Marketing Management

© 2010 South-Western, a part of Cengage Learning

Brands

Brands

Marketers believe that brands have value, above and beyond the benefits of the product itself

Brand portfolio of qualities associated with a name

More than just a name

Brands

Qualities associated with the brand Some qualities are under marketer control

Product shape Product packaging Logos, shapes & symbols Colors Jingles & slogans Spokespeople

Some are not Personal memories about brands

Brand Name

A brand is first and foremost a name Some names immediately convey information

Geek Squad

Some names suggest their benefits Motorola's Razr phone

Some names are those of their founder Trump Tower

Try to choose brand names that convey information about the benefits of brand

Customer Benefits of Branding

For the customer Brands convey information

Sony is quality. Anything from Sony is quality

Brands signal consistent quality Brands allow for predictability regarding quality

Brands confer status Some brands bolster consumer’s self-image

Brands reduce the risk of purchase Brands make purchase decisions easier

Customers know what they are getting

Company Benefits of Branding

For the company Brands enhance loyalty

If brand satisfies, brand image is solidified Brands allow charging premium prices Brands assist in STP

Multiple brands allow firms to target multiple segments

Brands inoculate the company from some competitive action

Brands encourage channel partners’ support

Brand Associations

Product attributes Color, size, shape, flavor, etc.

Product benefits More intangible than product attributes

This sweater is flattering

Brand Associations

Emotional benefits More intangible than product benefits

A flattering sweater is a means to achieving the goal of being attractive

Benefits are more meaningful and easier to claim as an advantage BUT…harder to create

Brand Associations

Brands can serve social functions Brands can be expressions of the customer’s ideal

self Teenagers with the “right” shoes

Brands can become the focal point of bonding Harley Davidson Riders

Brand Personalities

Brand personalities can capture something specific or holistic about the brand position in the marketplace MTV is not just a music cable station—it’s a way

of life for young, cool people

Brand personality profiles are not better than others…they are just different

Brand Communities

Some customers are so passionate about their love for certain brands that they like to connect with other like-minded customers HOGS riding groups, Harry Potter blogs, etc.

Marketers can encourage and build upon these communities

Branding Strategies

Umbrella Brands Company attaches same brand name to all of its

products Subsequent product introductions are easier for the

customer to understand and accept Higher initial awareness levels Stronger financial outcomes for company

Honda

Branding Strategies

House of brands Company introduces a new brand name for every

major line of product it brings to the marketplace Problems of one brand shouldn’t negatively affect

other brands Companies can reach multiple segments

P&G

Brand Extensions

Brand extensions Marketer leverages the brand’s good name to get

customers to buy something new Line extensions: apply to a product within a product

line Category extensions: apply to a product in a different

product line

Co-branding

Co-branding Two companies collaborate in a joint venture to

create a good or service for the customer Cole Haan shoes with Nike Air technology

Ingredient branding One of the companies and its product is the

primary host and the other company and its product add value to the host product American Airlines serving Starbucks coffee

Co-branding

Co-branding works well when a company is introducing a new product attribute Adding cough medicine to candy

Self-branding (Branding one of their own ingredients to differentiate its quality from competitors) works better when tweaking a minor attribute Tide’s “EverFresh” scent

Global Brands

Global brands At least 30% of the brand’s revenues come from

other countries

Options Glocalization: manufacture globally, brand

locally Use the same name globally

Greater advantages to maintaining single brand worldwide

Store Brands

Private label brands Less expensive and more of a “me-too” product

offering Target’s “Archer Farms,” Kroger’s “Private Selection,”

and Costco’s “Kirkland Signature”

The retailer can offer decent quality for lower prices due to reduced advertising costs

Brand Equity

Brand Equity The worth of a brand

Measurement Approaches Determining the price premium of brand

“How much are you willing to pay for gas at Shell?” vs. “How much are you willing to pay at a local station?”

Comparing branded and unbranded “How much do you like this $799 Sony flat screen with screen-within-a-

screen?” vs. “How much do you like this $799 unknown brand flat screen sharing the

same features?”

Brand Equity

Measurement Approaches, cont. Interbrand: assess the value of a firm, subtract its

physical and financial assets Brand contribution index varies by product category:

high for cologne, lower for retailers