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What Makes Brands Great

Jun 01, 2018

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    UNDERSTANDING BRANDING

    INTRODUCTION Branding is a way of clearly highlighting what makes your product or service different to, and moreattractive than, your competitors. A brand goes much deeper than just your company logo. Youcould define a brand as a set of associations that an existing or potential customer has of a company,

    product, service or individual. hese associations can be the result of your own efforts and actively promoted through marketing and corporate identity. Branding also reflects your customers!experiences of your business and affects every interaction you have with your customers andsuppliers.

    he intelligent use of design, advertising, marketing, service proposition, and corporate culture canall help to generate associations in people!s minds that will benefit your business.

    Branding is your attempt to harness these associations to help your business perform better. Any business or organi"ation can benefit enormously by creating an accurate brand, ie one that represents

    their true values. herefore, it is important to always be clear about what your business stands for.#uccessful branding is about promoting your strengths . You need to be sure that you can alwaysdeliver your promises using these strengths, sometimes referred to as !brand values!. You can start bythinking about what your business is good at and what you believe in as a business. $or example%

    the particular skills your business has your high&'uality customer service the best value for money you provide in your marketplace your innovative approach

    (veryone and everything can be said to be a brand. You have an opinion about everything that comesin contact with you, and you selectively filter, categori"e, and accept or reject these brands as youcome in contact with them.

    )hen we think of brands, we think of the big recogni"able brands. )e see the importance of theirname recognition and the value they have to influence buying decisions.

    *ndividually, we all carry our own brand, but we also reflect the brand of the company for which werepresent. )e can see the importance and influence a brand has in our everyday dealings withrecogni"able companies such as +ew York ife, -ary ay or oshiba. hese companies brandingidentities are well recogni"ed and are enablers for their representatives, helping provide them instantrecognition and credibility as they approach their markets. hese representatives still have to live upto the position their brands offer.

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    UNDERSTANDING BRANDING

    BRAND:he American -arketing Association defines a brand as 0 a name, term, sign, symbols, or design, or

    a combination of them, intended to identify the goods or services of one seller or group of sellers and

    to differentiate them from those of competitors.A brand is thus a product is thus a product or service whose dimensions differentiate it some wayfrom other products or services designed to satisfy the same need. hese differences may befunctional, rational or tangible 1 related to product performance of the brand. hey may also be moresymbolic, emotional, or intangible 1 related to what the brand represents.

    BRANDS VERSUS PRODUCTS:2ow do we contrast a brand and a product3 A product is any thing we can offer to a market forattention, ac'uisition, use or consumption that might satisfy s need or want. hus, a product may be a physical good like a cereal , tennis rac'uet 4 a service such as an airline 4 a retail outlet like adepartment store 4 a person such as political figure entertainer4 an organi"ation like an non profit ,trade organi"ation 4 a place including a city , state or a country4 or even a idea like a political orsocial cause. A brand is therefore more than a product, because it can have dimensions that differentiate it in

    some way from other products designed to satisfy the same need. hese differences may be rationaland tangible 1 related to product performance of the brand& or more symbolic, emotional andintangible 1 related to what the brand represents.

    he word brand began simply as a way to tell one person!s cattle from another by means of a hotiron stamp.

    TRADEMARK and BRAND NAME:

    A legally protected brand name is called a trademark . he word brand has continued to evolve toencompass identity & it affects the personality of a product, company or service.

    CONCEPT BRAND:

    A concept brand is a brand that is associated with an abstract concept, like cancer awareness orenvironmentalism, rather than a specific product, service, or business.

    COMMODITY BRAND:

    A commodity brand is a brand associated with a commodity. 5ot milk3 is an example of acommodity brand.

    BENEFITS OF BRANDS:

    $ollowing are the benefits of brands%

    A brand is a persistent, uni'ue business identity intertwined with associations of personality, 'uality,origin, liking and more. 2eres why the effort to brand your company or yourself pays off.

    1. Memorability : A brand serves as a convenient container for a reputation and good will. *t!s

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    http://en.wikipedia.org/wiki/Trademarkhttp://en.wikipedia.org/wiki/Trademarkhttp://en.wikipedia.org/wiki/Trademarkhttp://en.wikipedia.org/wiki/Breast_cancer_awarenesshttp://en.wikipedia.org/wiki/Environmentalismhttp://en.wikipedia.org/wiki/Commodityhttp://en.wikipedia.org/wiki/Commodityhttp://en.wikipedia.org/wiki/Commodityhttp://en.wikipedia.org/wiki/Got_milk%3Fhttp://en.wikipedia.org/wiki/Breast_cancer_awarenesshttp://en.wikipedia.org/wiki/Environmentalismhttp://en.wikipedia.org/wiki/Commodityhttp://en.wikipedia.org/wiki/Got_milk%3Fhttp://en.wikipedia.org/wiki/Trademark
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    UNDERSTANDING BRANDING

    hard for customers to go back to 7that whats its name store7 or to refer business to 7the plumber fromthe Yellow 8ages.7 *n addition to an effective company name, it helps when people have materialreminders reinforcing the identity of companies they will want to do repeat business with%refrigerator magnets, tote bags, datebooks, coasters, key rings, first aid kits, etc.

    -emorability can come from using and sticking with an unusual color combination 9$ed(x!s purpleand orange:, distinctive behavior 9the gas station whose attendants literally run to clean yourwindshield:, or with an individual, even a style of clothing 9Author om )olfe!s white suits:.;evelop your own identifiers and nail them to your company name in the minds of your public.

    2. Loyalty. : )hen people have a positive experience with a memorable brand, they!re morelikely to buy that product or service again than competing brands. 8eople who closely bond with a brand identity are not only more likely to repurchase what they bought, but also to buy related itemsof the same brand, to recommend the brand to others and to resist the lure of a competitor!s price cut.

    he brand identity helps to create and to anchor such loyalty.. !amiliarity . Branding has a big effect on non&customers too. 8sychologists have shown that

    familiarity induces liking.

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    UNDERSTANDING BRANDING

    he or she tends to choose the brand&name supplier over the no&name one. As the saying goes, 7You!llnever be fired for buying *B-.7 By building a brand, you fatten your bottom line.

    THE ROLE OF BRAND:Brands identify the source or maker of the product and allow consumers 1 either individuals ororgani"ations 1 to assign responsibility for its performance to particular manufacturer or distributor.

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    UNDERSTANDING BRANDING

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    Pri'in$ 5 a component of value4 higher prices may signify to consumers higher 'uality, andlower prices may suggest decreased value.

    Di*trib#tion & availability4 limited distribution of a product or service may implyexclusivity to discerning consumers.

    6#ality " which impacts satisfaction4 obviously, higher 'uality will translate to moresatisfied customers who come back again and again to purchase your offerings.

    Pre*en'e " prominence in the paid and unpaid media4 products or services with a high& profile market presence will lead to brand recognition and increased sales.

    A/arene** " top&of&mind awareness, residual awareness and recognition, which aredirectly related to presence4 the higher your offering!s awareness, the better your sales resultswill be.

    Retation " enduring public opinion of brand character, which is built over time anddifficult to change once established.

    Ima$e & perceptions of brand traits or prototypical buyers4 often represented by 'ualitiesthe consumer relates to. ike reputation, image is difficult to change once established.

    Bene3it* " consumers may e'uate certain positive and negative conse'uences with use ofyour product or service4 these may be warranted or unwarranted.

    Po*itionin$ *alien'e & differentiation from the competition, which is established by acombination of all elements of the brand.

    Pre3eren'e & a predisposition to buy displayed by consumers who are establishing brandloyalty.

    7are o3 mar0et " increased market share is a direct result of a successful brandingcampaign.

    C#*tomer 'ommitment & loyalty is built through long&term branding and closeconsumer contact.

    Co (ep$s:

    Brand is the personality that identifies a product, service or company 9name, term, sign, symbol, ordesign, or combination of them: and how it relates to key constituencies%

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    UNDERSTANDING BRANDING

    he psychological aspect, sometimes referred to as the brand image , is a symbolic construct createdwithin the minds of people, consisting of all the information and expectations associated with a product, service or the company9ies: providing them.

    BRAND RECO,NITION:A brand which is widely known in the marketplace ac'uires brand recognition .

    BRAND !RANC9I E :

    )hen brand recognition builds up to a point where a brand enjoys a critical mass of positivesentiment in the marketplace, it is said to have achieved brand franchise .

    BRAND A ARENE :

    Brand awareness refers to customers! ability to recall and recogni"e the brand under different

    conditions and link to the brand name, logo, jingles and so on to certain associations in memory. *thelps the customers to understand to which product or service category the particular brand belongsand what products and services are sold under the brand name. *t also ensures that customers knowwhich of their needs are satisfied by the brand through its products 9 eller:.

    BRAND PROMI E:

    Brand promise is what a particular brand stands for 9and has stood for in the past:. *t has its rootsfrom the identity that it gains over a period of time. Msually, brand promise is an attribute common to!8arent! brands. 2erein, the brand may broadly stand for Nuality, 8erformance, rust, or $alse promises.

    BRAND E6;ITY:Brand e'uity is the added value endowed on products and services. *t may be reflected in the wayconsumers 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.

    LOCAL BRAND:

    A local brand is a brand that can be found in only one country or region. *t may be called a regional brand if the area encompasses more than one metropolitan market.

    ,LOBAL BRAND:

    A global brand is one which is perceived to reflect the same set of values around the world. 5lobal brands transcend their origins and create strong enduring relationships with consumers acrosscountries and cultures.

    ,LOBAL BRAND

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    UNDERSTANDING BRANDING

    8roducts and services 8roduct names 8roduct features 8ositionings -arketing mixes 9including pricing, distribution, media and advertising execution:

    BRAND NAME:he brand name is 'uite often used interchangeably with 7brand7, although it is more correctly used

    to specifically denote written or spoken linguistic elements of any product.

    REAL LI!E E8AMPLE:

    DALDA Dalda , a pioneer in vegetable oil and banaspati ( hydrogenated vegetable fat)category in Pa istan, has earned the tr!st of c!sto"ers by providing high #!ality edible oil prod!cts over a

    periods of $% years& Dalda, 'hich to be synony"o!s banaspati genre, 'as recently e tended to arange of edible oils by la!nching Canola and Olive Oil prod!ct variants& Dalda la!nched DaldaCanola Oil as it reali ed that there 'as a gro'ing a'areness a"ong the cons!"ers regarding thehealth benefits of canola oil co"pared to other coo ing "edia& It also beca"e the first leadingbrand to introd!ce olive oil in Pa istan 'ith the la!nch of Dalda Olive Oil in three variants& *achof these variants addressed specific coo ing re#!ire"ents of cons!"ers+ Dalda * tra irgin OliveOil for salads, shallo' frying, and lo'- heat coo ing , Dalda P!re Olive Oil for "edi!" heatcoo ing and frying, and Dalda Po"ace Olive Oil ,s!itable for Pa istani style of c!isine thatre#!ires high heat coo ing and deep frying&

    D

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    UNDERSTANDING BRANDING

    %HAT )AKES BRANDS GREAT'o create a strong brands and maximi"e brand e'uity , marketing managers must do the following %

    Mnderstand brand meaning and market appropriate products and services in an appropriatemanner.

    8roperly position the brand. 8rovide superior delivery of desired benefits. (mploy a full range of complementary brand elements, supports marketing and secondary

    associations. (mbrace integrated marketing communications and communicate with consistent voice. -easure consumer perceptions of value and develop a pricing strategy accordingly. (stablish credibility and appropriate brand personality and imagery. -aintain innovation and relevance for brand.

    #trategically design and implement a brand hierarchy and brand portfolio. *mplement a brand e'uity management system to ensure that marketing actions properly

    reflect brand e'uity.

    SEVEN DEADL* SINS OF BRAND )ANAGE)ENT:

    n the flip side of the coin, what common branding mistakes prevent firms from creating strong, powerful brands3 he 0seven deadly sins of brand managementO include the following%

    =. !ail#re to 3#lly #nder*tand t7e meanin$ o3 t7e brand % given thatconsumers 0own 0brands, it is critical to understand what thy think and feel about brands andthen plan and implement marketing programs accordingly. oo often, managers convincethemselves of the validity of marketing actions & for example, a new brand extension, adcampaign, or price like 1 based on a mistaken belief about what consumers know or whatmarkets r would like them to know about the brand. -anager often ignore the full range ofassociations 1 both tangible and intangible 1 that may characteri"e the brand.

    2. !ail#re to li>e #& t7e brand &romi*e: a brand should be promise and acommitment to consumers, but too often that promise is broken. A common mistake is to set brand expectations too high and then fail to live up to them in the marketing program. Byoverpromising and not delivering, a firm is worse off in many ways than if it had not set

    expectations at all.. !ail#re to ade-#ately *#&&ort t7e brand : creating and maintaining brand

    knowledge structures re'uire marketing investments. oo often, managers want to getsomething for nothing by building brand e'uity without a willingness to provide propermarketing support, or once brand e'uity has been built, by expecting the brand to remainstrong despite the lack of further investments.

    ". !ail#re to be &atient /it7 t7e brand : brand e'uity must be carefully and patiently built from the ground up. A firm foundation for brand e'uity re'uires thatconsumers have the proper depth and breadth of awareness and strong, favorable and uni'ueassociations on memory. oo often, mangers want to take shortcuts and by pass more basic

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    UNDERSTANDING BRANDING

    branding associations 1 such as achieving the necessary level of brand awareness 1 toconcentrate on flashier aspects of brand building related to its image.

    (. !ail#re to ade-#ately 'ontrol t7e brand : all the employs of the firm mustunderstand brand e'uity, and the firms actions must reflect a broader corporate perspectiveas well as a more specific product perspective. oo often, firms make decisions hapha"ardlywithout a true understanding of the current and desired brand e'uity and without recognitionof the impact these decisions have on other brands or brand 1 related activities.

    +. !ail#re to &ro&erly balan'e and 'on*i*ten'y and '7an$e /it7 t7ebrand: -anaging brand necessities striking the difficult, but crucial, balance betweenmaintaining continuity in marketing activities and implementing changes to update the product or image of a brand. oo often, mangers are left behind, as a result of not makingadjustments. r they may make so many changes that the brand becomes a moving targetwithout any meaning to consumers.

    . !ail#re to #nder*tand t7e 'om&le)ity o3 brand e-#itymea*#rement and mana$ement: (ffective brand management re'uiresdiscipline, creativity, focus and the ability to make hundreds of decisions in the best possiblemanner. Mnfortunately, sometimes marketers oversimplify the process and try to e'uatesuccess in branding with taking one particular action or approach. Brand e'uity is notoptimi"ed.

    THE )ARKETING ADVANTAGES OF STRONG BRANDS:

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    UNDERSTANDING BRANDING

    have valued these brands enough to stick with them and reject the overtures of competitors, creatinga steady stream of revenues for the firm. Brand loyalty is closely related to brand e'uity but isdistinct concept. )e often measure brand loyalty as a behavior 1 say, the number of repeat purchases..

    (ffective handling of marketing crisis re'uires swift and sincere actions, an immediate admission hatsomething has gone wrong, assurance that an effective reedy will be put in place. he greater the brand e'uity, the more likely that these statements will be credible enough to keep customerunderstanding and patient as the firm set s out to solve the crisis. )ithout some underlying brande'uity, however, even the best 1 laid& plans for recovery may fall short with suspicious oruninformed public. $inally, even absent a crisis, a strong brand offers protection in a marketingdownturn or when the brands fortunes fail.

    Lar$er Mar$in*:Brands with positive customer& based brand e'uity can command a price premium. -oreover,consumers should also have a fairy inelastic response to price increases and elastic responses to pricedecreases or discounts for the brand over time.

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    UNDERSTANDING BRANDING

    he rationale for the licensee 9the company obtaining the rights to use the trademark: is thatconsumers will pay more for a product because of the recognition and image lent by the trademark.

    he rationale for the licensor 9the company behind the trademark: is increased profits, promotionand legal protection.

    icensing is also a means to enhance the awareness and image of the brand. inking the trademarkto other products may broaden its exposure and increase the strength, favorability, and uni'uenessof brand associations. $inally, licensing may provide legal protection for trademarks. icensing the brand for use in certain product categories prevents other firms or potential competitors from legallyusing the brand name to enter those categories.

    icensing certainly carries risks, too. A trademark can become overexposed if marketers adopt asaturation policy.

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    o'ial Re*&on*ibility:Brands are accountable to consumers, both for the 'uality and performance of their products andservices and for the ethical practices of their owners. 5iven the direct link between brand value and both sales and share price, the potential costs of behaving unethically far outweigh any benefit, andoutweigh the monitoring costs associated with an ethical business.

    -uch of the focus on unethical business practices has fallen on apparel suppliers such as 5ap or oilcompanies such as (xxon and #hell. he reason for this is not because unethical behavior is limitedto these industries but because these brands are so high profile. *nterestingly, those brands whichhave been singled out for abuse are the very same brands that have been pioneering the use ofvoluntary codes of conduct and internal monitoring systems. his is not to say that these brands havesuccessfully eradicated unethical business practices in their entirety, but at the very least we cancredit them with the will to fix the problem, even if they currently lack the capacity to control every

    supplier in every country.Con*#mer Bene3it:*n addition to creating value for society as a whole, brands create significant value for the individualsthat constitute society. he benefits of ever&improving performance, diversity, and guaranteed 'uality9which take much of the risk out of purchasing decisions: have already been mentioned. 2owevereven the simple task of choosing between competing offers would be nigh impossible without brands.

    )ithout brands and their inherent differentiation, consumers would have to spend significant portions of their lives testing and identifying products that meet their specific needs, be it a detergent,

    food, computers, mobile phone or cars. *f they choose the easiest available offer they may end upwith an inferior product or service.

    he economic cost of this additional time and the choice of inferior products is hard to assess buteven most conservative estimates would result in a substantial deterioration in the 'uality of life foreveryone.

    *t is also important not to underestimate the role of brands in emotionally enhancing the consumptionof products and services. -any brands help consumers in their search for self&definition andexpression. $rom self&pampering to external display of status, brands provide consumers withimportant emotional benefits beyond communicating the functionality of the product and service.-any personal care, snack and luxury brands meet such emotional needs.

    7are7older

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    UNDERSTANDING BRANDING

    FINANCIAL VALUES OF BRANDS:

    2ere are the six financial values of a strong brand%

    Ad>anta$e =: a strong brand identity commands a price premium. Because someone is willingto pay thousands of dollars more for a exus than a oyota3 hey are basically the same productwith the exception of some additional options and accessories. 7You can even exotic cars fromJaguar, Golvo and Hange Hover, and each is made up of $ord . And do not be surprised that even the parties to be discovered7

    he value proposition is packed around the brand. Hovers, Jaguar exus, Golvo and Hange brandsare worth more in the minds of consumers, regardless of whether the product actually works better.

    Ad>anta$e 2 % a supplement creates the perception of 'uality. his follows the old principle of7you get what you pay for.7 *f a exus costs more than a comparable product, it must be because the

    exus offers better 'uality. Hight3 +ot necessarily. here are a lot cheaper and high 'uality vehiclesavailable, but people continue to pay more for what they perceive as a better brand or higher 'uality.

    Ad>anta$e : he perceived 'uality has been shown to positively influence the use ofcustomers. anta$e + : he perceived 'uality can be a point of differentiation. #mart companies areconstantly looking for ways to differentiate their brand from competing offers. he perceived 'ualitycan be distinguished, while the company may loop back / benefits and costs, a premium price for itsstrong brand.

    /E

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    UNDERSTANDING BRANDING

    THE PO%ER OF A STRONG BRAND:he power of brands can be explained in E steps which are as follows%

    1. 1-Strong brands set themselves apart from competitors2. 2-Strong brands create enduring relationships with everyone3. 3-Strong brands focus companies and their leaders4. 4-Strong brands motivate people to become powerful brand players

    . -Strong brands generate new growth and createbrand value

    tron$ Brand* et T7em*el>e* A&art !rom Com&etitor*:

    )e have vivid impressions of strong brands. hey exist in our hearts and minds as powerful images,colors, experiences, feelings, memories and associations. #ome of these impressions were formed along time ago. #ome are new. -ost are indelible.

    *n fact, we rarely confuse strong brands with their competitors. #trong brands stand apart from their peers and from the clutter of brands in other categories. (xactly how do they achieve it3*t starts with brand definition. #trong brands have compelling identities that 9/: reflect reality4 96:carve out a special place on the competitive landscape4 and 9>: actively shape our attitudes and perceptions.

    (lements of identity include the brand name and a composite of ideas, themes, messages, graphics,

    colors, sounds, style and tone of voice && rich, contextual elements that provide building blocks formarketing, messaging, website design and online communications. hese elements are alsotransformed into retail design and architecture, advertising, public relations and othercommunications.

    (ffectively expressing its identity, a strong brand has the power to change the competitive landscapeand reposition competitors.

    he message for brand owners is simple% brand identity must be competitively and comprehensivelydeveloped.

    tron$ Brand* Create End#rin$ Relation*7i&* it7 E>eryone:

    #trong brands and strong relationships are synonymous. *f you have one, typically you have theother. But relationships aren!t just about people who are customers.

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    UNDERSTANDING BRANDING

    representatives. hey may be editors or reviewers. Yet they influence hundreds of other people andneed to be totally informed about you.

    hird, you need fans. hese are passionate people who have fallen in love with you. hey may becustomers 9but often are not:. hey may be bloggers or participants in discussion forums.Hegardless, they know you inside and out, they are enthusiastically committed to you, and they tellthe world about you. hey are experts on how great you are, why your minor faults should beforgiven, and why you should be considered above everyone else on the planet.

    tron$ Brand* !o'#* Com&anie* and T7eir Leader*:W H O W E A R E

    #ome companies struggle to achieve what they need to achieve. -any corporate initiatives fail at theexecutive level. +ot a few senior leaders feel they lack direction, resources, and good people.)e all know companies like these. Actually some have massive resources and have been around along time. #ome are new and emerging. #ome are privately held. But they have one extraordinarycharacteristic in common% they are stuck. 5enuinely ,stuck. 5etting to the next place is a challenge,and the challenges seem insurmountable.

    #trong brands, fortunately, avoid stuck.#trong brands, actually, see the world in a different way.#trong brands know 9/: who they are4 96: what they need to be4 9>: what they should do to

    get there4 9@: how to focus on what makes success happen4 9E: how to involve their best people4 9L:how to invest in programs as well as people4 9F: how to connect and build relationships witheveryone who is important to the future4 9D: how to generate and sustain momentum4 9 : how tomeasure and evaluate progress4 and 9/I: how to reinvent themselves along the way.

    tron$ Brand* Moti>ate Peo&le To Be'ome Po/er3#l Brand Player*:-ost people work hard and like the companies they work for. )hich is great. 8eople are the armsand legs of their companies. hey are also the eyes, ears, brains, and voices.

    -ostly, people do their jobs responsibly. -ostly, they enjoy working with people like themselves.-ostly, they work hard to make customers happy. But strong brands ask a little more from even the best people.

    #trong brands want everyone in the company to be a major brand player and play a major role in bringing brand values to life. his means knowing more than a job and how to do it well. *t meansunderstanding the company, what makes it special, and exactly what it takes to turn customers into passionate advocates for your brand.

    ey people in an organi"ation create experiences that evolve into relationships that make the brandhappen in the hearts and minds of customers, prospects and influencers.

    *f you have people working with people, inside and outside your organi"ation, well&developed brand player programs will change your world.tron$ Brand* ,enerate Ne/ ,ro/t7 and Create Brand

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    #trong brands have good awareness. But they increase their awareness with people they seek to do business with. hey identify new prospects and develop new programs to connect. hey managethese relationships for as long as it takes to create customers. hey keep working to make allcustomers passionate, lifetime advocates.#trong brands have achieved success, but they continuously redefine what it takes to impact themarketplace and to achieve greater sales && plus greater margins, 5reater influence, better, motivatedemployees, Better customer relationships, An expanding customer base, 5reater loyalty, 5reatercustomer advocacy.

    hese are the drivers of growth and value creation.#trong brands manage all of them.

    /D

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    BRANDING: THE )ARKETING PRINCIPLES:

    %&a$ #s +ra ! ,ar-e$# 'Brand -arketing seeks to satisfy the needs of people 9customers or the market: 9creating a sense ofusefulness or utility: through the exchange process.

    he -arketing -ix or the 7@ 8!s7 are%o 8roducto 8riceo 8romotiono 8lace 9of distribution:

    Pro!/($ S$ra$e #es: Branding is an important decision designed to enhance the identity of the product through the use ofuni'ue brand names, symbols and other distinctive measures. )ith competition growing more intense inalmost all industries, establishing a strong brand allows an organi"ations products to stand out and avoid

    potential pitfalls, such as price wars, that have befallen many products. herefore, a clear understandingof branding strategy is essential in order to build solid products and product lines. *n particular, marketersshould be aware of various branding approaches that can be pursued.

    By branding approach we are referring to different product identification strategies that can be deployedto establish a product within the market. As we will see, the purpose of these approaches is to build a

    brand that will exist for the long term. -aking smart decisions up front is crucial since a company mayhave to live with the decision for a long time.

    !ategories of "ew #roducts

    +ew products can fall into one of several categories. hese categories are defined by the type of marketthe product is entering 9i.e., newly created, existing but not previously targeted, existing and targeted :and the level of product innovation 9i.e., radically new, new, upgrade:.

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    #tays in (xisting and 8reviously argeted -arket by (nhancing (xisting 8roduct or 8roductine 1 Mnder this development category the marketer attempts to improve its current position in

    the market by either improving or upgrading existing products or by extending a product line byadding new products. his type of new product is seen in our earlier example of 8rocter and

    5ambles ide product line which contains many product variations of the basic ide product.

    $ow "ew #roducts %re &btained

    -arketers have several options for obtaining new products. $irst, products can be developed within anorgani"ations own research operations. $or some companies, such as service firms, this may simplymean the marketer designs new service options to sell to target markets. $or instance, a marketer for amortgage company may design new mortgage packages that offer borrowers different rates or paymentoptions. At the other extreme companies may support an extensive research and development effortwhere engineers, scientists or others are engaged in new product discovery.

    A second way to obtain products is to ac'uire them from external sources. his can occur in several waysincluding%

    8urchase the 8roduct & )ith this option a marketer purchases the product outright from anotherfirm that currently owns the product. he advantage is that the product is already developed, whichreduces the purchasing companys time and cost of trying to develop it themselves. n thenegative side the purchase cost may be high.

    icense the 8roduct 1 Mnder this option the marketer negotiates with the owner of the product for the rights to market the product. his may be a particularly attractive option for companies who

    have to fill a product need 'uickly 9e.g., give a product line more depth: or it may be used as atemporary source of products while the marketers company is developing its own product. n thenegative side the arrangement may have a limited time frame at which point the licensor maydecide to end the relationship leaving the marketer without a source for the product.

    8urchase Another $irm & *nstead of purchasing another companys products marketers may find iteasier to just purchase the whole company selling the products. ne key advantage to this is thatthe ac'uisition often includes the people and resources that developed the product which may be akey consideration if the ac'uiring company wants to continue to develop the ac'uired products.

    Promotion trate$ie*:

    A successful product or service means nothing unless the benefit of such a service can becommunicated clearly to the target market. An organi"ations promotional strategy can consist of%

    Ad>erti*in$: *s any non personal paid form of communication using any form of mass media3

    P#bli' relation*: *nvolves developing positive relationships with the organi"ation media public. he art of good public relations is not only to obtain favorable publicity within the media, but

    it is also involves being able to handle successfully negative attention.

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    ale* &romotion:

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    Pri'in$ trate$ie*:$ollowing are some concepts that you may find useful as you determine pricing for your brands products and services.Re3eren'e Pri'e*:A 0reference priceO is the price that people expect or deem to be reasonable for a certain type of product. #everal factors affect reference prices%

    ?-emory of past prices?$rame of reference 9compared to competitive prices, pre&sale prices, manufacturers suggested prices, channel&specific prices, marked prices before discounts, substitute product prices, etc.:

    o ity:8eople display different price sensitivities to different products in different situations.

    'he following factors decrease price sensitivity:

    ?Helevant brandKproduct differentiation?-arketing and selling on factors other than price?

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    brands?)hen it is difficult to ascertain a 0reference priceO within the category?)hen there are significant switching costs 1 in dollars, time, effort, risk or emotional impact?8roduct categories for which the risk of failure is an important issue?)hen the price is insignificant relative to the total budget or discretionary income?$or businesses, when the items price does not significantly contribute to the price of the productsand services that they sell?)hen the price falls within the expected price range for products in the category? ffering 0value added servicesO versus 0price discountsO to motivate purchases?+ew markets

    'he following factors increase price sensitivity:

    ?8rice promotions, especially when people are able to stock up on the price&discounted items?-ature and declining markets8rice #egmentation%8rice segmentation 9offering different prices to different market segments: increases overall revenuesand profits, and it is particularly beneficial to industries that have high fixed cost structures.

    bviously, price segmentation works better to the extent to which there are real customer needsegments and to which you can effectively isolate those segments.#rices can be segmented in the following ways:?By time 9higher hotel room rates for holidays and other peak tourist seasons:?By location 9higher prices in locations with less competition or in which less price&sensitiveshoppers shop, orchestra versus balcony seats in a theater:?By volume 9volume discounts for large orders:?By product attribute 9first class vs. coach section on airplanes4 solid brass vs. plastic faucets:

    ?By product bundling 1 examples%o selling software in product suites vs. by the programo selling e& earning by library vs. the individual course?By customer segment 9brand&loyal vs. price&sensitive vs. convenience&oriented or image&consciousvs. economy&oriented:

    Pla'e:

    his refers to how an organisation will distribute the product or service they are offering to the enduser. he organisation must distribute the product to the user at the right place at the right time.(fficient and effective distribution is important if the organisation is to meet its overall marketingobjectives. *f an organisation underestimatea demand and customers cannot purchase products because of it, profitability will be affected.

    7at '7annel o3 di*trib#tion /ill t7ey #*e?

    wo types of channel of distribution methods are available. *ndirect distribution involves distributingyour product by the use of an intermediary for example a manufacturer selling to a wholesaler andthen on to the retailer.. ;irect distribution involves distributing direct from a manufacturer to theconsumer $or example ;ell

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    Di*trib#tion trate$ie*:;epending on the type of product being distributed there are three common distribution strategies available%

    =. Inten*i>e di*trib#tion : Msed commonly to distribute low priced or impulse purchase products eg chocolates, soft drinks.

    2. E)'l#*i>e di*trib#tion : *nvolves limiting distribution to a single outlet. he product isusually highly priced, and re'uires the intermediary to place much detail in its sell. An example ofwould be the sale of vehicles through exclusive dealers.

    . ele'ti>e Di*trib#tion : A small number of retail outlets are chosen to distribute the product. #elective distribution is common with products such as computers, televisions householdappliances, where consumers are willing to shop around and where manufacturers want a largegeographical spread.

    *f a manufacturer decides to adopt an exclusive or selective strategy they should select aintermediary which has experience of handling similar products, credible and is known by the targetaudience.

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    %(')!*+

    UNDERSTANDING HOW BRANDS AFFECT CONSUMER BEHAVIOR

    Academic researchers have identified a number of different theoretical mechanisms, based onconsumer behavior, to explain why strong brands for which consumers have high brandknowledge receive a differential response. )e can classify the mechanisms in three differentstages of consumers creation and use of brand knowledge%

    .& Attention and learning , that its , the building of the brand knowledge structures4/& Interpretation and evaluation of marketing information or brand alternatives , that is , the

    use of brand knowledge 4and0& Mechanisms that affect the actual choice process , that is, the application of brand

    knowledge.

    All through these three different stages of consumer behavior, research has documentedadvantages for strong brands.

    ATTENTION AND LEARNING:#trong brands can have an advantage over unknown or weak brands because consumers familiarwith the brand have better encoding ability and better 1 developed procedural knowledge. heycan develop a grater number of stronger links for familiar brands.

    -oreover, because strong brands have better developed brand knowledge structures in the mindsof consumers, consumers are more likely to uni'uely associate these links with the brand. )henconsumers have less developed knowledge structures, on the other hand, associate s may end up

    being stored under the product category and not the specific brand. earning can even decreasefor brands that are late to enter the markets, because consumers see them as having fewer or lessnovel features.

    CONSIDERATIONS:Another advantage related to brand strength is that strong brands with more associations are morelikely to be in consumers considerations sets. #trong brands also receive an advantage whenconsumers begin their search with well& known and well& regarded brands that they see as morelikely to satisfy their needs.

    SELECTIVE ATTENTION:

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    ;irect effects occur when brand 1 related information is input directly into the decision process.$or instance, in loss aversion the losses of switching from a known brand loom larger than the potential gains from using a lesser& known brand Psay, in response to a price reductionQ. hus, the possibility of a potential loss leads to an advantage for strong brands. he halo effects related positive feelings about a strong brand can positively bias the way consumers evaluate brandadvertising .similarly , consumers confidence increases when consumers get familiar in adomain and may lead them t use more favorable associations a when making a decision .

    Indirect effects are perhaps more common than direct effects and are driven by uncertainty orambiguity in the decision process. After they ac'uire brand information, consumers may interpretor evaluate it, which can be especially critical if the information is ambiguous. he primaryfactor that determine sour decisions under * sour prior attitudes. *f they are positive, we areusually more receptive and less critical. Ambiguity generally favors the incumbent or stronger brand through, for example, confirmation biases.

    $inally, consumers may use brand names as a signal of the credibility of product claims. hus,evaluation advantages& through more elaborations& may help strong brands toindirectly createeven stronger favorable associations. CHOICE:

    8erhaps the most fre'uently cited advantage for strong brands at the choice stage is the notion of brand recognition or familiarity as a choice heuristic. (ssentially, when consumers have limited prior knowledge in a product category, the brand name may be most accessible cue available. *naddition, using familiar brand name as a diagnostic cue is thought to be a consumer strategy fordealing with risk and uncertainty, especially when consumers have limited prior experience. he presence of s known brand can limit consumers ability to detect differences in product 'uality

    across brands, even when they sample other brands.

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    Branding is a very powerful component in business. he brand must have a logo to make branding

    easier and more possible. he consumers decide if they will buy a product or use a service based on

    how they view the brand. he brand itself tells us or let us imagine how good or bad the product is

    even if we never tasted it beforeV All that brand promotion and advertising really do tell us how great

    a brand can be. nce a customer likes your brand heKshe will definitely come back for repeated

    services or products. he 'ualities of the product or services are ensured through the customers

    minds from the brand image.

    Brand is not only convenient for businesses for repeated customer purchase but also easier for

    customers to filter out the countless generic items. Brand gives consumers the reason to buy it and

    wastes less time for consumer to choose.

    here are ways to improve a brand from advertising such as viral campaign 9more trustworthy:,

    online ads, print ads and commercials. Another way is to improve your product or services that will

    reinforce the brand. his is a good way to promote your brand by always being in the cutting edge or

    0customers first imageO.

    he 'ualities of your products and services will reinforce the brand. Advertise as much as possible to

    spread that message and make it into a cult brand. Branding doesnt only benefit the business but you

    as well 9yes * mean it:. he brand you choose reflects who you are and expresses yourself on what

    you like to do and be able to join the community of like minded people. Branding is a win% win

    situation for both the businesses and the loyal customers.

    References

    6F

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    UNDERSTANDING BRANDING

    8rincipal of marketing by 8hilip otler,5ary Armstrong

    -AH ( *+5 -A+A5(-(+ BY 82* *8 (H, (G*+ A+( ( (H

    # A (5*< BHA+; -A+A5(-(+ BY (G*+ A+( ( (H

    http+33branding&s"all-b!siness"ar etinginfo&co"3branding-h!"an3the-si -financial-benefits- for- the-brand-identity3

    http+33'''&learn"ar eting&net3place&ht"

    6D

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