MANAGEMENT OF MARKETING PRODUCT BRANDING

LEARNING INTENTIONS/SUCCESS CRITERIA LEARNING INTENTIONS: I understand the power of a brand and how it can contribute to the success of a business. SUCCESS CRITERIA: I can give a definition and examples of a brand I can explain how a brand differs in terms of the 4Ps I can explain the advantages and disadvantages of a brand.

THE IMPORTANCE OF BRANDING Which would you choose?

What is a Brand? A brand is a product or a group of products which customers can easily distinguish from other, similar products. Brands are created through the Marketing Mix (product, price, place and promotion) and expensive advertising campaigns. Brands usually have a USP – unique selling point

Development of the Brand Brands are usually developed through the use of the following: · CATCHY AND MEMORABLE NAMES (eg Nike) · SPECIFIC SLOGANS OR JINGLES (eg “I’m lovin’ it” or “have it your way”) · SPECIFIC DESIGNS (eg the design for the Dyson vacuum cleaner) · SPECIFIC SYMBOLS OR LOGOS (eg the Nike “swoosh” or “tick” design )

PRODUCT Successful brands have a different look to others and may be made with different ingredients. Businesses hope that their brand will appeal more to consumers and be seen as ‘superior’ to rival brands. Some businesses change their product frequently to ensure that they stay ahead of their competitors eg soap powders Others businesses, however keep the same formulation for a long time as they know it works eg Coca-Cola.

PRICE If customers think that a branded product is ‘superior’ in quality, they may be prepared to pay a higher price for it. A higher price in turn gives a signal to customers that the product is ‘superior’ and the price then become part of the product promotion. If a business can charge a higher price for a product, they will make more profits.

PROMOTION Branded products tend to be promoted more than non-branded products. Customers need to be kept aware that the brand is ‘superior’ to rival products. Customers need to be told about the brand’s qualities and persuaded to buy it.

SPONSORSHIP OF BRANDS Many products are sponsored by ‘celebrities’ or top sports people. This is meant to give customers the association with the product being at the top and being the best.

PLACE Products need to be in the right place at the right time for customers to see them and buy them. Branded products tend to be available in many different places to reach as many customers as possible.

Advantages of a Brand The benefits of having a good brand for the BUSINESS involved are: They can an build up customer loyalty They can charge a higher price They can increase sales, profits and market share The brand acts as a promotion and marketing tool, so new products can be introduced more easily

Disadvantages of a Brand For businesses, having a brand can also have some disadvantages. These are: If one product within the brand range is poor, this can affect the reputation of the whole brand name Other businesses may try to copy the brand with their own ‘fake’ product. Establishing a brand is time consuming and expensive.

OWN LABEL BRANDS Own label brands have hit well established brands hard, particularly in the food sector. Watch this video clip to find out about this: ding-building-the-value/12269.html

BRAND LOYALTY What makes customers stick to a particular brand? Product differentiation created by: –Unique design –Unique product function e.g. iphone –Unique taste e.g. Dr Pepper –Superior performance e.g. Dyson

Tasks Complete Worksheet 26.