This document discusses brands, their importance, and different types of brands. It notes that strong brands help companies achieve global success and customer loyalty. Brands differentiate products and allow companies to command premium prices. The document defines brands and discusses brand equity, image, and extension. It outlines benefits of brands for both sellers and buyers. Two main types of brands are described: manufacturer brands and private/store brands. Family and individual branding strategies are also covered. Finally, the document lists the top three most valuable brands as Coca-Cola, Microsoft, and IBM.

1. NAMING & IMPORTANCE OF
BRANDS,TYPES OF BRANDS
PRESENTED BY-
VAISHALI SEHRAWAT
MBA 4 SEM
02811403918

2. Why Brand?
Why do companies such as Coca-Cola,
Microsoft, IBM and Disney seem to achieve
global marketing success so easily? Why
does it seem such an effort for others?
Why do we, as consumers, feel loyal to
such brands that the mere sight of their
logo has us reaching into our pockets to
buy their products?

3. The meaning of brands
Brands are a means of differentiating a
company’s products and services from those of
its competitors.
There is plenty of evidence to prove that
customers will pay a substantial price
premium for a good brand and remain
loyal to that brand. It is important,
therefore, to understand what brands are
and why they are important.

5. n

7. The Importance of Brands
 McDonalds sums this up nicely in the
following quote emphasizing the
importance of brands:
 “…it is not factories that make profits, but
relationships with customers, and it is company and
brand names which secure thoserelationships”
 Businesses that invest in and sustain leading
brands prosper whereas those that fail are left to
fight for the lower profits available in commodity
markets.

8. Coca-Cola
“If Coca-Cola were to lose all of its production-
related assets in a disaster, the company would
survive. By contrast, if all consumers were to
have a sudden lapse of memory and forget
everything related to Coca-Cola the company
would go out ofbusiness.”

9. What is a brand?
One definition of a brand is as follows:
“A name, term, sign, symbol or design, or a
combination of these, that is intended to identify
the goods and services of one business or group of
businesses and to differentiate them from thoseof
competitors”.
Interbrand - a leading branding consultancy -
define a brand in this way:
“A mixture of tangible and intangible attributes
symbolized in a trademark, which, ifproperly
managed, creates influence and generatesvalue”.

10. “Brand equity” refers to the value of a
brand. Brand equity is based on the
extent to which the brand has high
brand
loyalty, name awareness, perceived quality
and strong product associations. Brand
equity also includes other “intangible”assets
such as patents, trademarks and channel
relationships.
Brand Equity

11. Brand image
“Brand image” refers to the set of
beliefs that customers hold
about a particular brand. These
are important to develop well
since a negative brand image
can be very difficult to shake off.

12. Brand extension
“Brand extension” refers to the use of a
successful brand name to launch a new or
modified product in a new market. Virgin is
perhaps the best example of how brand
extension can be applied into quite diverse
and distinct markets.

13. Branding gives the SELLER
several advantages
Seller’s brand name and trademark provide
legal protection of unique product features
Branding gives the seller the opportunity to
attract a loyal and profitable set of customers.
Branding helps the seller segment markets.
Strong brands help build corporate image,
making it easier to launch new brands and gain
acceptance by distributors and consumers.

14. Benefits of Branding to A BUYER
Help buyers identify the product that they
like/dislike.
Identify marketer
Helps reduce the time needed for purchase.
Helps buyers evaluate quality of products
especially if unable to judge a products
characteristics.
Helps reduce buyers perceived risk of purchase.
Buyer may derive a psychological reward from
owning the brand, i.e. Rolex or Mercedes.

15. An Effective Brand Name
● Is easy to pronounce
● Is easy to recognize and
remember
● Is short, distinctive, and unique
● Has a positive connotation
● Reinforces the product image
● Is legally protectable

16. Types of brands
There are two main types of brand –manufacturer
brands and own-label brands.
Manufacturer brands
Manufacturer brands are created by producers and
bear their chosen brand name. The producer is
responsible for marketing the brand. The brand is owned
by the producer.
By building their brand names, manufacturers can
gain widespread distribution (for example by
retailers who want to sell the brand) and build customer
loyalty (think about the manufacturer brands that you feel
“loyal”to).

17. Advantages of Manufacturers’Brands
Develop customer loyalty
Attract new customers
Enhance prestige
Ensure dealer loyalty

18. Private Label brands
Own-label brands are created and owned by
businesses that operate in the distribution
channel – often referred to as“distributors”.
Often these distributors are retailers, but not
exclusively. Sometimes the retailer’s entire product
range will be own- label. Own-label branding – if
well carried out – can often offer the consumer
excellent value for money and provide the
distributor with additional bargaining power when it
comes to negotiating prices and terms with
manufacturer brands.

19. Manufacturers’ Brands
Versus Private Brands
Private
Brand
The brand name of a
manufacturer. Eg TATA tea
A brand name owned by a
wholesaler or a retailer.Also
known as a private label or store
brand.Eg Grofers tea
Manufacturer’s
Brand

20. Advantages of Private Brands
 Earn higher profits
 Less pressure to mark down
prices
 Ties customer to wholesaler
or retailer

21. Manufacturer’s Brands vs Private Brands

22. Individual Brands Versus
Family Brands
Using different brand
names for different
products.
Marketing several
different products
under the same brand
name.
Individual
Brand
Family
Brand

26. Branding Policies
First question is whether to brand or not to
brand. Homogenous products are difficult to
brand Branding policies are:
Individual Branding: Naming each product differently
P&G, facilitates market segmentation and no overlap.
Overall Family Branding: All products are branded with
the same name, or part of a name, IE Nokia,
promotion of one item also promotes other items.
Line Family Branding: Within one product line.
Brand Extension Branding: Use one of its existing
brand names as part of a brand for an improved or
new product, usually in the same product category.
75% new products are brand extensions!!

27. 1. Coca-Cola
 $67,000 million
 Based in U.S.
 Flagging appetite for soda has cut demand for Coke, but the
beverage giant has a raft of new products in the pipeline that
could reverse its recent slide.

28. 2 Microsoft
 $56,926 million
 Based in U.S.
 Threats from Google and Apple haven't yet offset the power of its
Windows and Office monopolies.

29. 3. IBM
$56,201 million
Based in U.S. Having off-loaded its low-profit PC
business to Lenovo, IBM is marketing on the
strategic level to corporate leaders.