1. Readings in Services Assign-
ment on Brands
By
Siddhanth Nair
Brands
Any damn fool can put on a deal, but it takes genius, faith and perseverance to create a brand
(David Ogilvy). Well-managed brands live on, only bad brand managers die (George Bull). A
brand is either a name, symbol, design or combination of things that help us to identify goods
and services of one or more sellers and helping to differentiate from competition. Branding
started way back in the medieval period where craftworkers use to carve a unique symbol on
their products and creation, trademarking their products. Even artists from back in time have
branded their art but the brands of today play a greater role of enhancing consumers lives. A
brand helps firms to build relations with consumers and promises customers of unique prod-
ucts and services. A brand adds value to a firm and build up a positive image and goodwill of
the firm and its product and helps consumer remember the products. A brand has been
termed as the heart and soul of a firm as all activities should be involved in building the brand.
Service brands have some distinct characteristics which in-
clude intangibility, inseparability of consumption and produc-
tion, perishability and heterogeneity. McDonald’s is the best
example for making their presence felt in the minds of the
consumer and display a distinct corporate identity. Cus-
tomer involvement should be considered an opportunity
rather than a problem, as customer needs are met more ef-
fectively. Such employees should be recruited who are able
to align themselves with the brand values. The problem of
perishability only exist in financial services.
Branding principles are common for both products and ser-
vices at the conceptual level but differ at the operational lev-
el as the brand portrays company’s values and beliefs and
the people are responsible for the brand image in a service
brand.
2. Function of brands
A brand gives a company and its products a distinct image which helps to differentiate from
the competition. Brands help in defining the benefits that the target market gets. Brand helps
to focus on marketing activities and all supporting activities, which work to reflect the brand.
Brand promotes a clear message of the credibility and relevancy of a company. Brands can
help to connect with consumers on an emotional level. Loyalty of customers increases when a
brand is develop. All products of a brand can be integrated as are part of a same brand ex-
tension. Eg. Apple. Brands promotes consistency in product quality and helps consumers skim
over other brands towards known brands. A brand can help to communicate benefits a form
wishes to give its customers and provide legal protection of their products. Brands are very
valuable for firms also they simplify inventory handling and organizing. Brand involves lot of
work and is considered as a valuable asset by the firm and high price is paid to buy some of
the good brands as the product and processes can be copied but the minds of the con-
sumers is very hard to alter.
Both goods and services offer various benefits. The benefits
for services are received in a very different way created
through its unique experience. Service industries fail to de-
liver due to lack of consistency and failing to follow the
branding principles unlike the product based brands. The
concept of branding is similar for both goods and services.
Some branding consultants regard services as a part of an
organization which is already involved in products, services
act as a differentiation factor between competitors.
Brand Name and Logo
Selecting an appropriate name for your brand is very important as it does more than giving
you an identity. An effective name should be able to help set your identity, it should be de-
scriptive about your product or service and not something random. A name should be able to
portray of not only what you do but how you do it. E.g. Quick Spa’s. It should also be different
from your competition and excite the interest of the customers but should not be offensive or
intimidating.
Brand’s logo should portray values of the business as it helps customers to recognize your
brand. Logo should convey the message your brand wants to convey. Logo should be profes-
sional in nature. Logo should depict growth and should be able to be used for many years to
come. Logo should be tested in the market before launching them. Effective logo will help you
create a distinct image and improve your brands strategy and position.
Brand Value
Brand value is very much like an onion. It has layers and a core. The core is the user who will
stick with you until the very end (Edwin Artzt). When the brand has developed, it showed be
reviewed and reinforced into the minds of consumer by continuing to generate value from the
brand. This can be done if the product quality is maintained by the firms by having efficient
manufacturing processes. Proper packaging of products is essential to make the product pre-
sentable and handy. Efficient and skilled staff is required in a firm to increase the brands val-
ue. The whole outlook of the firm should be of standard, even the stationery is important and
can help add value to the brand if everything has logo or name of company on it and is of pre-
sentable quality. People in touch with customers and suppliers should be well dressed, have
proper etiquette and communication skills to increase the image of the company. Brand value
can also be increased by marketing activities like promotions, advertisements, displays, etc.
The best brands have a message communicated through everything in link with the brand.
Branding in also very important when it comes to business customers, they are less influ-
ences emotionally and more interested in your product quality and standards. Healthy and
long lasting relations should be maintained by displaying brand attributes like innovation, con-
3. sistency and standardization. Business customer also looks for reliability and service back up,
customization should also be offered by good brands.
The value delivery system in a service brand is very visible in
contrast to product branding, there is customer participation
and quality is variable. To reduce variability service brands
should focus on replacing human activities with technology
as carried out by McDonald’s who use blueprints to find out
jobs where technology can take over humans. But this can
demotivate staff so they should concentrate on non-routine
problems and leave the routine problems to machines.
When specific roles and brand values are understood by
staff it will reduce their stress and increase trust and com-
mitment.
Brand equity
A brand that captures the mind gains behavior but a brand that captures the heart gains
commitment (Scott Talgo). Brand equity is the additional commercial value added to its prod-
ucts and services. This can be seen by consumers attitude towards the brand, profits and
market share captured by the firm. Brand equity can also be consumer based in which it de-
pends on the knowledge consumers have of the brand and their response to the knowledge,
marketing is also effected depending on the responses of the consumers and their attitude
towards the brand. Brand equity therefore consists of brand loyalty, brand awareness, per-
ceived quality, brand associations and other brand assets like competitive advantage. If con-
sumers are brand loyal it is very beneficial for the brand as there are reduced marketing costs
and gain trade leverage. If the consumers are aware about the brand they start liking it and
can respond by buying these products. There are some models which explain brand equity,
lets see the Brand Resonance Model. This model involves a series of steps like a pyramid
from down to the top. It begins with Brand Salience, that is how often the brand is remem-
bered during buying decisions. Then comes Brand Performance and Imagery, that is how ef-
fective is the product or service to satisfy the needs of the consumers and how successful is
the brand in meeting the psychological and social needs of the consumer. This is followed by
Brand Judgements and Feelings, this involves the consumers personal experiences, opinions
and the consumers emotional responses related to the brand. Finally comes Brand Reso-
nance, which is the relation that is achieved after the series of steps between the consumer
and the brand, consumers become loyal and brand bonding is intense. Example can be Coke
and Apple.
Brand equity is not created on its own it has to be build by choosing the right brand elements
like logo, slogans, names, which attracts the customers towards the brand and creates reso-
nance. Therefore these elements need hold some meaning and should be adaptable to all
products under the brand, they are also be memorable and likable for the brand to attract
customers. Elements should also be protectable and hard to imitate for the competition. All
supporting activities, marketing and the product also build brand equity, the right strategic
choices are very important to develop brand equity. Brand associations also help in building
brand equity, it should be linked with the right people, place and thing, this creates a particular
image about the brand and can be promoted or advertised through this linkages.
Service brands
The model for brands have always focused on goods but neglected services, they have at-
tempted to represent both but the marketing principles for both are different. Services are
said to be intangible, inseparable and perishable in nature. The service sector is very domi-
nant in the western countries. Studies have been carried out recently developing new market-
ing ideas for service brands. According to Service branding model by Berry (2000), service
4. brand equity includes brand awareness and meaning. Brand awareness includes all of com-
pany communications like advertising, name and logo of company, facilities for service and
customer contact through PR and general word of mouth. Brand meaning is related to the ex-
perience the customers have with the company, as a service company is more people orient-
ed and not based on machines, the factors affecting brand awareness also affect meaning.
Even though service brands may be good communication and position but it is the people who
are the most important in the service sector. Employees and staff should be well trained and
skilled. Reliable and punctual employees is very necessary for service companies. People
should have good communication and response to any situation faced. People in the service
sector should also be able to assure its customers and be empathic. Personal appearance is
very important as they become the company’s representatives to the customers.
It is a challenge for managers to make the intangible com-
ponents more visible and unique and to provide a more con-
sistent service. Financial services are more intangible so the
customers must be reassured of the benefits in comparison
to a tangible service like airlines where the experiences can
be use to differentiate the brand.
All developed economies are focused on service industries
and account for a major part of their GDP, yet only few ser-
vice brands have been successful. Models are there for
brand managers to develop product brands but not service
brands.
Service branding needs to focus more on its internal issues
than product brands. To deliver a brand promise requires
the customer expectation and service delivery to match, this
is possible through internal communications and staff work-
ing according to brand values and customer involvement in
the process. The gap between services and brand promise
can be lessened by reducing four gaps. Gap 1, consumer
understanding. Gap 2, leadership and standards. Gap 3,
service delivery. Gap 4, match between promise and perfor-
mance. Reducing these gaps can lead to an efficient service
branding strategy.
Product brands have short term relationships with their cus-
tomers but service brands have long relations. Brands are
said to be divided into four medias by Wolff Olins; product,
environment, behavior and communication. Product and
services differentiation lies in nature and dominance of me-
dia used.
5. Conclusion
Branding beyond Marketing
Branding is not limited to marketing, you have to follow the thing you preach also. If your
brand says it supports the environment it should hamper the environment itself. Wal-Mart be-
lieves in customer service and people but they give unfair wages to its employees, so it does
not follow what it preaches. Brands and organization should be integrated and work on similar
values and beliefs. Actions of the organization should help in building the brand and not harm-
ing it. Therefore guidelines must be set to ensure consistency, that is the package of the
brand. Following these guidelines and setting a culture that helps the organization to be con-
sistent and no problems will occur then. Moreover a brand should also keep cultural differ-
ences in mind as in this age of communication and globalization. A brand to gain international
reach has to keep the culture issues in mind, so that relations are not affected. There are lan-
guage and semantic differences in cultures which can confusion and many other reason for
differences in cultures but a brand had to be such that it can cross borders easily without any
complications. Brand is beyond marketing as stated before it depends on people behind and
in front of the brand. Following these will improve and strengthen your equity and position of
your brand.
Implications and conclusion
We should move beyond the product-services dichotomy to
develop service brands, consultants have capitalized on the
knowledge they have of service industries to develop and
maintain service brands. Product and service brands are
same conceptually but differ on the execution part. External
adaptation is similar for both the sectors but internal view is
required for service brands. The internal view includes re-
cruiting such staff who align with the brand promise and giv-
ing them training to deliver results to the customer.
Future of Branding
Organizations in the world of today have to face the immense competition and globalization,
the firm has to manage the brand effectively and remove all barriers in its development to
benefit from this intangible asset. Consumer desires value when it buys brands, so brands
should work to deliver value as giving sale on brands is not enough to attract customers as
they want value for the money spent by them. Uniqueness has been given prime importance
due to immense competition, differentiation will result in sales and profits for the firm. Brand
promise has to be genuine as consumers have become more knowledgeable and aware
about the products in the market, so only such a brand will grow which delivers what is
promised to the consumer as their expectation has risen a lot, and consumer involvement is
also very important also in brand building. Consumers are up to date with all the innovations
being carried out and want more of it everyday to make their life easier. So such brands will
survive who understand and capitalize on such unmet desires of the consumers.
6. Old tricks of using emotions to attract customers to brands do not work anymore as con-
sumers cannot be taken for granted and fooled easily. Using the financial downturn to their
benefits some brands tried to emotionally connect with the consumers but were not success-
ful. Endorsers of brands also should be logical and sincere, like Tiger Woods and Accenture.
With online trading being the way to go these days, brands can attract customers quite quick-
ly in a short span of time, so reputed brands have to continue delivering value or the new
brands can catch up easily. Feedbacks of customers is also very important these days as
customer has to be taken care of, for the word to be spread widely about the brands through
consumers. To create effective brand engagement firms have to give up their outdated
modes to engage customers. Firms need to accept certain methods to engage brands to
customers, this can be done through Television and Online, that is the Platform method of en-
gaging or Context method which involves programming and web paging. Effective message is
very important to engage customers and can be projected though advertisements and pro-
motions. Using the Event and Experience method also helps engage customers.
Being easy is a benefit for your brand research shows, so keep it real and simple is the way to
go. The reason behind it is cognitive fluency which means to face ease in understanding a sit-
uation. So a brand should for an easy and simple name, tag line, fonts, logo and advertise-
ment to say a few. As it becomes easier for the consumer to interpret and understand and
brands should try to create a distinct visual and audio identity to help consumer retain infor-
mation for a longer time. The basic thing is to make marketing transparent.
Social Media advertising is catching up fast these days, all firm are using this platform to
reach customers. Sites like facebook, twitter, myspace and youtube have become very popu-
lar to promote brands. These sites have to be monitored regularly to increase customer satis-
faction and loyalty. Even mobile and smart phones have become an avenue to promote
brands and connect with consumers, moreover social media and phones can be linked so us-
ing this media is very effective in reaching people.
Brands should aim to build their brand’s equity but some problems are either created by
competitors or there may be some internal hiccups. If competition is tough, customer loyalty
can be a big problem for the brand, as there is competition is not only the products but also in
aspects of marketing. So research should be carried out to stay ahead of the competition.
Production problems can lead to prices of products being very high this can lead to consumer
switching over to other products. If the brand fails to deliver value to customer as promised,
then brand equity will fall. Positive networking and partnerships should be made which bene-
fits your organization, effective distribution channels should be created. Awareness of the
product is very important, so important steps are to be taken to reach the customers through
many media available today. So if these problems are effectively managed then the brand eq-
uity if the firm will surely rise and the firm will develop and grow successfully and marketers
get one step closer towards building a strong brand.
These trends have to be accepted by firms if they have to succeed in the future, so if a brand
wants to last it should be responsive to the changes taking effect today. Future of brands is
very bright. “A product is something made in a factory; a brand is something that is bought by
the customer. A product can be copied by a competitor; a brand is unique. A product can be
quickly outdated; a successful brand is timeless.”(Stephen King)
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