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Note 29Brands and

Branding

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Introduction

Brand - a name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other sellers

The legal term for brand is trademark As concepts in customers’ minds and hearts, brands have

rich symbolism and meanings that go beyond their identifying function

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Introduction

Strategic roles of a brand To identify the product and its producer to consumers To differentiate the offering in a valued way To command margin

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Brand Marks and the Functions of Brands

A brand’s identifying characteristics include: The brand name (or “trade name”) Logos and marks (“trademarks”) Distinguishing features such as packaging, colors, and

sounds

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Table Note 29-1 - The Benefits of Brands

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Brand Meaning and Brand Equity

Brands hold meaning that can encompass: Functional and hedonic benefits Social significance and symbolism

These meanings reside in the minds of consumers Brand equity - a summary of brand meaning/associations

along with brand awareness, brand loyalty, brand quality, and other brand assets

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Figure Note 29-1 - Brand Meaning and Brand Equity

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Who Owns the Brand?

Brands begin with producers and marketers Brand managers may influence the brand’s meaning But, brands belong to the consumers who use them and

who assign meaning to them

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Building Brands

Building or maintaining a brand must begin with a clear understanding of what the brand is meant to be in consumer perceptions

The strategic position that the brand intends to claim in the marketplace must be determined, based on customer and competitive analyses Should be recorded in a positioning statement

The marketing strategist has a variety of tools to use in claiming and reinforcing the brand’s position

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Figure Note 29-2 - Building Brand Identity and Brand Equity

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Table Note 29-2 - Dimensions of CorporateImage

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Measuring Brands

Measuring brands can be approached in at least two basic ways: Consumer-level brand meaning, brand equity, and brand

strength Firm- or brand-level value

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Table Note 29-3 - Brand Personality

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Figure Note 29-3 - Millward Brown’sBrandDynamics® Model

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Figure Note 29-4 - Hypothetical Effect of a Communications Investment on Brand Dynamics

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Brand Valuation

It is a brands: Worth taken as a whole Contribution to the firm’s financial value

The brand is valuable to the firm because: It can be expected to generate sales and command margin

in the future Sales and margins are the product of cumulative

individual-level feelings about the brand

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