Marketing Essentials
n UNIT Branding, Packaging, and Labeling
Branding Elements
and Strategies
Chapter 31 n Branding, Packaging, and Labeling
1
Branding Unit
Branding Elements and 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
Chapter 31 n Branding, Packaging, and Labeling
2
Branding Unit
Branding Elements and Strategies
Why It's Important
The right name is an important part of every
successful business. The name and symbols
of a business or a product reflect the
personality of the company, product,
or service.
Chapter 31 n Branding, Packaging, and Labeling
3
Branding Unit
Branding Elements and Strategies
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
Slide 1 of 6
Chapter 31 n Branding, Packaging, and Labeling
4
Branding Unit
Branding Elements and Strategies
Branding
Corporate brands identify the business and reflect
quality, value, and reliability.
Product brands show quality and reliability for a
particular product.
Slide 2 of 6
Chapter 31 n Branding, Packaging, and Labeling
5
Branding Unit
Branding Elements and Strategies
Branding
A brand name is the word, group of words, letters, or
numbers of a brand that can be spoken.
A brand mark is a symbol, design, or distinctive
coloring or lettering that identifies a brand.
Slide 3 of 6
Chapter 31 n Branding, Packaging, and Labeling
6
Branding Unit
Branding Elements and Strategies
Branding
A trade character is a brand mark with human form or
characteristics.
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 ().
Slide 4 of 6
Chapter 31 n Branding, Packaging, and Labeling
7
Branding Unit
Branding Elements and Strategies
Branding
Brand names, brand
marks, trade names,
trade characters, and
trademarks are often
combined to form a firm's
corporate symbol or
name.
Slide 6 of 6
Chapter 31 n Branding, Packaging, and Labeling
8
TOP BRANDS
• GO TO BRANDZ 2013 TOP 100 PDF
Chapter 31 n Branding, Packaging, and Labeling
9
Branding Elements and Strategies
Branding Unit
Top Ten Brands
Brands are often a company’s most valuable asset. What is the
total 2012 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?
Chapter 31 n Branding, Packaging, and Labeling
10
Branding Unit
Branding Elements and Strategies
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
Chapter 31 n Branding, Packaging, and Labeling
11
Branding Unit
Branding Elements
& Strategies
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.
Chapter 31 n Branding, Packaging, and Labeling
12
Branding Unit Branding
Types of Brands
Elements and Strategies
Three classifications of
brands are:
 manufacturer
brands
 private distributor
brands
 generic brands
Slide 1 of 3
Chapter 31 n Branding, Packaging, and Labeling
13
Branding Unit Branding
Types of Brands
Elements and Strategies
Manufacturer brands, also called
producer brands, are owned and
initiated by manufacturers.
 Example: General Electric,
Heinz, Motorola
Private distributor brands, also
called private brands, store brands,
or dealer brands, are owned and
initiated by wholesalers and
retailers.
 Example: Radio Shack, Kmart
Slide 2 of 3
Chapter 31 n Branding, Packaging, and Labeling
14
Branding Unit
Types of Brands
Branding Elements and Strategies
Generic brands represent a general product category
and do not carry a company or brand name. The
packaging carries only a description of the product, such
as “pancake mix” or “paper towels.” They are usually
much cheaper than brand-name products.
Slide 3 of 3
Chapter 31 n Branding, Packaging, and Labeling
15
Branding
Graphic Organizer
Types of Brands
TYPES OF BRANDS
Manufacturer
Brands
Private
Distributor
Brands
Generic
Brands
Chapter 31 n Branding, Packaging, and Labeling
16
Branding Unit
Branding
Brand Strategies
Elements and Strategies
Branding strategies are the ways companies use brands
to meet sales and company objectives. Strategies
include: 1. Brand Extensions 2. Brand Licensing
3. Mixed branding
 co-branding
Chapter 31 n Branding, Packaging, and Labeling
17
Branding Unit
Branding
Brand Extension
Elements and Strategies
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 CranApple, Cran-Raspberry, etc.
Advantages: Reduces risk of new
product failure
Disadvantages: Over-extending a
product line can cause brand
dilution
Chapter 31 n Branding, Packaging, and Labeling
18
Licensing
Licensing Basics
A license is a grant of permission to allow
another to make use of intellectual property
rights. The intellectual property right may
be for a patent, trademark, trade secret,
or copyright. The license may even be for
technical or business "know-how."
In the Sports World…
License—the legal right to reproduce a
team’s logo in exchange for payment.
Protect the use of the name and symbols
Advantages of Licensing
In order to be successful, a licensing agreement should:
Be mutually beneficial to both parties
One of the benefits to the licensor may be maximizing income by expanding market
opportunities without large capital expenses.
A benefit to the licensee may include rapid entry into a market using technology developed
and tested by others.
The licensor wants to maximize income from the license
Chapter 31 n Branding, Packaging, and Labeling
19
Branding Unit
Brand Licensing
Branding Elements and Strategies
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
Chapter 31 n Branding, Packaging, and Labeling
20
Branding Unit
Mixed Brands
Branding Elements and Strategies
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.
Chapter 31 n Branding, Packaging, and Labeling
21
Branding Unit
Co-Branding
Branding Elements and Strategies
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.
Chapter 31 n Branding, Packaging, and Labeling
22
Branding
ASSESSMENT
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.
Chapter 31 n Branding, Packaging, and Labeling
23