principle of marketing : branding

Marketing Principles and Practice : Branding

Miss Sakinah Shukri @msumalaysia

Lecture Objectives• To look at branding and the role it plays in a business

• To discuss the benefits of branding

• To consider how brands are built

• To understand brand image, personality and values

• To look at Brand Stretching and Brand Extension

• Consider how a business uses brand protection

• To understand the different brand management issues a business might face

What is Branding?

• “A name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other sellers”

Yeshin

• “Branding is offering a distinctive product created by use of a name, symbol, design, packaging or some combination of these, intended to differentiate from it’s competitors.”

Jobber and Fahy

The Role of the Brand

• Helps sustain and develop the product or business• Helps consumers to distinguish products• Represents commercial value to the company• Buzzell and Gale (1987) – strong brands achieve

significantly more profit than their weaker counterparts – this shows the significance of developing a strong brand

What makes a Brand?

Brand

Identifiable

Differential advantage

Sustainable

Distinctive image

Perceived Value

Emotional Appeal

Generating Value

Sustaining in Competition

Benefits of Branding

• Company Value

• Consumer preference and loyalty

• Barrier to Competition

• High profits

• Base for brand extensions

Integrity of a Brand

• A brand is a promise to achieve certain results, deliver a certain experience, or act in a certain way

CompanyProduct A

Product B

Product Packaging Websites

Advertisements

Logo

Brand integrity – Diet Coke

Building Brands – Brand Name

Brand name strategies

Family brand names

Individual brand names

Combination brand names

E.g. Cadbury E.g. Pringles E.g. Kellogg’ s Corn Flakes

Building Brands – Brand Positioning

Brand domain

BrandPositioning

Brand values

Brandreflection

Brand personality

Brand assets

Brand heritage

Building Brands - Developing Brands

1. Customer focus, from start of planning

2. Champions of the brand, companies really need to be leaders in their field

3. Capability, in terms of the organisation and resources

4. Common practices and policies

5. Consciousness of brand issues guiding everyday activities

6. Consistency of message

Brandt and Johnson (1997)

Brand image

• Functional and emotional values of a product

• How brand is perceived in the consumers’ minds and meets their expectations

• Creates a clear identity for the product

• Differentiates the product

• Brand identity is communicated/sent by the marketer while brand image is perceived/received by the consumer

Brand Personality• The total impression created in the consumer’s mind by

a brand and all its associations – functional and non-functional

• A set of human characteristics associated with a brand

• It reflects people’s feelings and emotions about a brand and the way those brands transmit those feelings back to them

Identifying and Building Brand Values

• Interacting with marketing communications• Values and expectations of the brand need to be

clearly identified and portrayed through advertising

• Brand position is considered – perceptual map• Market research to explore consumer

expectations• What is the personality of the product?

Brand Extension

• Established brand name on a new brand within a broad market

• Capitalise on brand awareness

• Example Dove Soap

Brand Stretching

• Established brand name is used for brands in unrelated markets

• Distributers may perceive there is less risk with a new product if it carries a familiar brand name

• Customers will associate the quality of the established brand name with the new product

• The new product will attract quicker customer awareness• Promotional launch costs (particularly advertising) are

likely to be substantially lower• Example Virgin

Brand Protection

• If positive values associated with a brand are strong it will enable the owner to overcome major problems with product quality.

• A positive approach needs to be taken in dealing with product issues in order to protect brand – PR and Advertising.

Brand Management Issues

• Manufacturer brands versus own-label brands

• Brand Extension and Stretching

• Pan–European and global branding

• Brand dilution • http://www.youtube.com/watch?v=ga_c2el-_lM

Summary

• The role of a brand is to sustain and develop the product or business

• Branding offers benefits to consumers, manufacturers and retailers

• The key aspects involved in building brands include brand name and developing and positioning the brand

• The key issues involved in brand management include challenges presented by own-label brands, brand extension decisions, pan-European and global branding