1. Understanding the branding process
Chapter 2
Understanding the branding process

2. Objectives
Understand the meaning of brands and explain their strategic significance for manufacturers, distributors and consumers
Explore the characteristics of brands
Discuss the eight ways managers can emphasize aspects of brands
Recognize the issues which impede brand potential

3. The Concept of The Brand
Intangible benefit of goodwill
Future income streams
Process
Input (company)
Output (end purchaser / user)
Co creation of value
Definition:
A brand is a cluster of functional and emotional values that enables organizations to make a promise about a unique and welcomed experience.
de chernatony et al. (2010)

4. The Concept of The Brand
The Commercial value of brand

5. Characteristics of brands
Generic
Commodity
Meets the buyer’s or user’s basic needs
E.g. car satisfying a transportation need.
Easy to copy
Expected
Value engineered to satisfy a specific target’s minimum purchase conditions
Augmented
Added values satisfying non-functional (e.g. emotional) as well as functional need
Potential
Develop channel relationships

6. Brands as relationship builders
Focuses more on creating a pool of committed & profitable customers
Creating mutually beneficial relationships
Go beyond simple transactions
Levels of relationships developed through
Financial incentives
Social/financial bonds
Structural bonds

7. Branding as an output process
Branding is not something that is done to consumers
Branding not solely an input process
Branding is something consumers do things with
Crucial to understand the output process
Final evaluation of the brand is in the buyer’s or user’s mind
Consumers are not just passive recipients of marketing activity
Consume marketing activity
Twist messages to reinforce prior expectations

8. Brand Typology Brand as a sign of ownership
‘own label’, ‘private label’
Shows who instigated the marketing
Rather artificial distinction
Brand as a functional device
Emphasize a brand’s functional capability

9. Brand Typology Brand as a differentiating device
Differentiating similar offerings
Distinctiveness of brand
From the brand itself
From the minds of those directly involved
From the people involved with the brand user

10. Brand Typology Brand as a symbolic device
Enable consumers to communicate something about themselves (e.g. emotion, status, etc.).
Help users express something about themselves to their peer groups
Users take functional capabilities for granted .
Social groups play pivotal role

11. Brand Typology Brand as a risk reducer
Attempt to reduce the risk of a purchase decision
Whether the brand will work?
Whether they will be wasting money?
Whether their peer group will disagree with their choice?
Whether they will feel comfortable with the purchase

12. Brand Typology Brand as a shorthand device
Brands used by consumers to recall from memory sufficient brand information to make a decision
At the point of purchase consumers recall numerous attributes by interrogating memory

13. Brand Typology Brand as a legal device
Trademark registration as legal protection
Consumers can become confused by similar-looking competing brands
A 2004 survey found that up to 25 percent of consumers consider own-label products to be the same as branded products
One in three grocery shoppers bought the wrong product because of its similar packaging (British Brand Group, 2009)

14. Brand Consumerization spectrum
Unbranded
Brand as reference
Brand as icon
Brand as company
Brand as policy
Brand as personality
Goodyear (1996)

15. The five forces influencing brand potential
Corporation
Distributors
Brand
Macro-environment
Competitors
Consumers

16. Objectives
Understand the meaning of brands and explain their strategic significance for manufacturers, distributors and consumers.
Explore the characteristics of brands
Discuss the eight ways managers can emphasize aspects of brands
Recognize the issues which impede brand potential.

17. Talking Points
‘Branding concerns doing things with the consumer, end user etc., than to the end user.’
Why do you think this is? Why is it important?
Apply the model outlining the five forces that influence brand potential to a brand of your choice.
Do you think the five forces model that assesses brand performance omits any elements / forces? If so what are they and why should they be included?