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Branding Strategy

MKT 301Principles of Marketing

Rationale for Branding

What Businesses Get

marketplace power, possible over long term

What Customers Get

easy and efficient identification of product benefits

better differentiation among competitive brands

financial returns; leading brands sell better

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Outcomes of Effective Branding

1. Brand Position

Comments

Product “Position”: The perception a target audience holds abouta product or brand, relative to its competitors.

A successfully positioned product emphasizes differences withkey competitors (who you select).

Marketers base product positions not on competitors’ product attributes, but on competitors’claims.

Positioning draws from the organization of memory into “memory schema,” or systems of classifying stored concepts.

Outcomes of Effective Branding

1. Brand Position

2. Brand Equity

The value enhancement of a product provided by its brand name.What a brand provides beyond the benefits of actually using or consuming the product.

Comments

Brand equity has several components:

performance social image trustworthiness

identification substitutability

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Outcomes of Effective Branding

1. Brand Position

2. Brand Equity

3. Brand Loyalty

A cognitive commitment to repeatedly buying a particularbrand over time.

Comments

True loyalty is more than repeated brand purchases.

Loyalty is related but distinct from equity.

Loyalty is the “holy grail” of marketing.

Branding Policies

1. Individual Branding

Naming a single product with a single brand name.

Example: Proctor & Gamble Soaps

Safeguard

IvoryCamay

Zest

P&G

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Branding Policies

1. Individual Branding

Naming a single product with a single brand name.

Comments

Policy followed by many consumer products manufacturers.

Permits more distinct targeting to well-defined groups.

Permits greater positioning flexibility.

Does not allow use of strong parent brand, but individualbrands can become parent brands.

Branding Policies

Example:

1. Individual Branding

2. Brand Extensions

Ivory Brand

Ivory

Bar Soap

Ivory

Body Wash

Ivory

Dish Soap

Ivory

Snow

Ivory

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Branding Policies

1. Individual Branding

2. Brand Extensions

Creating product enhancements in the same product categoryand with the same brand name as the original.

Comments

Allows use of a strong overall brand name.

Not for companies following diversification of product line.

Almost no positioning flexibility. All products rely on samebrand position.

Branding Policies

1. Individual Branding

2. Brand Extensions

3. Family Brands

Creating a line of products in multiple categories with the sameoverall brand.

A&H

Baking Soda

A&H

Toothpaste

A&H

Antiperspirant

A&H

Cat LitterArm &

Hammer

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Branding Policies

1. Individual Branding

2. Brand Extensions

3. Family Brands

Creating a line of products in multiple categories with the sameoverall brand.

Comments

Permits extensive use of a strong brand in a diversified product line.

In consumer markets, risks dilution of brand equity.

Branding Policies

1. Individual Branding

2. Brand Extensions

3. Family Brands

4. Co-branding

Displaying brands of component parts or ingredients.

Comments

Common examples: Intel on computers

Splenda on sugar free products

Allows one brand to capitalize on equity of another brand.