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BRAND

BRAND
 “Brandr” a Norwegian word which means to
burn.
 Initially used by farmers to distinguish their
livestock.
BRAND

 A brand is defined as a name, term, symbol


or sign or special design or some
combination of these elements that is
intended to identify the goods and services of
one seller or a group of sellers.
BRAND

 A brand differentiates the product from that of


a competitor’s.
 Its an identifier of the seller or maker.
 It’s a promise of the seller to deliver a specific
set of benefits or services to the buyer.
WHAT IS BRANDING?
 It’s the process by which a marketer tries to
build a long term relationship with the
customers.
 It can also be viewed as a tool to position a
product or service.
 It influences the customers choice and helps
ensure repeat purchase.
 Branding is a conscious customer satisfaction
orientation process.
STRATEGIC RELEVANCE OF
BRANDING

 “Though products may change the


spirit of the brand remains the
same”.
STRATEGIC RELEVANCE OF
BRANDING

3. A brand aims to segment the market.


4. A brand has an enduring value.
5. A brand tries to protect your innovation.
6. A product may die but the brand will sustain.
7. A brand is a living memory.
STRATEGIC RELEVANCE OF
BRANDING

 A brand aims to segment the market.


 A brand starts with a big idea! Is not based on
what goes on but what goes in.
 The result is an augmented product which
must be indicated to be noticed by potential
buyers.
STRATEGIC RELEVANCE OF
BRANDING

 A brand has an enduring value.


 A brands presence transforms the product e.g
Lux soap has endured over 75 years,
Raymond’s since 1925.
 It ensures a consumer’s personal attachment
with the offering e.g. My Nokia, My Levis, My
Mercedes.
STRATEGIC RELEVANCE OF
BRANDING

 A brand tries to protect your innovation.


 It tries to create a mental patent in the
consumer’s mind. E.g. Gillete is known the
world over as an innovator in shaving
systems.
STRATEGIC RELEVANCE OF
BRANDING

 A product may die but the brand will sustain.


 Products are introduced, they live and
disappear but the inner core value of the
original brand endures.
STRATEGIC RELEVANCE OF
BRANDING

 A brand is a living memory.


 The content of the brand grows out of the
cumulative memory of various acts, provided
they are governed by a set of unifying ideas or
guidelines.
 This is the reason why the brand image varies
from generation to generation.
CONSTITUENTS OF A BRAND
1. Attributes
2. Benefits
3. Values
4. Culture
5. Personality
6. User
CONSTITUENTS OF A BRAND

 The most enduring message of a brand are


its VALUES, CULTURE and PERSONALITY.

 They define the “ESSENCE” of the brand.


BRAND EQUITY

 Brands vary in the amount of power and


value they have in the market place.
BRAND EQUITY
 Aaker’s five levels of customer attitude:

1. The customer will change brands, especially for


Price reasons. No brand loyalty.
2. Customer is satisfied. No reason to change
brands.
3. Customer is satisfied and would incur cost by
changing brand.
4. Customer values the brand and sees it as a
friend.
5. Customer is devoted to the brand.
BRAND EQUITY

 Brand equity is related to how many


customers are in classes 3-5 in Aaker’s five
levels of customer attitude.
 Degree of brand name recognition, perceived
brand quality, strong mental and emotional
associations and other assets like patents,
trademarks and channel relationships affect
brand equity.
BRAND EQUITY

 Brand equity relates to the price premium the


brand commands times the extra volume it
moves over an average brand.
 It should reflect not only the capitalized value
of the incremental profits from the current use
of the brand name but also the value of its
potential extensions to other products.
Competitive advantages of high brand
equity
.
1. The company will have more leverage in
bargaining with distributors and retailers
because customers expect them to carry
the brand.
2. The company can charge a higher price
than its competitors because the brand has
higher perceived quality.
3. The company can more easily launch
extensions because the brand name
carries high credibility
4. The brand offers some defense against
price competition.
Branding gives the seller several
advantages

1. Brand name makes it easier for the seller to


process orders and track down problems
2. Seller’s brand name and trademark provide
legal protection of unique product features
3. Branding gives the seller the opportunity to
attract a loyal and profitable set of customers.
4. Branding helps the seller segment markets.
5. Strong brands help build corporate image,
making it easier to launch new brands and gain
acceptance by distributors and consumers.