Branding and Positioning
Chapter 2
What is Branding?
• Assigning a name, phrase, design,
symbols or a combination of these to a
product, service, or a group of
complimentary products
Discussion Points:
• How important are brand names?
• How important are brand names for
clothes? Why?
• What additional product categories
are brand names important?
• What product categories are brand
names not important?
 What image is
being conveyed by
this Porsche
advertisement?
 What image is
being conveyed by
the Porsche Web
site?
 www.porsche.ca
 Are the images
consistent?
Brand Value – Customer
Perspective
o Provides quality assurance in purchase
decisions
o Reduces search time in purchase decisions
o Provides psychological reinforcement and social
acceptance of purchases
Brand Value – Company
Perspective
A strong brand can generate many benefits
including:
o Positive customer feelings to new products and
services
o Allows a company to charge more (if the brand is
recognized and respected)
o Customer loyalty which may lead to more purchases
o Positive word of mouth endorsements
o Higher level of channel power
o The ability to attract quality employees
o More favourable ratings by financial observers and
analysts
Developing Brand Value
From introduction to post-purchase behaviour
o Five dimensions:
o Brand awareness
o Associations customers make with brands
o Attitudes customers have about the brand
performance
o Brand attachment by the customer
o Brand activity – how do customers use the
brand?
Discussion Exercise
o List the names of five brands you have a
negative impression of?
o Why is the brand(s) conceived negatively?
Successful Brand Development
o Commitment to the brand
o Market penetration
o Research and understanding the brand’s
target market
o Building effective expansion programs and
fending off competitors.
Video – Nike
Questions for Discussion:
o What do you think of Nike’s Brand
Management?
o What can other athletic apparel company’s learn
from Nike?
What’s Happening?
• http://m.techcrunch.com/2013/01/11/nowapp/
Building Brand Equity
Brand Equity – The value that stakeholders
assign to a brand over and above the value of
an equal but unbranded product
o
o
o
o
o
Research current brand image
Decide what makes the brand unique
Communicate brand’s uniqueness
Spend on advertising/communication
Deliver on uniqueness
Companies often
create product icons
to develop an identity
for their products, and
increase brand equity.
Why is the
Mr. Clean icon
an effective
representative
for its product?
Benefits of Brand Equity
o Higher prices
o Higher gross margins
o Reduces customer switching
o Greater demand for the product
o Prevents erosion of market share
Types of Brands
o Family brands
o Multiple products under one brand
o Transfer associations
o Brand extension
o New good or service, usually related to the existing
brand
o Flanker brands
o New brand within current category
o www.marriott.ca
o Co-branding
o Private Label Brands
Flanker Brands Sold by Procter &
Gamble
Cosmetics
Dish washing
Hair care
CoverGirl
Max Factor
Cascade
Dawn
Ivory
Joy
Aussie
Head & Shoulders
Herbal Essences
Infusion 23
Pantene
Forms of Co-Branding
Ingredient Branding
Co- Branding
Cooperative Branding
Complementary Branding
Changes in Private Brands
1. Quality improvement.
2. Lower prices.
3. Higher store loyalty.
4. Lower loyalty for manufacturer brands.
5. Increase in advertising of private brands.
6. Increase in quality of private brand instore displays.
Strategies Used to Combat Private
Labels (National Brands)
o
o
o
o
o
Focus on core brands
Increase advertising
Introduce new products
Focus on in-store selling, packaging
Use alternative methods of marketing
Successful Brand Extensions
o
o
o
o
o
Lipton tea – Lipton soup mixes
Kodak film – Kodak cameras and batteries
Ivory soap – Ivory shampoo, dishwashing liquid
Barbie dolls – Barbie games, furniture, clothes
Honda bikes – Honda cars, lawnmowers,
generators
Unsuccessful Brand Extensions
o Dunkin’ Donuts – Dunkin’ Donuts cereal
o Harley Davidson Bikes – Harley Davidson
cigarettes
o Levis Jeans – Levis business wear
o Mr. Coffee coffee makers – Mr. Coffee coffee
Factors in Brand Management
o Maintaining a Brands Image
o Consistency is key
o Rejuvenating a Brand
o May be necessary if firm has encountered
negative publicity
o Repositioning a Brand
o May be necessary when a brands target
market has shrunk or firm can no longer meet
customer expectations
Positioning
o The process of creating a perception in the
consumer’s mind regarding the nature of the
company and its products relative to competitors
o A product’s position is based on two elements:
o The product’s standing relative to the competition
o How the product is perceived by consumers
o Positioning is an important criteria in brand
development
Positioning Strategies
o
o
o
o
o
o
o
Attributes
Competitors
Use or application
Price-quality relationship
Product user
Product class
Cultural symbol