Branding Elements and Strategies Marketing Essentials n UNIT Branding, Packaging, and Labeling Branding Elements and Strategies

Branding Elements and Strategies Branding Unit Branding Elements and Strategies What You'll Learn The nature, scope, and importance of branding in product planning The various branding elements The different types of brands How to classify branding strategies

Branding Elements and Strategies Branding Unit Branding Elements and Strategies Why It's Important The right name is an important part of every successful business. The name and symbols of a business or a product reflect the personality of the company, product, or service.

Branding Elements and Strategies Branding Unit Branding Elements and Strategies Branding A brand is a name, term, design, or symbol (or combinations of them) that identifies a business or organization and the products that they offer. Brands are divided into two categories: corporate brands product brands Slide 1 of 6

Branding Elements and Strategies Branding Unit Branding Elements and Strategies Branding Corporate brands identify the business and reflect quality, value, and reliability. Product brands show quality and reliability for a particular product. Slide 2 of 6

Branding Elements and Strategies Branding Unit Branding Elements and Strategies Branding A brand name is the word, group of words, letters, or numbers of a brand that can be spoken. A brand mark is a symbol, design, or distinctive coloring or lettering that identifies a brand. Slide 3 of 6

Branding Elements and Strategies Branding Unit Branding Elements and Strategies Branding A trade character is a brand mark with human form or characteristics. A trademark is a brand name, brand mark, trade name, trade character, or a combination of these given legal protection by the federal government and noted by the trademark symbol (). Slide 4 of 6

Branding Elements and Strategies Branding Unit Branding Elements and Strategies Branding Brand names, brand marks, trade names, trade characters, and trademarks are often combined to form a firm's corporate symbol or name. Slide 6 of 6

TOP BRANDS GO TO BRANDZ 2013 TOP 100 PDF

Branding Elements and Strategies Branding Unit Branding Elements and Strategies Top Ten Brands Brands are often a company’s most valuable asset. What is the total 2012 advertising spending for these top ten brands? Do you think these brands would continue to be valuable if the companies reduced or eliminated their advertising?

Branding Elements and Strategies Branding Unit Branding Elements and Strategies Importance of Brands in Product Planning The use of brands is important in product planning for several reasons. Branding: builds customer loyalty assures customers that products carrying the same brand are of a consistent quality addresses new target markets establishes an image for a product or company

Branding Unit Branding Elements & Strategies Generating Brands Seventy-five percent of companies introduce a new product name each year. Brand names are generated by: company employees specialized computer software programs branding agencies, naming consultants, and public relations agencies Half of all corporate name changes occur because of company mergers and acquisitions.

Branding Elements and Strategies Branding Unit Branding Elements and Strategies Types of Brands Three classifications of brands are: manufacturer brands private distributor brands generic brands Slide 1 of 3

Branding Elements and Strategies Branding Unit Branding Elements and Strategies Types of Brands Manufacturer brands, also called producer brands, are owned and initiated by manufacturers. Example: General Electric, Heinz, Motorola Private distributor brands, also called private brands, store brands, or dealer brands, are owned and initiated by wholesalers and retailers. Example: Radio Shack, Kmart Slide 2 of 3

Branding Elements and Strategies Branding Unit Branding Elements and Strategies Types of Brands Generic brands represent a general product category and do not carry a company or brand name. The packaging carries only a description of the product, such as “pancake mix” or “paper towels.” They are usually much cheaper than brand-name products. Slide 3 of 3

Graphic Organizer Branding Types of Brands TYPES OF BRANDS Manufacturer Brands Private Distributor Brands Generic Brands

Branding Elements and Strategies Branding Unit Branding Elements and Strategies Brand Strategies Branding strategies are the ways companies use brands to meet sales and company objectives. Strategies include: 1. Brand Extensions 2. Brand Licensing 3. Mixed branding co-branding

Branding Elements and Strategies Branding Unit Branding Elements and Strategies Brand Extension Brand extension is a branding strategy that uses an existing brand name for an improved or new product in the product line. Example: Ocean Spray Cranberry Juice extended to Cran-Apple, Cran-Raspberry, etc. Advantages: Reduces risk of new product failure Disadvantages: Over-extending a product line can cause brand dilution

Licensing Licensing Basics  A license is a grant of permission to allow another to make use of intellectual property rights. The intellectual property right may be for a patent, trademark, trade secret, or copyright. The license may even be for technical or business "know-how." In the Sports World… License—the legal right to reproduce a team’s logo in exchange for payment. Protect the use of the name and symbols Advantages of Licensing In order to be successful, a licensing agreement should: Be mutually beneficial to both parties One of the benefits to the licensor may be maximizing income by expanding market opportunities without large capital expenses. A benefit to the licensee may include rapid entry into a market using technology developed and tested by others. The licensor wants to maximize income from the license

Branding Elements and Strategies Branding Unit Branding Elements and Strategies Brand Licensing Brand licensing is the legal authorization by a trademarked brand owner to allow another company (the licensee) to use its brand, brand mark, or trade character for a fee. Advantages: Enhance company image, sell more products

Branding Elements and Strategies Branding Unit Branding Elements and Strategies Mixed Brands A mixed-brand strategy involves simultaneously offering a combination of manufacturer, private distributor, and generic brands. Example: Union Carbide sells Glad brand garbage bags and generic brand garbage bags.

Branding Elements and Strategies Branding Unit Co-Branding A co-branding strategy combines one or more brands to increase customer loyalty and sales for each individual brand. Example: Kellogg’s Pop-Tarts are made only with Smucker’s fruit filling. Starbucks Coffee Co. opens coffee shops inside Barnes & Noble bookstores.

Reviewing Key Terms and Concepts ASSESSMENT Branding Reviewing Key Terms and Concepts 1. What is the difference between a brand name and a brand mark? 2. Why is branding important to product planning? 3. Name three types of brands. 4. List four different branding strategies.