1. Branding Elements and Strategies
The nature, scope, and importance of branding in product planning
The various branding elements
The different types of brands
How to classify branding strategies
The right name is an important part of every successful business. The name and symbols of a business or a product project the personality of the company, product, or service.

2. private distributor brand
generic brand
brand extension
brand licensing
mixed-brand strategy
co-branding strategy
brand
brand name
brand mark
trade name
trade character
trademark
manufacturer brand

3. 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

4. Branding
Corporate brands identify the business and reflect quality, value, and reliability.
Example: Coca-Cola, Disney, McDonald's, and Citibank
Product brands connote quality and reliability for a particular product.
Example: Pepsi, Coke, Barbie, Whopper, and Big Mac

5. A brand name is the word, group of words, letters, or numbers of a brand that can be spoken.
Example: PT Cruiser, Mountain Dew, SnackWells
A brand mark is a symbol, design, or distinctive coloring or lettering that identifies a brand.
Example: U.S. Postal Service's eagle, Apple Computer's apple

6. A trade name is the legal name under which a company or division of a corporation does business.
Example: Amex, Dell, Kellogg's, and Xerox
A trade character is a brand mark with human form or characteristics.
Example: The Jolly Green Giant, the Pillsbury Doughboy
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 () or (™).

7. Brand names, brand marks, trade names, trade characters, and trademarks are often combined to form a firm's corporate symbol or name.

8. PRODUCT RECOGNITION
It is important that customers who are satisfied with a product can easily recognize and find a company’s branded products when they want to buy them again
Nine out of ten people will pay 25% more for a GE Soft White light bulb over a private or generic brand because it is perceived by customers to be better than the competitors

9. Top Ten Brands
Rank Brand Company Advertising
(in millions of dollars)
Brands are often a company’s most valuable asset. What is the total 1999 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?
1 Chevrolet General 762.4
vehicles Motors Corp.
2 AT&T AT&T Corp
telephone services
3 Dodge Daimler
vehicles Chrysler
4 Ford Ford Motor 629.5
vehicles Company
5 McDonald's McDonald's
restaurants Corp.
6 Toyota Toyota Motor
vehicles Corp.
7 Sears Sears,
department stores Roebuck & Co.
8 Sprint Sprint Corp
telephone services
9 Chrysler Daimler
vehicles Chrysler
10 Nissan Nissan Motor
vehicles Co.

10. 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

11. BRAND EXPOSURE
Helps companies extend their products into new target markets, new product lines, and new categories
Customers are more willing to try new products that carry a name they are familiar with
Example: GLAD family of products
Started with trash bags and has now moved into food storage containers and baggies

12. 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.

13. Types of Brands
Three classifications of brands are:
manufacturer brands (national or producer)
private distributor brands
generic brands

14. TYPES OF BRANDS National Brands
(producer brands) owned by national manufacturers
Generate the majority of sales for most categories
Examples: Hershey Foods, Whirlpool, Ford, Hilton, American Airlines, Kraft and Nestle
Internet based national brands
Amazon.com, eBay, Monster

15. Both are private distributor brands from SEARS
TYPES OF BRANDS
Private Distributor Brands
private brands, store brands, or dealer brands
Developed and owned by wholesalers and retailers
Examples: Arizona for JC Penney, George for Wal-Mart, Villager for Kohl's
Both are private distributor brands from SEARS

16. TYPES OF BRANDS Generic Brands Does not carry a company identity
Packaging usually features a description of the product
Example: Pancake Mix, Paper Towels
Usually sold in supermarkets and discount stores
Often sold for 30 – 50% less than name brands

17. BRAND STRATEGIES Brand Extension Brand Licensing Mixed Brands
Co-Branding

18. BRAND EXTENTION
A branding strategy that uses an existing brand name to promote a new or improved product in a company’s product line

19. BRAND LICENSING
Some companies allow other organizations to use their brand, brand mark, or trade character through brand licensing Licensing company gets a fee (royalty) in return for authorization
Has licensing agreements with

20. MIXED BRANDS
Offer a combination of manufacturer, private distributor, and generic brands
Their own National Brand tires
Private Brand for SEARS

21. Co-BRANDING
Combines one or more brands in the manufacture of a product or in the delivery of a service

22. Re-Branding
Rebranding
Rebranding - a change to the brand name, logo, or image of a product or company
brand owner revisits the brand with the purpose of updating or revising

25. Partial Rebrand
Situations when a brand has been firmly established yet is simply outdated or needs to be refreshed.
Tweaking is required
Not a full rebrand

26. Total Rebrand
Situations when a brand’s intent to erase any previous brand identity and replace it with completely new imagery

27. Why Rebrand? Rebranding can help change a businesses: Quality
Target Market
New Product Line
Repositioning and Image
Altered Public Image

28. Activity Choose a current brand that is national recognized
You may have 1 partner
NOW - Rebrand it
Complete a Partial Rebrand and a Total Rebrand
Come up with a new
Logo
Slogan
Trade character

29. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
Brand Strategies
Branding strategies are the ways companies use brands to meet sales and company objectives. Strategies include:
brand extensions
brand licensing
mixed branding
co-branding

30. Branding Elements and Strategies
SECTION 31.1
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

31. Branding Elements and Strategies
SECTION 31.1
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

32. Branding Elements and Strategies
SECTION 31.1
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.

33. Branding Elements and Strategies
SECTION 31.1
Branding Elements and Strategies
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.

34. Reviewing Key Terms and Concepts
ASSESSMENT
31.1
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.

35. ASSESSMENT Thinking Critically 31.1
Internet service providers are teaming with airlines, financial institutions, media outlets, celebrities, and non-profit groups to offer private-label Web access. Do you think that individuals want to receive their Internet access from the New York Yankees, David Bowie, Pepsi, or their local bank? Why or why not?

36. Graphic Organizer 31.1 Types of Brands TYPES OF BRANDS Manufacturer
Private
Distributor
Brands
Generic
Brands

37. Marketing Essentials
End of Section 31.1