Branding

Dr. J.Rai- IIBM, Patna BBA I Sem MM-I Branding 1

The success of any business or
product depends in part on the
target market’s ability to
distinguish one product from
another.
Branding is the main tool
marketers use to distinguish their
products from the competitors.

2
What Is a Brand?
AMA defines brand as:
 “name” “term” “sign” “symbol”
“design” or “combination of them”.
 Intended to identify the goods/
services of one seller and to
differentiate them from those of
competition.
 Technically speaking “whenever a
marketer creates a new name, logo
or a symbol for a new product, they
created a Brand.”
3
 A brand name is that part of a brand then can be
spoken, including letters (GM, IIM), words
(Chevrolet), and numbers (7-Eleven, 007)
 The element of a brand name that cannot be spoken
are called the brand marks- Mercedes Benz symbols.

4
Brand names themselves come in many
different forms
 Based on people’s name.
 Based on places.
 Based on animals / birds
 Others.

•Porsche Automobiles, McDonald's, etc

•British Airways, Monte Carlo etc.

•Dove soap, Tortoise .

•Apple computers, Shell gasoline

5
 Brands v/s Products

Product
 “is anything we can offer to a market for attention,
acquisition, use, or consumption”
 It satisfy a need or a want.
 Thus it may be physical goods, service, a retail
outlet, a person, an organization, place; or an idea.

6
A brand is therefore more than a product, because it can have
dimensions that differentiate it in some way from other
products design to satisfy the same needs

Branded products may be

 Physical goods like: Kellogg's Corn flakes, Adidas
shoes.
 Services: Bank of America, Bharti Axa Insurance
 Store :Subway, Zudio.
 Person: Julia Roberts, Sachin Tendulkar
 Place: London, Singapore
 An Organization: Red cross, Indian Dental
Association
 An Idea: CSR, Freedom to speech

7
Benefits of Branding
Branding has three main purposes : product identification, repeat
sale & new product sale.
The most important purpose is product identification. Branding
allows marketer to distinguish their products from all others.
Familiar Brand names indicate quality.
 Brand equity- refers to the value of company and brand names.
Volvo , Sony have strong brand equity. A brand with strong
brand equity is a valuable asset.
 Global brands- refer to brands where at least 20% of products are
sold outside the home country. Pizza hut, KFC etc.
 Brand loyalty- incurs repeat sale to satisfied customers. Brand
loyalty is a consistent preference for one brand over all others.

8
Brand building

 Quality
 Positioning
 Repositioning
 Well balanced communication
 Being first
 Long term perspective
 Internal marketing

9
 Types of brands

Brand No brand

Manufacturer’s Private brand

Brand

Individual Family Combination Individual Family Combination

Brand Brand Brand Brand Brand Brand

10
10
Brand name strategies

 Choosing a brand name

The brand name should be carefully chosen. A good name can
add greatly to a product’s success.

Desirable qualities for a brand name include:

• It should suggest something about the product’s benefits and
qualities.
• It should be easy to pronounce, recognise and remember.
• The brand name should be distinctive.
• The name should translate easily into foreign languages.
• The name should be capable of registration and legal
protection.

11
11
BRAND NAME STRATEGIES (cont)
 Blanket Family name

 Separate family names

for all products

 Individual brand name

 Corporate names
combined with
individual product
names.

12
Brand equity

 Brand is an intangible asset for an

organization
 Brand equity originated in order to
measure the financial worth of this
significant, yet intangible entity
 Brand equity is the value and power of the
brand that determines its worth

13
 Brand equity may be reflected in the way consumers
think, feel, and act with respect to the brand, as well
as in the prices, market share, and profitability, the
brand commands for the firm.
 Customer based brand equity approach view it from
the perspective of the consumers. – it says the power
of a brand lies in what customer have seen, read,
learned, heard, thought, and fell about the brand over
the time.

14
 Brand Equity (Contd.)

Brand equity comprises

 Awareness

 Brand associations

 Perceived quality

 Brand loyalty

 Other proprietary brand assets

15
 Brand Dynamics Pyramid
Strong relationship/
High share of category
expenditure
Nothing else beats it
Bonding

Does it offer something Advantage

better than others ?

Can it deliver ? Performance

Does it offer me Relevance

something ?

Do I know about it ? Presence

Weak relationship/
Low share of category
expenditure

16
Advantages of strong brands-

 Improved perception of product performance.

 Greater loyalty.
 Less vulnerability to competitive actions.
 Larger margins.
 More inelastic consumer response to price increase.
 Greater trade cooperation and support.
 Increased marketing communication effectiveness.
 Additional brand extension possibilities.

17
 Physical Goods
 Services
 Retailer & Distributors
 Online Products & Services
 People & Organizations
 Sports, Arts &
Entertainment
 Geographic Location
 Ideas & Causes

18
 Assignment

 Find out the 20 Most Valuable Global Brands ?

 What is scope of branding ? Explain with help of the idea
“Incredible India”.
 Define-
◼ Co-branding
◼ Brand recognition
◼ Brand promise.
 21 century branding

19