PRINCIPLES OF MARKETING

Branding

Tangible Intangible

Brand Name Name given to a product Consists of words, numbers, or

letters that can be spoken Logo

Picture, design, or graphic image associated with a brand

Trade character—human characteristics

Slogan Phrase or sentence that

summarizes some essential aspect of the product

AKA tag line, jingle

ImagePersonalityAbility to influence

customers to buy

Example:http://www.youtube.

com/watch?v=VdeD6SrQuL0

Brands Have Two Parts

Corporate Brand Product Brand

Represents the whole company

Example: Nike is a corporate brand

Brand of a specific product

Example: Air Jordan is the brand of a specific Nike product

Level of Brands

Types of Brands

Manufacturer Created by a manufacturer for its own products AKA national brands or regional brands Examples: Cover Girl, Lay’s Potato Chips, Wrangler Sold through wholesalers, and ultimately to retailers,

such as department storesExample: Jeans such as Diesel, Lee, Levi,

Guess, Baby Phat are available at retailers such as Sears, Macy’s, or J. C. Penney, but not Abercrombie jeans

Private brand

Definition: Resellers include retail stores, distributors, and wholesalers

Resellers often develop their own productsPrivate brand is a brand owned by a resellerAKA store brands, distributor brands, dealer

brands, or private label brandsExample: Abercrombie & Fitch carries

private brand jeans only available at their stores

Generic Brand

Product that is not brandedUsually packaged in black and white

packagesProduct category is the only label on the

packageGenerally lower in priceExamples: baking soda, paper towels,

canned fruits, and many medicines

Branding and the Customer

Identifies the product Name, logo, slogan, and packaging Coke is the “real thing” in a red and silver can with a

wave Pepsi is for a “new generation” in the blue and red can

with a circleProvides assurance of qualityProvides assurance of consistency

Quality

Customers vary in the level of quality they want in various products

Example: inexpensive ballpoint pens sell for under a dollar each and work well for a student; however, a successful executive might prefer an elegant fountain pen with platinum trim—the Montblanc brand sales for over $300

Consistency

The product is the same whenever and wherever you buy it

McDonald’s hamburger is the exact same each time you get it, even at a different location

If you stay in a Hilton hotel anywhere in the United States, you know that you will be getting clean, comfortable, reasonably priced accomodations

Goals of Branding

Create Unique Brand Identity Some benefit of the product that sets it apart from

other similar products Benefit is the need-satisfying ability of a product Customers buy benefits, not features Product benefits in three categories

Functional benefits meet physical and safety needs Emotional benefits meet acceptance and esteem needs Self-expressive benefits meet esteem and self-

actualization needs Visual symbols is another aspect of a brand

What is the metaphor in the symbol?

Goals of Branding

Develop a Positive Brand Image Developed over time by promotion and by customer

experience with the product Positioning consists of the actions marketers take to

create a certain image of a product in the minds of customers

Brand position is the image that a brand has in the mind of the customer

Consumers like companies that are socially responsible

“Naming rights” for new sports stadiums and other public places is very popular right now

Goals of Branding

Brand Loyalty Definition: a situation in which the customer will buy

only a certain brand of a product; repeat purchases mean more profits

Research shows that it is less expensive to keep current customers than to find new customers

Protecting a Brand

Brands are only valuable if your competitors cannot copy it

U.S. Patent and Trademark Office will register brands

Trademark is another term for brand; refers to the word, phrase, symbol, or design that identifies and distinguishes the source of goods

Service mark is the same as a trademark, identifying the source of a service

Symbols to use: ® © ™ ℠

YOU as a Brand

Many of the most famous and popular brand names are the names of people who developed the brands Ford Ritz-Carlton Jennifer Lopez