Marketing - Chapter 14
In brand licensing the licensee is responsible for
all manufacturing, selling and advertising functions and bears the cost if the licensed product fails
promotion of one item with the family brand promotes
all the firm's other products
A marketer should guard against
allowing a brand name to become a generic tern used to refer to a general product category
brand licensing
an agreement whereby a company permits another organization to use its brand on other products for a licensing fee
brand extension
an organization uses one of its existing brand to brand a new product in a different product category
protecting a brand: surnames and descriptive, geographic, or functional names
are difficult to protect because their designs, some brands can be legally infringed upon more easily than others
protecting a brand: generic brands
are not protectable
A brand is
as much an asset to a company as the building and machinery
A well managed brand is an assest to an organization. the value of the asset is often referred to as
brand equity
four major elements to brand equity
brand-name awareness, brand loyalty, perceived brand quality, and brand association
family branding
branding all of a firm's products with the same name or part of the same name
to capitalize on the brand equity of multiple brands we use?
co-branding
set of association
connect a particular lifestyle or in some instances a certain personality type with a specific brand Disney's slogan "where dreams come true" reminds customers that it is a brand associated with fun, fantasy, and childhood
Set of association - placing characters in advertisement and on packaging helps
customers link the ads and packages to brands
advantage of brand licensing
extra revenues and low-cost or free publicity to new images and trademark protection
by understanding how branding influences purchases, marketers can
facilitate customer loyalty
Kellogg's cereals exhibits what kind of branding? Kellogg's frosted flakes, Kellogg's Special K, Kellogg's etc..
family branding
Level of quality
received high brand quality helps support a premium price
the growth of private brands has been steady. one reason for this is that
retailer advertise the manufacturer brand, which brings customers to the store but sell private brands, especially to price- sensitive customers
a brand's overall economic value
rises and falls with the brand's profitability, brand awareness, brand loyalty, and perceived brand quality, and with the strength of positive brand association
To keep a brand name from becoming a generic term the firm should
spell the name with a capital letter and is it as an adjective to modify the name of the general product class, as Kool-Aid Soft Drink Mix - include the word brand just after the brand name can be helpful
infringement is determined by
the courts, decisions on whether a brand can cause customers to be confused, mistaken, or deceived about the source of the product
brand recognition
the degree of brand loyalty in which a customer is aware that a brand exists and views the brand as an alternative purchase if their preferred brand is unavailable
Brand preference
the degree of brand loyalty in which a customer prefers now brand over competitive offerings if the brand is not available the customer will accept a substitute brand rather than expending additional effort finding and purchasing row preferred brand
Brand insistence
the degree of loyalty in which a customer strongly prefers a specific brand and will accept no substitute
brand equity
the marketing and financial value associated with a brand's strength in a market
Brand name
the part of a brand that can be spoken, including letters, words, and numbers 7Up
Brand mark
the part of a brand that is not made up of words such as a symbol or design McDonald's golden arches
U.S companies actually have had to buy
their own brand rights from foreign countries because they foreign firm was the first user in that country
co-branding
using two or more brands on one product
brand equity represents the
value of a brand to an organization helps give a brand the power to capture and maintain a consistent market share
example of brand extensions
velveeta cheese brand and cheesy skillets
yielding a brand name
words, numbers, and letter are combines to avoid terms that have negative connotation use fabricated words that have no meaning
Brand licensing examples
NFL, NCAA, Disney, Major League Baseball, NASCAR
Generic Brand
a brand indicating only the product category aluminum foil
Private distributor brand
a brand initiated and owned by a reseller HEB brand products
manufacturer brand
a brand initiated by producers to ensure that producers are identified with their products at the point of purchase Clorox Levi's
individual branding
a branding strategy in which each product is given a different name
every aspect of a brand is subject to
a consumer's emotional involvement, interpretation, and memory
brand loyalty
a customer's favorable attitude toward a specific brand
Brand recognition
a familiar brand is more likely to be selected than an unfamiliar brand - the familiar brand is likely to be part of the customer's consideration set
Trademark
a legal designation of exclusive use of a brand
Brand
a name, term, design, symbol, or other feature that identifies one seller's product as distinct from those of other sellers Ford Motor Company's brand
selecting a brand name
first: name should be easy for customers to say, spell, and recall (Cheer) second: brand should indicate what the product's major benefits and suggest it in a positive way (Vanish toilet bowl cleaner) third: set it apart from competing brands, distinctive (Google) Lastly: brand should be designed so that it can be used and recognized in all types of media
Trade name
full legal name of an organization Ford Motor Company
not branding is often called
generic branding
Benefits of branding
helps customers identify specific products that they do and do not like reduce a buyer's perceived risk of purchase makes repeat purchasing easier for customers helps firms introduce a new product that carries the name of one or more of its existing products facilitates promotional efforts
a major advantage of individual branding is that
if organizations introduce a poor product, the negative images associated with it do no contaminate the company's other products
Brand loyalty
keeps its existing customers and avoid spending an enormous amount of resources gaining new ones provide brand visibility and reassurance to potential new customers
Examples of Co-branding
kraft's cheese lunchables - oscar mayer lunchmeats
major disadvantage of brand licensing
lack of manufacturing control, which could hurt the company's name, and bombarding customers with too many unrelated products bearing the same name poor timing, inappropriate distribution channels, or mismatch or product and name
The major characteristic of private brands is
manufactures are not identified on the products use private distributor brands
Nestle uses individual branding for
many of its 6,000 different brands, and nutrition company