1. Branding, Packaging, and Labeling

2. Branding Elements & 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

3. A brand is a name, term, design, or symbol (or combination) that identifies a business or organization and its products.

4. Brands can include a number of elements:
Brand name – the word, group of words, letters, or numbers representing a brand that can be spoken. Ex: Mountain Dew, PT Cruiser, SnackWells
Also called a product brand

5. Trade name – identifies the company or a division of a particular corporation – the legal name a company uses when it does business. Ex: Kellogg’s, Dell, Xerox
Also called a corporate brand.

6. Brand mark – the part of the brand that is a symbol or brand name – it may include distinctive coloring or lettering. It usually is not spoken

7. Trade character – a brand mark with human form or characteristics
Trade character – a brand mark with human form or characteristics. Ex: Jolly Green Giant, Pillsbury Doughboy, Kellogg’s Tony the Tiger

8. Trademark – a brand name, brand mark, trade name, trade character, or a combination of these that is given legal protection by the federal government
Trademarks are followed by a registered trademark symbol

9. Characteristics of a Good Brand Name
The name should describe the product's benefits and use(s)
The name should convey what the product does for the consumer or how it works.
EXAMPLE: The name Jiffy Lube gives consumers the impression that their motor oil will be changed quickly, which benefits them by saving time.
The name should be easy to read, pronounce, and remember
Makes the product easy to recognize
Effective names are often brief
EXAMPLES: Joy, Raid, Tide

10. Deciding Whether or Not to Brand
Without brands, consumers couldn’t tell one product from another, and advertising would be nearly impossible.
Since branding is an expensive process, companies must make sure that their investment will be worth the effort
Involves researching, developing, and marketing new brands
Can cost $20 to $50 million

11. Use of Brands
Brands must be built on differences in images, meanings, and associations
When consumers feel good about brands, they buy them
EXAMPLE: Compare your feelings about a Jaguar with your feelings about a Yugo

12. Importance of Brands in Product Planning
To build product recognition and customer loyalty
To Ensures quality and consistency
To Capitalize on brand exposure

13. Generating Brands Hard to find the right name
Generated by employees, computer programs, PR agencies
Most companies do research to determine if the brand name is effective

14. Types of Brands
National Brands –owned and initiated by manufacturers. Ex: General Electric, Heinz, and Motorola.
When consumers buy food products, they buy manufacturer brands nearly 75 percent of the time.

15. Private Distributor Brands – also called Private Brands, Store Brands, or Dealer Brands – owned and initiated by wholesalers and retailers. Ex: Radio Shack and Kmart, Craftsman, Kirkland
This type of brand can be controlled by retailers and it yields the highest profits.

16. Generic Brands – represent a general product category and do not carry a company or brand name. The packaging only describes the product – “pancake mix” or “paper towels”
Often priced below branded products

17. Branding Strategies – the ways companies use brands to meet sales and company objectives

19. Branding Strategies
Brand Extension – uses an existing brand name for an improved or new product in the product line.
Ex: Cheerios

20. Branding Strategies
Brand Dilution occurs when the original brand loses its strength in brand identity because it has been stretched to too many products.

21. Brand Licensing – 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 (royalty)
Ex: McDonald’s pays Disney to associate Disney related toys in Happy Meals

22. Mixed Brands – simultaneously offering a combination of manufacturer, private distributor, and generic brands
Ex: Michelin manufactures tires for Sears as well as under its own brand name

23. Co-Branding – combines one or more brands to increase customer loyalty and sales for each individual brand
Ex: Ford creates the limited edition Harley Davidson pickup truck
Ex: Starbucks Coffee opens outlets in Barnes & Nobel Bookstores

24. Brand Image One of the most important strategic purposes of marketing.
All advertisements in all media should present the same brand image.

25. Businesses Benefit from Brand Loyalty
This is evidence by repeat sales and pre-sold items
When consumers get into the habit of buying certain brands, they automatically buy them again, thereby reducing the amount of time needed to make a sale
The obvious goal of all marketers is to build a high degree of loyalty for their brands

26. Now that’s Brand Loyalty!