BrandingBranding

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The brandThe brand

A A brandbrand is a name, sign, symbol, is a name, sign, symbol, slogan or anything that is used to slogan or anything that is used to identify and distinguish a specific identify and distinguish a specific product, service, or business.product, service, or business.

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Brand is the image of the product in the Brand is the image of the product in the market. Some people distinguish the market. Some people distinguish the psychological aspect of a brand from the psychological aspect of a brand from the experiential aspect. The experiential aspect experiential aspect. The experiential aspect consists of the sum of all points of contact consists of the sum of all points of contact with the brand and is known as the with the brand and is known as the brand brand experienceexperience. The psychological aspect, . The psychological aspect, sometimes referred to as the sometimes referred to as the brand imagebrand image, , is a symbolic construct created within the is a symbolic construct created within the minds of people and consists of all the minds of people and consists of all the information and expectations associated information and expectations associated with a product or service.with a product or service.

……………………………………………… People engaged in branding seek to develop People engaged in branding seek to develop

or align the expectations behind the brand or align the expectations behind the brand experience, creating the impression that a experience, creating the impression that a brand associated with a product or service brand associated with a product or service has certain qualities or characteristics that has certain qualities or characteristics that make it special or unique. A brand is therefore make it special or unique. A brand is therefore one of the most valuable elements in an one of the most valuable elements in an advertising theme, as it demonstrates what advertising theme, as it demonstrates what the brand owner is able to offer in the the brand owner is able to offer in the marketplace. The art of creating and marketplace. The art of creating and maintaining a brand is called brand maintaining a brand is called brand management. Orientation of the whole management. Orientation of the whole organization towards its brand is called brand organization towards its brand is called brand orientation.orientation.

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Careful brand management seeks to Careful brand management seeks to make the product or services make the product or services relevant to the target audience. relevant to the target audience. Therefore cleverly crafted advertising Therefore cleverly crafted advertising campaigns, can be highly successful campaigns, can be highly successful in convincing consumers to pay in convincing consumers to pay remarkably high prices for products remarkably high prices for products which are inherently extremely which are inherently extremely cheap to make. cheap to make.

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This concept, known as creating value, essentially This concept, known as creating value, essentially consists of manipulating the projected image of consists of manipulating the projected image of the product so that the consumer sees the the product so that the consumer sees the product as being worth the amount that the product as being worth the amount that the advertiser wants him/her to see, rather than a advertiser wants him/her to see, rather than a more logical valuation that comprises an more logical valuation that comprises an aggregate of the cost of raw materials, plus the aggregate of the cost of raw materials, plus the cost of manufacture, plus the cost of distribution. cost of manufacture, plus the cost of distribution. Modern value-creation branding-and-advertising Modern value-creation branding-and-advertising campaigns are highly successful at inducing campaigns are highly successful at inducing consumers to pay, for example, 50 dollars for a T-consumers to pay, for example, 50 dollars for a T-shirt that cost a mere 50 cents to make, or 5 shirt that cost a mere 50 cents to make, or 5 dollars for a box of breakfast cereal that contains dollars for a box of breakfast cereal that contains a few cents' worth of wheat.a few cents' worth of wheat.

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Brands should be seen as more than Brands should be seen as more than the difference between the actual the difference between the actual cost of a product and its selling price cost of a product and its selling price - they represent the sum of all - they represent the sum of all valuable qualities of a product to the valuable qualities of a product to the consumer. consumer.

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A brand which is widely known in the A brand which is widely known in the marketplace acquires marketplace acquires brand recognitionbrand recognition. . When brand recognition builds up to a When brand recognition builds up to a point where a brand enjoys a critical mass point where a brand enjoys a critical mass of positive sentiment in the marketplace, it of positive sentiment in the marketplace, it is said to have achieved is said to have achieved brand franchisebrand franchise. . One goal in brand recognition is the One goal in brand recognition is the identification of a brand without the name identification of a brand without the name of the company present. For example, of the company present. For example, Disney has been successful at branding Disney has been successful at branding with their particular script font (originally with their particular script font (originally created for Walt Disney's "signature" logo.created for Walt Disney's "signature" logo.

…………………………………………………….. Consumers may look on branding as an Consumers may look on branding as an

important value added aspect of products or important value added aspect of products or services, as it often serves to denote a services, as it often serves to denote a certain attractive quality or characteristic. certain attractive quality or characteristic. From the perspective of brand owners, From the perspective of brand owners, branded products or services also command branded products or services also command higher prices. Where two products resemble higher prices. Where two products resemble each other, but one of the products has no each other, but one of the products has no associated branding (such as a generic, associated branding (such as a generic, store-branded product), people may often store-branded product), people may often select the more expensive branded product select the more expensive branded product on the basis of the quality of the brand or on the basis of the quality of the brand or the reputation of the brand owner.the reputation of the brand owner.

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Brand AwarenessBrand Awareness Brand awareness refers to customers' ability Brand awareness refers to customers' ability

to recall and recognize the brand under to recall and recognize the brand under different conditions and link to the brand different conditions and link to the brand name,logo, and so on to certain associations name,logo, and so on to certain associations in memory. It helps the customers to in memory. It helps the customers to understand to which product or service understand to which product or service category the particular brand belongs to and category the particular brand belongs to and what products and services are sold under what products and services are sold under the brand name. It also ensures that the brand name. It also ensures that customers know which of their needs are customers know which of their needs are satisfied by the brand through its products.satisfied by the brand through its products.

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Brand SalienceBrand SalienceBrand salience measures the Brand salience measures the

awareness of the brand."To what awareness of the brand."To what extent is the brand top-of-mind and extent is the brand top-of-mind and easily recalled or recognized? What easily recalled or recognized? What types of cues or reminders are types of cues or reminders are necessary?necessary?

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How do customers remember?How do customers remember?The tendency of a brand to be The tendency of a brand to be

thought of in a buying situation is thought of in a buying situation is known as “brand salience”. Brand known as “brand salience”. Brand salience is “the propensity for a salience is “the propensity for a brand to be noticed and/or thought of brand to be noticed and/or thought of in buying situations” and the higher in buying situations” and the higher the brand salience the higher it’s the brand salience the higher it’s market penetration and therefore its market penetration and therefore its market share.market share.

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Brands which come to mind on an Brands which come to mind on an unaided basis are likely to be the unaided basis are likely to be the brands in a customer’s consideration brands in a customer’s consideration set and thus have a higher probability set and thus have a higher probability of being purchased. Advertising of being purchased. Advertising weight and brand salience are cues to weight and brand salience are cues to customers indicating which brands customers indicating which brands are popular, and customers have a are popular, and customers have a tendency to buy popular brands.tendency to buy popular brands.

……………………………………………….. It is widely acknowledged that buyer’s do It is widely acknowledged that buyer’s do

not see their brand as being any different not see their brand as being any different from other brands that are available. They from other brands that are available. They buy a particular brand because they are buy a particular brand because they are more aware of it, not because it is more more aware of it, not because it is more distinctive, or has a point of difference. We distinctive, or has a point of difference. We now know that all decisions made by now know that all decisions made by humans involve memory processes to a humans involve memory processes to a greater or lesser extent. Incoming greater or lesser extent. Incoming information from the external environment information from the external environment travels by the sensory memory into the travels by the sensory memory into the short-term (or working) memory but if it is short-term (or working) memory but if it is not acted upon in a very short time the not acted upon in a very short time the brain simply discards it.brain simply discards it.

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But salient information that is important But salient information that is important and received on a regular basis through and received on a regular basis through different channels is passed to the long-different channels is passed to the long-term memory (LTM) where it can be stored term memory (LTM) where it can be stored for many years. Memories are stored or for many years. Memories are stored or filed via connections between new and filed via connections between new and existing memories in the different parts of existing memories in the different parts of the memory. They are laid down in a the memory. They are laid down in a framework making some memories easier framework making some memories easier to access than others. Recall is the process to access than others. Recall is the process by which an individual reconstructs the by which an individual reconstructs the stimulus itself from memory, removed stimulus itself from memory, removed from the physicality’s of that reality.from the physicality’s of that reality.

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Global BrandGlobal Brand A global brand is one which is perceived to A global brand is one which is perceived to

reflect the same set of values around the reflect the same set of values around the world.Global brands transcend their origins world.Global brands transcend their origins and creates strong, enduring relationships and creates strong, enduring relationships with consumers across countries and cultures.with consumers across countries and cultures.

Global brands are brands which sold to Global brands are brands which sold to international markets. Examples of global international markets. Examples of global brands include Coca-Cola, McDonald's, brands include Coca-Cola, McDonald's, Marlboro, Levi's etc.. These brands are used to Marlboro, Levi's etc.. These brands are used to sell the same product across multiple markets, sell the same product across multiple markets, and could be considered successful and could be considered successful throughout.throughout.

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Benefits of Global BrandingBenefits of Global Branding In addition to taking advantage of the In addition to taking advantage of the

outstanding growth opportunities, the outstanding growth opportunities, the following drives the increasing interest in following drives the increasing interest in taking brands global:taking brands global:

••economies of scale (production and economies of scale (production and distribution)distribution)

••lower marketing costslower marketing costs ••laying the groundwork for future laying the groundwork for future

extensions worldwideextensions worldwide ••maintaining consistent brand imagerymaintaining consistent brand imagery

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••quicker identification and quicker identification and integration of innovations integration of innovations (discovered worldwide)(discovered worldwide)

••increasing international media increasing international media reach (especially with the explosion reach (especially with the explosion of the Internet).of the Internet).

Etc……………..Etc……………..

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Global Brand VariablesGlobal Brand VariablesThe following elements may differ The following elements may differ

from country to country: from country to country: ••corporate slogancorporate slogan••products and servicesproducts and services••product namesproduct names••product featuresproduct features••positioningspositionings

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••marketing mixes (including pricing, marketing mixes (including pricing, distribution, media and advertising distribution, media and advertising execution)execution)

These differences will depend upon:These differences will depend upon:••language differenceslanguage differences••different styles of communicationdifferent styles of communication••other cultural differencesother cultural differences

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••different consumption patternsdifferent consumption patterns••different competitive sets and different competitive sets and

marketplace conditionsmarketplace conditions••different legal and regulatory different legal and regulatory

environmentsenvironments••different national approaches to different national approaches to

marketing (media, pricing, marketing (media, pricing, distribution, etc.)distribution, etc.)

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Local BrandLocal Brand A brand that is sold and marketed A brand that is sold and marketed

(distributed and promoted) in a relatively (distributed and promoted) in a relatively small and restricted geographical area. A small and restricted geographical area. A local brand is a brand that can be found in local brand is a brand that can be found in only one country or region. It may be only one country or region. It may be called a regional brand if the area called a regional brand if the area encompasses more than one metropolitan encompasses more than one metropolitan market. It may also be a brand that is market. It may also be a brand that is developed for a specific national market.developed for a specific national market.

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Types of brand namesTypes of brand names Brand names come in many styles. A few Brand names come in many styles. A few

include:include:AcronymAcronym: A name made of initials such as : A name made of initials such as UPS or IBMUPS or IBMDescriptiveDescriptive: Names that describe a : Names that describe a product benefit or function like Whole product benefit or function like Whole Foods or AirbusFoods or AirbusAlliteration and rhymeAlliteration and rhyme: Names that are : Names that are fun to say and stick in the mind like fun to say and stick in the mind like Reese's Pieces or Dunkin' DonutsReese's Pieces or Dunkin' Donuts

…………………………………………………… EvocativeEvocative: Names that evoke a relevant : Names that evoke a relevant

vivid image like Amazon or Crestvivid image like Amazon or CrestNeologismsNeologisms: Completely made-up words : Completely made-up words like Wii or Kodaklike Wii or KodakForeign wordForeign word: Adoption of a word from : Adoption of a word from another language like Volvo or Samsunganother language like Volvo or SamsungFounders' namesFounders' names: Using the names of real : Using the names of real people like Hewlett-Packard or Disney, ford, people like Hewlett-Packard or Disney, ford, suzuki etcsuzuki etcGeographyGeography: Many brands are named for : Many brands are named for regions and landmarks like Cisco and Fuji regions and landmarks like Cisco and Fuji FilmFilmPersonificationPersonification: Many brands take their : Many brands take their names from myth like Nike.names from myth like Nike.

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Brand identityBrand identity A product identity, or brand image are A product identity, or brand image are

typically the attributes one associates with typically the attributes one associates with a brand, a brand, how the brand owner wants how the brand owner wants the consumer to perceive the brandthe consumer to perceive the brand - - and by extension the branded company, and by extension the branded company, organization, product or service. The organization, product or service. The brand owner will seek to bridge the gap brand owner will seek to bridge the gap between the brand image and the brand between the brand image and the brand identity. identity.

………………………………………… Effective brand names build a connection Effective brand names build a connection

between the brand personality as it is between the brand personality as it is perceived by the target audience and the perceived by the target audience and the actual product/service. The brand name actual product/service. The brand name should be conceptually on target with the should be conceptually on target with the product/service (what the company stands product/service (what the company stands for). Furthermore, the brand name should for). Furthermore, the brand name should be on target with the brand demographic. be on target with the brand demographic. Typically, sustainable brand names are easy Typically, sustainable brand names are easy to remember, transcend trends and have to remember, transcend trends and have positive connotations. Brand identity is positive connotations. Brand identity is fundamental to consumer recognition and fundamental to consumer recognition and symbolizes the brand's differentiation from symbolizes the brand's differentiation from competitors.competitors.

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Brand identity needs to focus on Brand identity needs to focus on authentic qualities - real authentic qualities - real characteristics of the value and characteristics of the value and brand promise being provided and brand promise being provided and sustained by organisational and/or sustained by organisational and/or production characteristics.production characteristics.

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Branding approachesBranding approaches Company nameCompany nameOften, especially in the industrial Often, especially in the industrial

sector, it is just the company's name sector, it is just the company's name which is promoted (leading to one of which is promoted (leading to one of the most powerful statements of the most powerful statements of "branding"; the saying, before the "branding"; the saying, before the company's downgrading, "No one company's downgrading, "No one ever got fired for buying IBM").ever got fired for buying IBM").

Different recognized brandsDifferent recognized brands

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