Brands

An Introduction

Objectives of this session:

Some famous brands Why we use brands What is a brand? Brands and products Building brand value Brand strategies

Everyone could name the top ten global brands

Top ten global brands (by brand value)

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Coca-Cola Microsoft IBM GE Intel Nokia Disney McDonalds Marlborough Mercedes

Why we use brands

A brand differentiates a companys product and services from those of the competition Customers are prepared to pay more for a branded good (Price Premium) Customers tend to buy the same brand over again (Brand Loyalty / Consumer Franchise) Brands help build relationships with customers Brands are a result of long-term investment, but repay ultimately by reducing marketing risk

Why we use brands

What is a brand?
A brand is a name, term, sign, symbol, or design, or a combination of these, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. (Kotler)

What is a brand?
Brand name: That part of the brand identity which can be spoken Brand mark: Recognisable but can not be spoken: symbol, design, colour, lettering style, character, gesture. Trademark: Gives seller exclusive rights to use registered trademark. Copyright: Exclusive right to reproduce and sell brand material as a literary / artistic. Patent: legal protection of a product feature or manufacturing process

What is a brand?

A mixture of tangible and intangible attributes symbolised in a trademark, which, if properly managed, creates influence and generates value. (Interbrand)

What is a brand?
Brand Equity
Means the combined measurable value of the brand. Based on: Degree of customer brand loyalty Awareness of brand name Perceived quality Strong product associations Value of patents and trademarks Value of channel relationships

What is a brand?
Brand Image
Means the set of beliefs held by the consumer about the brand. Once established, brand images are difficult to alter. Brand beliefs can come from real (individual) customer experience of brand Brand beliefs can be learned through (shared) social interaction

Brands and Products

Customers buy a product or service to fulfil a basic function or to meet a (simple) need. The aspect of the product which meets this Core Benefit is called the Core Product. A branded product also delivers Added Value Added Values may include: assurance of quality, social values, self image values

Brand as part of the Augmented Product

Building Brand Value

The seven main factors involved in building brand value (Jobber)

Building Brand Value

Quality: The customers minimum expectation of the core product performance. Positioning: The relative position of the brand in the marketplace as perceived by the customer. Repositioning: The planned changing of the brands market position to match changing customer tastes or attitudes. Communications: An essential part of developing customer relationships and defining the brands market position.

Building Brand Value

Long term perspective: The need to invest in brand promotion and quality in order to create brand identity, customer awareness and loyalty. Internal marketing: Ensuring that all members of the organisation understand, help create and deliver brand values to customers. First mover advantage: The first brand to establish itself in the marketplace is most likely to create a clear, well defined brand identity

Brand Strategies
Brand Extension: Using a wellestablished brand to launch a new product in a related marketplace. Brand Stretching: Using the brand to introduce products into an unrelated marketplace. Both strategies reduce risk for producers and distributors by encouraging customer trial at less promotional cost.

Brand Strategies
Brand Sponsor: Should product be sold under manufacturers brand or an intermediarys brand? Family Brands: Individual brands for each product or one brand for many products? Multibrand: When two or more brands from the same manufacturer compete in the same marketplace.

Brand Strategies: Re-Positioning

Summary
Brands add real value to an organisations goods and services Brands values take time and resources to build and should be jealously guarded Brands allow organisations to plan long term brand strategies for positioning within a marketplace