Brands study material

7/21/2019 Brands study material

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UNIT 1 BRANDS

BE2_summer semester_Sanja Radmilo Derado Page 1

WHAT IS A BRAND?

In todays world, name sells. For instance, acar is a car and its purpose is commuting from

point A to B. Nevertheless, when a car is a

Mercedes or a BMW, the perception changes.

Its not viewed just as a mode of transport but

its attached to ones status or prestige. And

thats exactly what a brand does. It not only

gives recognition to the company but

helps customers create an identity for themselves.

As said by Jeff Bezos, CEO of Amazon.com, A brand for a company is like areputation for a

person. You earn reputation by trying to do hard things well.

According to American Marketing Association (AMA),brand is a name, term,

sign, symbol, or design, or a combination of them, intended to identify the

goods and services of one seller or group of sellers and to differentiate them

from those of competition. For a customer, a brand is all the emotions and ideas

associatedwith a product or service that creates a distinct customer experience. It includes

all things real or perceived, rational or emotional, physical or sensory, thought or felt,

whether in form or function, planned or unplanned. The power of the brand depends on how

well a product can invite the customers and how long can it reside in their minds.

Other ways to define a brand

1stdefinition

A brand is a name, term, symbol, design, or combination of these elements that is

intended to identify the goods or services of a seller and differentiate them from their

competitors.

2nddefinition

A brand isthe intangible sum of a product's attributes: its name, packaging, and price, its

history, its reputation, and the way it's advertised.


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3rddefinition

Branding is a practice that has always existed above and beyond all other business

strategies. It is an organizing principle so broad yet so defining that it can shape and direct

just about everything a company does, and, most important, how it does it. Scott Bedbury,A

New Brand World

4thdefinition

Brands are sponges for content, for images, for fleeting feelings. They become

psychological concepts held in the minds of the public, where they may stay forever. As such

you cant entirely control a brand. At best you can only guide and influence it.

Branding is a powerful message that speaks to who we are, what we want and who we want

to be.

Brands humanize the product or service and give it a personality all its own.

WHAT MAKES BRANDS SUCCESSFUL?

Earlier, branding included logos and

advertisements. But nowadays, brand is much

more than a name or a logo. A brand is no longer

just about image projection. It is about the company

as a whole. Branding distinguishes a company,

product or service from the rest and creates a

lasting impression on the consumers.

A brand is not just a logo, ad campaign,

spokesperson or slogan. Rather a brand is a product of the millions of experiences a company

creates with employees, vendors, reporters, communities, and customersand the emotional

feelings these groups develop as a result of their experiences.

In order to maintain their brands successful, companies need to:

Use web-based social networking to exchange information(social media sites

Twitter, Facebook, LinkedIn) since marketing on those sites is on the constant increase

as is social networking online. Studies have shown that people connected on those sites

spend more money online than an average buyer. In todays uncertain economic

conditions, business owners are finding it necessary to become even more creative inorder to successfully brand their products and services. Money is tighter in many


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households due to job loss and/or reduced wages. As a result, consumer expectations are

rising as they seek newer and more advanced tools to meet their desire for the latest and

best, despite financial limitations.

Enable fast consumer feedback. Today, information travels faster than a few decades

ago and companies need to adjust their marketing strategy to the new tendencies in

communication. That means advertising in the media used by the younger generations

and adjusting their customer service operations to fit the latest technological

development (open forums and chat lines, invite consumers to send text messages, etc.).

Anticipate customers needs. A basic business principle has always been that the

most successful businesses are those that know how to anticipate their customers needs,

and then fill them. In some ways, narrowing rather than expanding ones brand has

become the target of todays marketplace due to conservative spending and meeting the

wants and needs of customers who are able to pay.

Narrow the brand instead of expanding it (in times of recession consumers spend

conservatively and focus their attention on meeting the basic day-to-day needs so they

look for products that will meet those needs).

Also

Create web site with precise product information.

Brand should be truly reflected in the logo and the tagline (=a slogan or

phrase that captures the essence of a brands promise to consumers).

Use a variety of advertising methods newsletters, tote bags(given away at

events, promotions and openings), personal phone calls, direct marketing

(leaflets in the post)

Organise seminars and webinars

Upload personal details and contact information on the web page to speed up

information flow.

Inspire customer interaction post surveys, open forums, invite customers

to blog.

Offer customer testimonials personal statements make product or service

Provide excellent customer service


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WHAT IS BRAND MANAGEMENT?

Brand management is the process of creating and sustaining brand equity. Brand

management includesdeveloping a strategy that successfully sustains or improves brandawareness, strengthens brand associations, emphasises on brand quality and utilisation. It

represents a sophisticated business process to maintain the unique mix of physical attributes

and intangible values that distinguishes one brand identity from the other.

Therefore, brand building and brand management have become critical issues for firms

competing within industries. Over the last decades, brand evolved from a simple product

attribute to that of a value creator for the entire firm. A brand can be anything a person,

product, country, company, etc.

Brand management is not just about building brands, but also managing and establishing

them. Marketers should consider maintaining healthy and vital brands and firms need to pay

attention to brand building. They should not neglect important issues related to brand

leveraging, identification, and protection. Successful brand is an important strategic

marketing tool for a firm. Effective brand management includes constant endeavour of a firm

to choose the ways for realising the brand potential and enhance its value. As a result, it can

create sustained competitive advantage and a successful strategic positioning through

continued investment in quality, communication and customer relationships. The basic

message to management is that brand is an instrument, not only a goal and, if it used

efficiently, it causes creation of valued intangible assets customer capital.

TYPES OF BRANDS

There are six types of brands:

Product Brands

Service Brands

Organisation Brands

Person Brands

Event Brands

Geography Brands


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Product BrandsThe brand that is associated

with a tangible product, such as a car or a drink.

This can be very specific or may indicate a range

of products. It is further divided into individual

product (Ex: Coca-Cola) and product range

(Ex:varieties of Colgate toothpaste).

Service BrandsThe brands that deliver complete solutions and intangible

services besides manufacturing products. Service brands are about what is done,

when it is done, who does it, etc. It is much different than product brands, where

variation can be eliminated on the production line. Even in companies such as

McDonalds where service has been standardised down to eye contact and smile,

variation still occurs.

Organisation BrandsOrganisations are brands, whether it is a company that

delivers products and services or some other group. Thus, Greenpeace, Mercedes

and the US Senate are all defined organisations and each have qualities associated

with them that together constitute the brand.

Person as BrandPerson brand is focused on one or a few individuals and is

associated with personality.

Individual A pure individual brand is based on one person, such as a celebrity actor or a

singer. The brand can be a person with a carefully

crafted projection (eg. politicians).

Group In particular, when this is a small group and the

individuals are known, the group brand and the individual

brand overlap. For example,

the brand of a pop group and the brand of its known

members are stronglyconnected (eg. The Beatles).

EventBrandsEvents have brands too, whether they are rock concerts or the Olympics.

Event brands are strongly connected with the experience of the audience, for example,

musical pleasure.


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Geography Brands Areas of the world also have

essential qualities that are seen as

characterisations, and hence also have brand. These areas

can range from countries

to states to cities to streets and buildings. Those who

govern or represent these

geographies, develop the brand (e.g. Japan, US).

TRANSFORMATION OF A BRAND TO AN EXTRAORDINARY BRAND

Most of the companies manage to build brands. But, the question is What is the

secret of the long life of such brands? There are companies that have established brands

which are loved by the customers and have been for decades. Such brands become icons.

Iconic Brands

Iconic brands are part of our culture. They are easily recognised

by their logo. These brands spend a lot of money on marketing to keep their image

perfect. These iconic brands are top of mind brands and often win a bigger market

share. For example, McDonalds, Microsoft, Dell, Coke, Pepsi, and American Airlines have a

significant place not just in the market, but also in the consumersminds. But, there are fewphenomenally extraordinary brands that build an everlasting relationship with the

customers. They ideally are called cult brands.

Cult Brands

Cult brands understand that their brand belongs to the customer. Only the customers voice

counts. A successful cult brand embraces its customersby anticipating their basic human and

spiritual needs. As a consequence, cult brands achieve a level of customer loyaltyunprecedented in traditional business. These brands have no substitutes. Examples are:

Oprah, Linux, Southwest Airlines, IKEA, Harley Davidson, Apple, Star Trek, Volkswagen

Beetle, Cuban Cigars. They are profitable even in unfavourable market conditions because of

the powerful relationships they have with their customers.


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CORPORATE_BRANDING

Corporate branding refers to a company

applying its name to a product. The product andthe company name become the brand name.

The company can advertise several of its products

under a single brand name in a practice referred

to as family branding or umbrella branding.

By using corporate branding with a successfully

marketed product, a company can familiarize consumers with its products and may

create brand loyalty. If the public likes one product from this company, then they mayseek out the brand namewhen buying other products. Corporate branding is usually only

successful if the company is well known and sells reputable products with a positive

image. One of the disadvantages of corporate branding is that the company can become

identified with only one type of product.

To consumers, corporate branding represents a level of quality that they have come to expect

from the company. They will expect every product with the same brand name to have the

same level of quality that they are familiar with. The company can increase sales by

comparing one of their more popular products with a similar product by another company,

showing sales figures toback up their promise. The value of the brand is determined by

the profits the products have made. If profits are high, then the manufacturer is able to

charge more for their product.

When applying corporate brandingto a product or products, companies need to follow a

few guidelines. A corporate brand should be easy to recognize and attract attention. It should

also be legally protectable and suggest the company or product image.

Ideally, the brand should be easy to pronounce and easy to remember. A premiere brand

product typically costs more to purchase than an economy brand.Consumers are paying

for the name and the quality of product that name guarantees.

There are a few extensions to corporate branding. One brand name may be used for a number

of products in family branding, or all the products may be given different brand names in a

practice called individual branding.

When large retailers buy goods in bulkand then put their own brand name on them, this is

called store branding, label branding, or private branding.


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Co-branding is when two or more manufactures combine to sell their products. When a

company sells the right to use their brand name to another company for use in another

location or for non-competitive purposes, this is calledbrand licensing.

Corporate branding has the ability to make a product very successful. If the brand name has a

track recordof a guarantee of quality, then there are huge amounts of money to be made by

using the name. However, just one shoddy productunder the brand name may cause bad

word of mouth, affecting sales of all the other products under the same name and causing

irreversible damageto the company.

On the other hand, if a company launches a successful brand, which in time achieves high

sales numbers and proves its high brand value, then consumers tend to show loyalty to

other similar products made by the same manufacturer.

STORE BRANDS

Certain brands of products that are only

available at a particular store, usually a chain

store, are called store brands. Store brand

products are often available for a discounted

price, and are popular with those trying to keep

their spending to a minimum. In some stores,

they can even make up 40 to 50 percent of the

total sales, and may be 15 to 50 percent cheaper

than the national name brand products.

Store brands are usually similar in quality to the name brand products, although some food

products may be of a slightly lesser quality. Paper and personal products usually perform just

as well, if not better, than name brand items. The packaging for store brand items is usually

very close in resemblance to name brand merchandise,with the same colours often

used for both products. Stores will often put their store brand on the shelves right next to the

comparable name brand product,encouraging shoppers to quickly and easily compare

the prices and ingredients of the two items.

The manufacturers of name brand products are very often the manufacturers of similar store

brand products. This does not necessarily mean that the recipes used for the two products are

the same. In other cases, the products may be made individually by a manufacturing plant

owned by the store chain itself. By comparing the ingredient lists from the products of


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national and store brands, consumers can decide how similar the two products really are, and

if the difference in price is worth the possible difference in quality.

Store brands allow stores to sell products for a better value than many of the name brand

items. There are several reasons for this, but the main one is that store brand products

do not need the advertising that national brands do . The stores do not create special

marketing campaigns for these products. They are often included in fliers and specials, but

very little extra money is spent on advertisements. This saves the company, and consumers, a

lot of money.

Consumers have very different opinions on store brands. Some are very loyal to certain name

brand products, and refuse to try cheaper alternatives. To others, the money saved is

more than worth any reduced quality. Many people, however, fall somewhere in the middle.

There are some products that they feel are worth the money for getting name brand quality,

such as cereal or paper towels, but are more than willing to use the cheaper alternatives for

other items, such as condiments, desserts, and dairy products. The quality of many store

brand products has improved greatly over the past decade, making it easier for consumers to

get the quality they expect for a more reasonable price.

When many people losing their jobs as a result of outsourcing, there are fewer payroll tax

receipts and fewer contributions to Social Security and Medicare. Government revenues

mainly depend on income and sales tax. Reduction in these areas adds to more payments

going for unemployment benefits which will result in increasing government spending.

GLOSSARY OF NEW TERMS

COLLOCATIONS WITH BRAND:

Brand(noun)a name given to a product or a group of products so that it can be easily recognized(e.g.I have bought one of the leading brands of computers.)

Brand name(noun)a name the manufacturer gives a product; the product is sold under its brand name(e.g.Drugs can be sold under different brand names across the EU.When it comes to soft drinks, Coca-Cola is the biggest selling brand name in Britain.)

Own brand (own label)(noun)products which have the trademark or label of the shop which sells them, especially asupermarket chain. They are normally cheaper than other popular brands

(e.g. This range is substantially cheaper than any of the other own brands available.)

Brand awareness/ brand familiarity/brand recognitiondegree to which people know a brand


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(e.g. The strategic strong point of Harley Davidsons marketing plans is the strongbrand recognition enjoyed by their products.Brand awareness provides customers with a degree of reassurance.)

Brand promisewhat people (clients, consumers, end-users) expect from a brand

Brand visionthe brand vision communicates where the brand is and where the brand can go. It talksabout the values the brand has today and the values it will need in the future

The flagship brandthe brand for which a business is well-known, and which represents its image mostappropriately

A no brand/generic brandA product that doesnt have a brand associated with it

Premium branda high quality brand, more expensive than its competitors

Economy branda brand that is cheaper than its competitors

Brand leaderthe best-selling brand in a particular market

Brand essencethe most fundamental aspect of a brand. It is often possible to express this in a single

word or phrase

Brand parityhow a product is similar to that of a competitor

Co-brandingthe use of the brand names from two different companies on the same product

Power brandingthe marketing strategy in which every product in a companys range has its own brandname

Brand preferencewhen consumers prefer one brand to another

Brand imageall the ways in which people think about a brand OR how a brand is perceived in the mindof the customers and what they associate with it

Brand equitythe value of a brand to its owners, as shown on a firms balance sheet ORthe value that abrand name and symbol ads to a product or service

Branding

refers to the image or impression that a company creates for its products, usually throughadvertising


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(e.g.As we enter the 21stcentury, companies are placing greater emphasis on brandingand marketing.French Connection, the fashion retailer is a good example of how skilful branding caninvigorate trading.)

Brand positioninga firm can position a brand by emphasizing its characteristics and benefits in relation toother brands. Firms create a positioning map to show how different brands are positionedin relation to one another(e.g. in the case of breakfast cereal a firm creates a positioning map to demonstrate howtheir brand compares to other varieties of cereal that already exist at the market, inprice, energy value, calories, etc.)

Brand differentiationwhen a company designs a product in a way that distinguishes it from competitorsbrands and communicates the comparative benefits to customers in its salesdocumentation, advertising, etc.(For instance, a UK mobile phone company ran a campaign addressed to the hard-nosed businessman. This was an effort to differentiate its business services from thosefor private users and from business services from less-targeted services offered by othermobile phone companies).

Brand stretchingOr brand extension is when a company uses an existing brand name for new types ofproduct. Marketers say that this can go too far and lead to brand dilution (makingthe brand less powerful.)(e.g. A good example of brand stretching is when tobacco companies use non-tobaccoproducts such as the Marlboro Classic clothing range to promote a particular brand of

cigarette.)IDIOMATIC EXPRESSION: At full stretch: using as much energy as possible, or thegreatest possible amount of supplies(e.g. We have been working at full stretch).

*TrademarkA word, phrase or symbol that represents a company or identifies a product or isregistered to protect against its use by another party.

COLLOCATIONS WITH MARKET

Market leader The best-selling product or brand in themarket.

Market follower The second best-selling product or brand inthe market.

Market positioning The process by which marketers try tocreate an image or identity in the minds oftheir target market for its product, brand,or organization.

Market research The process of obtaining information aboutwhat consumers want and need.


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Market segment A group of customers of similar age,income level, and social class; a samplegroup of potential product users.

Market share A percentage of sales of a product in aparticular market.

Market valueThe price which a seller might reasonablyexpect to get for goods, services orsecurities on theopen market

THE PRODUCT CAN BE DESCRIBED AS:

Value for money(refers to the relationship between a products quality and its price): how much sth isworth compared with its price(e.g. We are constantly on the lookout for products that offer the best value for money.)

Top of the range(adjective)(for various types of products): the most expensive of a group of similar products

(e.g.I have acquired a top-of-the range computer.).

Mid-range(adjective)(for various types of products): not the cheapest or most expensive, not the best or worst,etc.(e.g. mid-range DVDs; to increase sales in the mid-range market)

Stylish (adjective)attractive or well arranged(e.g. stylish clothes; stylish furniture)

Reliable(adjective)

Something or someone that is reliable can be trusted or believed because they work orbehave well in the way you expectIs your watch reliable?reliable informationGideon is very reliable - if he says he'll do something, he'll do it.Opposite: unreliableReliability (noun) /rlabl..ti/Rolls-Royce cars are famous for their quality and reliability.

Luxurious (adjective) /lg.ri.s/very comfortable and expensiveThey have a very luxurious house.

We spent a luxurious weekend at a country hotel.
http://en.wiktionary.org/wiki/open_markethttp://en.wiktionary.org/wiki/open_market


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Durable(adjective)/dj.r.bl/ =lasting; long-lasting; long-lived;able to last a long time without becoming damagedThe machines have to be made of durable materials.The resolution calls for a durable peace settlement.Durability (noun)

Timeless(adjective)= not limitedhaving a value that is not limited to a particular period but will last forevera timeless book/play/film/classictimeless values/questionsRothko's paintings have a timeless quality.Timelessly (adverb)

Inexpensive/ (adjective) /n.kspent.sv/= cheapnot costing a lot of moneyIt's an inexpensive perfume.

Fashionable (adjective)/f.n..bl/popular at a particular timea fashionable nightclub/restaurantfashionable ideas/clothesFashionably (adverb)/f.n..bli/fashionably dressed

Well-made (adjective)skilfully built or constructed: a well-made sofa.strongly built; well-built: sturdy, well-made youngsters.

Cool (adjective) informal

Very good; fashionable; hip


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VOCABULARY REVISION

1. Use the words below to complete the sentences 1-5.

demand / consumers / respond to / factors / consumer tastes / decision making/ complementary / advertisers /

1.

Producers and . use a variety of methods to try to influence and preferences, and through that, demand.

2. Tastes and preferences and the price of substitute and .. productsinfluence for goods and services.

3.

Distinguishing fact from opinion in advertising enhances consumer...

4.

People advertising in various ways.5.

make better choices when they understand and consider the. that influence their demand for goods and services.

**ATTENTION!o Complementsare products that are used or consumed in combination with one another, such as

hamburgers and hamburger buns, peanut butter and jelly, and loose leaf paper and 3-ring binders.o Substitutes are products that can replace one another, such as apple juice

and orange juice, butter and margarine, and pencils and mechanical pencils.

2. Match the terms on the left with their definitions on the right.

1 brand essence a. How a brand is presented to differentiateit from a competing brand.

2

brand image b.

The use of the brand names from twodifferent companies on the sameproduct.

3 brand parity c. The result of a customers decision toalways buy a particular brand.

4

brand positioning d.

A word, phrase or symbol that representsa company or identifies a product and isregistered to protect against its use byanother party.

5 brand equity e. The most fundamental aspect of a brand.It is often possible to express this in asingle word or phrase

6

brand loyalty f.

The part of the brand that can beexpressed verbally as words, letters ornumbers

7

brand name g.

The marketing strategy in which everyproduct in a companys range has itsownbrand name.

8 co-branding h. How a brand is perceived in the minds ofcustomers and what they associate withit.

9

trademark i.

The value that a brand name and symboladds to a product of service.

10

power brand j.

How a product is similar to that of a

competitor.1___2___3___4___5___6___7___8___9___10___


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3. Complete the definitions below with a suitable word or phrase

1 To make your brand different from other brands: _________________________ .2

This type of brand is produced for and sold in supermarkets: _______________ .3 A ________________________ is also known as a no brand.4

A well-known product that best represents the brand is called the _____________ .5

A set of products grouped under the same brand is called ____________________ .6

A type of brand that is less expensive than some similar products is called an_________________________ .

7

Using a name, symbol, logo or design to identify the product: ________________ .8

This type of brand is luxurious and more expensive than some similar products:______________________ .

9 The best-selling brand in a product category is the brand _____________________ .

4. Complete the email below about brand strategy by selecting phrases from thebox.

establish the brand/ brand extension / stretch the brand / market the brand / enhance thebrand / brand positioning / rebrand/ launched the brand

New message

Last year we _______________________ in a new market; this year we needto _________________________ and make it stronger. Its too early torebrand change the name but we could _____________________ toinclude holiday reservations as well as holiday insurance. This_____________________________ will help us to__________________________ to new consumers. Our

________________________ of reliable holidays allows us to_____________________________ , improving it in this way.

5.

Answer the following questions by stating your personal opinion

a. Name a product that is advertised by a celebrity.

b. Why do companies use celebrities in ads?

c. Name a product that is endorsed by an authority, such as a doctor, a pharmacist, a

nutritionist, a mechanic, a teacher, a police officer, and so on.

d. Why do companies use authorities in ads?

e. Name a product advertisement that focuses on a claim that everyone else consumes the

product.

f. Why do companies advertise in this way?

g. Name a product advertisement that compares the quality of similar products.

h. Why do companies advertise in this way?


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KEY VOCABULARY REVISION

11. advertisers; consumer tastes; 2. complementary; 3. decision making; 4. respond to; 5. Consumers;factors;21-e; 2-h; 3-j; 4-a; 5-i; 6-c; 7-f; 8-b; 9-d; 10-g;31-differentiate; 2-own; 3-generic; 4-flagship; 5-range; 6-economy; 7-branding; 8-premium; 9-leader.

4launched the brand/establish the brand/rebrand/stretch the brand/brand extension/market thebrand/brand positioning/enhance the brand5 possible suggestions

b. They think that celebrity ads will influence consumer tastes and preferences for the product, and,

therefore, increase consumer demand for the product.

c. toothpaste, pain relievers, food supplements, frozen foods, teaching aids for children, anti-calc

machine powder, etc.

d. They think that an endorsement by an authority will influence consumer tastes and preferences for

the product, and, therefore, increase consumer demand for the product.

e. Levi jeans, Guess, video game systems, various toys, washing-up liquids, fabric softeners, etc.

f. They think that the ad will influence consumer tastes and preferences; consumers will want what

everyone else has, and the demand for the product will increase.

g. Cars, pain relievers, other over-the-counter medications, stain removers, washing-up liquids, home

and furniture equipment.

h. If consumers think the quality of one product is higher than another, they will substitute one

product for another, and the demand for the high-quality product will increase.

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