Elements and Strategies Branding Elements and Strategies

What is branding? Name, term, design, or symbol that identifies a business or organization

Brand Name Word, group of words, letters, or numbers representing a brand that can be spoken. Brand name products cost more than similar unbranded products because of higher advertising costs.

Brand Mark Part of the brand that is a symbol or design May include distinctive coloring or lettering Element of the brand that usually is not spoken

Trade Name Identifies the company or a division of a particular corporation. Brand Name Trade Name Cereal Cereal manufacturer Car Car manufacturer Athletic shoes Shoe manufacturer

Trade Character A brand mark with human form or characteristics Bird Eye’s Jolly Green Giant Kellogg’s Tony the Tiger Pillsbury Doughboy

Trademark Brand name, Brand mark, Trade name, trade character, or a combination of these that is given legal protection by the federal government. Cannot be used or misused by other companies Harley-Davidson applied for a sound trademark consisting of the exhaust sound from its motorcycle engine Boston Duck Tours received a sound trademark for the sound of a human voice making duck-like quacking noises

Apply the terms Locate the brand name, brand mark of the brand on the left.

Locate the trade name, trade character, trademark

Why are brands important? Helps build customer loyalty Products carrying the same brand are of a consistent quality Can address new target markets Establishes an image

Types of Brands Manufacturer Brands Private Distributor Brands Owned and initiated by manufacturers General Electric, Heinz Indicate a standard quality and price Private Distributor Brands Owned and initiated by wholesalers and retailers The manufacturer’s name does not appear on the product Radio Shack, Kmart Appeal to customers who want the quality and performance of manufacturer brands at a lower price

Types of Brands Generic Brands-represent a general product category and do not carry a company or brand name. Often priced 30-50% lower than manufacturer brands and 10-15% lower than the private distributor brands

Branding Strategies The way companies use brands to meet sales and company objectives Brand Extension Brand Licensing Mixed Brands Co-branding

Brand Extension A branding strategy that uses and existing brand name of an improved or new product in the product line. Starbuck ice cream Companies can reduce the risk of failure by using an already established brand name. Brand dilution occurs when the original brand has been stretched to include too many products

Brand Licensing The legal authorization by a trademarked brand owner to allow another company to use its brand, brand mark, or trade character for a fee Enhance their company image and sell more of their core products

Mixed Brands Involves simultaneously offering a combination of manufacturer, private distributor, and generic brands. Allows a business to reach several target markets

Co-Branding Combines one or more brands to increase customer loyalty and sales for each individual brand. Limited edition 2000 Harley-Davidson F-150 pickup truck Starbucks has an agreement with Barnes & Nobles bookstores to open coffee shops inside the store Works best if both companies complement each other and each brand receives equal billing in advertisements, direct mail, and other promotions