Notes: A product’s success depends on the target market’s ability to distinguish one product from another. Marketers use branding as the major tool in distinguishing their product from the competition. Discussion/Team Activity: Name products with strong brand recognition.
Brand name – AOL, WD 40, 3M post-its
Notes: A service mark performs the same function for services. Parts of a brand or other product identification may qualify for trademark protection. Some of the best known trademarked features include the Coca-Cola bottle and the Nike “Swoosh.” Companies that fail to protect trademarks face the risk of product names becoming generic. This list includes aspirin, cellophane, thermos, monopoly, cola, and shredded wheat.
Notes: Exhibit 9.3 lists the world’s most valuable brands.
Notes: Exhibit 9.4 diagrams the decisions made in branding. The lack of a brand name, a generic product, can be a selling point. If a brand is used, the choice is made between a manufacturers’ brand, a private brand, or both. With either a manufacturers’ brand or a private brand, a decision is made among: Individual brand—different brands for different products Family brand—common names for different products or a Combination of individual branding and family branding. Discussion/Team Activity: Name brands that fall into each of the categories shown on this slide and in Exhibit 9.4.
Video: America Online and Web MD This advertisement demonstrates the cobranding of AOL and Web MD. On Line: Kellogg’s and Disney How are Kellogg’s and Disney promoting their cobranding of cereals on their company Web sites? Does one of the two companies benefit more than the other from the arrangement? If so, which one? How? On-Line: Post and Quaker Oats Ingredient branding can enhance the prestige and value of a brand. Cookies and candies are some common ingredients that appear in other products, like cereal and ice cream. Visit the Post Cereal and Quaker Oats Web sites to see how each company has incorporated ingredient branding into its marketing strategy. What ingredients is each company using in its products? Do you think the cobranded products you find have increased value over a plain product (i.e., a product without a branded ingredient)? Notes: Cobranding is placing two or more brand names on a product or its package. Ingredient branding identifies the brand of a part that makes up the product. Examples: Intel in Dell computers, Coach interiors in Lincoln automobiles, K.C. Masterpiece Barbeque in Lay’s Potato Chips. Cooperative branding occurs when two brands receive equal treatment. Examples: Promotional contest sponsored by Ramada Inns, American Express, and Continental Airlines. Complementary branding refers to products advertised or marketed together to suggest usage The benefits of cobranding include: Enhancement of prestige or value of a product and increased market presence in markets with little or no market share.
1. MAR 3023 – PRINCIPLES OF MARKETING <ul><li>Dr. Jaishankar Ganesh </li></ul><ul><li>BA2 308G </li></ul><ul><li>Branding Issues & Strategies </li></ul><ul><li>October 20, 2003 </li></ul>
2. Brand A name, term, symbol, design, or combination thereof that identifies a seller’s products and differentiates them from competitors’ products.
3. Branding Terms <ul><li>Brand – an identifying name, term, or symbol </li></ul><ul><li>Brand Name – part of a brand that can be spoken </li></ul><ul><li>Brand Mark – symbolic-The elements of a brand that </li></ul><ul><li>cannot be spoken. </li></ul><ul><li>Trademark – legal designation of the exclusive use of brand </li></ul><ul><li>Trade Name – Commercial, legal name </li></ul>
4. Trademarks TM <ul><ul><li>Many parts of a brand and associated symbols qualify for trademark protection </li></ul></ul><ul><ul><li>The mark has to be continuously protected </li></ul></ul><ul><ul><li>Rights continue for as long as it is used </li></ul></ul>A Trademark is the exclusive right to use a brand
5. Trade Name
6. Types of Brands <ul><li>Manufacturer Brands </li></ul><ul><li>Private Brand OR Retailer/Store Brands </li></ul><ul><li>Captive Brands </li></ul><ul><li>Generic Brands </li></ul>Battle of the Brands
7. Four criteria for picking a good brand name Describe product benefits Be memorable, distinctive, and positive Fit the company or product image Have no legal restrictions A good brand name should . . . .
8. Good Brand Names: Suggest product benefits Become distinctive Are free from poor foreign language meanings Suggest product qualities Are easy to pronounce, recognize, remember
9. Selecting a Brand Name <ul><li>Easy to Say, Spell, and Recall </li></ul><ul><ul><li>Tide, Crest, Cheer </li></ul></ul><ul><li>Major Benefit(s) Indicated </li></ul><ul><ul><li>Mr. Clean, I Can’t Believe It’s Not Butter </li></ul></ul><ul><li>Suggest Product’s Use(s) and Special Characteristics </li></ul><ul><ul><li>Healthy Choice, Word Perfect </li></ul></ul><ul><li>Avoid Negative/Offensive Connotations </li></ul><ul><ul><li>Nova </li></ul></ul><ul><li>Distinctive </li></ul><ul><ul><li>Nike </li></ul></ul>
10. Value of Branding <ul><li>To Buyers </li></ul><ul><ul><li>Product Identification </li></ul></ul><ul><ul><li>Quality assurance </li></ul></ul><ul><ul><li>Rewards / Risks </li></ul></ul><ul><li>To Sellers </li></ul><ul><ul><ul><ul><ul><li>Immunity from Counterfeiters </li></ul></ul></ul></ul></ul><ul><li>Loyalty </li></ul>Favorable attitude towards a brand
11. The World’s Most Valuable Brands
12. Brand Loyalty <ul><li>Price premiums </li></ul><ul><li>Resistant to competition </li></ul><ul><li>Positive word of mouth </li></ul>
13. Brand Loyalty Pyramid No brand loyalty (customer will change) Satisfied customer (no reason to change) Satisfied and switching cost Values the brand Devoted to brand
14. Brand Equity BRAND EQUITY . . . . The added value a given brand provides a product beyond the functional benefits provided.
20. Product Extensions Line extension . . . . The use of a current brand to enter a new market segment in its product class Brand extension . . . . The use of a current brand name to enter a completely different product class
22. Product Bundling <ul><li>Perception of Value </li></ul><ul><li>Ease of Information Processing </li></ul><ul><li>Reduction in Perceived Risk </li></ul><ul><li>Ability to control & smoothen demand </li></ul>