MANAGEMENT OF
MARKETING
PRODUCT BRANDING
LEARNING INTENTIONS/SUCCESS
CRITERIA
LEARNING INTENTIONS:
SUCCESS CRITERIA:
I understand the power of a
brand and how it can
contribute to the success of
a business.
• I can give a definition and
examples of a brand
• I can explain how a brand
differs in terms of the 4Ps
• I can explain the
advantages and
disadvantages of a brand.
THE IMPORTANCE OF
BRANDING
Which would you choose?
What is a Brand?
• A brand is a product or a group of products
which customers can easily distinguish
from other, similar products.
• Brands are created through the Marketing
Mix (product, price, place and promotion)
and expensive advertising campaigns.
• Brands usually have a USP – unique
selling point
Development of the Brand
Brands are usually developed through the
use of the following:
· CATCHY AND MEMORABLE NAMES
(eg Nike)
· SPECIFIC SLOGANS OR JINGLES
(eg “I’m lovin’ it” or “have it your way”)
· SPECIFIC DESIGNS
(eg the design for the Dyson vacuum cleaner)
· SPECIFIC SYMBOLS OR LOGOS
(eg the Nike “swoosh” or “tick” design)
PRODUCT
• Successful brands have a different look to others
and may be made with different ingredients.
• Businesses hope that their brand will appeal
more to consumers and be seen as ‘superior’ to
rival brands.
• Some businesses change their product
frequently to ensure that they stay ahead of their
competitors eg soap powders
• Others businesses, however keep the same
formulation for a long time as they know it
works eg Coca-Cola.
PRICE
• If customers think that a branded product
is ‘superior’ in quality, they may be
prepared to pay a higher price for it.
• A higher price in turn gives a signal to
customers that the product is ‘superior’
and the price then become part of the
product promotion.
• If a business can charge a higher price for
a product, they will make more profits.
PROMOTION
• Branded products tend to be promoted
more than non-branded products.
• Customers need to be kept aware that the
brand is ‘superior’ to rival products.
• Customers need to be told about the
brand’s qualities and persuaded to buy it.
SPONSORSHIP OF BRANDS
• Many products are sponsored by
‘celebrities’ or top sports people.
• This is meant to give customers the
association with the product being at the
top and being the best.
PLACE
• Products need to be in the right place at
the right time for customers to see them
and buy them.
• Branded products tend to be available in
many different places to reach as many
customers as possible.
Advantages of a Brand
The benefits of having a good brand for
the BUSINESS involved are:
• They can an build up customer loyalty
• They can charge a higher price
• They can increase sales, profits and market
share
• The brand acts as a promotion and
marketing tool, so new products can be
introduced more easily
Disadvantages of a Brand
For businesses, having a brand can also
have some disadvantages. These are:
• If one product within the brand range is
poor, this can affect the reputation of the
whole brand name
• Other businesses may try to copy the
brand with their own ‘fake’ product.
• Establishing a brand is time consuming
and expensive.
OWN LABEL BRANDS
Own label brands have hit well established
brands hard, particularly in the food sector.
Watch this video clip to find out about this:
http://www.bbc.co.uk/learningzone/clips/bran
ding-building-the-value/12269.html
BRAND LOYALTY
What makes customers stick to a particular
brand?
Product differentiation created by:
– Unique design
– Unique product function e.g. iphone
– Unique taste e.g. Dr Pepper
– Superior performance e.g. Dyson
Tasks
Complete Worksheet 26.