1. 1
Branding Strategy
MKT 301
Principles of Marketing
Rationale for Branding
What Businesses Get
marketplace power, possible over long term
What Customers Get
easy and efficient identification of product benefits
better differentiation among competitive brands
financial returns; leading brands sell better

2. 2
Outcomes of Effective Branding
1. Brand Position
Comments
Product “Position”: The perception a target audience holds about
a product or brand, relative to its competitors.
A successfully positioned product emphasizes differences with
key competitors (who you select).
Marketers base product positions not on competitors’ product
attributes, but on competitors’ claims.
Positioning draws from the organization of memory into
“memory schema,” or systems of classifying stored concepts.
Outcomes of Effective Branding
1. Brand Position
2. Brand Equity
The value enhancement of a product provided by its brand name.
What a brand provides beyond the benefits of actually using or
consuming the product.
Comments
Brand equity has several components:
performance social image trustworthiness
identification substitutability

3. 3
Outcomes of Effective Branding
1. Brand Position
2. Brand Equity
3. Brand Loyalty
A cognitive commitment to repeatedly buying a particular
brand over time.
Comments
True loyalty is more than repeated brand purchases.
Loyalty is related but distinct from equity.
Loyalty is the “holy grail” of marketing.
Branding Policies
1. Individual Branding
Naming a single product with a single brand name.
Example: Proctor & Gamble Soaps
Safeguard
IvoryCamay
Zest
P&G

4. 4
Branding Policies
1. Individual Branding
Naming a single product with a single brand name.
Comments
Policy followed by many consumer products manufacturers.
Permits more distinct targeting to well-defined groups.
Permits greater positioning flexibility.
Does not allow use of strong parent brand, but individual
brands can become parent brands.
Branding Policies
Example:
1. Individual Branding
2. Brand Extensions
Ivory Brand
Ivory
Bar Soap
Ivory
Body Wash
Ivory
Dish Soap
Ivory
Snow
Ivory

5. 5
Branding Policies
1. Individual Branding
2. Brand Extensions
Creating product enhancements in the same product category
and with the same brand name as the original.
Comments
Allows use of a strong overall brand name.
Not for companies following diversification of product line.
Almost no positioning flexibility. All products rely on same
brand position.
Branding Policies
1. Individual Branding
2. Brand Extensions
3. Family Brands
Creating a line of products in multiple categories with the same
overall brand.
A&H
Baking Soda
A&H
Toothpaste
A&H
Antiperspirant
A&H
Cat Litter
Arm &
Hammer

6. 6
Branding Policies
1. Individual Branding
2. Brand Extensions
3. Family Brands
Creating a line of products in multiple categories with the same
overall brand.
Comments
Permits extensive use of a strong brand in a diversified
product line.
In consumer markets, risks dilution of brand equity.
Branding Policies
1. Individual Branding
2. Brand Extensions
3. Family Brands
4. Co-branding
Displaying brands of component parts or ingredients.
Comments
Common examples: Intel on computers
Splenda on sugar free products
Allows one brand to capitalize on equity of another brand.