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MAR 3023 – PRINCIPLES OF MARKETING Dr. Jaishankar Ganesh BA2 308G Branding Issues & Strategies October 20, 2003

Branding Issues and Strategies

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MAR 3023 – PRINCIPLES OF MARKETING

Dr. Jaishankar Ganesh

BA2 308G

Branding Issues & Strategies

October 20, 2003

Brand

A name, term, symbol,

design, or combination

thereof that identifies a

seller’s products and

differentiates them from

competitors’ products.

Branding Terms

• Brand – an identifying name, term, or symbol • Brand Name – part of a brand that can be

spoken• Brand Mark – symbolic-The elements of a brand

that cannot be spoken.

• Trademark – legal designation of the exclusive

use of brand• Trade Name – Commercial, legal name

Trademarks

Many parts of a brand and associated symbols qualify for trademark protection

The mark has to be continuously protected

Rights continue for as long as it is used

A Trademark is the exclusive right to

use a brand

Trade Name

Types of Brands

• Manufacturer Brands• Private Brand OR Retailer/Store Brands• Captive Brands• Generic Brands

Battle of the Brands

Four criteria for pickinga good brand name

Describe product benefitsDescribe product benefits

Be memorable, distinctive, and positiveBe memorable, distinctive, and positive

Fit the company or product imageFit the company or product image

Have no legal restrictionsHave no legal restrictions

A good brand name should . . . .

A good brand name should . . . .

Good Brand Names:

Suggest product benefits

Become distinctive

Are free from poor foreignlanguage meanings

Suggest product qualities

Are easy to pronounce,recognize, remember

Selecting a Brand Name• Easy to Say, Spell, and Recall

– Tide, Crest, Cheer

• Major Benefit(s) Indicated– Mr. Clean, I Can’t Believe It’s Not Butter

• Suggest Product’s Use(s) and Special Characteristics– Healthy Choice, Word Perfect

• Avoid Negative/Offensive Connotations– Nova

• Distinctive– Nike

Value of Branding• To Buyers

– Product Identification– Quality assurance– Rewards / Risks

• To Sellers» Immunity from Counterfeiters

• Loyalty

Favorable attitude towards a brand

The World’s Most Valuable Brands

Brand Loyalty

• Price premiums

• Resistant to competition

• Positive word of mouth

Brand Loyalty Pyramid

No brand loyalty(customer will change)

Satisfied customer(no reason to change)

Satisfied andswitching cost

Values the brand

Devoted to brand

Brand Equity

BRAND EQUITY . . . .BRAND EQUITY . . . .

The added value a given brand The added value a given brand provides a product beyond the provides a product beyond the functional benefits provided.functional benefits provided.

Brand Equity

• Name Awareness

• Perceived Quality

• Brand Associations

• Other Brand Assets (logo, slogan, etc.)

• Brand Loyalty

PerceivedPerceivedBrandBrandQualityQuality

BrandName

Awareness

BrandBrandLoyaltyLoyalty

BrandBrandAssociationsAssociations

XEROXTHE 5

ELEMENTSOF

BRANDEQUITY

OtherOtherBrandBrandAssetsAssets

Brand Name Protection

• Registration• Guard Against Generic

Use – Genericide - Aspirin• Protect Against

Counterfeiting

Branding Strategies

BrandBrand No BrandNo Brand

Manufacturer’s Brand

Manufacturer’s Brand Private BrandPrivate Brand

IndividualBrand

IndividualBrand

Family Brand

Family Brand

Combi-nation

Combi-nation

IndividualBrand

IndividualBrand

Family Brand

Family Brand

Combi-nation

Combi-nation

Alternative branding strategies

Family/Blanket branding strategy

Sunbeam makes:Sunbeam ironsSunbeam toastersSunbeam crockware

GE makes:TVVCRMicrowave Washer/Dryer

Family/Blanket branding strategy

Sunbeam makes:Sunbeam ironsSunbeam toastersSunbeam crockware

GE makes:TVVCRMicrowave Washer/Dryer

Individual/ Multi-brand strategy

Anheuser-Busch makes:

BudweiserBuschMichelobWurtburgerHofbrau

Procter & Gamble makes:

TideCheerIvory SnowOxydol

Individual/ Multi-brand strategy

Anheuser-Busch makes:

BudweiserBuschMichelobWurtburgerHofbrau

Procter & Gamble makes:

TideCheerIvory SnowOxydol

Private branding

McClark’s Bar-B-Cue Sauce

Kroger has:Store brands for various products

Sears has:Kenmore appliancesCraftsman tools

Private branding

McClark’s Bar-B-Cue Sauce

Kroger has:Store brands for various products

Sears has:Kenmore appliancesCraftsman tools

Combination/ Mixed branding strategy

Honda makes:AccordCivicPreludeS-2000Odyssey

Kellogg’s makes:

Rice KrispiesRaisin BranCorn Flakes

Combination/ Mixed branding strategy

Honda makes:AccordCivicPreludeS-2000Odyssey

Kellogg’s makes:

Rice KrispiesRaisin BranCorn Flakes

Generic/No branding strategy

Dog foodPeanut butterGreen beansPaper towelsAspirinCola

Generic/No branding strategy

Dog foodPeanut butterGreen beansPaper towelsAspirinCola

Branding strategyBranding strategy

Manufacturer branding strategyManufacturer branding strategy

Line extension . . . .Line extension . . . .

The use of a current brand to enter a new market segment in its product class

The use of a current brand to enter a new market segment in its product class

Brand extension . . . .Brand extension . . . .

The use of a current brand name to enter a completely different product class

The use of a current brand name to enter a completely different product class

Product Extensions

Cobranding

IngredientBranding

IngredientBranding

Cooperative Branding

Cooperative Branding

Complementary Branding

Complementary Branding

Types of CobrandingTypes of CobrandingTypes of CobrandingTypes of Cobranding

Product Bundling

• Perception of Value

• Ease of Information Processing

• Reduction in Perceived Risk

• Ability to control & smoothen demand