Nature and importance of brands
Characteristics of a good brand name
Branding strategies of producers and middlemen
Building and using brand equity
Nature and importance of packaging and labeling
Packaging strategies
Marketing implications of product features
3. 10-3
Chapter Goals
• Nature and importance of brands
• Characteristics of a good brand name
• Branding strategies of producers and middlemen
• Building and using brand equity
• Nature and importance of packaging and labeling
• Packaging strategies
• Marketing implications of product features
5. 10-5
Brands and Branding
• a brand identifies and differentiates the products or
services of a particular company; it’s more than the
name
• branding is the process of a company or product
name acquiring meaning over time; closely related
to reputation and image
• a brand name is the words, letters or, numbers that
can be vocalized
• a brand mark involves a symbol, logo, or design
that identifies a brand
6. 10-6
Branding is the practice of giving a specified name to
a product or group of product of one seller.
Branding is the process of finding and fixing the
means of identification.
In other word, naming product, like a naming a baby, is
known as branding.
Parents have children, and manufacturers also are eager
to know the character and the capacity of their products
on their birth, but not on their names.
Thus branding is management process by which product
is named; i.e. branded.
Meaning of Branding
7. 10-7
Definition According to the American Marketing
Association,
" A brand is name, term, sign, symbol, 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.“
According to William J Stanton,
" All trade marks are brands and thus include the word,
letter or numbers which may be pronounced; they may
also include pictorial designs."
Meaning of Branding (Contd.)
8. 10-8
Clarity- Strong bands are clear about what they are &
what they are not.
They understand their unique promise of value.
And this promise of value sets them apart from their
competitors.
It differentiate them and allow them to attract and build
loyalty among a desirable set of consumers.
Consistency - In addition to being clear about who
they are, strong brands are also consistent. They are
always what they say they are.
Constancy- It is not enough to be clear and consistent if
you are not always visible to your target audience.
Strong brands are constant; they are always there for
their customers and prospects
Threes of Cs of Branding
9. 10-9
Who Owns the Brand?
• a trademark is the brand name and brand mark that
are the legally-registered property of a specific
company or organization
• many major brands are owned by large companies and
are referred to as national brands or producer brands
• often large retailers have their own brands which are
generally known as private labels
• some retailer brands become so popular that they
achieve national brand status; many consumers place
as much trust in them as they do in “national” brands
10. 10-10
Brands
Reasons for branding
Identity of product
Consistent quality
Easier, quicker
to shop
Promotion
Recognition
Reduce price
comparison
Differentiation
Consumers Sellers
11. 10-11
Attributes - Mercedes brings to mind expensive,
well built, well engineered, durable, high prestige
automobiles.
Benefits - The attributes "durable" could translate
into the functional benefits and
the attributes "expensive" translates into the emotional
benefits.
Values- Mercedes stands for high performance,
safety and prestige.
A Brand can convey up to six Level of
Meaning
12. 10-12
Culture - Mercedes represents German Culture:;
organized, efficient and high quality.
Personality - Mercedes may suggest a no
nonsense boss (person), a reigning lion (animal) or
an austere palace (object).
User - Suggest the kind of consumer who buys or
uses the product. A top executive behind the wheel of
a Mercedes and not a young secretary
A Brand can convey up to six Level of
Meaning (Contd.)
13. 10-13
Stages of Brand Development
• basic thinking suggests that a brand must
acquire awareness and recognition
• then, it must be associated with certain
brand characteristics or attributes
• then, may feel that a brand is able to take
on a certain personality
• finally, many now suggest that consumers
develop lasting relationships with brands
14. 10-14
To Brand or Not to Brand?
• some companies will not brand their products
if they don’t wish to promote them or if their
quality is not consistent or high
• products that are not easily differentiated, such
as industrial raw materials, are often not
branded
• a brand offers the consumer protection as it
names the owner of the brand and allows their
products and services to be identified
15. 10-15
Brands
Reasons for not branding
No promotion
Do not need consistent quality
Product can not be
physically differentiated
16. 10-16
Brand Equity
• the value that a brand adds to a product is
known as brand equity; companies now realize
that popular brands are valuable assets
• equity increases as a growing number of
consumers develop loyalty to the brand
• a well-known brand can create a differential
advantage for the brand’s owner
• it will create a barrier to other firms wishing to
enter the market with competing products
• it can help a product survive market changes
18. 10-18
Brand Success
• many national and international brands, such as
Hallmark, Sony, and McCain, have dominated
their product categories for many years.
• for many companies, their brands are among
their most valuable assets.
• companies launch brand extensions to trade on
the equity in established brands and to reduce
the risk of new product introductions.
• think about how far a brand can be extended
Brand extension or brand stretching is a marketing strategy in which
a firm marketing a product with a well-developed image uses the
same brand name in a different product category. The new product is
called a spin-off.
19. 10-19
The World’s
Most Valuable Brands
From “The Top 100 Global Brands Scoreboard,” Business Week, http://bwnt.businessweek.com/brand/2005/ (accessed May 1, 2006). Reprinted by permission of Business
Week. The brand valuations draw on publicly available information, which has not been independently investigated by Interbrand. Data: Interbrand Corp., J. P. Morgan Chase
& Co., Citigroup, Morgan Stanley, Business Week.
21. 10-21
Advantage to Producers.
1) Easy to Advertise.
2) Easy to Identify the Products.
3) Creation of Separate Market.
4) To gate More Price.
5) Easy to expand the Product Mix.
6) Personal Contacts with Consumers
Significance/Advantage of Branding
22. 10-22
Advantages to Middleman
1. Easy to understand needs and wants of
consumers.
2. Less Risk.
3. No need of Advertisement and sales
promotion.
4. Increase in sales.
5. Increase in Profits.
Significance/Advantage of Branding
23. 10-23
Advantages to Consumers
1. Easy to recognize.
2. Availability of quality product.
3. Minimum fluctuation in price.
4. Improved Packing.
5. Mental Satisfaction
Significance/Advantage of Branding
24. 10-24
Selecting a Brand Name
A
Good
Brand Name
Can be
registered
and legally
protected
Distinctive
Easy to
pronounce
spell
remember
Suggest
benefits
or
use
Adaptable
to
product line
additions
25. 10-25
Characteristics of a Good Brand
• says something about the product’s characteristics
• is easy to pronounce, spell, and remember
• is distinctive - not always the case!
• is adaptable when new products are added to the
company’s product line
• is capable of registration under the Trade Marks Act
and other laws
• some brands are lost because of generic use
26. 10-26
Branding Strategies
• manufacturers may brand under their own
labels, under private labels, or as parts and
materials for other manufactured products
• intermediaries may carry producers’ brands
only, private brands only, or a combination
• several possible approaches to product line
branding: family branding, separate name for
each product, brands for groups of products, or
family brand combined with a product name
27. 10-27
Branding of Services
• many consider the branding of services to
be more difficult because of intangibility
• but, the principles of good branding apply
• brand names should be relevant to the
service being provided or to its benefits
• should be easy to pronounce and remember
• should be adaptable to other situations
31. 10-31
Common Strategies to
Producers and Middlemen
Branding
within a
product mix
Branding
For
Market
Saturation
Cobranding
Separate Names
Family branding
Multiple-Brand
Dual branding
Two or more
Brands on
the same product
35. 10-35
Packaging
Packaging has been defined as
"an activity which is concerned with protection,
economy, convenience and promotional consideration.“
According to William J Stanton,
"Packaging may be defined as the general group of
activities in product planning which involves designing
and producing the container or wrapper of product."
36. 10-36
Packaging
• packaging has functional and promotional value; often
represents a major part of a marketing program
• services are often packaged through bundling
• packaging decisions are very much influenced by
external forces, including environmentalism
• many companies are moving toward recycling
• packaging is often criticized and is subject to a great
deal of regulation
• strategic use of packaging can be effective
38. 10-38
Self Service.
The package must perform many of the sales tasks;
attract attention, describe the product features, create
consumer confidence, and make favorable overall
impression.
Consumer Affluence.
Rising consumer affluence means consumers are willing
to pay a little more for the convenience, appearance,
dependability, and prestige of better package.
Reasons for the Growth of Packaging
39. 10-39
Company and Brand Image.
Package contribute to instant recognition of the company
or brand.
Innovation Opportunity.
Reasons for the Growth of Packaging
42. 10-42
Utilitarian Function.
Profit Function.
Communication Function.
I. It makes product identification & differentiation both
easy &effective.
II. Package features communicates product massage &
motivate consumer to buy.
III. A change in product package design & massage
considerably facilitates implementation of
product/brand repositioning strategy of a company.
Functions of Packaging
43. 10-43
IV. Package repeats the selling massage.
V. It promotes the product at the point of purchase and
usually helps in the purchase decision process.
VI. Purchase and Marketing.
Functions of Packaging
45. 10-45
Advantages to Manufacturers.
I. To keep the product safe.
II. To minimize the possibilities of adulteration.
III. To facilitates storages.
IV. To help in advertising and sales Promotion.
V. To facilitates distribution.
VI. To increase the Demand.
VII.To increase the profits
Advantages of Packaging
46. 10-46
Advantages to Middlemen
I. Helpful in storage.
II. Helpful in Handing.
III. Helpful in presenting the products before the
consumers.
IV. Helpful in increase sales and profits.
Advantages of Packaging
47. 10-47
Advantages to Consumers
I. Minimum possibility of adulteration.
II. Helpful in providing necessary information about
product.
III. Information about the producer.
IV. Instruction for the use of product.
V. Easy in Handling
Advantages of Packaging
51. 10-51
Labeling
"Label is a part of product, which carries verbal
information about the product or seller. It may be a
small slip or printed statement .“
It may be a part a package or it may be attached to the
product.
It convey verbal information about the product and
seller.
According to William J Stanton,
" The label is the part of the product which carries verbal
information about the product or the seller (manufacturer
or middlemen).
label may be part of the package or it may be a tag
attached directly to the product."
52. 10-52
Labeling
• the function of the label is to communicate; both
image and functional information
• many types of labeling: brand labels present the
brand, grade labels communicate quality levels,
descriptive labels provide information
• often an issue over how much information the
label should carry to protect the consumer
• growing use of eco-labeling
55. 10-55
It enables the producer to give a clear instruction
about the users of product.
Price variation caused by middlemen are avoided
because of price is maintained and printed.
Manufacturer buyer relation is established.
It encourages producer to make only standard
products.
Buyers can easily identify the products.
Functions of Labeling
