Contentious Remark of the Day

Everything is branded

What is a brand ? A brand is defined as a: name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller and to differentiate them from those of competitors Kevin Keller Professor of Marketing

What is a "brand"? Brand: name, term, sign, symbol, or design intended to identify the products or services and to differentiate them from the products offered by competitors. Brand: a psychological concept (or set of associations) Brand(ing): The art of taking something common and improving on it in ways that make it more valuable and meaningful. "A product is no more than an artifact around which consumers have experiences.Nike could have spent millions preaching the value of encapsulated gas trapped within a thin pliable membrane. Instead it communicated what the product meantit transcended the product"Just Do It" was not about sneakers, it was about values it tapped into the wide range of emotional rewards that are uniquely relevant to sports and fitness."

A brand is a promise
a sellers promise to deliver consistently a specific set of features, benefits and services to buyers. A short-hand that communicates powerfully and reduces uncertainty Differentiates goods or services from competing offerings

 Products

have no voice

Without a brand the customer is confused How can they gauge potential satisfaction?

Every major brand has its own meaning [reason for being]

The meaning is important because it sets expectations with buyers [quality, price, etc.,] and tells them what direction the brands research, innovation and other efforts are taken

Product Identification
Brand name part of a brand consisting name: of words or letters that form a name that identifies and distinguishes a firms offering from those of its competitors Brand mark symbol or pictorial design mark: that identifies a product Generic name branded name that has name: become a generically descriptive term for a class of products (e.g., nylon, aspirin, kerosene, and zipper)

 Trademark legal protection which confers Trademark: the exclusive right to user brand name, trade mark, and any slogan or product name abbreviation Trade Dress visual cues used in Dress: branding to create an overall look
The distinctive shape of Philips light bulbs and the McDonalds arches provide an example of trade dress

The Role of Brands

Identify the maker Simplify product handling Organize accounting Offer legal protection Signify quality Create barriers to entry Serve as a competitive advantage Secure price premium

A Branding Example
Travelex bought up many regionalized airport money changers Launched a new blue and red corporate identity
Now in most international airports you instantly recognize the Travelex kiosk

Then did a brand extension to apply Travelex to travel insurance

Brand Strategy Decisions

The First Brand Decision

What does our brand stand for?

Second Brand Strategy Decision The External Features

Name Logo Colors Sound Brand essence statement

Brand names
Short Pronounceable Not mean anything rude in another language Kodak, Fuji

Brand names
Short Pronounceable Not mean anything rude in another language Morgan Stanley Dean Witter Discover CNN an AOL Time Warner Company

Brand names
Short Pronounceable Not mean anything rude in another language

Brand names
Short Pronounceable Not mean anything rude in another language

Brand Names continued

Product (not firm) brands should be
suggestive of product benefits:

 Explorer, Cover Girl

Toyota Siena , H-P Pavilion Flying Pigeon bicycles

Ps: Public Storage example

Changing the brand name will not compensate for poor strategy
Consignia (Royal Mail) Monday (PricewaterhouseCoopers Consulting)

Brand External Features now includes sound or jingle

Examples: Intel da-da-da-ding Windows sound

Brand External Features: Logo and color scheme

Balance creativity and consistency

Great Logo: Great Consistency?

The Brand Essence Statement

Should leverage a compelling truth

When Miata was introduced into the US, Mazda didnt even mention the Mazda nameit was considered a deal-killer

Brand Architecture

The relationship of the Firm Brand to individual Product Brands

Stretching Brands is like spending Political Capital

Brand equity is wonderful to have, but its like other equity or capital:
You can have it, OR You can spend it

When you stretch the brand, you spend the equity

Types of Brands
Generic product item characterized product: by plain label, with no advertising and no brand name Manufacturers brand or National Brand: Brand brand name owned by a manufacturer or other producer Private brands brand name placed on brands: products marketed by wholesalers and retailers

National Brand Private Brand Generic Name Brand Generic Goods

National Brand
products that carry the name of the manufacturer ie. Maxwell House coffee ie. Philadelphia cream cheese

Private Brand

products that carry the name of the seller, not the manufacturer ie. MasterChoice coffee ie. IGA cream cheese

Generic Name Brand

A brand name over which the original owner has lost exclusive claim because all offerings in the associated class of products have become generally known by the brand name (usually that of the first or leading brand in that product class). TEXT names for product categories ie. Velcro is the brand hooked fabric fastener is the generic name ie. Xerox is the company photocopy is the generic name, - other examples???????? rollerblades, Styrofoam , Jello, Vaseline, Q-tips, Kleenex

Examples of the 3 differences between a national brand, a private brand and a generic brand

Philadelphia Cream Cheese IGA Cream Cheese No Name brand cream cheese

 Captive brands national brands that brands: are sold exclusively by a retail chain Family brand brand name that brand: identifies several related products Individual brand unique brand name brand: that identifies a specific offering within a firms product line and that is not grouped under a family brand

 Developing Global Brand Names and Trademarks

Potentially an acute problem for international marketers An excellent brand name or symbol in one country may prove disastrous in another Trademarks that are effective in their home countries may fare less well in other cultures

There are two dimensions of brand knowledge :

Brand awareness > reflects a consumers ability to identify the brand Brand image > a consumers perception about the brand

3 dimensions to brand image: Strength [how strongly the brand is identified with a brand association] Favorability [how important or valuable the brand association is to customers] Uniqueness [how distinctively the brand is identified with the brand association]

 Brand Loyalty
Brand recognition Consumer awareness recognition: and identification of a brand. Brand preference Consumer reliance on preference: previous experiences with a product to choose that product again. Brand insistence Consumer refusals of insistence: alternatives and extensive search for desired merchandise.

 Brand Recognition / Equity - awareness, loyalty, quality, emotion Brand Preference / Loyalty - the degree to which customers are committed to further purchases eg. I will always buy Reebok (Brand Insistence) ________________________________________________ Brand Awareness -your product is the first that comes to mind in a certain product category eg. Snapple ice tea, jeans-Levis, walkman - SONY Brand Association - the link to favourable images, celebrities, geographic regions ie. Red Strip - Jamaica, VW - Germany, Screech - NFLD Baileys - Eire

 Brand Association - the link to favourable images, celebrities, geographic regions ie. Red Strip - Jamaica, VW - Germany, Screech - NFLD Baileys - Eire
Paul Hogan - Subaru James Earl Jones (voice of CNN) Chihuahua - Taco Bell Jordan - Nike Julia Louis Dryfuss - Nice and Easy Candice Bergen - Sprint Canada

Brand Association - the link to favourable images, celebrities, geographic regions

white diamonds - liz taylor BMW Z3 - 007 roots hats - Olympics fubu - urban trend / hip hop right guard - Sir Charles Ru Paul - MAC Cosmetics Seinfeld - AMEX Pepsi Indian Cricketers Coke Aamir Khan

 Brand equity added value that a equity: respected, well-known brand name gives to a product in the marketplace.
Brand equity increases the likelihood that consumers will recognize the firms product when they make purchase decisions A strong brand equity can contribute to buyers perceptions of product quality Branding can also reinforce customer loyalty and repeat purchases

Brand Equity and Brand Identity

Brand Identity

Brand Associations

Brand Equity

Branding Strategies
Multiproduct Branding (Family/Corporate)
Line Extension Subbranding Brand Extension

 Brand extension application of a extension: popular brand name to a new product in an unrelated product category Line extensions refers to new sizes, styles, or related products Brand licensing practice allowing licensing: other companies to use a brand name in exchange for a payment

The Value Proposition and Licensed brands

No. 3 Guanzhou Eyeframe factory

Product value Image value

Total customer value

Porsche
Monetary cost Time cost
Energy cost

Customer delivered value

Total customer cost

Example of Licensed Brand

Most eyeware uses a Licensed Brand One firm (e.g. Porsche) is renting out its brand associations to another (the firm that makes the glasses) Note: One firm is providing the product benefits, the other is providing the image benefits
This only works if the brand is conspicuously visible

Alternative branding strategies

Marketing Advantages of Strong Brands

Improved perceptions of product performance Greater loyalty Less vulnerable to competition Less vulnerable to crises Larger margins Inelastic consumer response to price increases Elastic consumer response to price decreases Greater trade cooperation Licensing opportunities Brand extension opportunities

Understanding Brand Management

Summary
1. Managing brands is the most valuable part of product strategy 2. Everything the firm does (product, ads, PR, customer service) either adds or subtracts to the brandmanage with care 3. Modern branding decisions are complex

Most Valuable Global Brands

Brands Coca Cola Marlboro Nescafe Kodak Microsoft Budweiser Kellogg's Motorola Gillette Bacardi
Source: Financial World

Brand value $ 36 $ 33 $ 11 $ 10 $ 9.8 $ 9.7 $ 9.3 $ 9.2 $ 8.2 $ 7.1 Billion Billion Billion Billion Billion Billion Billion Billion Billion Billion