1. © 2012 Pearson Education, Inc. publishing Prentice Hall. Note 29 Brands and Branding

2. © 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

3. © 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

4. © 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

5. © 2012 Pearson Education, Inc. publishing Prentice Hall. Table Note 29-1 - The Benefits of Brands 5

6. © 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

7. © 2012 Pearson Education, Inc. publishing Prentice Hall. Figure Note 29-1 - Brand Meaning and Brand Equity 7

8. © 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

9. © 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

10. © 2012 Pearson Education, Inc. publishing Prentice Hall. Figure Note 29-2 - Building Brand Identity and Brand Equity 10

11. © 2012 Pearson Education, Inc. publishing Prentice Hall. Table Note 29-2 - Dimensions of Corporate Image 11

12. © 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

13. © 2012 Pearson Education, Inc. publishing Prentice Hall. Table Note 29-3 - Brand Personality 13

14. © 2012 Pearson Education, Inc. publishing Prentice Hall. Figure Note 29-3 - Millward Brown’s BrandDynamics® Model 14

15. © 2012 Pearson Education, Inc. publishing Prentice Hall. Figure Note 29-4 - Hypothetical Effect of a Communications Investment on Brand Dynamics 15

16. © 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

17. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2012 Pearson Education, Inc. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall