© 2012 Pearson Education, Inc. publishing Prentice Hall. Note 29 Brands and Branding

© 2012 Pearson Education, Inc. publishing Prentice Hall. Introduction  Brand - a name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other sellers  The legal term for brand is trademark  As concepts in customers’ minds and hearts, brands have rich symbolism and meanings that go beyond their identifying function 2

© 2012 Pearson Education, Inc. publishing Prentice Hall. Introduction  Strategic roles of a brand  To identify the product and its producer to consumers  To differentiate the offering in a valued way  To command margin 3

© 2012 Pearson Education, Inc. publishing Prentice Hall. Brand Marks and the Functions of Brands  A brand’s identifying characteristics include:  The brand name (or “trade name”)  Logos and marks (“trademarks”)  Distinguishing features such as packaging, colors, and sounds 4

© 2012 Pearson Education, Inc. publishing Prentice Hall. Table Note The Benefits of Brands 5

© 2012 Pearson Education, Inc. publishing Prentice Hall. Brand Meaning and Brand Equity  Brands hold meaning that can encompass:  Functional and hedonic benefits  Social significance and symbolism  These meanings reside in the minds of consumers  Brand equity - a summary of brand meaning/associations along with brand awareness, brand loyalty, brand quality, and other brand assets 6

© 2012 Pearson Education, Inc. publishing Prentice Hall. Figure Note Brand Meaning and Brand Equity 7

© 2012 Pearson Education, Inc. publishing Prentice Hall. Who Owns the Brand?  Brands begin with producers and marketers  Brand managers may influence the brand’s meaning  But, brands belong to the consumers who use them and who assign meaning to them 8

© 2012 Pearson Education, Inc. publishing Prentice Hall. Building Brands  Building or maintaining a brand must begin with a clear understanding of what the brand is meant to be in consumer perceptions  The strategic position that the brand intends to claim in the marketplace must be determined, based on customer and competitive analyses  Should be recorded in a positioning statement  The marketing strategist has a variety of tools to use in claiming and reinforcing the brand’s position 9

© 2012 Pearson Education, Inc. publishing Prentice Hall. Figure Note Building Brand Identity and Brand Equity 10

© 2012 Pearson Education, Inc. publishing Prentice Hall. Table Note Dimensions of Corporate Image 11

© 2012 Pearson Education, Inc. publishing Prentice Hall. Measuring Brands  Measuring brands can be approached in at least two basic ways:  Consumer-level brand meaning, brand equity, and brand strength  Firm- or brand-level value 12

© 2012 Pearson Education, Inc. publishing Prentice Hall. Table Note Brand Personality 13

© 2012 Pearson Education, Inc. publishing Prentice Hall. Figure Note Millward Brown’s BrandDynamics® Model 14

© 2012 Pearson Education, Inc. publishing Prentice Hall. Figure Note Hypothetical Effect of a Communications Investment on Brand Dynamics 15

© 2012 Pearson Education, Inc. publishing Prentice Hall. Brand Valuation  It is a brands:  Worth taken as a whole  Contribution to the firm’s financial value  The brand is valuable to the firm because:  It can be expected to generate sales and command margin in the future  Sales and margins are the product of cumulative individual-level feelings about the brand 16

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