Assignment 220
Delp10
B207BPowerpoint-Week41.pptxB207B
Shaping Business Opportunities II
Block 2 Session 14: Introduction to branding
Make some notes on how you would define a brand.
How you defined a brand will depend on your perspective and experience of marketing. Your definition probably included identifying a brand as a mark or label that distinguishes the offerings of an organization from those of others.
However, there is much more to a brand than you might first think, as we will explore.
Block 2- Reading 22
Introduction to branding
Defining a brand
A name, term, sign, symbol, or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competitors.
(American Marketing Association, 1960)
An identifiable product, service, person or place, augmented in such a way that the buyer or user perceives relevant, unique added values which match their needs most closely.
(de Chernatony and McDonald, 1998, p. 20)
The latest definitions of a brand underline the role of communities. Web 2.0 obliges. A brand cannot be reduced to benefit; it has to create a community. No fans, no brand!
(Kapferer, 2012, p. 11)
Reading 22: Introduction to branding
Brand identity
Brand identity is the formulation of a brand in terms of what it stands for from the perspective of the organization that created it;
brand image is the perception or interpretation of a brand from outside the organization by, for example, consumers.
‘Identity is on the sender’s side’, whereas ‘brand image is on the receiver’s side’.
It’s possible for there to be a mismatch between the two, owing to noise in communication and other influences.
Reading 22: Introduction to branding
The six facets of Kapferer’s prism
Reading 22: Introduction to branding
Brand identity has been conceptualised by Kapferer, as a prism having six facets
The six facets of Kapferer’s prism
Reading 22: Introduction to branding
Nike example
Physique- state of the art
Personality- dynamic
Culture- innovative
Relationship- inspiring
Reflection- trendy
Self-image- cool
Reading 22: Introduction to branding
Brand reputation
Brand reputation represents an external evaluation of a brand.
It may be defined as ‘a collective representation of a brand’s past actions and results that describes the brand’s ability to deliver valued outcomes to multiple stakeholders’.
Consumers can have an idea about a brand’s reputation even if they have never consumed that brand.
This brand reputation might be derived from a variety of sources, such as
their own perceptions from viewing the brand,
who they have seen consuming the brand,
any marketing of the brand to which they may have been exposed
and media articles about the brand.
Reading 22: Introduction to branding
Brand equity
Brands have come to be considered organizations’ most valuable assets.
Brand equity is the monetary value of the psychological goodwill which the brand has crated over time.
It includes brand recognition, spontaneous recall of the brand, being part of a buyer’s consideration set and brand consumption.
Ex: Nestle paid nearly three times the stock market value for Rowntree, which owned a number of established successful brands, such as KitKat.
Reading 22: Introduction to branding
Brand content
Brand content engages consumers to relate to the brand, because it does not talk about its products, but about a domain of mutual interest between the brand and its public.
Brand content is not limited to the online medium; a range of channels may be used. It also requires continuously refreshing to maintain interest.
In the past, brands sought out opinion leaders to popularize their brands to followers; now brands seek to be opinion leaders in their own right, shaping tastes and opinions directly through their brand content.
Reading 22: Introduction to branding
The role of brands for organizations
guarantee future income through brand equity
enable premium pricing to be charged
deter market entry from potential competitors
facilitate their own entry into new markets
increase bargaining power with distributors
command royalties through licensing
act as a communication device to consumers through a brand’s identity
benefit sales through identification and familiarity among consumers because familiar brands tend to be preferred
encourage consumer loyalty
Reading 22: Introduction to branding
The role of brands for consumers
facilitate identification and the cost to consumers of searching among offerings
act as cues to information about products
facilitate consumers’ decision-making
inspire trust and increase consumers’ confidence in their purchase selection
reduce perceived risk of a purchase (such as financial, performance and social risks)
communicate brand associations or activate brand inferences that contribute to consumer satisfaction
stimulate emotional rewards such as nostalgia, a sense of identity and fulfillment of personal values.
Reading 22: Introduction to branding
Brand architecture and naming
There are four main categories of brand name formulation, which may be arranged along a spectrum:
Company as a brand name: IBM, Emirates
Strong company endorsement: Apple: Apple iphone, Apple ipad, Apple Watch
Weak company endorsement Nestle: Nestle Kitkat, Nestle Carnation
Individual brand name: P&G: Pampers, Ariel, Crest
Mixed approach: Ferrero
uses the company name for its signature Ferrero Rocher chocolates,
a weak endorsement for is Nutella chocolate spread
Individual brand names for Kinder and TicTac
Reading 22: Introduction to branding
Brand architecture and naming
Reading 22: Introduction to branding
Brand naming types
coined – a name that uses a made-up word (for example, the insurance brand AXA)
arbitrary – a name that uses an existing word that has no prior meaning associated with the company or product which it names (for example, the online retailer Amazon)
suggestive – a name that infers the nature or benefits of the product or company (for example, the bread brand Sunblest)
descriptive – a name that describes the characteristics of a product or company so that what it offers can be understood without prior knowledge (for example, the London-based gutter cleaning company Gutter Cleaning London’)
generic – a name that is synonymous with the product category (for example, cellophane was deemed to be the generic name for ‘a sheet of transparent regenerated celluloid’ and could not be trademarked as a brand)
Reading 22: Introduction to branding
Meaningful vs. non-meaningful brands
Using a meaningful brand name through words, symbolism or phonetic associations to convey meaning has been referred to as the ‘Joyce Principle’.
Using a non-meaningful brand name that has no prior associated meaning has been called the ‘Juliet Principle’
Reading 22: Introduction to branding
Brand naming process
Research has shown that companies have been found to follow the five-step brand naming process
Reading 22: Introduction to branding
Logos
In addition to a brand name, organisations also use a logo and often particular colours to augment the distinctiveness of their brand and help to make them readily recognisable.
For example, the chocolate brand Milka is readily associated with its cow logo and the colour lilac.
Reading 22: Introduction to branding
Packaging and labeling
Packaging and labelling also contribute to the communication and perceptions of brands. The imagery and information on the packaging and label can feed into consumers’ purchase decision-making about whether the product appears appealing and is likely to meet their needs.
Secure packaging can also reassure consumers that the contents are safe and have not been damaged or tampered with; this is likely to be particularly important for products such as food (that is not already packaged by nature), drink, medicines and technological products.
Increasingly, the sustainability of packaging is an important consideration and consumers may seek out products with recyclable packaging or avoid excessive packaging.
Reading 22: Introduction to branding
