What is Branding? Why Brand?
A name, term, design, symbol or any other feature that identifies one seller’s good or service as distinct from another’s.
- Brand name is that part that can be spoken, including letters, words and #s, IE 7UP.
Brand names simplify shopping, guarantee a certain level of quality and allow for self-expression.
- Brand mark-elements of the brand that cannot not be spoken, IE symbol/ logo
- Trade Character IE Ronald McDonald, Pillsbury Doughboy
- Trade mark – legal designation that the owner has exclusive rights to the brand or part of a brand.
- Tradename-The full legal name of the organization. IE Ford, not the name for a specific product.
Provides benefits to buyers and sellers
- Help buyers identify the product that they like/dislike.
- Identify marketer
- Helps reduce the time needed for purchase.
- Helps buyers evaluate quality of products especially if unable to judge a products characteristics.
- Helps reduce buyer’s perceived risk of purchase.
- Buyer may derive a psychological reward from owning the brand, IE Rolex or Mercedes.
- Differentiate product offering from competitors
- Helps segment market by creating tailored images
- Brand identifies the companies products making repeat purchases easier for customers
- Reduce price comparisons
- Brand helps firm introduce a new product that carries the name of one or more of its existing products…half as much as using a new brand, lower co. designs, advertising and promotional costs
- Easier cooperation with intermediaries with well known brands
- Facilitates promotional efforts
- Helps foster brand loyalty helping to stabilize market share.
- Firms may be able to charge a premium for the brand.
Branding versus Tactical Promotions?
Brand Equity (Customer Equity)
Operating profits – expected profits for generic $: 10 Most Valuable
Share of Mind, Attitudes = ImagePower. Landor Associates
Brand awareness = considered set
- within relevant market(s)
- with influencers
- with entire market
The Best Global Brands: Handout
Interbrand: Best Global Brand
Brand Name Decisions:
- Individual Names: Procter and Gamble, Tide, Cheer, Bold
- Family Names: GE, AT&T, and Sears
- Trade name with individual product name: Kraft Products
- MF Brand versus Private Brand?
Selecting a Brand Name
Criteria for choosing a name, some issues to consider:
- Easy for customers to say, spell and recall (inc. international ppl)
- Indicate products major benefits
- Should be distinctive
- Compatible with all products in product line
- Used and recognized in all types of media
- Single and multiple words Bic, Dodge Grand Caravan, IBM PC (letters), or a combination Mazda RX7
- Availability, already over 400 car “name plates”, this makes it difficult to select a new one.
- Use words of no meaning to avoid negative connotation, Kodak, Exxon
- Can be created internally by the organization, or by a consultancy
- Legal restrictions, i.e. Food products must adhere to the Nutrition Labeling and Education Act, 1990…May 8 1994
- Global translations ?
The Brand Pyramid:
- Features: tangible characteristics of product
- Functional Benefits: benefits to consumer for brand features
- Emotional Rewards: psychological or emotional benefits received by using brand’s product?
- Values: what are the values of the typical loyal customer for this brand?
- Personality: what words would you use to describe brand if it were a person?
Domain Names: Highjacking issues? (Highjacked Domain and New Domain): Help! I’ve Lost My Domain Name!
Discussion Topic: Investigate the above issues to determine who has rights to the use of a domain name.