In this session, students will see how branding influences advertising as a brand act as an identity for the product in the market. A marketer should take into consider all the good and negative points before naming a product.

1. Introduction to Branding
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2. Branding and Brand Management
 Branding
 An organization uses a name, phrase, design, symbol, or
combination of these to identify its products and distinguish them
from those of competition.
 Brand Name
 Any word, devise (design, sound, shape, or color), or combination of
these used to distinguish a seller’s good are services.
 One of the most valuable assets a company owns
 Coca-Cola, McDonald’s, Sony say their brand names have a value
of at least $1 billion
 Consumers get consistency
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3. Branding and Brand Management
 Trade Name
 A commercial, legal name under which a company does business.
 The Campbell Soup Company
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4. Characteristics of a Good Brand Name
 It should be distinctive
 It should be suggestive
 It should be appropriate
 It should be easy to remember
 It should be adaptable to new products
 It should be registerable
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5. Purpose of Branding
 Branding promotes recognition
 Brand helps set you apart from the competition
 Brand tells people about your business DNA
 Brand helps you create clarity and stay focused
 Brand helps you connect with your customers emotionally
 A strong brand provides your business value
 Wrapping it up
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6. Objective of branding
 To differentiate a firm's product
 To assist in promotion
 To increase prestige and status
 To maintain product quality
 To increase brand loyalty
 To legally protect the firm
 To build values for customers
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7. Brand Equity
 Brand Equity
 The added value a given brand name gives to a product beyond the
functional benefits provided.
 Advantages:
 Provides competitive advantage
 Consumers are willing to pay a higher price for a product with
brand equity
 Godiva chocolate gets premium price because of strong brand
equity
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8. Creating Brand Equity
 Develop positive brand awareness
 Want people to think of your brand when they think of a product class
 Kleenex = facial tissue
 Establish brand’s meaning in consumers’ minds
 What does the product stand for?
 Functional, performance related and abstract, imagery-related
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9.  Elicit proper consumer response to brand’s identity and meaning
 Thoughts about a brand
 Perceived quality, credibility, and superiority relative to
competition
 Feelings about a brand
 How does the consumer react emotionally to a brand?
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10. Creating Brand Equity
 Create active loyal relationship with consumer to the brand
 Most difficult part of creating brand equity
 Harley-Davidson, Apple
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11. Valuing Brand Equity
 Successful, established brand names create a financial advantage for the
company
 Brand equity has an economic value
 Can loose value when poorly managed
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12. How to build your own brand?
 Treat your customers with the utmost respect.
 Be a customer-focused brand, but not a customer-led one.
 Don’t get obsessive about a slogan.
 ESPs are more powerful than USPs in brand building.
 Remember your brand’s place in people’s lives.
 A brand needs a seat at the high table.
 If your own people don’t get it, no one will.
 Brands are primarily what you do, not what you say.
 Be consistent with your brand’s presentation
 Stick with it.
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13. Branding Strategy or Decisions
 Line extensions
 Brand Extension
 Multiple brands
 New brands
 Multi-Branding
 Regional Brands
 Attitude Brands
 In – Store Brands
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14. Line Extension
 Here the company introduces additional items in the same product
category, keeping the brand name same.
 The additional items may be of a different size (say a 150 gm cake of
Palmolive Soap). There may be a new form, say Liquid Lifebuoy Soap.
 Line extensions can be innovative, or “me-too” or may be void filling.
Most of the new product activity is of line extension type. Line
extensions offer a variety to the customers.
 Line extensions can be made available through a specific mix of trade
channels, e.g., lower end products are available at general stores and
higher end products at a few specialized outlets.
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15. Brand extensions
 An existing brand name is extended to a product being launched in a
new product category.
 Honda is a brand in the field of motorbikes. The same brand name is
given to products in the field of lawnmowers, and marine engines.
 Brand extension works well for rubbing off the success of established
brand names to new products.
 The new product, therefore, finds easy acceptance.
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16. Multiple Brands
 The strategy is employed to saturate the market. Additional brands are
introduced to cater to the different segments, e.g., P&G’s Tide is for
soiled clother and Draft is for gently clothes. P & G produces nine
different brands of detergents.
 Sometimes, a company gets a legacy of new brands in the process of
acquisition. Thus Coca Cola got the Thums Up, Gold Spot and Limca
brands.
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17. New Brands
 To make brand names more appropriate, a company puts a new brand
name when it enters a new product category.
 A new brand again has to be built up, and this is quite expensive.
 It should be considered whether the sales and profits estimated for the
new brand justify it.
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18. Multi-Branding
 In the market place of today, there is a virtual marketing warfare where
brands fight with one another on the basis of quality, reputation and
market share.
 Marketing strategy to a large extent is defined by brand strategy.
 Multi-branding approach is a measure adopted by many FMCG
companies , followed by consumer durable and service sector
companies to survive in the competitive environment.
 A company must first identify its core brand, which delivers the largest
volume and highest cash flow
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19. Regional Brands
 In India we come across many regional brands, which compete with the
national brands in several product categories.
 A regional brand is unique to a particular region. Some brands remain
regional on account of the constraints of resources. Some do so on
account of their very provincial appeal.
 Regional brands are under assault by the national and transnational
companies. They have started offering regional variants.
 Brands like Fights in processed food witness a number of brands from
Nestle and Milkmaid gobbling up the market created by it.
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20. Attitude Brands
 Body shop puts forward human body as an asset.
 Benetton ads denote an irreverent attitude. MTV as a brand is thought
of as one packed with rebelliousness of this generation. We have an
‘honest shirt’.
 These brands do things differently. They jolt the customer who take
notice of the brand.
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21. In – Store Brands
 Even you would have come across what are known as ‘private label’
brands. These are store brands
 They are defined as a product line, which is owned, controlled,
merchandised and sold by a specific retailer in its own stores.
 They enable a retailer to attain higher margins by providing higher
value to the customers and by saving costs.
 We come across private levels in garments and foods. Shopper’s Stop
gets more than 15 per cent of its total sales through private label brands.
Food court too has private label grocery brands.
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22. Benefits of Branding
To Buyer
 Help buyers identify the product that they like/dislike.
 Identify marketer
 Helps reduce the time needed for purchase.
 Helps buyers evaluate quality of products especially if unable to judge
products characteristics.
 Helps reduce buyers perceived risk of purchase.
 Buyer may derive a psychological reward from owning the brand, IE
Rolex or Mercedes.
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23. Evolution of Branding
 Branding was stamping for identification.
 Animals were branded for identification of their ownership
 Branding was defined by Oxford dictionary as, ‘to mark indelibly as a
proof of ownership, as a sign of quality, or for any other purpose.’
 Hence branding began as a legal issue even on products.
 However is soon became important in that source of product became
traceable, quality was assured and consumer loyalty to a producer
became legitimate and expected.
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24.  Rapid rise in urban growth in 1960’s and growing distance among
producer and consumer led to rapid growth in branding.
 Growth was supported by advent and proliferation of mass media and
organized retailing. The former facilitating branding and the latter
necessitating it.
 From 1980s intangible value additions has come to be a chief value
building element and hence, today all the more importance of branding.
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25. Benefits of Branding
To Seller
 Differentiate product offering from competitors
 Helps segment market by creating tailored images
 Brand identifies the company’s products making repeat purchases
easier for customers.
 Reduce price comparisons
 Brand helps firm introduce a new product that carries the name of one
or more of its existing products half as much as using a new brand,
lower co. designs, advertising and promotional costs.
 EXAMPLE, Gummy Savers
 Easier cooperation with intermediaries with well known brands
 Facilitates promotional efforts.
 Helps foster brand loyalty helping to stabilize market share.
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26. Drawbacks of Branding
 Impersonal
 Fixed Image
 Timescale
 Costs
 Social Restriction
 Brand Maintenance
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27. Thank You!!
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