PRINCIPLES OF MARKETING Branding

Tangible Intangible Brand Name  Name given to a product  Consists of words, numbers, or letters that can be spoken Logo  Picture, design, or graphic image associated with a brand  Trade character—human characteristics Slogan  Phrase or sentence that summarizes some essential aspect of the product  AKA tag line, jingle Image Personality Ability to influence customers to buy Example: m/watch?v=VdeD6SrQu L0 m/watch?v=VdeD6SrQu L0 Brands Have Two Parts

Corporate Brand Product Brand Represents the whole company Example: Nike is a corporate brand Brand of a specific product Example: Air Jordan is the brand of a specific Nike product Level of Brands

Types of Brands Manufacturer  Created by a manufacturer for its own products  AKA national brands or regional brands  Examples: Cover Girl, Lay’s Potato Chips, Wrangler  Sold through wholesalers, and ultimately to retailers, such as department stores Example: Jeans such as Diesel, Lee, Levi, Guess, Baby Phat are available at retailers such as Sears, Macy’s, or J. C. Penney, but not Abercrombie jeans

Private brand Definition: Resellers include retail stores, distributors, and wholesalers Resellers often develop their own products Private brand is a brand owned by a reseller AKA store brands, distributor brands, dealer brands, or private label brands Example: Abercrombie & Fitch carries private brand jeans only available at their stores

Generic Brand Product that is not branded Usually packaged in black and white packages Product category is the only label on the package Generally lower in price Examples: baking soda, paper towels, canned fruits, and many medicines

Branding and the Customer Identifies the product  Name, logo, slogan, and packaging  Coke is the “real thing” in a red and silver can with a wave  Pepsi is for a “new generation” in the blue and red can with a circle Provides assurance of quality Provides assurance of consistency

Quality Customers vary in the level of quality they want in various products Example: inexpensive ballpoint pens sell for under a dollar each and work well for a student; however, a successful executive might prefer an elegant fountain pen with platinum trim—the Montblanc brand sales for over $300

Consistency The product is the same whenever and wherever you buy it McDonald’s hamburger is the exact same each time you get it, even at a different location If you stay in a Hilton hotel anywhere in the United States, you know that you will be getting clean, comfortable, reasonably priced accomodations

Goals of Branding Create Unique Brand Identity  Some benefit of the product that sets it apart from other similar products  Benefit is the need-satisfying ability of a product  Customers buy benefits, not features  Product benefits in three categories  Functional benefits meet physical and safety needs  Emotional benefits meet acceptance and esteem needs  Self-expressive benefits meet esteem and self-actualization needs  Visual symbols is another aspect of a brand

What is the metaphor in the symbol?

Goals of Branding Develop a Positive Brand Image  Developed over time by promotion and by customer experience with the product  Positioning consists of the actions marketers take to create a certain image of a product in the minds of customers  Brand position is the image that a brand has in the mind of the customer  Consumers like companies that are socially responsible  “Naming rights” for new sports stadiums and other public places is very popular right now

Goals of Branding Brand Loyalty  Definition: a situation in which the customer will buy only a certain brand of a product; repeat purchases mean more profits  Research shows that it is less expensive to keep current customers than to find new customers

Protecting a Brand Brands are only valuable if your competitors cannot copy it U.S. Patent and Trademark Office will register brands Trademark is another term for brand; refers to the word, phrase, symbol, or design that identifies and distinguishes the source of goods Service mark is the same as a trademark, identifying the source of a service Symbols to use: ®©™ ℠

YOU as a Brand Many of the most famous and popular brand names are the names of people who developed the brands  Ford  Ritz-Carlton  Jennifer Lopez