basic concepts of branding
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branding in detailTRANSCRIPT
Basic concepts of Branding
Basic concepts of Branding
What is a 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. A brand may identify one item, a family of items, or all items of that seller. If used for the firm as a whole, the preferred term is trade name
Thums upPepsiCoco colaAkshay KumarRanbir kapurShahrukh khanAmir khantaste thunder Yeh hai youngistaan meri jaan
Thanda Matlab Coca-Cola
What a brand means to common person ?
In 'blind' taste tests, people prefer the taste of Pepsi over the taste of Coke. However, if the test is not 'blind' and the tasters know which beverage is which, they prefer the taste of Coke over Pepsi! That is the emotional power of a brand.
When you cannot do thisThe product is a commodity
Commodities are bought on the basis of price and availability, not on the name of the manufacturer or brand. Example: Petrol, vegetables.However, by adding value, commodities can be converted into a brand.
A brand comprises of Tangible attributes Intangible attributes
TangiblesEg.ProductPackagingLabelingAttributesFunctional benefits
IntangiblesEg.QualityEmotional benefitsValuesCultureImage
Brand IdentityIt is the marketers promise to give a set of features, benefits and services consistently
Brand BuildingInvolves all the activities that are necessary to nurture a brand into a healthy cash flow stream after launch
What kind of activities?Eg.Product developmentPackagingAdvertisingPromotionSales and distribution
Brand EquityWhen a product becomes a brand, it is said to have equityElements that can be included in the valuation of brand equity include changing market share, profit margins, consumer recognition of logos and other visual elements, brand language associations made by consumers, consumers' perceptions of quality and other relevant brand values.
What is brand equity?The premium it can command in the marketDifference between the perceived value and the intrinsic value
Benefits of brand equityInclude:Brand name recognition or awarenessCustomer loyaltyPerceived qualityStrong emotional or mental associations
Brand equity as an assetCoca Cola$69bnMicrosoft$65bnDisney$32.6bnAmerican Express$17bnEricsson$7bn
What happens when equity increases?CommodityBrandPower Brands
Presence+Personality
What happens when brands have high equity?The company can have more leverage with the tradeThe company can charge a premium on their productThe company can have more brand extensionsThe company can have some defense against price competition
Brand Loyalty Pyramid
Committed buyer
Likes the brand. Considers it a friend
Satisfied buyer. Would incur costs to switch
Satisfied buyer/no reason to change
Switchers/Price sensitive
Functions of a brand:Creates brand awarenessReduces riskProvides specific information like qualityProvides symbolic consumption