Chapter 2 | Branding

What is brand portfolio?

-Bastion brand These come into place, when the company starts to grow and want to capture more consumers: -Prestige brand -Fighter brand -Flanker brand

What are the benefits of branding?

-Brand awareness -Perceived quality -Strong brand associations -High brand loyalty

What are the benefits of brand awareness?

-Brand in evoked set -Influence on attitude and perceptions -Anchor for associations -Signal of substance/ commitment

What are some of the most successful institutions and organizations that have built the strongest brand?

-Carnegie Hall -John Hopkins -Bocconi -Girl Scouts

What are the benefits of strong brand associations?

-Differentiation/ positioning -High price premium -Memory retrieval potential -Reason to buy -Brand extension potential

What are the advantages of line and brand stretching?

-Expand variety -Reach new customers -Enhance brand image -Command more shelf space -Carry over brand image -More efficient use of communication efforts

Marketing communications and brand equity What is brand-building?

-High advertising spending -Loyalty promotions -Corporate image-building public relations

What are some of the most successful service companies that have built the strongest brand?

-Ikea -Nordstorm -McDonalds -Target

What are the brand strategies?

-Line extension -Brand extension -Corporate branding -Multibranding -New brands -Endorsement branding -Ingredient branding -Co-branding -Global branding -Local branding

What are some of the most successful product companies that have built the strongest brand?

-Mercedes -Barbie -Nike -Coca-Cola

What are the benefits of perceived quality?

-Price premium -Differentiation/ positioning -Reason to buy -Channel member interest -Brand extension potential

Marketing communications and brand equity What is brand-harming?

-Price promotions -Hard-sell direct mailings -Bad crisis communication

What are the benefits of high brand loyalty?

-Reduce marketing costs -Trade leverage -Attracting new customers -Time to respond to competitive threats

What is brand?

Def #1: Name, team, sign, symbol. Design (or combination) intended to identify the goods/ services of one seller and differentiate them from others Def #2: On top of this Keller says a brand must also add: -Rational and tangible dimension (product performance) -Symbolic, emotional and intangible dimensions

What is new brands?

Examples: Lexus, Smart, Nexus

What is brand equity?

Financial brand equity: Discounted future income streams attributable to the brand Consumer brand equity: Underlying customer - and marketing-related components of brand equity Components of brand equity: awareness, perceived quality and leadership, strong brand associations and differentiation, high brand loyalty and esteem + other assets (e.g. trademarks)

What are the categories of brand?

Generic products Manufacturer brands Own label brands (private labels, store or dealer brands)

What is global branding?

Global brands are brands that are recognized throughout much of the world Example: Mr. Clean vs Mr. Propre

What is prestige brand?

Go higher, add premium price, raise the image perception

What are the disadvantages of brand stretching?

If the brand image does not fit the new product category, the new introduction may not be successful (in-congruent branch extension) -May be overcome by advance investment -Different customers react differently to moderate levels of incongruence (e.g. East Asia and women) Risk of brand dilution

How to fight private labels?

Increase distance through innovation Increase distance by investing in brand equity Reduce the price gap Introduce a value-flanker (me too!) Wait and do nothing Produce (premium) private labels

What is local branding?

Local Brand is a brand or product or business that is marketed (distributed and promoted) in a relatively small and restricted geographical area Example: Mr. Clean

What is fighter brand?

Lower the price, compete against brand which position themselves at the lower level

What makes a good brand (list them)?

Memorable: easy to say, spell and recall, and distinctive (e.g. Kodak, Nokia) Meaningful: reinforce an attribute or benefit (e.g. Heads & Shoulders, Mr. Clean) Likeable: aesthetic appeal (e.g. Apple) Protectable: 'Household names' (generic brands) (e.g. Domo Pak, Kleenex, Scotch) Transferable: across product categories (e.g. Axe) and across countries

What is multibranding?

New brand, same category - sometimes referred to as project branding or branded identity Can also be coupled with brand stretching strategies Disadvantage: not benefiting from leveraging effect of existing brands (start from scratch)

What is ingredient branding?

One brand name, which is used to mention part (ingredient) that was not entirely visible Used to signal the quality of the process and how the product was made Some cases are necessary because the ingredient is not known or visible - there will be extra quality by highlighting the special ingredient Example: Hershey in Betty Crocker

What are the disadvantages of line extension?

Original brand loses meaning and clear positioning Cannibalization risk Unsuccessful extension can harm sales of the parent brand

What happens when a brand is successful?

Others will start to mimic you and try to capture some of that worth Example: counterfeit items

What is brand extension?

Same brand, different category Example: Playboy

What is line extension?

Same brand, same category Example: Coke

What is endorsement branding?

Sometimes referred to as House branding or Dual branding Two brand names of the company as used one of them serving as guarantee/ quality label Example: Nestle - Mio Yogurt, Nesquick, Lion, etc.

What is corporate branding?

Sometimes referred to as Umbrella or Monolithic Name of the company is used for all the company's offerings Example: IBM

What is bastion brand?

The core brand, the first place

What is brand name?

The part of a brand that can be spoken (the verbal element) Words, letters, numbers (e.g. Q8, NBA, 49'ers, Rolling Stone) Brand name and brand mark can be combined and have both (e.g. Ikea)

What is brand mark?

The part of the brand not made up the words (the visual element) Symbols of designs (e.g. Nike swoosh, Mercedes Star, McDonald's arches, Rolling Stones' tongue and lips) Brand name and brand mark can be combined and have both (e.g. Ikea)

What is flanker brand?

The same range, expressing different usage, different markets and targets

What is co-branding?

When two brands (who have similar power) join together to promote a new product Example: Apple Watch & Hermes

What is the difference between a product and brand?

Which would be more successful? Good Product + Good Brand: The company has not put out good communication to promote its product and brand Good Product + Great Brand: The worth of the brand is so big that it can build up the extra value that the product is missing Companies should focus more on marketing and communication versus innovation - not building a brand to share their innovation Example: starbucks

Example: Apple Match the product and the brand portfolio iPod nano iPod touch iPod classic iPod shuffle

iPod classic - bastion brand iPod touch - prestige brand iPod shuffle - fighter brand iPod nano - flanker brand