Chapter 10: Branding Decisions

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 Chapter 10: Branding Decisions
Learning Outcomes
1. Explain what a brand is and identify key types of brands
2. Discuss how a brand creates value to consumers and
organizations
3. Explain how brands can be built and identify key building
blocks of successful brands
4. Identify the principal issues associated with branding in
services, business-to-business, internal, and global contexts
5. Compare and contrast different perspectives on brand equity
and analyse their relationship using the brand-value chain

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The three brand P’s

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Brand positioning

• The place the brand occupies

in a consumer’s mind
• Strategic activity to distinguish
a brand

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Brand promise

• A brand promise is a
statement that businesses
write to describe the value
they deliver to customers
• Sets expectations for brand
experience

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Coca-Cola brand promise

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Brand performance

▪ The measure of a brand's

results against the business
and marketing goals
▪ When expectations and
experiences of the brand
match the promise, brand
performance is accomplished

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10.1 What is a Brand?

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Brand
▪ Name, symbol, words, or mark that identifies and distinguishes a
proposition or company from its competitors
▪ An organization’s promise to a customer to deliver what a brand
stands for in terms of functional and emotional benefits
▪ Functional: E.g., appearance, taste, functionality
▪ Emotional benefits: Self-expressive and social benefits

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Dimensions of brand
Brand awareness (identification)
▪ Top-of-mind awareness
▪ Spontaneous or unaided
awareness =Recall
▪ Aided awareness =Recognition

Brand associations (differentiation)

▪ Strong
▪ Favorable
▪ Unique

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10.2 Types of Brands

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Manufacturer brands
▪ Sold by manufacturers under own brand name

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Distributor brands
Private label, store brand
▪ Identities and images developed by the wholesalers, distributors, dealers and
retailers

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Private labels
▪ Standard private labels

▪ Premium private labels

▪ Economy private labels

▪ Sustainable private labels

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Generic brands
▪ Sold without any promotional materials or any means of identifying the
company, with the packaging displaying only information required by law

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Non-commercial brands
▪ Idea brands: Ideologies, initiatives, or other abstract, non-commercial notions
#MeToo #FridaysForFuture #Keepthegrey

▪ Person brands: Brands that also are real people

= human brand, celebrity brand

▪ Place brands: Network of associations based on different expressions of a place

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Person brands

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10.3 Why Brand?

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Why brand?

Consumers Organizations

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Consumers like brands because…

▪ Helps people to identify their preferred products

▪ Reduce perceived risk and psychological reassurance
▪ Symbolic meaning and value
▪ Assess product quality
▪ More efficient shopping
▪ Informs consumers about the source of a product
▪ Country
▪ Company

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Most trusted brands 2022

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Brands as a means of
self-expression
They can express
▪ who they want to be (their desired
self)
▪ who they strive to be (their ideal self)
▪ who they think they should be (their
ought self)

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Marketers and retailers use brands because they…
▪ Enable premium pricing
▪ Help differentiate a product from competitive offerings
▪ Cross-selling
▪ Possibility to do brand extensions
▪ Customer loyalty/retention and repeat-purchase buyer behaviour
▪ Assist the development and use of integrated marketing communications
▪ Contribute to corporate identity programmes
▪ Provide some legal protection

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10.4 How to Build Brands

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Building brands

IDENTITY
1. Enable consumers to identify with the brand

2. Establish brand meaning MEANING

3. Encourage customer responses RESPONSE

4. Foster customer relationships RELATIONSHIP

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How to build a brand

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10.5 Brand Names

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Good brand names
▪ Easily recalled, spelled, and spoken

▪ Strategically consistent with the organization’s branding policies

▪ Indicative of the offering’s major benefits and characteristics

▪ Distinctive

▪ Meaningful to the customer

▪ Capable of registration and protection

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Importance of brand name

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Criteria for choosing brand names

Should evoke
Should be easy to May suggest
positive Be distinctive
pronounce product benefits
associations

Numerical brand
Should be Not infringe an
naming for
transferable (check existing registered
technological
cultural meaning) brand name
products

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Other branding
elements
• Envision long-term strategy
• Relevant to consumers
• Distinctive
• Usable across circumstances
and instruments
• Timeless, but adaptable

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Different types of logos

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Example: Apple
Example: Starbucks
http://globalassets.starbucks.com/assets/5a106e41fe954581999566a4293ced89.jpg
Example: Pepsi

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Example: VTM

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VTM: Slogan

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10.6 Brand Meaning

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Brand meaning
▪ Deciding on the appropriate brand associations
▪ Create a brand personality
▪ Brands relate to consumers’ self-concept
▪ Desired, ideal and ought self

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Brand personality
Brand
Personality

Sincerity Excitement Competence Sophistication Ruggedness

Down-to-earth Daring Reliable Upper class Outdoorsy

Honest Spirited Intelligent Charming Tough
Wholesome Imaginative Successful
Cheerful Up-to-date

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10.7 Brand Response and Relationship

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Brand response and relationship

▪ Brand preference
▪ Be faster, cheaper, better

▪ Brand relevance
▪ Change what brand must have

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10.7 Branding strategies

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Branding strategies
Individual branding
• Each brand has a separate, unique identity

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Family branding
• Brand name is used for all products in similar categories

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Corporate branding

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Line extension

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Brand extension

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Popular brand extensions

Mr. Clean Car Wash

Endorsement branding

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Line and brand extensions: Risks
▪ Brand dilution
▪ Risk of cannibalization
▪ Needs reasonable degree of “fit” with parent brand
▪ Unsuccessful extension can hurt mother brand
▪ More than half of brand extensions fail
Poor brand extensions
Poor brand extensions
Co-branding

Product-based Communications-based

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Ingredient branding

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Product-based co-branding: Benefits and risks

Benefits
• Added value and differentiation
• Positioning
• Reduction of cost of product introduction
Risks
• Loss of control
• Loss of brand equity

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Brand scope

• Domestic

• International

• Multi-domestic

• Global

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Global branding

How global brands create value:

• Consumer preference for global brands
• Organizational benefits
• Marketing benefits
• Economic benefits
• Transnational innovation

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10.8 Contemporary Brand Building

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Co-creation

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Semiotics perspective
▪ Importance of using signs in a crowded market place
▪ Adopting semiotics into brand architecture builds layers of meaning
through related symbols, colors and language

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Example: Nintendo Wii

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Example: University logos

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Brand equity
▪ Measure of value and strength of a brand

▪ Customer-based brand equity: Differential effect that brand has on

consumer response to the marketing of that brand
• Brand awareness
• Brand associations
• Perceived quality
• Brand loyalty
• Price sensitivity

▪ Financial brand equity: Discounted future income streams attributable

to the brand
Consumer brand equity: Example

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The brand-value chain

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Financial brand equity
Power of branding
• Brands with strong consumer perceptions deliver much better returns for their
shareholders
• Investing in building strong brands provides a high degree of resilience when
times get tough
• Brands with strong consumer connections recover their value much more
quickly

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