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The how and why of branding

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  1. 1. Brands An Introduction
  2. 2. Objectives of this session: <ul><li>Some famous brands </li></ul><ul><li>Why we use brands </li></ul><ul><li>What is a brand? </li></ul><ul><li>Brands and products </li></ul><ul><li>Building brand value </li></ul><ul><li>Brand strategies </li></ul>
  3. 3. Everyone could name the top ten global brands
  4. 4. Top ten global brands (by brand value) <ul><li>Coca-Cola </li></ul><ul><li>Microsoft </li></ul><ul><li>IBM </li></ul><ul><li>GE </li></ul><ul><li>Intel </li></ul><ul><li>Nokia </li></ul><ul><li>Disney </li></ul><ul><li>McDonalds </li></ul><ul><li>Marlborough </li></ul><ul><li>Mercedes </li></ul>
  5. 5. Why we use brands <ul><li>A brand differentiates a company’s product and services from those of the competition </li></ul><ul><li>Customers are prepared to pay more for a branded good (Price Premium) </li></ul><ul><li>Customers tend to buy the same brand over again (Brand Loyalty / Consumer Franchise) </li></ul><ul><li>Brands help build relationships with customers </li></ul><ul><li>Brands are a result of long-term investment, but repay ultimately by reducing marketing risk </li></ul>
  6. 6. Why we use brands
  7. 7. What is a brand? <ul><li>‘ A brand is a name, term, sign, symbol, or design, or a combination of these, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.’ (Kotler) </li></ul>
  8. 8. What is a brand? <ul><li>Brand name : That part of the brand identity which can be spoken </li></ul><ul><li>Brand mark : Recognisable but can not be spoken: symbol, design, colour, lettering style, character, gesture. </li></ul><ul><li>Trademark : Gives seller exclusive rights to use registered trademark. </li></ul><ul><li>Copyright : Exclusive right to reproduce and sell brand material as a literary / artistic. </li></ul><ul><li>Patent : legal protection of a product feature or manufacturing process </li></ul>
  9. 9. What is a brand? <ul><li>‘ A mixture of tangible and intangible attributes symbolised in a trademark, which, if properly managed, creates influence and generates value.’ (Interbrand) </li></ul>
  10. 10. What is a brand? <ul><li>Brand Equity </li></ul><ul><li>Means the combined measurable value of the brand. Based on: </li></ul><ul><li>Degree of customer brand loyalty </li></ul><ul><li>Awareness of brand name </li></ul><ul><li>Perceived quality </li></ul><ul><li>Strong product associations </li></ul><ul><li>Value of patents and trademarks </li></ul><ul><li>Value of channel relationships </li></ul>
  11. 11. What is a brand? <ul><li>Brand Image </li></ul><ul><li>Means the set of beliefs held by the consumer about the brand. </li></ul><ul><li>Once established, brand images are difficult to alter. </li></ul><ul><li>Brand beliefs can come from real (individual) customer experience of brand </li></ul><ul><li>Brand beliefs can be learned through (shared) social interaction </li></ul>
  12. 12. Brands and Products <ul><li>Customers buy a product or service to fulfil a basic function or to meet a (simple) need. </li></ul><ul><li>The aspect of the product which meets this Core Benefit is called the Core Product. </li></ul><ul><li>A branded product also delivers Added Value </li></ul><ul><li>Added Values may include: assurance of quality, social values, self image values </li></ul>
  13. 13. Brand as part of the Augmented Product
  14. 14. Building Brand Value The seven main factors involved in building brand value (Jobber)
  15. 15. Building Brand Value <ul><li>Quality : The customers’ minimum expectation of the core product performance. </li></ul><ul><li>Positioning : The relative position of the brand in the marketplace as perceived by the customer. </li></ul><ul><li>Repositioning : The planned changing of the brands market position to match changing customer tastes or attitudes. </li></ul><ul><li>Communications : An essential part of developing customer relationships and defining the brand’s market position. </li></ul>
  16. 16. Building Brand Value <ul><li>Long term perspective : The need to invest in brand promotion and quality in order to create brand identity, customer awareness and loyalty. </li></ul><ul><li>Internal marketing : Ensuring that all members of the organisation understand, help create and deliver brand values to customers. </li></ul><ul><li>First mover advantage : The first brand to establish itself in the marketplace is most likely to create a clear, well defined brand identity </li></ul>
  17. 17. Brand Strategies <ul><li>Brand Extension : Using a well-established brand to launch a new product in a related marketplace. </li></ul><ul><li>Brand Stretching : Using the brand to introduce products into an unrelated marketplace. </li></ul><ul><li>Both strategies reduce risk for producers and distributors by encouraging customer trial at less promotional cost. </li></ul>
  18. 18. Brand Strategies <ul><li>Brand Sponsor : Should product be sold under manufacturer’s brand or an intermediary’s brand? </li></ul><ul><li>Family Brands : Individual brands for each product or one brand for many products? </li></ul><ul><li>Multibrand : When two or more brands from the same manufacturer compete in the same marketplace. </li></ul>
  19. 19. Brand Strategies: Re-Positioning
  20. 20. Summary <ul><li>Brands add real value to an organisation’s goods and services </li></ul><ul><li>Brands values take time and resources to build and should be jealously guarded </li></ul><ul><li>Brands allow organisations to plan long term brand strategies for positioning within a marketplace </li></ul>