Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.



Published on

The how and why of branding

Published in: Business


  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>