introduction to brand

8/8/2019 Introduction to Brand

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Introduction To Brand


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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


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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.


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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


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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


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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


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Different types of brands Product Brands Service Brands E-brands

Media Brands

Not-for-profit Brands Nation Brands

Government Brands Global Brands

Organization Brands


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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.


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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.


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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.
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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.


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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.


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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.


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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.


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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


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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.
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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.


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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 ?


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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.


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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.

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