Services Are Tangible Items Such as Food, Clothing, Shoes, and Anything You Can Touch and Buy

Defining a Brand

A brand refers to a name, term, symbol, or any other type of feature that defines or identifies a seller's product or service.

Learning Objectives

Discuss the characteristics and connotations around branding products and services

Fundamental Takeaways

Fundamental Points

• The word " brand " is derived from the Old Norse brand meaning "to fire," which refers to the practice of producers called-for their mark (or brand) onto their products.
• During the Industrial Revolution, the production of many household items, such every bit soap, was moved from local communities to centralized factories where they were branded with a logo or insignia, extending the meaning of "brand" to that of trademark.
• All of a brand's elements (i.e., logo, color, shape, letters, images) work equally a psychological trigger or stimulus that causes an association to all other thoughts we have virtually a make.
• Brands provide external cues to taste, design, performance, quality, value, and prestige if they are developed and managed properly.
• Brands convey positive or negative letters nigh a product. They likewise indicated the company or service to the consumer, which is a direct result of past advertizement, promotion, and product reputation.
• A brand can convey up to vi levels of pregnant: Attributes, Benefits, Values, Culture, Personality and User.

Key Terms

• watermark: A translucent pattern impressed on the surface of paper and visible when the newspaper is held to the light.
• make: A proper noun, term, design, symbol, or any other feature that identifies one seller'southward proficient or service as distinct from those of other sellers.
• Trademark: A trademark, trade mark, or trade-mark is a distinctive sign or indicator used by an individual, concern organization, or other legal entity to place for consumers that the products or services on or with which the trademark appears originate from a unique source, designated for a specific market. It besides distinguishes its products or services from those of other entities.

Defining a Brand

A make consists of any name, term, design, style, words, symbols or whatsoever other feature that distinguishes the goods and services of ane seller from another. A make also distinguishes one production from another in the eyes of the customer. All of its elements (i.eastward., logo, color, shape, letters, images) work as a psychological trigger or stimulus that causes an association to all other thoughts we have well-nigh this brand. Tunes, celebrities, and catchphrases are also oftentimes considered brands.

History

The discussion "brand" is derived from the Old Norse 'brand' pregnant "to fire," which refers to the practice of producers called-for their mark (or brand) onto their products. Italians are considered among the first to use brands in the class of watermarks on paper in the 1200s. Still, in mass-marketing, this concept originated in the xix^th century with the introduction of packaged goods.

Coca-Cola: The Coca-Cola logo is an example of a widely-recognized trademark and global brand.

During the Industrial Revolution, the production of many household items, such as soap, was moved from local communities to centralized factories to exist mass-produced and sold to the wider market. When aircraft their items, factories branded their logo or insignia on the barrels used, thereby extending the meaning of "brand" to that of trademark. This enabled the packaged appurtenances manufacturers to communicate that their products should be trusted every bit much equally local competitors. Campbell Soup, Coca-Cola, Juicy Fruit gum, Aunt Jemima, and Quaker Oats were amongst the offset products to be "branded. "

Connotations

A successful brand can create and sustain a strong, positive, and lasting impression in the heed of a consumer. Brands provide external cues to taste, design, performance, quality, value and prestige if they are adult and managed properly. Brands convey positive or negative messages nearly a production, along with indicating the company or service to the consumer, which is a direct consequence of past advertising, promotion, and product reputation.

Mercedes-Benz: The Mercedes-Benz Logo suggests high-prestige equally an machine brand.

A brand can convey up to half dozen levels of meaning:

• Attributes: The Mercedes-Benz brand, for example, suggests expensive, well-congenital, well-engineered, durable, loftier-prestige automobiles.
• Benefits: attributes must be translated into functional and emotional benefits.
• Values: Mercedes stands for high performance, safety, and prestige.
• Civilisation: Mercedes represents German language culture, organized, efficient, high quality.
• Personality: the make projects a certain personality.
• User: the brand suggests the kind of consumer who buys and uses the production.

Value of Branding

Branding is a long term exercise, but i that reaps long-term profitability through increased client loyalty.

Learning Objectives

Explicate why a strong branding strategy is essential to the success of a visitor

Key Takeaways

Key Points

• Branding is crucial to the success of whatsoever tangible product. In consumer markets, branding can influence whether consumers volition purchase the product.
• Branding tin also aid in the evolution of a new product past facilitating the extension of a product line or mix, through edifice on the consumer's perceptions of the values and character represented by the make proper name.
• Effective branding of a product enables the consumer to easily identify the product because the features and benefits have been communicated effectively.
• Branding helps the manufacturer create loyalty, subtract the hazard of losing marketplace share to the contest by establishing a differential advantage, and allow premium pricing that is acceptable by the consumer because of the perceived value of the brand.
• Branding enables the retailer to benefit from brand marketing back up by helping to attract more customers (ideally ones who normally don't frequent the establishment).

Key Terms

• Branding: This process involves researching, developing, and implementing brand names, brand marks, trade characters, and trademarks.
• co-branding: the combination of two or more well-known brands for marketing purposes, to strengthen one another'due south preference or buy intentions, or to reach a broader audience
• Trademark: A trademark, trade mark, or trade-mark is a distinctive sign or indicator used past an individual, business concern organization, or other legal entity to identify for consumers that the products or services on or with which the trademark appears originate from a unique source, designated for a specific market. It also distinguishes its products or services from those of other entities.

"Branding is a way to create an emotional connection with a specific audience. " – Troika, a network branding company.

What is the Purpose of Branding and Why Is Information technology So Important?

Branding involves researching, developing, and implementing brand names, make marks, merchandise characters, and trademarks. It undoubtedly requires a pregnant contribution from marketing communications and is a long term exercise, but one that reaps long-term profitability.

Branding is crucial to the success of any tangible product. In consumer markets, branding can influence whether consumers will purchase the product. Branding can also assist in the development of a new product past facilitating the extension of a product line or mix, through building on the consumer'southward perceptions of the values and character represented by the brand name.

Benefits of Branding for the Consumer

Effective branding of a product enables the consumer to easily identify the product because the features and benefits accept been communicated finer. This volition increase the probability that the product will be attainable and therefore purchased and consumed. Dunkin' Donuts, for case, is a brand that has an established logo and imagery that is familiar to most consumers. The vivid colors and image of a DD cup are easily recognized and distinguished from competitors.

Dunkin' Donuts: The Dunkin' Donuts logo, which includes an epitome of a DD cup of coffee, makes it easy to spot anywhere.

Benefits of Branding for the Manufacturer

Branding helps create loyalty, decreases the take a chance of losing marketplace share to the competition by establishing a differential advantage, and permit premium pricing that is acceptable past the consumer because of the perceived value of the brand. Good branding also allows for effective targeting and positioning. For example, Starbucks is a brand known its premium java. Starbucks has a loyal fan base due to its established global branding that communicates value.

Starbucks: Starbucks is a brand associated with premium, high-priced coffee.

Benefits of Branding for the Retailer

Branding enables the retailer to benefit from brand marketing support by helping to attract more than customers (ideally ones who normally don't frequent the establishment). For example, a customer who truly values organic brands might decide to visit a Babies R Us to shop for organic household cleaners that are safe to use around babies. This customer might take learned that a company chosen BabyGanics, which brands itself equally making "rubber, effective, natural household solutions", was merely available at this particular retailer.

Brand Loyalty

Brand loyalty entails commitment and repeated consumer purchase behavior following perceived value, satisfaction, and brand trust.

Learning Objectives

Draw the conditions that must exist met to achieve brand loyalty, and the consumer behaviors associated with brand loyalty

Fundamental Takeaways

Key Points

• Make loyalty is not to be characterized exclusively by a consumer 's ability to repurchase a brand.
• Customers' perceived value, make trust, satisfaction, echo purchase behavior, and commitment are found to be the key influencing factors of brand loyalty.
• The benefits of make loyalty are longer tenure (or staying a customer for longer), and lower sensitivity to price.
• True make loyalty exists when: a) customers have a loftier relative attitude toward the brand, which is so exhibited through repurchase behavior; and b) whether the customer is committed to the brand.
• The iv patterns of behavior: a) Hardcore Loyals, who buy the brand all the fourth dimension; b) Divide Loyals, loyal to two or three brands; c) Shifting Loyals, moving from i brand to another; and d) Switchers, with no loyalty (perchance 'bargain-prone' or 'vanity prone').
• The benefits of brand loyalty are longer tenure (or staying a customer for longer), and lower sensitivity to price. Contempo enquiry found evidence that longer-term customers were indeed less sensitive to price increases.

Key Terms

• Philip Kotler: An American academic focused on marketing. The author of Marketing Management, amid dozens of other textbooks and books, and the South.C. Johnson & Son Distinguished Professor of International Marketing at the Kellogg School of Management at Northwestern University.
• Andrew Ehrenberg: A statistician and marketing scientist. For over one-half a century, he made contributions to the methodology of information collection, analysis and presentation, and to agreement buyer behavior and how advert works.
• Loyalty Plan: Structured marketing efforts that reward, and therefore encourage, loyal ownership beliefs — behavior which is potentially beneficial to the firm.

Brand Loyalty

In marketing, make loyalty refers to a consumer's commitment to repurchase or otherwise go on using a particular make by repeatedly buying a product or service.

The American Marketing Association defines brand loyalty as: ane.) "The situation in which a consumer generally buys the same manufacturer-originated product or service repeatedly over fourth dimension rather than ownership from multiple suppliers within the category" (sales promotion definition). 2.) "The degree to which a consumer consistently purchases the same brand within a product class" (consumer beliefs definition).

Aside from a consumer'south ability to repurchase a brand, true brand loyalty exists when a.) the customer is committed to the brand, and b.) the customers have a high relative attitude toward the brand, which is so exhibited through repurchase behavior. For example, if Joe has brand loyalty to Company A, he will buy Company A's products even if Visitor B's products are cheaper and/or of a higher quality.

Make loyalty is viewed as a multidimensional construct, determined by several distinct psychological processes, such as the customers' perceived value, brand trust, satisfaction, echo purchase behavior, and delivery. Delivery and repeated purchase behavior are considered every bit necessary weather condition for brand loyalty, followed past perceived value, satisfaction, and brand trust.

Philip Kotler defines four client-types that showroom similar patterns of behavior:

• a) Hardcore Loyals, who purchase the make all the fourth dimension
• b) Split Loyals, loyal to two or iii brands
• c) Shifting Loyals, moving from 1 brand to another
• d) Switchers, with no loyalty (possibly "deal-prone," constantly looking for bargains, or "vanity prone," looking for something different).

Benefits of Brand Loyalty

The benefits of brand loyalty are longer tenure (or staying a client for longer), and lower sensitivity to price. Recent research institute evidence that longer-term customers were indeed less sensitive to cost increases.

According to Andrew Ehrenberg, consumers buy "portfolios of brands." They switch regularly between brands, oft because they simply want a change. Thus, "make penetration" or "brand share" reflects only a statistical chance that the majority of customers will buy that brand adjacent time equally function of a portfolio of brands. It does non guarantee that they volition stay loyal.

By creating promotions and loyalty programs that encourage the consumer to take some sort of action, companies are building brand loyalty by offer more than simply an advertisement. Offering incentives similar large prizes creates an surroundings in which customers see the advertiser as more than just the advertiser. Individuals are far more probable to come dorsum to a company that uses interesting promotions or loyalty programs than a visitor with a static message of "purchase our make because we're the best."

Popular Loyalty Programs

Below are some of the most pop Loyalty Programs that are currently being used past major companies equally a ways of engaging their customers across traditional advertising.

Sweepstakes and Advergames

• Branded digital games that appoint consumers with prize incentives

Contests

• Skill tests and user-generated promotions such every bit video and photo contests

Social
Media
Applications and Management

• Develop promotions and offers within social media channels
• Ongoing direction and maintenance of make Facebook pages and other social media

Customer Rewards Programs

• Online points programs – earn prizes for incremental purchase beliefs (due east.grand., JetBlue's TrueBlue and American Airlines's AAdvantage frequet flyer programs)
• My Coke Rewards, Pepsi Stuff, and the Marriott Rewards loyalty programs

Marriott: Marriott is known for its customer rewards plan – Marriott Rewards.

• Promotional auctions – bid for prizes with points earned from incremental buy beliefs

Email Clubs

• Manage overall subscription databases – national and/or segmented by market place
• Design, develop, and publish email blasts
• Develop templates specific offers and promotions / delivery

Text
Messaging
/ Mobile Apps / Desktop Apps and
Widgets

• SMS Promotions
• iPhone apps
• Branded web apps

Brand Equity

Make disinterestedness is the value of a make that is well-known and conjures positive associations, which helps it remain relevant and competitive.

Learning Objectives

List the x attributes used to measure brand disinterestedness according to marketing professor and make consultant David Aaker

Central Takeaways

Key Points

• Brand equity can manifest itself in consumer recognition of logos or other visual elements, brand language associations made by consumers' perceptions of quality, and value amid other relevant make attributes.
• While many experts have developed tools or metrics to analyze brand equity, there is no universally accepted fashion to mensurate information technology.
• Make disinterestedness tin can be measured quantitatively using numerical values such equally profit margins and market place share, but this arroyo fails to capture qualitative elements such equally prestige and mental and emotional associations.
• Make attributes used to assess a brand'south equity include: differentiation, satisfaction or loyalty, perceived quality, leadership or popularity, perceived value, brand personality, organizational associations, brand awareness, marketplace share, and market price and distribution coverage.
• Other means that a brand disinterestedness can be measured (these can be used individually or in combination): at the firm level, at the product level, and at the consumer level.

Key Terms

• brand loyalty: where a person buys products from the same manufacturer repeatedly rather than from other suppliers
• David Aaker: He is a consultant and author on the field of marketing, specially in the surface area of make strategy. He is currently the Vice Chairman of Prophet, a global make and marketing consultancy house, Professor Emeritus at the Haas School of Business organisation of the University of California, Berkeley, and an counselor to Dentsu, a major Japanese advertising agency. He blogs on Aaker on brands.
• make awareness: The extent to which a make is recognized by potential customers, and is correctly associated with a particular product. Expressed commonly equally a percentage of target market place, brand awareness is the primary goal of advertising in the early on months or years of a product's introduction.
• Brand Equity: This phrase describes the value of having a well-known brand name, based on the idea that the owner of a well-known brand name can generate more money from products with that brand name than from products with a less well-known proper name.

Brand Equity

In marketing, make disinterestedness refers to the value of a make that is well-known and conjures positive mental and emotional associations. For whatever given product, service, or company, make equity is considered a key asset considering it helps it remain relevant and competitive. Brand disinterestedness tin manifest itself in consumer recognition of logos or other visual elements, brand linguistic communication associations fabricated by consumers' perception of quality, and value among other relevant brand attributes.

When consumers trust a brand and detect it relevant, they may select the offerings associated with that brand over those of competitors even at a premium toll. For example, Starbucks can sell its coffee at a higher toll than solid market competitors because consumers associate the brand with quality and value. This is why brand equity is ofttimes directly correlated with a brand'south profitability.

Starbucks: Starbucks sells its coffee at a higher price point, which is justified past its perceived brand value and quality.

Measuring Brand Disinterestedness

Make disinterestedness is strategically crucial, only also very difficult to quantify. Equally a result, many experts have developed tools or metrics to analyze this asset, although in that location is no universally accepted way to mensurate it. For example, while it tin be measured quantitatively using numerical values such as profit margins and market share, this approach fails to capture qualitative elements such as prestige and mental and emotional associations.

According to David Aaker, a marketing professor and brand consultant, there are ten attributes of a brand that tin be used to assess its strength:

1. Differentiation
2. Satisfaction or loyalty
3. Perceived quality
4. Leadership or popularity
5. Perceived value
6. Brand personality
7. Organizational associations
8. Make awareness
9. Marketplace share
10. Market place cost and distribution coverage

Brand Asset Valuator

Immature & Rubicam, a marketing communications agency, has developed the make asset valuator, a tool to diagnose the power and value of a brand. The bureau uses this tool to survey and measure consumers' perspectives forth four dimensions:

• Differentiation: The defining characteristics of the make and its distinctiveness relative to competitors
• Relevance: The appropriateness and connection of the brand to a given consumer
• Esteem: Consumers' respect for and attraction to the make
• Noesis: Consumers' awareness of the brand and understanding of what information technology represents

Other ways that brand equity can be measured (these can be used individually or in combination):

• At the firm level – Brand equity can be studied equally a financial asset by making a calculation of a brand's worth as an intangible asset. For example, a company tin can estimate brand value on the basis of projected profits discounted to a present value. In turn, the present value can be used to summate the chance profile, market leadership, stability, and global accomplish.
• At the product level – The price of an equivalent well-known brand can exist compared to that of a no-proper noun or private characterization product.
• At the consumer level – This measure seeks to map the mind of the consumer to uncover associations with the given brand. For example, projective techniques can be ordinarily used to identify tangible and intangible attributes, attitudes, and diverse perceptions about the brand. Under this approach, the brands with the highest levels of awareness and most favorable and unique associations are considered high equity brands.

Types of Brands

Brand Types: private products, ranges, services, organizations, individuals, groups, events, places, private labels, media, and e-brands.

Learning Objectives

Name the different categories that fall under service brands

Key Takeaways

Key Points

• The different types of brands include: individual products, product ranges, services, organizations, persons, individuals, groups, events, geographic places, private label brands, media brands, and e-brands.
• The most common blazon of brand is a tangible, individual product, such every bit a motorcar or a drink.
• Production brands can as well be associated with a range, such as the Mercedes Southward-class cars or all the varieties of Colgate toothpaste.
• Every bit companies move from manufacturing products to delivering consummate solutions and intangible deliverables, service brands are characterized past the need to maintain a consistently high level of service commitment.
• The service category comprises the following: classic service brands (e.g. airlines and banks), pure service providers (e.g. member associations), professional person service brands (eastward.g. advisors of all kinds), agents (e.1000. travel agents), and retail brands (e.g. supermarkets, restaurants).
• Events have brands too, whether they are rock concerts, the Olympics, a infinite-rocket launch, or a boondocks-hall dance.

Fundamental Terms

• tangible: Touchable; able to be touched or felt; perceptible by the sense of bear upon; palpable.

Types of Brands

The different types of brands include: private products, product ranges, services, organizations, persons, individuals, groups, events, geographic places, private characterization brands, media, and due east-brands.

The most common type of brand is a tangible, private product, such equally a car or drinkable. This tin can be very specific, such equally the Kleenex make of tissues or can comprise a wide range of products.

Product brands can also be associated with a range, such equally the Mercedes S-form cars or all varieties of Colgate toothpaste.

A service is another type of make as companies move from manufacturing products to delivering complete solutions and intangible services. Service brands are characterized by the need to maintain a consistently high level of service delivery. This category comprises the following:

• Archetype service brands (such as airlines, hotels, car rentals, and banks).
• Pure service providers (such as member associations).
• Professional service brands (such as advisors of all kinds – accountancy, management consultancy).
• Agents (such every bit travel agents and manor agents).
• Retail brands (such as supermarkets, manner stores, and restaurants).

Another type of brand is an organisation. This can exist a visitor that delivers products and services. Mercedes and the The states Senate are all divers organizations and each take qualities associated with them that constitute their make. Organizations can also be linked closely with the brand of an individual. For example, the U.S. Democratic party is closely linked with President Barack Obama.

A person can as well be considered a make. Information technology can be comprised of one, as in the example of Oprah Winfrey, or a few individuals, where the branding is associated with different personalities, such equally with the American Autonomous Political party.

Not much higher in detail than an private is the brand of a group. In item, when this is a modest group and the individuals are known, the group brand and the individual make overlap. For example, the Ain brand of the Oprah Winfrey Network and the brand of its known members (Oprah and her team) are strongly connected.

Own Group Make: The Ain group brand is linked to Oprah Winfrey.

Events have brands likewise, whether they are rock concerts, the Olympics, a space-rocket launch, or a town-hall dance. Event brands are strongly connected with the experience of the people attending. Production, service and other brands realize the power of upshot brands and seek to have their brands associated with the event brands. Thus, sponsorship of events is now a thriving big business as one make tries to become leverage from the essence of the event, such every bit the excitement and danger of car racing.

Places or areas of the world as well have essential qualities that are seen every bit characterizations and hence also accept a brand. These areas can range from countries to states to cities to streets to buildings. Those who govern or represent these geographies will work hard to develop the brand. Cities, for case, may have de facto brands of being dangerous or condom, cultural or bland, which will be used past potential tourists in their decisions to visit and past companies in their decisions on where to prepare upward business.

CNN: CNN is an example of a media brand.

Private label brands, too called own brands, or store brands, exist amongst retailers that possess a particularly strong identity (such as Relieve-A-Lot).

Media brands include newspapers, magazines, and television channels such as CNN.

Amazon.com: Amazon.com is an e-make that delivers services online. Consumers are able to purchase and sell products on its website.

The primary activity of e-brands is to deliver concrete products or services, as in the case of Amazon.com. These online brands focus on delivering a service or experience in the virtual surround.

Brand Ownership

Brand Ownership means building a brand that reflects your values and persuades consumers to believe in and purchase your product.

Learning Objectives

Describe make buying and the rights of make owners.

Key Takeaways

Key Points

• To really own your Brand, y'all must have a clear understanding of where your brand stands today and a concrete strategy that outlines how you wish to manage and grow your brand.
• Every bit important is agreement what makes your make unlike and creating clear and persuasive messaging advice targeting your end consumer.
• When you truly own your brand, your money is spent wisely on marketing that is targeted, sharp and effective because you have a sophisticated understanding of the marketplace, your product /service, your consumer base and your strategy.
• A brand owner may seek to protect proprietary rights in relation to a brand past registering it to become a "Registered Trademark."
• Also, a firm or licensor can also grant the right to use their brand name, patents or sales knowledge in substitution for some form of payment.
• Brand ownership should as well be considered the responsibleness of its management and employees.

Fundamental Terms

• Brand Name: A term, blueprint, symbol, or any other feature that identifies ane seller's goods or services equally distinct from those of other sellers.
• Registered Trademark: Designated by ® (the circled majuscule "R"), is a symbol used to provide notice that the preceding mark is a trademark or service mark that has been registered with a national trademark office.

Brand Ownership

Brand ownership is about building, developing and sustaining a brand that reflects your principles and values and which effectively persuades consumers to believe in and buy your product/service.

In lodge to really own your brand, you lot must have a clear understanding of where your brand stands in the marketplace today, and a physical strategy that outlines how you wish to manage and grow your brand moving forwards. Equally important is understanding what makes your brand different. You must likewise create clear and persuasive messaging communication targeting your end consumer. You should also develop a program to achieve your goals in a realistic and organized style.

When you lot truly ain your brand, your coin is spent wisely on marketing that is targeted, sharp and effective considering y'all have a sophisticated understanding of the market place, your product/service, your consumer base and your strategy. This volition interpret into disciplined and effective brand management that will enable you to remain relevant in a rapidly-changing [and oftentimes saturated] market place.

Registered Trademark: The registered trademark symbol is designated by ® (the circled uppercase letter "R").

Brand ownership should as well be considered the responsibility of its direction and employees. Steve Jobs, for case, was considered a leader in shaping the identity of Apple, which has helped fuel a very high stock price for the visitor. Every bit a result, the brand image and reputation has attracted some of the globe's best talent which, in turn, has yielded an variety of innovative mobile products that volition undoubtedly be marked in the history of popular consumer culture.

A brand owner may seek to protect proprietary rights in relation to a brand by registering the trademark such that it becomes a "Registered Trademark." Also, a firm or licensor can too grant the right to utilize their brand name, patents or sales knowledge in commutation for some form of payment.

Naming Brands

Naming a brand is crucial to a product'south reputation and success because it reflects its paradigm and benefits in a way that can be differentiating.

Learning Objectives

Discuss the purpose of a brand name, and the process of researching and selecting a brand name

Cardinal Takeaways

Key Points

• Naming a brand is crucial to its reputation, development, and hereafter success because the master function of the make (proper noun and image ) is to identify the product or service in a way that it differentiates information technology from those of other competitors.
• A brand name reflects the overall product paradigm, positioning and, ideally, its benefits.
• At its all-time, a brand can provide a carryover effect when customers are able to acquaintance quality products with an established brand name.
• A successful brand name can enable a production to: be meaningfully advertised and distinguished from competitors, be tracked down by consumers, and be given legal protection.
• The process of naming a brand is key because it requires a systematic attempt that includes generating potential brand names, screening them (ofttimes conducting market research to exam their potential amidst consumers), and ultimately selecting the 1 that holds the most potential.

Cardinal Terms

• Brand Name: A term, design, symbol, or any other characteristic that identifies one seller'south goods or services as distinct from those of other sellers.
• Market Research: The systematic drove and evaluation of data regarding customers' preferences for actual and potential products and services.

A brand is a term, design, or symbol that identifies a commercial production or service as singled-out from those of other sellers. A brand proper name is the part of the make that can be vocalized. A brand name can also be a name under which a business organisation or company operates. Naming a brand is crucial to its reputation, development, and future success because the primary function of the brand (name and image) is to identify the product or service in a mode that it differentiates it from those of other competitors.

Visa Credit Menu: Security chips were added to Visa credit cards as an actress security measures to protect against identity theft.

Selecting a brand proper name is one of the most of import product decisions a seller will need to brand. A brand name reflects the overall product image, positioning and, ideally, its benefits. A successful brand name tin enable a product to: be meaningfully advertised and distinguished from competitors, exist tracked downwardly past consumers, and be given legal protection. At its best, a brand can provide a carryover effect when customers are able to acquaintance quality products with an established brand name.

Tang: Tang is an private brand that competes with Kraft'due south other brand (Kool-Aid).

For example, Apple has chosen to name all of its mobile products with a lower-instance i, as in the case with the iPad and iPod. Another example of a brand name is Starbucks, the coffee visitor which is globally recognized and chooses to proper name its coffee sizes in Italian.

Apple's iPod Touch: iPod Bear upon is one of Apple's mobile products named with the distinctive "i."

The process of naming a make is key because information technology requires a systematic try that includes generating potential make names, screening them (oftentimes conducting market research to exam their potential among consumers), and ultimately selecting the 1 that holds the about potential. Make names are mandatory if the manufacturer or benefactor plans to produce mass advertizement for their production.

But before this process fifty-fifty begins, a bones branding strategy must exist employed where a company or seller must select from among the following three feasible options to follow:

1. A strict manufacturer's branding policy under which a producer can only manufacture merchandise under his ain brand
2. An exclusive benefactor's brand policy where a producer does not have a brand of his own but agrees to sell his products only to a particular distributor and bear his brand proper noun (typically employed by private brands)
3. A mixed brand policy, which allows elements of both extremes (options 1. and 2.) and leads to the production of manufacturer's likewise as distributor's brands

Brands and Brand Lines

Strong brands are a powerful asset, and tin be used to extend product lines to expand the scope and distribution of the system.

Learning Objectives

Identify the various means in which organizations tin expand the brand lines to capture opportunities in the market place

Fundamental Takeaways

Key Points

• When strategically executed, a brand extension to a given production line tin can exist an effective tool for growth.
• When an organization grows successfully in a given production line, product extensions frequently enable the arrangement to capture new markets. Pepsi and Coca-Cola achieved this through diet sodas, for example.
• Product line extensions are a mutual tool for extending brand lines. An extension to a product line may differentiate to capture a niche demographic, create a depression cost opportunity, or collaborate with other brands.
• It'southward of import to keep in mind that whatever new product offer attached to a given brand creates a brand take chances. Any issues that ascend with employ of the production may harm all of the products across the brand line.

Key Terms

• spin off: A new product offer utilizing an existing brand.

When understanding the potential in edifice a brand, it's useful to recognize the way in which brands can extend. Make extensions are usually accomplished past expanding the existing product line offerings, or potentially creating new product lines with the same brand (often in complementary markets).

To provide some context, let's ascertain a few unproblematic examples of spinning off a make. Coca-Cola and Pepsi are fairly classic examples of simple product line extensions to expand the brand. Diet Coke fulfills a different demand than regular Coke, in that it contains fewer calories. Through extending their production line, they at present had the potential to capture health conscious consumers. Car companies are another skillful instance. There are tons of different Toyota automobiles on the market, each catering to slightly different needs, price points, and geographies. Make lines and product extensions are a key aspect of brand management.

Brands and Product Extensions: This unproblematic chart demonstrates the way in which product extensions and brand lines interact from a sustainability point of view.

Brand Direction

To apply concepts of production extensions by adding to the brand line, an understanding of brand management strategies is a useful starting point. Investing in an intangible asset such as a make tin be a difficult process for organizations, as the return on this investment is non realized in the shorter term. However, building a strong repertoire with the target market place in a given industry, and catering the product lines to fulfill various broader or niche needs within those markets, is a powerful strategic tool.

Product Extensions

Extending brands is often accomplished through new lines of production, referred to every bit product extensions. When considering product extensions, it's important to identify various needs that tin can be filled by the organisation through core processes. This means that organizations must empathise the needs of the market, and determine if the arrangement has the power to fulfill some of these needs.

While there are countless, unique reasons to pursue a make extension based on which industry is being discussed, there are a few common areas where extensions often occur:

Depression Toll

Extending into the lower cost segment is a common move for brands as they gain power and scale in the manufacture. As successful companies grow in revenue and size, they frequently attain the ability to produce at higher scale economies. One time this is accomplished, spinning off a cheaper version of a brand is a dandy way to achieve higher levels of growth. Tesla is a great example of this. Tesla began past selling extremely high cease vehicles, with the plan to utilize the return on those sales to brainstorm producing higher quantities of lower cost models, all of which maintain the powerful Tesla brand.

Differentiation

A broad term, which can exist practical to a variety of tactics, differentiation is all nearly identifying a unique need that users are willing to pay a premium for. Consider the beer and wine industry. Microbreweries accept seen enormous growth (and, in turn, acquisition by big companies) in recent years. Microbreweries focus on creating a unique, specialized beer which often costs more. Due to the unique experience, local support and potential multifariousness, customers are willing to pay a premium for a differentiated production (compared to the bigger brand names).

Co-branding

Another interesting example is co-branding. Sometimes co-branding tin help an arrangement spread into new markets. For case, some cars come with built in surround audio systems. These cars are often partnered with potent brands, such equally Bose, which provides mutual benefit and enables Bose to enter a new market. In this situation, the Bose brand is noted by motorcar purchasers merely as the motorcar brands are considered in the context of good sound systems.

Conclusion

While extending product lines and spinning off the make into new product formats tin can exist a great opportunity for revenue growth, it also exposes the make to new market forces and new risks. Careful quality control and brand maintenance is a key consideration in any new extensions to the brand. With proper execution, a make can be a powerful asset for new production evolution.

Branding Strategies

A branding strategy helps establish a product within the market and to build a brand that will grow and mature in a saturated market place.

Learning Objectives

Distinguish between different types of branding strategies

Central Takeaways

Key Points

• Mental attitude branding is the option to represent a larger feeling, which is not necessarily connected with the product or consumption of the product at all.
• Iconic brands are defined as having aspects that contribute to the consumer 'due south cocky-expression and personal identity.
• In "no brand" branding, the product is made conspicuous through the absenteeism of a make proper noun.
• In derived branding, some suppliers of central components may wish to guarantee its own position past promoting that component every bit a brand in its own right.
• Cannibalization is a particular trouble of a multi-brands strategy approach, in which the new brand takes business abroad from an established i which the arrangement also owns. This may be acceptable (indeed to exist expected) if there is a net gain overall.
• In crowdsourcing branding, brands are created by the people for the business, which is reverse to the traditional method where the business organisation creates a brand.

Key Terms

• Cannibalization: In marketing strategy, cannibalization refers to a reduction in sales book, sales revenue, or market share of one product every bit a result of the introduction of a new product by the same producer.

Branding Strategies

A branding strategy helps establish a production inside the market and to build a make that will grow and mature in a saturated marketplace. Making smart branding decisions up front is crucial since a visitor may have to live with the determination for a long time. The following are commonly used branding strategies:

Visitor Proper name

In this case a strong brand name (or company proper noun) is fabricated the vehicle for a range of products (for example, Mercedez Benz or Blackness & Decker) or a range of subsidiary brands (such as Cadbury Dairy Milk or Cadbury Fingers in the Us).

Private Branding

Each make has a separate name, putting information technology into a de facto competition confronting other brands from the aforementioned company (for case, Kool-Aid and Tang are both endemic by Kraft Foods). Individual brand names naturally permit greater flexibility past permitting a variety of unlike products, of differing quality, to exist sold without confusing the consumer'southward perception of what business the visitor is in or diluting college quality products.

Tang: Tang is an individual brand that competes with Kool-Aid, Kraft's other make.

Kool-Aid: Kool-Assistance is an individual brand that competes with Tang, Kraft's other brand.

Attitude Branding and Iconic Brands

This is the choice to represent a larger feeling, which is non necessarily connected with the production or consumption of the production at all. Companies that utilize attitude branding include: Nike, Starbucks, The Trunk Shop, and Apple, Inc. Iconic brands are defined as having aspects that contribute to the consumer's self-expression and personal identity.

Brands whose value to consumers comes primarily from having identity value are said to be "identity brands. " Some brands have such a strong identity that they become "iconic brands" such as Apple tree, Nike, and Harley Davidson.

"No-brand" Branding

Recently a number of companies have successfully pursued "no-brand" strategies by creating packaging that imitates generic brand simplicity. "No brand" branding may be construed as a type of branding equally the production is made conspicuous through the absence of a brand proper noun. "Tapa Amarilla" or "Yellow Cap" in Venezuela during the 1980s is a prime instance of no-brand strategy. It was simply recognized past the color of the cap of this cleaning products company.

Derived Brands

Some suppliers of key components may wish to guarantee its own position by promoting that component as a brand in its own right. For instance, Intel, positions itself in the PC marketplace with the slogan (and sticker) "Intel Inside. "

Brand Extension and Brand Dilution

The existing strong brand name can be used as a vehicle for new or modified products. For example, many way and designer companies extended brands into fragrances, shoes and accessories, furniture, and hotels. Oft, the product is no different than what is already on the market, except information technology has a make proper noun marker. The chance of over-extension is brand dilution, which is when the make loses its make associations with a market segment, production area, or quality, toll, or cachet.

Multi-brands Strategy

Alternatively, in a very saturated market, a supplier can deliberately launch totally new brands in credible competition with its own existing strong brand (and often with identical product characteristics) to soak up some of the share of the market. The rationale is that having three out of 12 brands in such a market will give a greater overall share than having one out of x. Procter & Take a chance is a leading exponent of this philosophy, running equally many equally x detergent brands in the U.s. market. In the hotel business, Marriott uses the proper noun Fairfield Inns for its budget chain.

Cannibalization is a detail problem of a multi-brands strategy approach, in which the new brand takes business abroad from an established one which the organization also owns. This may be adequate (indeed to be expected) if at that place is a cyberspace gain overall.

Private Labels

Also called own brands, or store brands, these have become increasingly popular. Where the retailer has a especially strong identity this "own make" may be able to compete against even the strongest make leaders, and may outperform those products that are not otherwise strongly branded.

Individual and Organizational Brands

These are types of branding that care for individuals and organizations as the products to be branded. Personal branding treats persons and their careers every bit brands. Faith branding treats religious figures and organizations equally brands.

Crowdsourcing Branding

These are brands that are created by the people for the business, which is contrary to the traditional method where the business creates a make. This type of method minimizes the risk of brand failure, since the people that might reject the make in the traditional method are the ones who are participating in the branding process.

Nation Branding

This is a field of theory and exercise which aims to measure, build, and manage the reputation of countries (closely related to place branding).

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Source: https://courses.lumenlearning.com/boundless-marketing/chapter/branding/

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