chapter
Chapter 18:
Branding
Brand
A name, term, symbol, design, or
combination thereof that
identifies a seller’s products and
differentiates them from
competitors’ products.
Value Proposition of Brands
 Value Proposition: Set of benefits or
values the brand promises to
deliver to consumers to satisfy their
needs.
 Why should I buy your brand rather
than your competitors’ brand?
Value Proposition
Online
Apple Store Fifth Avenue NYC
Mall of
America
Online
http://www.mallofamerica.com
Brands
For the
manufacturer
For the
consumer
Represents
Ownership
Delivers a Promise
Distinguishes from
Competitors
Offers
Consistency
Adds Value
Brand Equity
 Brand Equity is the power of a
brand, through creation of a distinct
image, to influence customer
behavior.
Croft & Barrow
$20.00
Cutter & Buck
$62.00
Ralph Lauren
$150.00
BW Top 100 Brands
2008
Rank
2007
Rank
1
1
Coca-Cola
$66.7
2
3
IBM
$59.0
3
2
Microsoft
$59.0
4
4
GE
$53.1
5
5
Nokia
$35.9
6
6
Toyota
$34.0
7
7
Intel
$31.3
8
8
McDonald’s
$31.0
9
9
Disney
$29.3
10
20
Google
$25.6
Company
Brand Value
Source: Business Week / Interbrand study
Why is Brand Important
 Product identification
 Repeat sales (brand loyalty)
 Generate new product sales
 Quality or image association
 Product differentiation
Building Strong Brands
Starts with
positioning
High
Quality
Low
Price
High
Price
Low
Quality
Perceptual Map
Connecting to the Consumer
Values
Benefits
Attributes
Brand Constellations and Positioning
Branding
Brand
Name
That part of a brand that can be spoken,
including letters, words, and numbers.
Brand
Mark
The elements of a brand that
cannot be spoken.
Brand
Equity
The value of company and brand names.
Master
Brand
A brand so dominant that it comes to
mind immediately when a product category,
use, attribute, or benefit is mentioned.
Master Brands
Baking Soda
Adhesive Bandages
Rum
Gelatin
Arm & Hammer
Band-Aid
Bacardi
Jell-O
Soup
Campbell’s
Cream Cheese
Philadelphia
Crayons
Petroleum Jelly
Crayola
Vaseline
An Effective Brand Name
 Is easy to pronounce
 Is easy to recognize and remember
 Is short, distinctive, and unique
 Describes the product, use, and benefits
 Has a positive connotation
 Reinforces the product image
 Is legally protectable
Online
Levesque Design
(Portfolio, Logo Design)
Brand Names and Cars
 Phonetic Symbolism: small units of sound and
the meanings they convey
 Used two fictitious words to test what sounds
consumers prefer (e.g. “gimmel” and
“gommel”)
– (Short) “i” or “ee” sounds for products that are fast or
sharp (convertible, knife)
– (Short) “a” or “oo” sounds for large, slow or dull
products (SUV, hammer)
– “yoo” or “un” sounds are negative
“You may be buying a vowel”, Philadelphia Inquirer, 10/1/2007, Colleen Dunn
Branding Strategies
Brand
Manufacturer’s
Brand
Individual
Brand
Family
Brand
No Brand
Private Brand
Combination
Individual
Brand
Family
Brand
Combination
Manufacturers’ Brands Versus
Private Brands
Manufacturers’
Brand
The brand name of a manufacturer
e.g. Ford Mustang, Maxwell House
Coffee, Shredded Wheat
Private
Brand
A brand name owned by a wholesaler
or a retailer
The brand name
of a manufacturer
e.g. Sam’s
American
Choice
e.g. Ford
Mustang,
Starbuck’s
Coffee
(Wal-Mart)
Generic
Brand
A no-frills, no-brand-name, low-cost
product that is simply identified by
its product category.
Advantages of Private Brand
 Earn higher profits
 Less pressure to mark down prices
 Manufacturer may drop a brand or
become a direct competitor to dealers
 Ties customer to wholesaler or retailer
 No control over distribution of
manufacturers’ brands
Advantages of Manufacturers Brand
 Develop customer loyalty
 Attract new customers
 Enhance prestige
 Offer rapid delivery, can carry less
inventory
 Ensure dealer loyalty
Branding Strategies
Brand
Manufacturer’s
Brand
Individual
Brand
Family
Brand
No Brand
Private Brand
Combination
Individual
Brand
Family
Brand
Combination
Individual Brands Versus
Family Brands
Individual
Brand
Using different brand names for
different products
e.g. Procter and Gamble products
Family
Brand
Marketing several different
products under the same
brand name
e.g. Sony products
Examples
 P&G Brands (Individual)
– www.pandg.com
 Sony Brands (Family)
– www.sony.com
 Kellogg’s Brands (Individual and Family)
– www.kelloggs.com
 Pepsico’s Brands (Individual and Family)
– www.pepsico.com
Individual Branding at P & G
Online
http://www.bose.com
(Automotive Section)
Cobranding
 Placing two or more brand names on a
product or its package
– Ingredient branding: part of the product
(Intel Inside)
– Cooperative branding: brands get equal
treatment and borrow brand equity (Coach
version of Lexus)
– Complimentary branding: marketed together,
with a suggested usage (Bacardi and Coke)
 Works best when two brands are equal in
strength and target same customers
Hampton Inn and
Steak and Ale and
Bennigan’s
Cooperative
Branding