Principles of Marketing - Branding

Branding

 

Branding is an important element of the tangible product and, particularly in consumer markets. It is a means of linking items within a product line or emphasizing the new individuality of product items. Branding can also help in the development of a new product by facilitating the extension of a product line or mix, trhough building on the consumer’s perceptions of the values and character represented by the brand name.

The common definition of brand, accepted by most marketers is that it consists of any name, term, design, style, words, symbols or any other feature that identifies the goods, and services of one seller from those of other sellers or that distinguish one product from another in the eyes of the customer.

Branding involves researching, developing and implementing brand names, brand marks, trade characters and trademarks. Branding is the art and cornerstone of marketing. Branding is a task that requires a significant contribution from marketing communications and is a long term exercise.

A successful brand is one which creates and sustains a strong, positive and lasting impression in the mind of a buyer. An organization’s approach to branding depends on its overall product mix and individual line strategy.

A brand is a complex symbol that can convey up to 6 levels of meaning

·         Attributes eg. Mercedes suggests expensive, well-built, well-engineered, durable, high-prestige automobiles.

·         Benefits attributes must be translated into functional and emotional benefits. The attribute "durable" could translate into the functional benefit.

·         Values producer’s values eg Mercedes stands for high performance, safety and prestige

·         Culture certain culture e.g. Mercedes represents German culture, organized, efficient, high quality

·         Personality project a certain personality

·         User the brand suggests the kind of consumer who buys and uses the product

Brand name: is any word or illustration that clearly distinguishes one seller’s goods from another. It can take the form of words or initials.
Trade name: is the legal name of an organization, which may or may not relate directly to the branding of its products e.g. Procter and Gamble-do not display the company name, although it is shown on the back or side of the pack-Persil, Surf.
Trademark: is a brand, name, symbol or logo, which is registered and protected for the owners role use. Trademarks are valuable properties, as organizations invest much time and money in creating them and educating consumers about what they stand for e.g. coca-cola.
Brand mark: is specifically the element of the visual brand identity that does not consist of words, but of design and symbols eg, McDonalds symbol (M)

The benefits of branding

The consumer

Easier product identification

Communicates features and benefits

Helps products evaluation

Establishes product’s position in the market

Reduces risk in purchasing

The manufacturer

Helps creates loyalty

Defends against competition

Creates differential advantage

Allows premium pricing

Helps targeting/positioning

Increases power over retailer

The retailer

Benefits from brand marketing support

Attracts customer

Helps differentiate the product from competitors

Types of brands: -

There are many forms of branding but primarily there are manufacturer, distributor, price and generic brands

Brand Equity: - a) is an asset b) a degree of brand-name recognition perceived brand quality, strong mental and emotional associations, and other assets such as patents, trademarks and channel relationship. c) is a measure of a number of different components, including the beliefs, images and core associations consumer have about particular brand.Brand equity is the positive differential effect that knowing the brand by the buyer has on the seller.