Introduction to Branding

Course Instructor:Bipa

sha Matin

The word “brand” is derived from the Old The word “brand” is derived from the Old Norse word “brandr,” which means “to Norse word “brandr,” which means “to burn” as brand were and still are the burn” as brand were and still are the means by which owners of livestock mark means by which owners of livestock mark their animals to identify them. their animals to identify them.

Branding: Historical Branding: Historical OriginOrigin

Fleur-de-lis

Maverick

• The term "maverick," originally meaning an unbranded calf, comes from Texas rancher Samuel Augustus Maverick who, following the American Civil War, decided that since all other cattle were branded, his would be identified by having no markings at all.

• Even the signatures on paintings of famous artists like Leonardo Da Vinci can be viewed as an early branding tool.

Just How Old is Branding?

• Branding goes back even further. As far back as 1300 BC, potter's marks were used on pottery and porcelain in China, Greece, Rome and India. Branding of cattle and livestock go back as far as 2000 BC. And archaeologists have found evidence of advertising among Babylonians dating back to 3000 BC. So, how far back does branding go? At least 5000 years.

What is a brand?What is a brand? A name, term, sign, symbol or A name, term, sign, symbol or

design, or a combination of them, design, or a combination of them, intended to identify the goods or intended to identify the goods or services of sellers and to services of sellers and to differentiate them from those of differentiate them from those of competitors.competitors.

American Marketing AssociationAmerican Marketing Association

What is a brand What is a brand name?name?

That part of a brand which can That part of a brand which can be vocalized – the utterable. be vocalized – the utterable.

American Marketing AssociationAmerican Marketing Association

What is a brand What is a brand mark?mark?

That part of a brand which can be That part of a brand which can be recognized but is not utter able, recognized but is not utter able, such as symbol, design, or such as symbol, design, or distinctive coloring or lettering.distinctive coloring or lettering.

American Marketing AssociationAmerican Marketing Association

Golden arches Swoosh

What is a trade What is a trade mark?mark?

A brand or part of a brand that A brand or part of a brand that is given legal protection is given legal protection because it is capable of because it is capable of exclusive appropriation. A exclusive appropriation. A trademark protects the seller’s trademark protects the seller’s exclusive rights to use the brand exclusive rights to use the brand name and/or brand mark. name and/or brand mark.

American Marketing AssociationAmerican Marketing Association

A brand was name, term, A brand was name, term, sign, symbolsign, symbol

or design, or a combination of or design, or a combination of them,them,

intended to identify the goods intended to identify the goods oror

services of one seller or services of one seller or group ofgroup of

sellers and to differentiate sellers and to differentiate themthem

……(identity)(identity)

Day before Day before yesterday…yesterday…

Brands are much more than logos

In BANGLADESH we have…

PROMOTE These… !

Yesterday…

A brand was a bundle of benefits delivered by products/services to

consumers…(utility)

Today…A brand is an experience that real

people enjoy (hopefully) everyday…And it has a name and a personality

which fits with me.

Jayanta Sengupta

Brand: Brand: todaytoday

examples…

• Marlboro is ‘masculine’ while Virginia Slims is ‘feminine’

• IBM is ‘older’ while Apple is ‘younger’

• India Today is ‘old-fashioned’ while Outlook is ‘trendier’

More examples…

Axe• Seduction, masculinity, individuality,

unconventionality

Marlboro• Masculinity, freedom, adventure

Levi’s• Rebellion, sensuality, being cool

• People are looking for experience:

67% of consumers say: “Even though there are many things I would liketo own, I prefer spending my money onexperiences that will enrich my life.”

Lifestyle Link, May 2001, Yankelovich Monitor

Today…Today…

Branding Today

A brand is an intangible asset that resides in people’s minds,

which is defined by the expectations people have

about the benefits they will receive. These expectations of

benefits are developed over time by communications and -

more importantly - by more importantly - by actions.actions.

D. Semans,AMA Internal Branding

A brand is a reason to choose.

Cheryl Burgess

Brand: today

HandlingHandlingResponsivenessResponsivenessStabilityStabilitySpeed/AccelerationSpeed/AccelerationTechnologyTechnology

““Performance”Performance”

Experience/emotional Benefits

PerformanceBenefits

PrestigiousPrestigiousPart of a select Part of a select groupgroup

““I’ve made it”I’ve made it”““I’m treating I’m treating myself”myself”

““Important/Important/Successful”Successful”

D. Semans, AMA Internal Branding

Where do you all fit in ? Where do you all fit in ? (i)(i) All of you have a name All of you have a name

(ii) All of you have Distinguishable features (ii) All of you have Distinguishable features like brand mark like brand mark

(iii) All of you have trade (iii) All of you have trade mark mark

Can everything be branded?

• A brand resides in the minds of consumers. • Consumers perceive differences among

brands in a product category. • Even commodities can be branded:

– Coffee (Nestle), bath soap (Lux), flour (Fresh), beer (Castle), salt (Molla), oatmeal (Jungle), pickles (Pran), and even water (MUM), puffed rice (ruchi), sugar

What is branded?

• Physical goods• Services• Retailers and distributors• Online products and services• People and organizations• Sports, arts, and entertainment• Geographic locations• Ideas and causes

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What is branded?• Physical Goods

Sony

The Sony Vaio series – one voice by Sony

* Aesthetics – integrated family look. All products bear some common elements.* Style of use – interface design – unique way of operating a product.* Some functions special to the brand

• Services

Ritz Carlton Hotel

Hotel designHotel design Location Location Customer Customer

service service Restaurants Restaurants Quality of Quality of

products In- products In- room room

Retailers and distributors

Online products and services

Convenience Convenience Service Service Speed Speed Cost Cost

NetFlix: An online DVD and Blue-ray Disc rental service,

offering flat rate rental-by-mail

People and organizations

Sports, arts, and entertainment

Geographic locations

Ideas and causes

Products Vs Brands

PRODUCT

• Product: anything we can offer to a market for attention, acquisition, use, or consumption that might satisfy a need or want.

• May be a physical good, a service, a retail outlet, a person, an organization, a place, or even an idea.

Brand is more than a Product

BRAND

 Products exist to expand choice.                        Brands exist to simplify choice. A product occupies functional territory.                        A brand occupies mental and emotional territory.

A product is something made in a factory.                        A brand is something that is bought by a customer. A product can easily be copied by a competitor.                        A brand is unique. A product can be quickly outdated.                        A successful brand is timeless.  A product does  something.                        A brand stands  for something in someone’s mind, in

addition to doing something. A product is defined by it’s heaviest users.                        A brand, by the attraction of what it stands for,

defines it’s users. 

To establish a powerful, relevant identity in the minds of customers in order to encourage their initial purchases and nurture an ongoing relationship between the marketer and the end user.

Creating customer loyalty through value innovation – is the ultimate objective and meaning of brand.

In 'blind' taste tests, people prefer the taste of Pepsi over the taste of Coke. However, if the test is not 'blind' and the tasters know which beverage is which, they prefer the taste of Coke over Pepsi! That is the emotional power of a brand. The Coca-Cola brand has the power to actually change an individual's taste!

Coca-cola was the no.1 brand in the world.The first shape that was registered is the coca cola bottle.

Why do Brand matters? To Consumer

• Help buyers identify the product that they like/dislike. • Identify marketer • Helps reduce the time needed for purchase. • Helps buyers evaluate quality of products especially if unable to judge a products characteristics. • Helps reduce buyer’s perceived risk of purchase. • Buyer may derive a psychological reward from owning the brand, Rado or Ford.

Why do brand matter?To Manufacturer•Differentiate product offering from competitors

• Brand identifies the companies products making repeat purchases easier for customers. • Brand helps firm introduce a new product that carries the name of one or more of its existing products...half as much as using a new brand, lower co. designs, advertising and promotional costs.• Easier cooperation with intermediaries with well known brands • Facilitates promotional efforts. • Helps foster brand loyalty helping to stabilize market share. • Firms may be able to charge a premium for the brand.•Legal Protection•Financial returns

Coca-Cola cost $2.85, is only 2 liters.

Generic cola cost $1.23, is 2.25 liters

Importance of Brand Management

• Brands are vulnerable, and susceptible to poor brand management.

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Assignment 1: What are the strongest brands?

Branding Challenges and Opportunities

• Savvy customers• Brand proliferation• Media fragmentation• Increased competition• Increased costs• Greater accountability • Regulation

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BRAND EQUITYA brand's power derived from

the goodwill and name recognition that it has earned over time, which translates

into higher sales volume and higher profit margins against

competing brands.

The Brand Equity Concept

• No common viewpoint on how it should be conceptualized and measured

• It stresses the importance of brand role in marketing strategies.

• Brand equity is defined in terms of the marketing effects uniquely attributable to the brand.– Brand equity relates to the fact that different outcomes result in the

marketing of a product or service because of its brand name, as compared to if the same product or service did not have that name.

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They had a really good brand equity, which

meant they would sell more due to the fact that they were well known and popular.

Strategic Brand Management• It involves the design and implementation of

marketing programs and activities to build, measure, and manage brand equity.

• The Strategic Brand Management Process is defined as involving four main steps:

1. Identifying and establishing brand positioning and values

2. Planning and implementing brand marketing programs

3. Measuring and interpreting brand performance

4. Growing and sustaining brand equity

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Strategic Brand Management Strategic Brand Management ProcessProcess

Mental mapsCompetitive frame of referencePoints-of-parity and points-of-differenceCore brand valuesBrand mantra

Mixing and matching of brand elementsIntegrating brand marketing activitiesLeveraging of secondary associations

Brand value chainBrand auditsBrand trackingBrand equity management system

Brand-product matrixBrand portfolios and hierarchiesBrand expansion strategiesBrand reinforcement and revitalization

Key ConceptsSteps

Grow and sustainbrand equity

Identify and establishbrand positioning and values

Plan and implement brand marketing programs

Measure and interpretbrand performance

Group Assignment

Select your division and give a creative and relevant BRAND

NAME. Write a short description of it.

Submission Date: 25 May 2015