BRANDSBrands just don’t exist….they are an integralpart of our lives!
Defined as the name, logo, or otheroutward symbols that distinguish a productor service from others in its categoryThe brand is not the product but it gives theproduct meaning
BRANDA Premium Quality Pure & Gentle Soap… …to give a Soft Skin
The functions of the brand for the consumerFunction Consumer benefitIdentification To be clearly seen, to make sense of the offer to quickly identify the sought-after productsPracticality To allow savings of time and energy through identical repurchasing and loyaltyGuarantee To be sure of finding the same quality no matter where or when you buy the product or serviceOptimisation To be sure of buying the best product in its category, the best performer for a particular purposeCharacterization To have confirmation of your self-image or the image that you present to othersContinuity through familiarity and intimacy with the brand that you have been consuming for years
-How many brands do you need ?-How do you manage brands over time ?-How do you keep brands up to date as technology, products and customerschange ?-How do you manage coherently and benefit from the synergy of a range ofproducts sold under a single brand ?-How far can a brand be extended geographically?Does it have the potential to become a homogeneous global brand in all countries ?-Several companies have the same name as their brand (e.g. Nestle) so what is thedifference between managing a brand image, a corporate image and an institutionalimage ?-Finally, given that brands have a value, how can this be measured so as to surveyand control it ?
Branding: Key Terms Brand An identifying name, term, design, or symbol One item, family of items, or all items of a seller Brand Mark The part of a brand not made up of words Symbols or designs Nike swoosh, Mercedes star, McDonald’s arches Trademark A legal designation of exclusive use of a brand Coca-Cola®, Hewlett-Packard® Trade Name Full legal name of an organization American Telephone and Telegraph Corporation (AT&T)
Branding Value of Branding for Consumers Helps speed consumer purchases by identifying specific preferred products Provides a form of self-expression and status Evaluates product quality to reduce the risk of purchase Value of Branding for Marketers Identifies and differentiates a firm’s products from competing products Helps in the introduction of new products Facilitates the promotion of all same-brand products Fosters the development of brand loyalty Can create valuable intangible assets
BrandingBrand Loyalty A customer’s favorable attitude toward a specific brandBrand Recognition A customer’s awareness that a brand exists and is an alternative purchaseBrand Preference The degree of brand loyalty in which a customer prefers one brand over competitive offeringsBrand Insistence The degree of brand loyalty in which a customer strongly prefers a specific brand and will accept no substitute
Selecting a Brand NameThe name should be easy to say, spell, and recall. indicate the product’s major benefits. suggest the product’s major uses and special characteristics. be distinctive, setting it apart from competing brands. be compatible with all products in line. be designed for use and recognition in all types of media.
PackagingPackaging Involves the development of a container and a graphic design for a productPackaging Functions Protect the product from damage Offer convenience to consumers Prevent waste and make storage easier Promote the product by communicating its features, uses, benefits, and image
Major Packaging ConsiderationsCost of Packaging Limited consumer willingness to pay for better packagingTamper-Resistant Packaging Government regulations and consumer safety concernsFamily Packaging Similar packaging for all of a firm’s products or packaging that has one common design element
Major Packaging ConsiderationsPromotional Role (Informing the Consumer) Verbal and nonverbal symbols Size, shape, texture, color, and graphicsReseller Needs Transportation, storage, and handlingEnvironmentally Responsible Biodegradable and recyclable
Packaging and Marketing StrategyAltering the Package To update style and to meet increased competition To highlight new features To take advantage of new packaging materials To make the product safer or easier to use To reduce packaging costsSecondary-Use Packaging Reusable packaging adds customer valueCategory-Consistent Packaging Packaging reflects customer expectations for the expected appearance of products in a category
Packaging and Marketing StrategyInnovative Packaging Unique features or ways of packaging that make a product more distinct from its competitorsMultiple Packaging Bundling multiple units of a product together to encourage usage and to increase demandHandling-Improved Packaging Packaging that has been changed to facilitate product handling in the distribution channel
Claims of Product Life CyclesProducts have a limited lifeProduct sales pass through distinct stages each with different challenges and opportunitiesProfits rise and fall at different stagesProducts require different strategies in each life cycle stage
Strategies for Sustaining Rapid Market GrowthImprove product quality, add new features, and improve stylingAdd new modelsEnter new market segmentsIncrease distribution coverageShift from product-awareness advertising to product-preference advertisingLower prices to attract the next layer of price- sensitive buyers
Marketing Program Modifications Prices Distribution Advertising Sales promotion Services
Ways to Increase Sales VolumeConvert nonusersEnter new market segmentsAttract competitors’ customersHave consumers use the product on more occasionsHave consumers use more of the product on each occasionHave consumers use the product in new ways