Chapter 2

Changes in private brands

*Improved quality *Perceived as a value purchase *Higher loyalty toward retail outlets and lower loyalty toward specific brands *Used to differentiate retail outlets *Increased advertising of private brands *Increased quality of in-store displays and packaging of private brands

Family brand

- a company offers a series or group of products under one brand name - Campbell's

Brand equity

- a set of characteristics that are unique to a brand

Consumer value

- attempts to assess the value of a brand based on input from consumers

Conceptual names

- capture the essence of what a company offers - Google, Twitter, Krispy Kreme

Revenue premium

- compares a branded product to the same product without a brand name

Implied names

- contain recognizable words or word parts that convey what a company does - FedEx, IBM

Financial value

- estimates the future cash flows of a brand based on its unique strength and characteristics, which will then be discounted to determine a net present value

Adaptation strategy

- involves changing elements of design, function, or packaging in response to needs or conditions in particular country markets

Brand metrics

- measures of returns on brand investments

Salient

- most noticeable or important

Brand infringement

- occurs when a company creates a brand name that closely resembles a popular or successful brand

Iconoclastic names

- represent something unique, different, and memorable - Monster.com, Nabisco, Calumet

Overt names

- reveal what a company does - AMerican Airlines, Kraft Foods, and BMW Motorcycles USA

Stimulus codability

- successful logos elicit shared meanings across consumers

Cyber squatting

- the act of registering a domain name that is the same as, or confusingly similar to, the trademark of another and then offering to sell that domain name back to the trademark owner.

Adaptation

- the brand and/or the actual product may be different in each country or region

Flanker brand

- the development of a new brand by a company in a good or service category in which it currently has a brand offering - P&G's primary laundry detergetnts are Cheer and Tide

Stock market value

- the financial value fo the company is determined through stock valuation. Then, an estimate of the portion of the value allocated to brand equity - not physical assets - can be made

Cooperative branding

- the joint venture of two or more brands into a new product or service - Citibank combining American Airlines and Visa into a credit card

Complementary branding

- the marketing of two brands together for co-consumption - Velveeta cheese marketed with Rotel Tomatoes and Diced Green Chilies

Co-branding

- the offering of two or more brands in a single marketing offer

Ingredient branding

- the placement of one brand within another brand - Intel microprocessors in Dell computers, Nestle chocolate in Pillsbury brownie mix

Standardization

- the same brand name and product are sold in all countries

Brand logo

- the symbol used to identify a brand, helping to convey the overall brand image

Brand extension

- the use of an established brand name on products or services not related to the core brand - Nike extending its brand name to a line of clothing

Brand alliance

- two companies use brand strength to develop and co-market a new product featuring both names

Brand parity

- what occurs when there is the perception that most goods and services are essentially the same

Brand Image: Benefits to Companies

-Extension of positive customer feelings to new products -Ability to charge a higher price or fee -Consumer loyalty leading to more frequent purchases -Positive word-of-mouth endorsements -Higher level of channel power -Ability to attract quality employees -More favorable ratings by financial observers and analysts

Building powerful brands

-Invest in the brand -Create awareness -Offer authenticity, uniqueness -Build trust -Deliver an experience -Offer value -Utilize social media -Utilize mobile -Act responsibly

Private brands

-Private labels -Proprietary brands marketed by an organization and normally distributed exclusively within the organization's outlets

Methods of measuring brand equity:

1. Financial Value 2. Stock Market Value 3. Revenue Premium 4. Consumer Value

Four tests of quality logos and brand names

1. Recognizable 2. Familiar 3. Elicits consensual meaning among those in the firm's target market 4. Evokes positive feelings

Intangible elements

Corporate personnel > Ideals > Beliefs > Conduct Environmental policies Corporate culture Country location Media reports

Tangible elements

Goods or services sold Retail outlets where the product is sold Advertising Marketing communications Name and Logo Packaging and labels Employees

Keys to successful image rejuvenation:

Help former customers rediscover the brand Offer timeless consumer value Stay true to original, but contemporize Build a community

Primary purposes of packaging:

Protect product Provide for ease of shipping and handling Provide for easy placement on shelves Prevent or reduce theft Prevent tampering (drugs and food) Meet consumer needs for speed, convenience, and portability Communicate marketing message

Brand Image: Benefits to Consumers

Provides confidence regarding purchase decisions, gives assurance about the purchase when the buyer has little or no previous experience, reduces search time in the purchase decision, provides psychological reinforcement and social acceptance of the purchase

Tips on Creating or Changing Logos

The logo is a reflection of the brand Creating logos requires knowledge and expertise Use professional designers Make the logo simple Make the logo media transferrable