What is Branding?

• The way in which a firm differentiates itself and its products from those of their rivals.

A brand is a name, sign, color, or symbol used to identify items or services of the seller(s) and to differentiate them from

goods of competitors.

Branding

• Three types of branding:– Manufacturer: products produced by a

manufacturer are labeled under their own name, rather than that of a distributor

– Intermediary: carries a name developed by the wholesaler or retailer.

– Generic: represents a general product category and does not carry a company or brand name.

Brand Names

• Forms of brand names:– Acronym – name made up of initials; BMW, KFC,

BP, IBM– Descriptive or functional – represents a product

benefit; Sparkle window cleaner or Mop and Glo floor cleaner

– Personal names – named after the original founder; Ford, Chevrolet

– Abbreviations – Xerox is short for xerography

Brand Names

– Foreign Language Terms – Volkswagen literally means “the people’s car” in German

– Mistakes – Google is a misspelling of Googal (a very large number)

– Myth – names of mythical creatures; Nike, the Greek goddess of victory

– Association – Apple was named after Steve Jobs worked on a community farm in Oregon

Importance of Branding

• Customers can identify products quickly– Recognized from: packaging, logo, color, shape– Recognized through sound: TV advertisements,

radio commercials, conversations with friends.• Brand loyalty– Increased revenue and market share – Customers are less likely to switch to competitors– Customers are prepared to pay a premium price

for a particular brand

A truly successful brand is when that brand name becomes interchangeable with the

generic name of the product.

“I’m going to sneeze – pass me a Kleenex.” (tissue)

How a Brand Makes You Feel

• Brand experience: customer’s thoughts, feelings, perceptions, beliefs, and attitudes when they are making a purchase

• Brand image: customer’s emotions combine to build a reputation with which loyal customers identify

Protecting the Brand Name

• An unregistered trademark is recognized by the letters “TM.” – Protection may only operate within the

geographical area where it has been used.• Once legally protected, a brand name

becomes a registered trademark.– The owner may take legal action for trademark

infringement to prevent unauthorized use

Rebranding

• A marketing strategy where a new name, term, symbol, design, or combination is created for an established brand

• Purpose: develop a new, differentiated identity in the minds of consumers, investors, and competitors

Why Rebrand?

• Identify with a new target market– McDonald’s “Mickey D’s”

• Entering into a new line of business/market – Ex. Apple Computers Apple

• Relevancy– Yellow Pages YP

• Negative Publicity• Legal Issues

Risky Rebranding

• http://www.youtube.com/watch?v=oJHF0OxQR4k

• http://www.cbsnews.com/video/watch/?id=4844495n

Licensing

• An agreement that gives a company the right to use another’s brand name, patent, or other intellectual property for a fee.

Licensing

• Licensor: the company or individual granting the license for a fee in this legally binding contract.

• Licensee: the company or individual paying for the rights to use the licensor’s name or property.

Licensed Products

• In sports marketing, a company must pay a fee to use a league’s, team’s, or individual’s name, image, or logo on a product or its packaging.

NFL grants product licenses to companies that want to

use the NFL logo

Sponsorships & Endorsements

• Sponsorships– Promotional vehicles that financially support

sporting events– Operating sports events and leagues requires a

significant amount of money– Salaries for players alone cost hundreds of millions

of dollars

Sponsorships & Endorsements

• Endorsements– A statement or approval of a product, service, or

idea made by an individual or organization speaking on behalf of the advertiser

• Can simply be an association with a product– Michael Jordan – Hanes

• A company may choose a sports figure who matches the demographic profile of its customer base.

Why Product Licensing?

• Money• Percentage of the revenue from the licensee

goes to the licensor.• Example: Calvin Klein Inc licenses the

designer’s name to makers of underwear, jeans, and perfume. They only make women’s apparel lines. They are receiving money from the sales of everything