Download - Introduction to Brand
-
8/8/2019 Introduction to Brand
1/21
Introduction To Brand
-
8/8/2019 Introduction to Brand
2/21
What is Brand?A brand is a name, term, sign, symbol or a
combination of them intended to identifythe goods and services of one seller orgroup of sellers and to differentiate them
from those of competition. For example,Coke, Nestle and Microsoft are wellrenowned brands. In technical speakingwhenever a marketer creates a name logo
symbol he or she has created a brand
-
8/8/2019 Introduction to Brand
3/21
Brand ManagementBrand management is the application of marketing techniques
to a specific product, product line, or brand.
It seeks to increase a product's perceived value to the customerand thereby increase brand equity.
Marketers see a brand as an implied promise that the level ofquality people have come to expect from a brand will continuewith future purchases of the same product.
This may increase sales by making a comparison with competingproducts more favorable. It may also enable the manufacturer tocharge more for the product. The value of the brand isdetermined by the amount of profit it generates for the
manufacturer.
-
8/8/2019 Introduction to Brand
4/21
Why do Brands matters?From consumers point of view:Identification of source of product
Assignment of responsibility to productmakerRisk reducerSearch cost reducerPromise, bond, or pact with maker ofproduct
Symbolic deviceSignal of quality
-
8/8/2019 Introduction to Brand
5/21
Why do Brands matters?From manufacturers point of view:Means of identification to simplify handling
Means of legally protecting unique featuresSignal of quality level to satisfied customers
Means of endowing products with uniqueassociationsSource of competitive advantageSource of financial returns
-
8/8/2019 Introduction to Brand
6/21
Advantages of StrongBrandsGreater perceptions of product/service performanceGreater marketing communication effectiveness
Greater customer retention and loyalty
More appreciative customer response to price increasesand decreases
Larger marginsLess vulnerability to competitive marketing actions
Less vulnerability to marketing crises
Greater trade cooperation and support
Possible licensing/franchising opportunities
Greater brand extension opportunities
-
8/8/2019 Introduction to Brand
7/21
Different types of brands Product Brands Service Brands E-brands
Media Brands
Not-for-profit Brands Nation Brands
Government Brands Global Brands
Organization Brands
-
8/8/2019 Introduction to Brand
8/21
Product brands: FMCG
Characteristics:Cost Inexpensive.Balance of product to service
Almost exclusively tangible product,although service component can bepresent (eg, customer-care lines).How purchased
Mainly through conventional fmcgdistribution networks supermarkets,other shops, vending machines,relatively large volume outlets.
-
8/8/2019 Introduction to Brand
9/21
Product brands (FMCG: cont.)Frequency of purchase :Frequent.Degree of research/thought/search prior
to purchase
Typically none, the brand is part of the
consumer repertoire, likely to be habitual.
Degree of customisation
Very little. Often wide range of variants butno real customisation for individualcustomers.
-
8/8/2019 Introduction to Brand
10/21
ro uc ran s g c eItems)
Characteristics:
CostExpensive.Balance of product to service
Service is likely to take on a more
important role, before, during andafter purchase.
http://us.f501.mail.yahoo.com/ym/ShowLetter/rolex.jpg?viewimg=1&box=Inbox&MsgId=6958_0_125804_1563_3915751_0_26567_5257843_2590165714_oSObkYn4Ur5HQVfr2mDutCwYGqN2GOl1hKlRjzcFa.6quVW5914fgWqPEbu6ENAQ7RsEye2qEXJUUDelHlbK2MBeUd0Zbl4cqY9c_8IJlFh8Mp1TQtLTHNsDaYUo2EgVj3ceJPkRST3Rm6m5sFSEowRwM5ZAJvz6vQ--&bodyPart=8&filename=rolex.jpg&tnef=&YY=14598&order=down&sort=date&pos=15&Idx=379 -
8/8/2019 Introduction to Brand
11/21
Product brands (Big TicketItems)
How purchasedTraditionally through specialised outlets(luxury = high status outlets) but increasinglymore widely distributed. Frequency of purchaseInfrequent.
Degree of research on purchaseA great deal of thought, research and
comparison goes into the decision, although withluxury goods, investment is moreemotional than financial.
Degree of customizationCan be considerable.
-
8/8/2019 Introduction to Brand
12/21
Service brands
Service brands are characterized by the need to maintain aconsistently high level o service delivery throughouthundreds, or even thousands ofstaff.
Although a product component may be involved, it is
essentially the service that is the brand.These are more complex than product brands for tworeasons:
because it is always harder to brand something you canttouch
because they are delivered directly by employees.
-
8/8/2019 Introduction to Brand
13/21
Service Brands
Characteristics:
Intangibility
Service brands can seldom be tried out in advance, whichrequires the establishment of a greater degree of trust.
Inseparability of production and consumption
Services cannot generally be stockpiled in advance but areproduced and consumed in real time.
Inconsistency
Since humans are usually instrumental in delivering services.
-
8/8/2019 Introduction to Brand
14/21
-
8/8/2019 Introduction to Brand
15/21
Brands from other spheres
E-brandsThe Internet is a medium that presents new challenges for brand owners,
but the underlying principles of branding are unchanged.The Internet is developing a more direct style of relationships between
customers and brand owners, and all those interactions
give an opportunity for strengthening the brand identity.
A distinction needs to be made between e-tailers,- e-brands primary activity is to deliver physical products like Amazon.com
- e-brands focus on delivering a service or experience, like GTA.com
In both cases, however, it is the intangibles, the brand values that
will attract online customers.
-
8/8/2019 Introduction to Brand
16/21
Media brands
eg, newspapers, magazines, television
channels.Not-for-profit organization brandsNon-profits are often at a disadvantage when
it comes to branding.
they dont have the deep pockets of corporationswho can afford to hire brand specialists
they dont have staff whose job it is to protect theintegrity of the brand, and promote it at every turn.
But successful branding can have a great effect on
raising awareness of the charity and its mission, andon fund-raising
-
8/8/2019 Introduction to Brand
17/21
Nation brands
New ways of thinking lead to countries beingpositioned as tourist destinations, enhancing statusof goods and services produced, and aiding under-developed countries.
Government brands
Governments and political parties often have strong
brands as they are centerd on passionately heldcore values, Branding is important in both securingvotes and in international diplomacy.
Global brands
Companies have been marketing their products andbrands in different countries for decades. Howeverthey were almost always marketed according tolocal conditions.
http://www.thairakthai.or.th/thairakthai.htm -
8/8/2019 Introduction to Brand
18/21
Features of Global Brands[Quelch, 1999]
Strong in home market cash flow generated fromdomestic market enables the company to fund a globalroll-out
At least minimum level ofawareness, recognition and
sales all over the worldThe products meet the same human needs world-wide,even though the physical product may be adaptedlocally (eg, McDonalds).
Consistent positioningConsumers value the provenance of the brand, its
country of origin, and even associate the countrysexpertise with specific products (eg, German cars,American jeans).
Focus on a specific product categoryUse single corporate brand name.
-
8/8/2019 Introduction to Brand
19/21
Act local, think global
While there are global brands that have a
global presence, they dont have global
consumers. The brands core values can beglobal, although the brand needs to have local
relevance. To bring it to life you need to be
flexible and re-enact the brand as
appropriate.It is the think global, act local strategy.
[Gavin Emsden, Nestle UKs head of consumer
insight and planning for beverages]
l li ?
-
8/8/2019 Introduction to Brand
20/21
localize?Several other factors may affect thedecision:
>regulatory environments vary from country tocountry, especially in pharmaceuticals, financialservices and utilities.
>the Internet allows adoption of a standardizedglobal strategy without investing in distributionsystems in each country.
>the threat of parallel imports from low-price tohigh-price countries.
-
8/8/2019 Introduction to Brand
21/21
Organization brands
What is an organization brand?It is neither a product/service nor a corporate brand,
it is wider than both.
- It relates to all stakeholders and in many cases israrely advertised.
The organization brand represents theimpression that people inside and outside
the organization have.