whirlpool produces both under its
own name and under distributors’ names (Sears Kenmore
appliances).
Brand Decisions
Branding Challenges
Brand-Sponsor Decisions
2
 In years past, consumers viewed the brands in
a category arranged in a brand ladder, with
their favorite brand at the top and remaining
brands in descending order of preference.
 There are now signs that this ladder is being
replaced with a consumer perception of brand
parity—that many brands are equivalent.
Brand Decisions
Branding Challenges
Brand-Name Decision 3
 Four available strategies:
 Individual names
 Blanket family names
 Separate family names for all products
 Corporate name combined with
individual product names
Brand Decisions
Branding Challenges
Brand-Name Decision 3
Brand Decisions
Branding Challenges
 Desirable qualities for a brand name
 It should suggest something about the product’s
benefits
 It should suggest the product or service category
 It should suggest concrete, “high imagery”
qualities
 It should be easy to spell, pronounce, recognize,
and remember
 It should be distinctive
 It should not carry poor meanings in other
countries and languages
Brand Decisions
Branding Challenges
 Brand building tools
 Public relations and  Public facilities
press releases  Social cause
 Sponsorships marketing
 Clubs and consumer  High value for
communities the money
 Factory visits  Founder’s or a
celebrity personality
 Trade shows
 Mobile phone
 Event marketing
marketing
Brand Decisions
Branding Challenges
Brand Strategy Decision 4
Brand Strategy Decision involves five key choices.
 Line Extension
 This means existing brands extended to new sizes, flavors,
forms, colors in the existing product category. Some
companies also introduce specific brand lines supplied to
specific retailers or distribution channels.
 Line extensions involve risks and have provoked heated
debate among marketing professionals.
 But line extensions have a better chance of survival than
brand-new products.
 It is also fueled by fierce competition in some cases.
Brand Decisions
Branding Challenges
 Brand Extension
 This means brand names extended to a new product category.
 But The new product may fail and damage the image of the
old products.
 Brand dilution may occur if the brand lose its specific
positioning in the minds of the customers. But some brand
extensions like that of Virgin have been very successful.
Brand Decisions
Branding Challenges
 Multibrands
 New brands introduced in the same product category. This
happens sometimes when the company wants to establish
different features or appeal to different buying motives.
 A multibranding strategy also enables the company to lock up
more distributor shelf space and to protect its major brand by
creating flanker brands
Brand Decisions
Branding Challenges
 New Brand
 New brand name adopted for a new category product.
Brand Decisions
Branding Challenges
Brand Strategy Decision
4
 Cobrands
 This means brands bearing two or more well-known names. It
is also called dual branding.
 cobranding forms:
 ingredient cobranding, as when Betty Crocker’s brownie mix includes
Hershey’s chocolate syrup.
 same-company cobranding, Nestle advertises Maggi
noodles and tomato ketchup together.
 joint venture cobranding, as in Maruti Zen with Kenwood
stereos.
 multiple-sponsor cobranding, as in Toshiba laptops with
Intel Pentium III www.bookfiesta4u.blogspot.com
processors.. 11-22
Brand Decisions
Branding Challenges
Brand Repositioning 5
 Brand repositioning is specially required when the brand and
the product associated with it reaches the decline stage. It is
also sometimes needed when the initial positioning was
wrong..

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