Brand recognition and loyalty are important benefits of branding for both buyers and sellers. For buyers, brands facilitate efficient shopping, decrease perceived risk, and encourage repeat purchases. For sellers, brands aid in product differentiation and acceptance, provide legal protection, assist in building loyalty, and allow for premium pricing and more effective promotion. However, some argue that excessive brand proliferation and image-focused marketing can have disadvantages for society.

10. A Continuum of Brand Familiarity Brand Non recognition Brand insistence Brand Brand Brand recognition preference insistence

15. Relationship Between Customer Satisfaction and Loyalty

16. Brand Equity (Marketing + Financial) BRAND EQUITY (VALUE) BRAND AWARENESS BRAND LOYALTY BRAND QUALITY BRAND ASSOCIATIONS & service Canon/XEROX Bristol Myers Squibb

17. Brand Equity: Spanning the Globe Branch, Shelly. “ACNielsen Gives 43 Brands Global Status.” WSJ, B8, Oct. 31, 2001.

18. Brand Licensing Examples (paying fees to use trademark rights owned by others) Revenue Sources (1986) (1991) Trademarks/Brand names 28% 34% Cartoon characters 24% 20% Sports celebrities 11% 17% Designers (clothing, etc.) 7% 9% Theatrical feature film stars 7% 7%

22. Reasons for store usage of Private Brands … Provide higher profits/higher margins Establish price/value image for stores Provide greater selection for customers Create customer loyalty 47% 31% 16% 4% 88% na. 26% 26% Promotion Magazine, July. 1994 Grocery Drug

23. Branding and Consumer Perception Of Quality  The Association of Food, Beverage and Consumer Products Companies, “ Consumers Give Brand Name Food, Consumer Products Top Ratings”, Mar. 24, 2005, http://www.gmabrands.com/news/docs/NewsRelease.cfm?DocID=1472 When asked to describe the quality of national brand products, a % of consumer described them as excellent.

24. Consumers’ Perceptions of Store & Manufacturers’ Brands for Selected Product Groups Source: “Store Brands at the Turning Point,” Consumer Research Network, 3624 Market Street, Philadelphia, PA.

27. Senior Worries Average Annual Cost of Top 50 Prescription Drugs Used by the Elderly Lueck, Sarah. “Drug Prices Far Outpace Inflation.” WSJ, D2, July 10, 2003

28. Effects Of Generic And Brand-Name Competition On Drug Pricing  “ How Increased Competition from Generic Drugs Has Affected Prices and Returns in the Pharmaceutical Industry”, July 1998, http://www.cbo.gov/showdoc.cfm?index=655&sequence=7

36. Criteria for selecting an Effective Brand Name Easy to say Easy to spell Easy to recall EFFECTIVE BRAND NAME Communicates Product uses, benefits Legal protection, & consider media usage Be Distinctive, No Negative connotations Mnemonic Quality

40. How does Kleenex differentiate its products to carve out its niche?  © 2004 Kimberly-Clark Worldwide, Inc. Reprinted with Permission.

44. Any Questions?

45. USPTO Trademark Applications/Certificates  United States Patent and Trademark Office- “Performance and Accountability Report (2005)”, p. 134 & 136.

46. Trademark Applications By Residents Of State  Rank State # in 2005 1 California 56,167 2 New York 28,164 3 Florida 17,285 4 Texas 13,609 5 Illinois 11,782

48. The Chocolate Bunnies This is the Lindt bunny, notice the gold foil, stance, ear positioning, red ribbon, and bell attached to the ribbon Although similar in many ways, the Hauswirth bunny lacks the bell of the Lindt bunny This rabbit, produced by Riegelein in Germany, avoided a lawsuit from Lindt by painting the bow on as opposed to acctually having a bow around the rabbits neck

51. Drug Makers See ‘Branded Generics’ Eating Into Profits Altered Copies Outmaneuver Patents in Legal Battles, Boosting Market Pressures Source: WSJ, Spring 2003 Applied Marketing

52. Battle of the Brands Traditional Branded Drugs- manufacturers risk money on R&D and then charge high prices to recoup investment (1.7 bil in 01-02) Traditional Generics -Contain the active ingredient of the branded drug and act in the body in an identical way the branded drug does. – Traditional Generics face much risk in marketplace competition “ Branded Generics” -Contain the active ingredient of the branded drug, however, through aggressive litigation, they prove to act differently in the body. Strategy: - Spend money on litigation, little on R&D, charge prices slightly lower than Branded Drugs, but higher than traditional Generics WSJ, Spring 2003 Altered Copies Outmaneuver Patents in Legal Battles

54. Rx Rivals Annual percentage change in prescriptions dispensed in the U.S.