What is Branding? Why Brand? – Hungary

What is Branding? Why Brand?

Definition:
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

TO BUYER:

  • 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.

TO SELLER:

  • 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

Brand awareness:

  1. within relevant market(s)
  2. with influencers
  3. 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:

  1. Features: tangible characteristics of product
  2. Functional Benefits: benefits to consumer for brand features
  3. Emotional Rewards: psychological or emotional benefits received by using brand’s product?
  4. Values: what are the values of the typical loyal customer for this brand?
  5. Personality: what words would you use to describe brand if it were a person?

NameLab
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.

 

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