Marketing Management Chapter 7 Brands

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2. Brands
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Marketing Framework
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Discussion Questions
1. Name a company that you think has
developed a great brand.
2. Why do you think this?
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What Is a Brand?
• Brand
• Portfolio of qualities associated with a name
• Brands immediately invoke certain images
• Brands have value beyond the benefits of the
product
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Brand Associations
• Marketers control some brand
associations
• Product shape & packaging
• Logos, symbols & colors
• Jingles & slogans
• Spokespeople, etc.
• Marketers should control what they can
• Marketers do not control all associations
• Personal memories about brands, etc.
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Brand Name
• A brand starts with a name
• Some names immediately convey
information
• e.g., Geek Squad
• Some names suggest their benefits
• e.g., Optical4less
• Some names are those of their founder
• e.g., Trump
• Marketers should choose brand names
that convey brand information
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Brand Names, Logos and Color
• Brand name meaning is built over time
through communications with customers
• Brand names and logos are a shorthand
way to communicate with customers
• This is who we are & what we look like
• Brand colors and fonts visually engage
customers
• e.g., The New York Times and Google
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Brand Name and Logos
• Some logos combine a brand name with
a symbol meant to suggest the brand’s
value proposition
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Why Brand?
• Customer Benefits of Branding
• Brands identify company ownership
• Brands allow for predictable quality; thus,
decreasing risk
• Brands make customer decision making
easier
• Brands serve as status symbols
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Why Brand?
• Company Benefits of Branding
• Brands induce loyalty - increasing repeat
purchasing
• Brands allow for premium prices
• Brands allow a single firm to pursue multiple
targets
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Brands Serve Social Functions
• Brands helps customers achieve their
ideal self
• e.g., Teenagers are “cool” due to Nike shoes
• Brands become the focal point of
bonding through brand communities
• e.g., Harley-Davidson
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Brand Association Network
• How it works
• When brand name is activated, associations
are triggered
• Nodes closest to the brand are retrieved first
• Customer satisfaction with the brand are most
heavily influenced by the positivity or negativity
of nearest links
• Networks may be simple or complex
• Depends upon focus and consistency of
advertising, length of heritage, etc.
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Brand Personalities
• Brand can have a distinct personality
• Personalities capture
1. Specific information about the brand
2. Holistic perceptions about the brand
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Brand Communities
• Brand communities
• Customers who connect with like-minded
customers
• They have extreme attachments to brands
• e.g., iPhone, Lego, Harley-Davidson
• Marketers should try to build & capitalize
on these communities
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Branding Strategies
• Umbrella approach
• Attaching the same brand name to products
• Subsequent product introductions are easier
for the customer to understand and accept
• Higher initial awareness levels
• Builds stronger brand associations
• Stronger financial outcomes
– e.g., Disney movies, parks, clothing, etc.
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Branding Strategies
• House of brands approach
• Introducing a new brand name for every
product line
• Any problems with one brand should not
influence the other brands
• Brand images do not need to be consistent
which allows for targeting multiple segments
• Requires more advertising expense
– e.g., Procter & Gamble had 80 major brands
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Brand Extensions
• Brand extensions
• Leverages the brand’s good name to get
customers to buy something new
• Line extensions
• Increase depth - new product within a line
– e.g., Dannon regular, low cal, vanilla, etc.
• Product category extensions
• Increase breadth - new product line
– e.g., Arm & Hammer toothpaste, deodorant,
kitty litter, etc.
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Co-branding
• Co-branding
• Two companies form a joint venture to
create a product from both companies
– e.g., Kevlar Body Armor vests
• Ingredient branding
• Form of co-branding in which one company
adds value to a host product
• One company dominates over the other
– e.g., Brembo brakes are in Aston Martins
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Co-branding
• Co-branding works well when a company
is introducing a new product attribute
• e.g., Adding cough medicine to candy
• Self-branding
• Branding own ingredient to differentiate its
quality from competitors
• Works better when tweaking a minor
attribute
• e.g., Tide’s “EverFresh” scent
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Brand Equity
• Brand Equity
• The worth of a brand
• Measurement approaches
• Determining the price premium of brand
• “How much are you willing to pay for gas at Shell?” vs.
• “How much are you willing to pay at a local station?”
• Comparing branded and unbranded
• “How much do you like this $799 Sony flat screen with
screen-within-a-screen?” vs.
• “How much do you like this $799 unknown brand flat screen
sharing the same features?”
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Brand Equity
• Measurement approaches, cont.
• Interbrand: assess the value of a firm,
subtract its physical and financial assets
• Brand contribution index varies by product
category: high for cologne, lower for retailers
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Top Brands
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