What's in a name?

What's in a name- How a name affects the consumer buying behaviour MAFMG 2014-2016

Semester 1

WHAT’S IN A NAME - HOW A NAME AFFECTS THE CONSUMER BUYING BEHAVIOUR

Priyanka KumariMa in Fashion Marketing

[email protected] Academy, Naraina, New Delhi, India

Abstract

“A product is something that is made in a factory; a brand is something that is bought by a customer. A product can be copied by a competitor, a brand is unique. A product can be quickly out-dated, a successful brand is timeless” (Quiston, 2004, p 345). Many brands today mean little to consumers, who have become accustomed to buying on price alone. But a new tool can help companies separate themselves from the crowd. (David Aaker).Branding has emerged as a top management priority in the last decade due to the growing realization that brands are one of the most valuable intangible assets that firms have. Driven in part by this intense industry interest, academic researchers have explored a number of different brand-related topics in recent years, generating scores of papers, articles, research reports, and books. This paper identifies some of the influential work in the branding area, highlighting what has been learned from an academic perspective on important topics such as brand positioning, brand integration, brand-equity measurement, brand growth, and brand management. The paper also outlines some gaps that exist in the research of branding and brand equity and formulates a series of related research questions. Choice modelling implications of the branding concept and the challenges of incorporating main and interaction effects of branding as well as the impact of competition are discussed.

Key Words: Brand, Brand name, consumer behaviour, purchase decision, level of involvement, brand equity , brand extensions.

1. Introduction

What’s in a name? That which we call a rose

By any other name would smell as sweet.

-Shakespeare

Shakespeare had it wrong. A rose by any other name would not smell as sweet. When we smell a rose, it’s not just the scent that reaches us, but a nexus of connotations stemming from one little word.

Academic paper/Priyanka Kumari 1

http://pubsonline.informs.org/action/doSearch?field1=Keyword&text1=brand+extensions

http://pubsonline.informs.org/action/doSearch?field1=Keyword&text1=brand+equity

mailto:[email protected]


Semester 1

Brands have been used since ancient times. For example, people burned singular designs into the skin of their livestock to prove ownership, while potters and silversmiths marked their wares with initials or other personal tags. But it is only since the second half of the nineteenth century that branding evolved into an advanced marketing tool. The industrial revolution, new communication systems, and improved modes of transporting goods made it both easier and more necessary for companies to advertise brands over larger regions. As manufacturers gained access to national markets, numerous brand names were born that would achieve legendary U.S. and global status. Procter and Gamble, Kraft, Heinz, Coca-Cola, Kodak, and Sears were a few of the initial brands that would become common household names by the mid-1900s. (Anon, 2010)

The brand history tells us how the people have used the brand as a mark of identification. In the earlier times the brand mark was used to differentiate the goods of one producer to others. Now a days brand is not only used for differentiation but also used to justify the purchase decision. Brand is a combination of name, symbol and design. Brands represent the customer’s perceptions and opinion about performance of the product.

The powerful brand is which resides in the mind of the consumer. Brands differ in the amount of power and worth they have in the market place. Some brands are usually unknown to the customers in the marketplace while on the other hand some brands show very high degree of awareness. The brands with high awareness have a high level of acceptability and customers do not refuse to buy such brands as they enjoy the brand performance. Some brands commend high level of brand loyalty. Brands also have a symbolic value which helps the people to choose the best product according to their need and satisfaction. Usually people do not buy certain brands just for design and requirement, but also in an attempt to enhance their self-esteem in the society (Leslie and Malcolm, 1992).

Brand names present many things about a product and give number of information about it to the customers and also tell the customer or potential buyer what the product means to them. Furthermore it represents the customers’ convenient summary like their feelings, knowledge and experiences with the brand. More over customer do not spend much time to do find out about the product. When customer considers about the purchase they evaluate the product immediately by reconstructed product from memory and cued by the brand name (Hansen and Christensen, 2003).

1.1 Brand Name - A conceptual understanding

The brand name is very significant choice because some time it captures the central theme or key association of a product in a very condensed and reasonable fashion. Brand names can be extremely successful means of communication. Some companies assign their product with a brand name that in reality has nothing to do with the emotional experience but is catchy and a


http://www.referenceforbusiness.com/knowledge/Commodity.html

http://www.referenceforbusiness.com/knowledge/Livestock.html


Semester 1

name that people can easily memorize. The core base of naming a brand is that it should be unique can be easily discriminated from other names, easy to remember and are attractive to customers (Keller, 2008).

A brand is a unique and identifiable symbol, association, name or trademark which serves to differentiate competing products or services; it represents not only a physical trigger but moreover an emotional hooks to create a relationship between consumers and the product/service (Blackston 2000). On the one hand, a brand is concrete (e.g. a symbol or name); on the other hand, it is also a relatively ambiguous 'trigger' that over time is used to class beliefs and feelings toward products so labelled. For this reason, the meaning of the brand is of critical concern to advertisers. Meaning (in the context of brands) refers to the overall assessment on the part of the consumer regarding what a particular brand means to him or her (La Foret & Saunders 1994). Over time, the meaning marketers infuse in a brand - and the subsequent meaning consumers associate with the brand - is transferred to the products to which the brand is attached

A brand has a value; this depends on the quality of its products in the market and the satisfaction or content of the customer in its products and services. This provides the trust of the customers in the brand. If customers trust a brand quality it makes a positive connection to the brand and customers will have a reason to become a loyal to the brand. Loyalty and trust of the customers is very important for a company because it reduces the chance of attack from competitors (Aaker, 1996).

Brands play a very important role in the consumer decision making processes. It is really important for companies to find out customer’s decision making process and identify the conditions, which customers apply while making decision (Cravens and piercy, 2003).

2. Types of brand names

Company names can be classified into one of seven broad categories.

Descriptive names-What you see is what you get

Descriptive names are a shade less undesirable than generic names, but only barely. A descriptive name “immediately conveys an idea of the ingredients, qualities or characteristics of the goods or services,” writes intellectual property lawyer Jill Hubbard Bowman.(Friedman, 2013)

Descriptive names are not eligible for trademark protection, because nothing prevents your competitors


Source: Google

http://www.iplawforstartups.com/why-scalable-companies-shouldnt-use-descriptive-names/


Semester 1

from making the identical descriptive claim. Why do many companies ignore the advice of trademark lawyers (and naming consultants) and pick descriptive names? “Companies may choose a descriptive trademark even though it is a weak mark because there are marketing benefits to using a mark that describes the product,” is how the descriptively named Registering a Trademark website puts it. (Friedman, 2013)

Moreover, there’s a sliver of hope for descriptive names: eventually, if they’re really successful, they may acquire what’s known as “secondary meaning,” which occurs “when consumers begin to associate the descriptive name of a product with only one source or maker,” as the Schwegman Lundberg Woessner legal blog puts it: “Two descriptive words together may become distinctive, and so may surnames.”

Holiday Inn, for example, started life as a descriptive name for inns where people spent their holidays. Over time, the public came to associate the name “with a particular provider of hotel services, and not with hotel services in general,” according to the Harvard cyber-law blog. (Friedman, 2013)

Moral: If you have a lot of time, and a big budget to fight similarly descriptive brands, go right ahead with that descriptive name of yours. If you don’t, keep reading.

Descriptiveness sometimes plays a legitimate role in nomenclature. Some products—medical and technical instruments, for instance—are best served by descriptive names. Certainly your product copy should be clear and descriptive. And often a descriptive tagline provides clarity and balance in support of a suggestive, arbitrary, or fanciful name.

Allusive names-More than greets the eye

Allusive name suggest or hint at the product, service, institution or its main benefits. Allusive names “evoke or suggest a characteristic of the underlying good,” as the Harvard blog puts it. Greyhound for a bus company suggests the speed of racing dogs; Amazon for an online retailer suggests a mighty river of products. Balance Point, a name I created for a pioneer in the divorce-funding industry, suggests fairness, financial accounts, and attention to detail.

It draws on the power of metaphor and analogy to create positive associations in customers’ minds. They’re tougher to create—metaphor isn’t easy!—and more challenging to market than descriptive names, but they’re much more likely to be granted trademark protection and to become sustainable, scalable brands. (Friedman, 2013)

Coined names-New words for the language


Source: Google

http://nancyfriedman.typepad.com/away_with_words/2009/03/introducing-balance-point-funding.html

http://cyber.law.harvard.edu/metaschool/fisher/domain/tm.htm

http://cyber.law.harvard.edu/metaschool/fisher/domain/tm.htm

http://www.slwip.com/services/faqs/trademark_distinctive.html

http://www.registeringatrademark.com/protectable-marketable-trademark.shtml


Semester 1

Coined (invented) and have no inherent meaning other than the one assigned to them. Kodak is the classic example: the name was constructed to appear symmetrical and to have no meaning in any known language. Xerox was constructed from a real Greek root (xer-, meaning “dry,” for the dry toner used in early copiers), but at the time of its coining “Xerox” had no dictionary meaning.

There are plenty of fanciful-name flops, as well: see my posts about Shpoonkle Blellow, and Infegy. Coined names can sound as though they were created by robots (as in fact many of them are) or toddlers. On the other hand, the best fanciful names, like Zulily, have appropriate sound symbolism and are easy to pronounce.

Fanciful names are usually considered the easiest names to protect legally, but they aren’t shoo-ins. If, for example, Zulily had had a competitor named Zuli—a hypothetical coined name—the sailing would not have been so smooth. In fact, though, Zulily was granted the first of its trade marks in 2010. It is no accident that Zulily was named with the help of an experienced naming consultant (and linguist), The Name Inspector. (Friedman, 2013)

Generic names- As simple as it look.

Generic names identify an entire class of products or services; they are the weakest of all names and cannot be granted trademark protection. That doesn’t mean generic names don’t exist. You may have seen generic labels in the supermarket: “Cigarettes,” “Milk,” “Dog Food.” You’ve also seen them online: Hotels.com, Cars.com, Vibrators.com.

Why choose a name that can’t be legally protected? In supermarkets, generic names identify low-cost products that aren’t supported by advertising. Online, especially in the early days of the Web, many companies wanted to stake a claim to an entire market segment. They chose the lowest common denominator, a generic name, over the challenge of distinctiveness. (Friedman, 2013)

Some brand names that started out as descriptive or suggestive, like Aspirin and Escalator, became generic when customers used them to describe a class of products. The process is known as genericide.

Note: a generic name is not merely “a household word” or “a dictionary word.” Context matters. Milk is a generic name for a dairy product; it’s an arbitrary (and thus legally protectable) name for a branding agency.

Arbitrary names-The real name.


Source: Google

Source: Google

http://milksono.com/

http://nancyfriedman.typepad.com/away_with_words/2006/11/word_of_the_wee.html

http://www.thenameinspector.com/are-you-out-there-zulily-charlotte/

http://www.trademarkia.com/trademarks-search.aspx?tn=zulily

http://www.trademarkia.com/trademarks-search.aspx?tn=zulily

http://www.linguistics.berkeley.edu/~ohala/papers/SEOUL4-symbolism.pdf

http://www.zulily.com/

http://nancyfriedman.typepad.com/away_with_words/2009/05/bad-brand-names-infegy.html

http://nancyfriedman.typepad.com/away_with_words/2009/05/bad-brand-names-blellow.html

http://nancyfriedman.typepad.com/away_with_words/2011/04/objection.html


Semester 1

Arbitrary names are “real” (dictionary) words used out of context. It illustrates how dictionary words used non descriptively become arbitrary trademarks. Shell (for an oil company), Apple (for a technology company), Quaker (for a food company), and Camel (for a tobacco company) are all “real words” and arbitrary names. (Friedman, 2013)

Arbitrary names are even more likely than suggestive names to receive trademark protection. The trade-off: they require more storytelling to make their case.

Good arbitrary marks have a loose relationship to suggestiveness, in that some quality evoked by the name—the wholesomeness of milk, for example, or the directness of the Religious Society of Friends—applies to the thing being named. Connecting the dots often requires a nimble imagination and sophisticated writing skills. (Friedman, 2013)

3. Deciding a brand name

Choosing the name of a company is often unscientific. Since most companies start small with the emphasis on the idea for the product or service rather than the brand, the name arises as an afterthought. There is a strong likelihood that the name will be chosen on emotive grounds rather than because brand name testing has been conducted to ensure suitability for the target market. Since every company needs a name and because one name is just as good as another, why not pluck it out of the air? And often it is.A name which projects positive values and has a good sound to it must be an advantage to a new company. In certain circumstances a wacky name, even an irreverent name can work too but there are limits. Perhaps in some fashion markets, a name which pokes fun at itself (eg FCUK) may work but not in sober industrial markets. Clearly you should not select a name that suggests deficiencies in the product (the Crumbling Brick Company would hardly do for a brick manufacturer but may be possible for a demolition business) or implies some negative values (the Inaccurate Bookkeeping Company), but generally these sort of pitfalls are fairly obvious. However, there are also names which, although not outright disasters, may have drawbacks which only become apparent in time.There are also the potential translation dangers if the brand is to be used outside the domestic market. An innocuous English name may mean something very different written or spoken in French, German or some other language.

Choosing a name is a very personal thing. Anyone who has named their offspring will have gone through a questioning process which could just as reasonably be applied to that of a company:

Is it a name which will last?


Source: Google

http://en.wikipedia.org/wiki/Quakers


Semester 1

Is it a name which is too fashionable? Will it fit their personality? Does it have 'the right' connotations? Are the brand values projected - young and vibrant,

large and well established, localised or international, a specialist, etc? Does it produce an acceptable acronym together with the other initials in the name? Is it a name which will be appropriate in all stages of life? Is it easy for everyone to pronounce? Will it be remembered? Will the name get shortened or altered to one that is acceptable?

While your name is certainly not everything, it is an important piece to building a lasting brand. Great brand names:

Are emotional Are memorable Have personality Have the presence to tell a story and communicate

As soon as you pick a brand, see if you can secure a domain name that is consistent with your brand name. You should also research trademark availability. Should a name be literal and descriptive or obscure and emotional? There are strong arguments on both sides. Leaning toward the obscure and emotional can lead to very distinctive brands, but literal and descriptive can speed up the process of communicating your message to your audience. When you have come up with a name or slogan, research it. Check the Internet and the trademark office to see if anyone else is using it.

Be original Generic names like Senior Mortgage, Reverse Mortgage Lending, or Senior Lending may just make you spend more and work harder at building a brand. They don’t have legs and will likely drown in the sea of sameness. Being descriptive—as opposed to being generic—is not a bad thing for names. Given your limited budget, it can actually be a great way to go. Try to be original so your name stands out, so it means something, so you can own it, and so it will be much harder to copy. Avoid names that are hard to spell or pronounceAsk yourself, how will the market receive the name? Will the market get it? Will it jive with your strategic positioning of the brand? Are there negative connotations or associations with the name?There’s no magic or fool-proof method for testing names. Don’t get bogged down. Sometimes too much analysis just delays the decision and can derail the process of naming your brand. Come up with a few ideas and then test a little, talk to your colleagues, customers, friends and family, listen to people you respect, trust your gut feelings, and make a choice.


http://www.startupnation.com/pages/start/Step5.asp

http://www.startupnation.com/pages/start/Step5.asp


Semester 1

While the brand name is important, few brand names can stand on their own. A great brand should fix itself in the consciousness of the public as a symbol to your story, differentiate your company in your marketplace, and trigger a memory or emotion. The brand name and how your branding campaign is executed are essential to building brand awareness, but they are only part of your branding arsenal.

Create a LogoA logo is the visual image of your company that will be used in a variety of applications. When you are considering a design, think simple. Many of the most effective logos are one colour. For a start-up, this can save you a lot on printing and marketing expenses.It is important to test how your logo photo copies and works in a digital environment, fax, website, letterhead, etc. Sample other venues that you may grow into, like an outdoor sign, moving vehicle, posters or promotional items. Can it work as well on a small or large scale?The right logo can make a great first impression. Your business card, corporate stationery and website are often where your logo is initially presented to your potential customers and clients. Whether your logo is full-colour or one colour, make sure you leave them with the best possible impression through the use of high quality business cards, letterhead and envelopes. The good news is that in this age of computer graphics it doesn’t have to cost a fortune.

Make a List of all Your Touch PointsEvery time you touch a customer or prospect; you should feel your brand coming through. This should include your workplace, promotional activities, correspondence, and even how your phone is answered. Remember the brand is the summation of your company; infuse as many contact areas as possible with your brand essence.

Create a Demand for your Brand your product’s performance, your customer service, follow-through, and the quality of your advertising, marketing and communication add up to the brand experience. Positive experiences turn your brand into a magnet for new and repeat business. Customers will seek you out, refer you to their friends, and remain loyal. Your branding can make the consumers choice easier and comfortable. The power of a well-executed brand can change your fortune!

Brand MarketingBrand marketing is communication that differentiates you from competitors and increases awareness of your brand promise. Brand marketing sets the stage for advertising, direct marketing and other communication by positioning your product in the minds of potential customers. Direct marketing or product marketing then hones in on customers and gives them an opportunity to buy with confidence, aware of the brand promise your branding campaign has instilled in them.


http://www.startupnation.com/pages/passport/PP_PrintingForLess.asp


Semester 1

Use IMC Integrated Marketing Communications is the process that aligns communications to build positive and lasting relationships with customers and other stakeholders. It is a customer-centric approach to marketing and branding that stresses communicating to consumers in order to speak with one voice through multiple forms of media.In other words, it’s how you present your company or advertising and prevent it from having multiple, conflicting messages sent out by individuals who shouldn’t be sending them out. A good IMC plan balances an institution’s responsibility to create awareness with its need to generate results.

The IMC process has three distinct functions: brand marketing, direct marketing and customer relationship management.

3.1 Brand Name Registration

Brand Name is other name of Trademark. Brand Name Registration in India governed by the Trade Marks Act, 1999 & Trade Marks Rules, 2002 (and amendments thereof). The Trademark Act & Trademark Rules seeks to provide for the registration of Brand Name relating to goods and services in India. The rights granted under the Act, are operative in the whole of India.

Brand Name registration is a very essential thing in the company’s brand building and to provide it a unique image. Every company owns exclusive rights for its Brand and it wants that no one should use that Brand so the trademark is needed for that purpose.Under the Trademark Laws a letter, number, word, phrase, logo, graphic, shape, smell, sound or combination of these things are available for registration in India.Registered Brand Names give companies instant recognition with buyers and represent an organization’s individuality. Brands for well-known companies can be identified at a glance and have tremendous marketing power. That’s why companies invest big bucks in finding top-notch designs. Simplicity is the key in today’s competitive Brand world. (Tyagi, 2014)After the Brand Name registration in India no other company or the person can use the Brand other than the owner. It is very essential to protect the Brand in this era of high competition. If your Brand Name is trademarked than you can entitle to get the statutory damages against any person who copy your mark in bad faith and the law imposes criminal liabilities against the wrong doer as well.


Source: Google


Semester 1

The best way to safeguard your Brand is to trademark it. Trademarks protect words, names, symbols, sounds and colours and distinguish one company’s goods and products from another. Trade marketing a Brand protects it from being used by other similar companies and also protects a company from unknowingly infringing upon an existing Brand – this is the best reason to make sure your trademark can be clearly identified.We are comprised of experienced, capable and dedicated Legal Professionals, Trademark Consultants, Trademark Law Attorneys and Trademark Agents enabling us to provide best Trademark & Logo registration services in India. We are working in collaboration with many renowned law firms and eminent lawyers. Our underlying belief in being transparent, candid and interactive with the client has earned us many satisfying clients across the country.(Tyagi, 2014)

3.2 Brand Name Registration ProcedureSTEP 1: Brand Name Search:A Brand Name search is the first step in the Brand Name registration procedure. A search is to be conducted in order to determine the uniqueness of the brand, and its similarity to other, pre-existing brands. It is very much advisable to conduct a Brand Name search before registering or using a Brand Name. Without a search, there are chances for being sued for Trademark infringement, the rejection of the Brand Name application, and a third-party challenging the Brand Name registration application.STEP 2: Filing of Brand Name Registration Application:The second step in the Brand Name registration procedure is filing of Brand Name registration application after getting the positive search report. After receiving of the acknowledgement the applicant can use the symbol TM along with the applied brand. If the application for the registration of Brand Name filed through e-filing system of Brand Name registration than the acknowledgement of the application along with the government receipt generate immediately after the filing. If the application for the registration filed manually than the acknowledgement provided only after 15-20 days.STEP 3: Examination of Brand Name Registration Application:Third step in the Brand Name registration procedure is issuance of examination report by the Registration office. Upon receipt of Brand Name registration application, the Registrar issues an examination report after examining the application. Applications are examined to ensure that they comply with the requirements of the law and that they do not conflict with brands which are already registered, or which are the subjects of earlier pending applications.STEP 4: Publication of Mark in Trademark Journal:Fourth step in the Brand Name registration procedure is the publication of the brand in the Trademark journal. If the Registrar considers the mark as a distinctive brand or after the removal of the objections, if any, raised by the Registrar he may cause the application to be advertised in Trademark journal. If no opposition to the brand is filed within 90 days from the date of publication, or 120 days if request for extension of time is given to the opponent and opposition is refused, brand proceeds for the acceptance of Registration.



Semester 1

STEP 5: Trademark Registration:Fifth step in the Brand Name registration procedure is the issuance of Trademark registration certificate. After the application for Registration of Brand Name is accepted by the Registrar, the Registrar shall issue to the applicant a Certificate of Registration under the seal of the Trademark Registry.Time Duration: If there is no objection and /or opposition raised, the process of Registration of Brand Name usually takes 15 to 18 months. (Tyagi, 2014)

4. Building brand identity with brand name

4.1. Brand Identity

Brand management has become an emerging issue today for any organization where branding starts with the concept of building brand identity in the target market. For the success of consumer goods or service brand, it is obvious to track brand through research. Brands of lifestyle products operate within extremely narrow target audience with highly specialized interest. The nature of this niche market demands strong brand identity and brand planning to secure sustainable relationship with customers. (Farhana, 2014).

4.2 Establishing brand identity

Brand identity is a unique set of brand associations implying a promise to customers and includes a core and extended identity. Core identity is the central, timeless essence of the brand that remains constant as the brand moves to new markets and new products. Core identity broadly focuses on product attributes, service, user profile, store ambience and product performance. Extended identity is woven around brand identity elements organized into cohesive and meaningful groups that provide brand texture and completeness, and focuses on brand personality, relationship, and strong symbol association. To be effective, a brand identity needs to resonate with customers, differentiate the brand from competitors, and represent what the organization can and will do over time (Aaker and Joachimsthaler, 2000). To excel, a brand image must be well planned, nurtured, supported, and vigilantly guarded (Knapp, 2000).

One key to successful brand-building is to understand how to develop a brand identity – to know what the brand stands for and to effectively express that identity (Aaker, 1996). A brand is a distinctive identity that differentiates a relevant, enduring, and credible promise of


Source: Google


Semester 1

value associated with a product, service, or organization and indicates the source of that promise (Ward et al., 1999). Companies that present a cohesive, distinctive, and relevant brand identity can create a preference in the marketplace, add value to their products and services, and may command a price premium (Schmitt and Simonson, 1997).

When brand faces aggressive competition in marketplace, brand personality and reputation of the brand help it distinguish from competing offerings. This can result in gaining customer loyalty and achieve growth. A strong brand identity that is well understood and experienced by the customers helps in developing trust which, in turn, results in differentiating the brand -from competition. A company needs to establish a clear and consistent brand identity by linking brand attributes with the way they are communicated which can be easily understood by the customers. Brand association a set of brand associations enable a brand to develop a rich and clear brand identity.

While some customers may attach greater importance to functional benefits, emotional value helps the brand stand above others. Building brand associations requires a company to understand its brand as well as competitors’ brands through customer research. Customer research should study existing and prospective customers, former customers, industry experts, and intermediaries. Brand strengths associated with beliefs and values are the most powerful and most difficult to imitate. Brand image is the perception in the mind of the customers about the brand and its associations. In contrast to brand image (the brand’s current associations), a brand identity is inspirational and may imply that the image needs to be changed or augmented. In a fundamental sense, the brand identity represents what the organization wants the brand to stand for (Aaker and Joachimsthaler, 2000). The “brand as personality” stage marks an important transition phase since not all brands evolve into consumer icons, especially if the consumers do not relate to, or believe in, the communications of the brand, or they sense some inconsistencies with the brand’s communications (Wee and Ming, 2003). A brand’s personality provides a richer source of competitive advantage than any functional feature can (Sherrington, 2003).

Personality attributes help the brand to achieve sustainable differentiation as they are more difficult to copy Building brand identity in competitive markets Bhimrao M. Ghodeswar Journal of Product & Brand Management Volume 17 · Number 1 · 2008 · 4–12 5than functional features of the product and service by the competition. Another advantage of the personality association is that it establishes direct relationship with the customers.

The conception of brand identity was mentioned for the first time in Europe by Kapferer, 1986. The importance of the conception and its understanding quickly disseminated in the entire world. The literature on brand management, which has been widely examined, uses the terms “equity” (Aaker, 1996).



Semester 1

According to J. Kapferer, brand identity could be de-fined by answering the following questions:- What is the aim and individual vision of a brand?- What makes a brand distinguished?- How satisfaction could be achieved?- What is brand’s equity?- What are brand competence, validity and legitimacy?- What are the features of its recognition?

It could be claimed that the conception of brand identity includes the uniqueness, meaning, aim, values, and personality and provides a possibility to position the brand better, and, thus, achieve the competitive advantage.

4.3 Brand identity Prism

First of all brand contains an external specificity that is physical appearance, which is the core of brand and its value added. This determines a traditional brand management due to orientation to “know how”, classical positioning, selecting a principal good or brand features and the benefit. The first step building up a brand is the definition of physical factors, identifying what it is, what it does and how does it look like. Physical appearance is closely connected with a brand prototype, revealing the quality of a brand (for example Coca-Cola


Source: Google


Semester 1

bottles on tins of Coca-Cola). The second element of identity prism is brand personality. With a help of communication brand character is being developed and this is a way by which any brand “talks” about its goods and services and indicates a particular human person. The trait of personality within the prism of identity is inner source. It should not be mixes up with the image of consumer‟s reflection which is an ideal portrait of every recipient. Brand personality is described and measured using those features of consumer personality that are directly related to brands. Since 1996 the research was directed towards studies of brand personality (Kapferer, 2003). D. Grundey (2002) claims that the success of brand expression percentage in the market depends on the choice of every element of personality and its reconciliation. Brand personality is closely connected with self-image and image of a consumer because the identification of consumers‟ with a particular segment reflects brand features.

Brand is culture. Brands possess that culture in which they originated. Brand is a representative of its culture, including communication. From this perspective culture entails a lot of values that provide brand with inspiration. Cultural features a correlated with external principles of brand management (a good and communication) Culture is in the core of brand. Global brands usually reveal their culture (Benetton, Coca-Cola, IBM). The aspect of culture enables to discover differences between other competing brands. The attention is focused on brand personality; however, eventually only those brands become leaders that possess not only personality but culture. Brand culture is based on the culture, values and aims of an enterprise. This is one of good lineaments while comparing brands of different companies as it is not likely that two different companies will have identical cultural features ( Grundey, 2002). Countries producers are the sources of brand culture as well. However, this is not the only factor, providing value added. The degree of brand freedom is frequently restricted by the culture of a company as this is the most visible and external brand feature. Culture plays the essential role in brand differentiation as it indicated what moral values are embodied in goods and services. This feature helps identifying the strongest brands because sources, basic ideals and a set of values are revealed.

Brand includes relationship as brands frequently take the most important place in the process of human transactions and exchange. This is extremely reflected in the sphere of services and retail companies. This feature emphasizes the way of behavior which is identified with brand most of all. A lot of actions such as the fact how brands influence and provide services in connection to their consumers determine this feature. According to Kapferer (2003), brand is a voice that consumers should hear because brands survive in the market because of communication. D. Grundey (2002) singles out the following ways of communication:-Advertising and other support elements;-Direct consumer’s communication while purchasing a good.Marketing culture of a company is extremely significant as it is a constitutive part of company’s culture, manifested through the relationship of consumers and the company.



Semester 1

Invisible communication is created with a means of associations and its can start between people (a seller, buyer or employee) seeking for the same or different goals. Communicating it is important to reconcile different need of people and present the entire useful information allowing perceiving the essence and peculiarities of a brand.

Brand is a customer reflection. Consumers can easily define what goods of a particular brand are produced for a particular type of consumers (for example, this automobile was developed only for show stars). Brand communication and goods aim at reflecting a consumer, for whom those goods are addressed. Consumer reflection is often confused with the target market (Kapferer, 2003). The target market determines potential consumers though consumer reflection does not define target market. A consumer has to be reflected in a way, which would show how he or she could image themselves consuming a particular good. The representatives of the target market should be presented differently from what they are but what they would like to be. Consumers use goods of certain brands seeking to create their own identity. Brands should control their consumer reflection. A constant repetition stating that this brand was developed for a certain target group weakens brand image.

Consumer self-image-Brand is closely related to the understanding of consumer self-image that is the features with which consumers identify themselves and the very same features they would like to be reflected by the chosen good and its brand. Consumer self-image is important in the explanation of consumer behaviour as consumers purchase goods, corresponding to their self-image. The conception of consumer self-image includes an amount of individual ideas, thoughts and feelings about him in relationship with other objects within socially defined boundaries (Onkvisitir Shaw, 1994). This is the understanding of an individual about his ability, semblance and characteristics on personality. The conception of consumer self-image is developed within timeframes and is based on that what a consumer sees around himself and how other consumers evaluate and respond to him. The conception is a set of beliefs about oneself, retained in memory. The conception of consumer self-image can be determined and strengthened by examining purchase and consumption. Consumers acquire the reconciliation of oneself having positive attitude towards a certain goods of that brand ( for example, a man who identifies himself as strong and muscular will choose Marlboro” cigarettes, while a woman, identifying herself as attractive and modern will choose, Virginia Slims cigarettes) ( Graeff, 1996).

All six elements emphasize brand identity. The prism of identity originated from the basic conception that brand is marked by the gift of “speech”. Brands can exist only then when they communicate. Physical appearance and personality allow determining the sender. The recipient is defined by consumer reflection and self-image. The last two elements of brand identity: culture and relationship link the sender and the recipient.

The prism of brand identity maintains a vertical subdivision: the elements on the left such as



Semester 1

physical appearance, relationship and consumer reflection are social and provide brand with external expression (image) and are visible. The elements on the right such as personality, culture and consumer self-image are connected with the inside of a brand and its soul.

Summing on the prism of brand identity it can be noted that it is the unit of brand identity as a live system of elements, possessing internal and external sides and determining possible limits for brand development and variation.

5. Significance of brand name on consumer Decision making

People have strong connection to brands and brands name. Brand name influences the customer decision. The consumer decision making process defines different steps when a consumer goes through to purchase a product. If customer wants to make a purchase he or she takes a sequence of steps in order to do complete this purchase. Problem recognition includes when consumer feel a significant difference between the current state and ideal so consumer thinks there is some problem to be solved. The problem may be small or big.

In the second step, the consumer seeks information about the product. The extent of information search relies on the level of consumer involvement. In case of expensive products, the level of involvement is high. Conversely, in case of relatively cheap products the level of involvement is usually low. In the third step, the consumer evaluates the different attributes of the brands. Consumer may consider the product attributes and compare brand products. In the final step consumer makes his choice about a product. It’s true that a consumer may not necessarily go through all the decision making steps for every purchase he or she makes. At times, consumer makes his or her decision automatically and the decision may be based on heuristics or mental shortcuts. Other times, in case of high involvement products consumer may take a long time before reaching a final purchase decision. It depends on consumers’ importance of the products like purchase of a car or home. More over consumers try to make an estimated brand universe on the basis of available information about the brands, and to make an estimated the utility function on the basis of past consumption experience (Solomon, 2006).


Source: Google


Semester 1

Marketers are highly concerned to know how brand names influence the customer purchase decision. Why customers purchase a particular brand also implies how customers decide what to buy. Customers follow the sequence of steps in decision process to purchase a specific product. They start realizing a requirement of product, get information, identify & evaluate alternative products and finally decide to purchase a product from a specific brand. When customers purchase particular brand frequently, he or she uses his or her past experience about that brand product regarding performance, quality and aesthetic appeal (Keller,2008).

5.1 Case study- Nike



Semester 1

1) Physique

The Physique of Nike is shown by its logo which is swoosh with a tagline of “Just do it“.For sports and fitness, they deal in the sports equipment’s, footwear, accessories, apparel and services. Physically they are present as EBO and as World’s largest suppliers of athletic shoes and apparel and a major manufacturer of sports equipment’s. (Kala, 2014)

2) Personality

Nike brand personality is that of Exciting, confident, sportive spirit, athlete and energetic, as Nike is a brand for sport persons and fitness conscious. Examples of person it could be are Maria Sharapova and Roger Federer since these two tennis players have the personality of Exciting, confident, arrogant, aggressive and energetic which these character can represent the Nike brand.

3) Relationship

The relationship Nike brand maintains is very strong and a good relationship with customers by creating memorable award winning campaigns such as Nike running marathon. Nike also sponsors the athletes as well sponsors the game such as Olympic game. Nike also sponsors various teams in football and cricket also which also creates a good relationship with customers. (Kala, 2014)

4) Culture

Nike takes its culture from the American culture. Nike is a global brand that reveals its culture by which symbolizes the American way which is being individual and aggressive like Michael Jordan. Nike has aggressive winner attitude that can be related to the American sport attitude. This culture will help Nike in the way to differentiate Nike from other competing brands, such as Adidas, as the brand culture indicates what values are included in the Nike products and services. In addition, Nike communicates with their people by relating it with cultural values by creating a provocative attitude by encouraging them to let loose (“Just do it”)

5) Reflection

Customers will be reflected Nike for dynamic lifestyle, for athletic and never giving up attitude, aggressive and for winning with cool fashion. Over time, Nike will use advertising to continue address our customer reflection, so as a result of buying Nike sports apparels, footwear and accessories. Customers will perceive their own identity to be dynamic, energetic, athletic, and fashionable and certainly to win. (Kala, 2014)

6) Self Image



Semester 1

Nike prism, the person who identifies himself/herself as fun, smart , sport person and fitness conscious will buy our Nike since customers buy Nike sports merchandise corresponding to their self-image. Nike now have more fashionable sports merchandise rather than being only traditionally about their sports merchandise, buyers of Nike will try to prove themselves too that they are in-fashion, having their own style, as well as they are fit and sport person and feel fun and cool. When they wear Nike , they belong to a fashionable sport society.(Kala, 2014)

5.2 Case study - Clean and clear - Characteristics of a good brand name

• It is easy to remember

Since it is only one word it is very to remember, pronounce and spell.

• It suggests something about product benefits or use.

It is obvious that the purpose of the Clear Hair & Scalp Therapy shampoo is to clear the scalp against the dandruff with regular use.

• It must be distinctive

The colors are very recognizable since it has simple font on the logo which has black and white colors. The packaging colors are blue (for boys) and white (for girls) and have variants.

• It must be legally protected

It is legally protected since it is a Unilever product definitely not an imitation of any patented brands by competitors and registered under the patent office.

5.3 Toyota

It shares all of these attributes and in some cases provides better quality than Mercedes, so why isn’t it seen as a direct competitor? Toyota isn’t positioned as a premium brand in the minds of consumers. What did they do to compete in this market segment? They created a premium brand: Lexus. Both Toyota and Lexus brands share


Source: Google Source: Google

Source: Google


Semester 1

engineering, chassis, design elements – the brand is what differs in the minds of the consumer. The branding goes beyond the vehicle – you find branding in everything that Lexus does:

the way the salesperson first approaches you in the showroom how he/she is dressed (in a suit vs. Volkswagen salespeople in polos) the layout of the showroom the choice of building materials and interiors—slate floors, leather chairs the waiting areas the cleanliness of service areas the branding of Lexus continues after the sale

Lexus has received JD Power’s highest customer satisfaction rating for years. Now, this isn’t simply because Lexus has so many fewer problems than BMW or Audi or Mercedes, but it is due to the level of customer service – this is how Lexus extends its brand – through a brand experience.

5.4 Case study – Diesel - Brand Identity Prism

6. How brand name can become a problem

Names can also get a company into trouble. Steve Jobs, when he formed Apple, the computer company, is reputed to have chosen the name because he was a Beatles fan and loved the Apple recording label used by the four Liverpool lads. Since the two companies were in completely different markets, there was no conflict and both companies could trade happily under the same name. He was not to know that 30 years later he would see the recording



Semester 1

company in court about the name. The original Apple computer company has become big in iPods and iTunes and potential confusion exists around the two companies’ names.

So, what is there in a name? Absolutely everything. It is one of the most important assets we have, providing instant recognition and a shorthand for our brand values. If we don’t understand the importance of our name, if we don’t nurture and cultivate it, and if we don’t manage it throughout the growth of the company, we are missing a very important trick and we could be in big trouble. The twenty most common brand problems are as follows(VanAuken, 2014):-

No one in the organization has a solid understanding of the brand’s consumers or their needs.

The brand does not stand for anything and it does not promise anything. It is just a name and a logo.

The brand touts a clichéd, unsubstantiated, meaningless point of difference (such as, we are the quality leader or the service leader or the innovation leader or, worst of all, just the leader).

Brand messaging is helter-skelter. That is, it varies by audience, message vehicle, campaign, etc.

A crisis occurs that reinforces that the brand was never really serious about its promise.

The brand becomes a “whipping boy” for some social issue. Special interest groups that disagree with the brand’s policies target the brand for attack.

There is little to no awareness of the brand in the marketplace. This could be because it is a start-up brand or because it is new to the specific geographic market.

The brand’s less than stellar perceptions are due to product problems. The product may have quality problems or be inferior to its competitors’ products in other ways.

Internal politics and organizational dysfunction lead to brand and customer service dysfunction.

The brand and the organization behind it have rested on their laurels for far too long, not keeping up with consumer needs and industry innovations. (VanAuken, 2014)

7. Brand name-Possibilities of innovation

A theory is meant to describe reality; hence, there will always be a need for new theories since the society and reality perpetually change. The branding theories we have today originate in the need to understand the processes and phenomena present in the society. For instance, at the end of the 1980s, many relationship marketing theories were developed, and this was due to the fact that there was a need to understand how relationships could benefit both a company and its customers. Several researchers investigated this topic, and new theories and models were designed, which were then compared and compiled. If existing theories are insufficient, they can be used to bring out new modified theories through



Semester 1

academic studies; otherwise the theories are implemented and tested in the society. Once the theories have been implemented, researchers get feedback, and, depending on the success, they could use the results to carry out new research studies. In our example above, this was what happened to relationship marketing when the existing theory was used to develop a new theory in relational branding, which, in turn, enabled researchers to pay more attention to the role of brands in relationships. (Lindberg, 2011)

In the literature review, it was shown that the development of the society influences the development of marketing. Hence, to predict the future of branding, we have to look into the projected development of the society. A distinct development in most western societies is the emergence of even stronger consumer and civil right movements, greater supervision of company’s commitments, and a faster information flow. There are no indications that this development will slow down, and it will be of great magnitude for companies to consider20 their influence on society and environment. In other words, CSR will be a concept that all companies will try to be associated with. Future brands will not be able to enjoy the full advantage of their products if they neglect the importance of CSR. Theories developed during the past decades have primarily emphasized the emotional component of the relationship between brand and consumer. (Lindberg, 2011)

The development in the society goes in the same direction with powerful consumers willing to remind corporations of their struggle to achieve a fair business world. Due to the present economic meltdown, the consumer movement will become even stronger and more conscious, and suspicious-looking companies will get noticed by both media and consumers. Alert companies will try to achieve a citizen brand status by emphasizing CSR theories and then communicate their own willingness to aid the society. In doing so, the aim is to achieve the desired brand identity to become sustainably competitive.

However, it is not all about becoming a citizen brand; companies have to be able to produce products that enable an increased quality of life. No one said it was going to be easy, but, in a competitive world, companies can afford to neglect neither the consumers nor the society. Companies must, therefore, acknowledge the difficulties and embrace a holistic thinking about the variables that affect brand identity. Every single aspect that builds up the brand identity is important, but working well together, they become a competitive advantage that is hard to duplicate. Due to its many variables, brand identity is a very difficult and timeconsuming concept to influence; yet, to be able to compete, future brands should spare no pains in attaining their desired identity. (Lindberg, 2011)

8. Conclusion

In order to benefit from the consumer relationship allowed by branding, a company must painstakingly strive to earn brand loyalty. The company must gain name recognition for its product, get the consumer to actually try its brand, and then convince him that the brand is



Semester 1

acceptable. Only after those triumphs can the company hope to secure some degree of preference for its brand. Indeed, name awareness is the most critical factor in achieving success. Companies may spend vast sums of money and effort just to attain recognition of a new brand. To penetrate a market with established brands, moreover, they may resort to giving a branded product away for free just to get people to try it. Even if the product outperforms its competitors, however, consumers may adhere to their traditional buying patterns simply because of their comfort with those competitive products.

An easier way to quickly establish a brand is to be the first company to offer a product or service. But there are also simpler methods of penetrating existing niches, namely product line extension and brand franchise extension. Product line extension entails the use of an established brand name on a new, related product. For example, the Wonder Bread name could be applied to a whole-wheat bread to penetrate that market. Brand franchise extension refers to the application of an old brand to a completely new product line. For example, Coca-Cola could elect to apply its name to a line of candy products. One of the risks of brand and product extensions is that the name will be diluted or damaged by the new product.

Besides offering ways to enter new markets, product line and brand franchise extension are two ways in which a company can capitalize on a brand's "equity," or its intangible value. Three major uses of brand equity include family branding, individual branding, and combination branding. Family branding entails using a brand for an entire product mix. The Kraft brand, for example, is used on a large number of dairy products and other food items. Individual branding occurs when the name is applied to a single product, such as Budweiser beer. Combination branding means that individual brand names are associated with a company name. For example, General Motors markets a variety of brands associated with the GM name.

Brand extension enjoyed a great deal of popularity during the late 1990s. As product development and advertising costs increased, many companies sought to leverage the equity in their existing brands rather than attempting to launch new brands. In fact, a 1998 Ernst and Young study showed that 78 percent of product launches in that year were line extensions. But businesses must be careful not to go too far with line extensions, at the risk of damaging their brand name or diluting its meaning in the eyes of customers. "The corporate landscape is littered with examples of companies that have tried to extend their brand franchise too far," Jane Simms wrote in Marketing. "At the same time, other unlikely sounding brand extensions are proving very successful." Just because extending an existing brand involved lower costs, it was no guarantee of success. The Ernst and Young study showed that 47 percent of new brand launches were successful compared with only 28 percent of line extensions. Simms noted that a brand extension is more likely to be successful when the mother brand is strong, the extension supports and adds value to mother brand, and the extension is valuable to consumers. She recommended that companies considering a launch gauge consumer response



Semester 1

by developing new ideas in three ways: as a brand extension; as a new brand; and as a halfway measure, using such language as "from the makers of…."

Once a company establishes brand loyalty, it must constantly work to maintain its presence with consistent quality and competitive responses to new market entrants and existing competitors. The science of sustaining and increasing brand loyalty and maximizing brand equity is called "brand management." Large companies often hire brand managers whose sole purpose is to foster and promote an individual brand. In many ways, the job of a brand manager in a large company is similar to that of an entrepreneur who seeks to enter and maintain a presence in a market with a branded product or service.

This paper has several managerial implications that could be used by both academics and practitioners. The literature review holds its own academic value due to its originality in presenting the origin of branding. Furthermore, we reveal how these concepts are interconnected and together build the foundation that branding stands on today. Due to the lack of similar studies in the current literature, it was important to elaborate on the evolution of branding to find the cause and effect in that process, as well as discuss what the future of branding will look like. The conclusions from this study could be used in future research, and by introducing the academic life cycle. The business implications derived from this study are chiefly the explanation and the understanding of the complex construction of branding. I have illustrated that the majority of the concepts are interconnected. Hence, when changing the strategy for one concept, often another concept is influenced. The brand identity prism gives marketers an important tool to pay attention to when working with a company’s or a brand’s identity. (Lindberg, 2011)

References



Semester 1

Anon. (2010). Brand and Brand names. Retrieved January 10, 2015, from

http://www.referenceforbusiness.com/small/Bo-Co/Brands-and-Brand-Names.html

Farhana, M. (2014). Journal of Applied Economics and Business Research. Journal of Applied Economics and Business Researc, 2. Friedman, N. (2013). Word working. Retrieved Febuary 16, 2015, from Names, brands, writing, and the language of commerce.: http://nancyfriedman.typepad.com/away_with_words/2013/10/the-five-types-of-names-or-why-suggestive-beats-descriptive.html Kala, M. (2014, September ). Brand Identity Prism of Nike. Retrieved Febuary 2015, from Manish Kala: https://www.scribd.com/doc/240840773/Brand-Identity-Prism-of-Nike Lindberg, A. H. (2011). Discussion: The future of branding. Branding: The Past, Present, and Future, 28. Tyagi, S. (2014). Legal Arc Law Firm. Retrieved Febuary 24, 2015, from Legal Arc Law Firm: http://www.indiamart.com/legalarclawfirm/brand-registration.html VanAuken, B. (2014, July 16). Common Brand Problems. Retrieved Febuary 24, 2015, from Branding strategy insider: http://www.brandingstrategyinsider.com/common-brand-problems Aaker, D. A. (1996). Building strong brands, New York Free Press. Aaker, D. A. (1991). Managing Brand Equity, Capitalizing on the value of a brand name. New York Free Press. Cravens, D. W., & Nigel F. P. (2003). Strategic Marketing, Prentice Hall of India, New Delhi Hansen, F & Christensen, L.B., (2003). Branding and Advertising, Copenhagen Business School Press. Keller, K. L., (2008) Strategic Brand Management, Second Edition, Prentice Hall of India, New Delhi. Kotler, P., Armstrong, S., ((2007) Principles of Marketing, Prentice Hall of India, New Delhi Leslie, D. C., Malcom, M., (1992). Creating powerful Brands- The strategic root to success in consumer, industrial and service markets, Oxford, Butterworth Heinemann, p 140-160 Leif E. Hem && Nina M. I., (2004), How to Develop a Destination Brand Logo: A Qualitative and Quantitative Approach, Scandinavian Journal of Hospitality and Tourism, Vol. 4, No. 2, pp.86-99 Lefa T., (2008), A Comparison of Two Types of Price Discounts in Shifting Consumers Attitudes and Purchase Intentions, Journal of Business Research, p.02-19 Marken G.A, (2003). Emotional Branding, How Successful Brands the Irrational Edge, Public Relations Quarterly, Vol. 48, Issue2, p.12-25 Quiston, D. H. Mc (2004). Successful branding of a Commodity Product: The Case of RAEX LASER Steel, Industrial Marketing Management Vol 33, p.345-357 Schiffman K. (2005), Consumer Behaviour, Eight Edition Prentice Hall of India, New Delhi. Solomon M. R., (2006) Consumer Behaviour, Seventh Edition, Prentice Hall of India, New Delhi



Semester 1

Stephens, S. & Townsend, (2007), Choice as an Act of Meaning: The Case of Social Class, Journal of Personality and Social Psychology, Vol 93, Issue 5, , p.814-823.


What's in a name?

Documents

Transcript of What's in a name?