Provide a brand analysis report on Nissan Leaf and the Tesla Model 3.

10/22/2020 Branding Elements

https://leocontent.umgc.edu/content/umuc/tgs/mba/mba640/2208/learning-topic-list/branding-elements.html?ou=516043 1/9

Branding Elements

Branding elements are the foundation of a branding strategy and help distinguish a brand

from its competitors. There are several elements that are important in distinguishing a

brand. These include brand personality, brand image, brand identity, brand differentiation,

brand positioning, brand communication, brand loyalty, and brand equity. Analysis of these

elements will allow marketers to understand the performance of a particular brand.

The branding elements described in the sections below are critical for a successful

branding strategy.

Brand Personality

Successful brands acquire a brand personality over time, which is a set of human

characteristics that is associated those brand name. Consumers "assign personality traits

to products"—for example, rugged, romantic, rebellious, or sophisticated—and choose

those brands that are more in line with their "desired self-image" (Kerin & Hatley, 2017, p.

304). Marketers can instill a brand with a personality; for example, Pepsi’s personality

traits include exciting and young, while Coca Cola is real and all-American. On the other

hand, Harley-Davidson portrays defiance, masculinity, and individualism (Kerin & Hartley,

2017).

The five key dimensions of brand personality include the following (Imagibrand, 2017):

1. brand competence—Is the company branding its expertise? The attributes

represented by this brand personality are success, intelligence, expertise, and

reliability.

2. brand sincerity—Does the company have a genuine brand? The attributes

represented by this brand personality are honesty, wholesomeness, genuineness, and

cheerfulness.

3. brand excitement—How daring is the company's brand? The attributes represented

by this brand personality are daring, playfulness, spirit, and imagination.

Learning Topic

10/22/2020 Branding Elements

https://leocontent.umgc.edu/content/umuc/tgs/mba/mba640/2208/learning-topic-list/branding-elements.html?ou=516043 2/9

4. brand sophistication—Would James Bond ever use the company's brand? The

attributes represented by this brand personality are poise, elegance, and charm.

5. brand toughness—Can the company's brand stand against the competition? The

attributes represented by this brand personality are potency, forcefulness, power,

and ruggedness.

Brand Image

The American Marketing Association (AMA) (n.d.-b) defines brand image as the "The

perception of a brand in the minds of persons. The brand image is a mirror reflection

(though perhaps inaccurate) of the brand personality or product being. It is what people

believe about a brand—their thoughts, feelings, expectations."

There are two conventional—but incorrect —wisdoms about brand image (Johansson,

2009):

1. Brands are only important for luxury products. The typical reasoning behind this

misconception is that luxury products are hedonic (i.e., not bought for functional

utility).

2. Brands are not at all important for B2B products. The typical reasoning behind this

misconception is that business buyers are coldly rational and are not influenced by

emotions.

Research has shown that even utilitarian product choices are influenced by brands., and

the driving force is competition. When competition is intense, all products will soon offer

equal functional advantages (benchmarking, "me-too" strategies, follow-the-leader, etc.).

Accordingly, the one sustainable advantage is the brand image. Anything can be

differentiated and branded, even a commodity such Butoni or Barilla pasta (Johansson,

2009).

Brand Identity

Brand identity refers to the distinct and relatively lasting characteristics of a brand. A

brand tends to have an appealing and solid identity when consumers perceive its identity

as more distinct and prestigious (Bhattacharya & Sen, 2003).

Creating a company's brand identity involves more than designing its logo. A brand

identity is both emotional and visual and communicates trustworthiness and relevance.

Building an effective brand identity takes many years of perpetual tweaking and hard

work; however, it is crucial to the success of the company. When it comes to creating and

10/22/2020 Branding Elements

https://leocontent.umgc.edu/content/umuc/tgs/mba/mba640/2208/learning-topic-list/branding-elements.html?ou=516043 3/9

maintaining a brand identity, every small detail counts. It is a delicate task of following the

company's core values, while simultaneously being able to adapt to changing market

forces and trends. This task is difficult for even big multinational companies (Jansen,

2018a). Remember how Kodak failed to adapt to changing market conditions?

A strong brand identity can help a company succeed (e.g., Apple and Amazon). This

success requires a strong focus and strict brand guidelines to maintain the company's

brand and keep it elevated in the face of the changing market forces. In order to do this,

companies are advised to heed the following guidelines (Jansen, 2018b):

Keep things simple and focus on their core values.

Be flexible and adapt to changing market trends.

Follow data, but do not ignore emotion.

Do not jump on market trends without thinking of the bigger picture.

Do not wait too long to rebrand themselves.

Do not ignore market trends.

Brand Differentiation

Building a strong brand is crucial to success in today's business world, and strong

differentiation is necessary to build a compelling and powerful brand. Brand

differentiation is the means by which a company's brand is set apart from its competition,

by associating a superior performing aspect of its brand with multiple consumer benefits

(Carter, 2014).

Brand differentiation is related to a company's corporate reputation. There are several

elements of reputation, including a good customer service, packaging, prompt response to

problems, and product-specific comments, that consumers seek when buying. These

elements not only provide a basis on which the company can improve its reputation, but

also help it differentiate itself from the competition. Corporate reputation may be

enhanced by different activities that are closely related to the vertical differentiation of a

product, such as technological innovation and a strong brand image. On the other hand, a

solid corporate reputation may also help to differentiate a brand. Companies are

increasingly recognizing consumers as their most important asset in building an estimable

corporate reputation (Vahabzadeh et al., 2017).

In this era of globalization and hypercompetition, companies need to rethink the way that

they manage their customer portfolio, as well as how they interact with their customers.

Fader (2012) stresses that customers are an asset (customer equity) that should have a

10/22/2020 Branding Elements

https://leocontent.umgc.edu/content/umuc/tgs/mba/mba640/2208/learning-topic-list/branding-elements.html?ou=516043 4/9

place on a company's balance sheet. The author defines customer equity as "the sum of

the customer lifetime values across a firm's entire customer base" (p. 62). Since every

company's objective is to maximize its overall equity and since customers are perceived as

an asset (customer equity) that is an integral part of the company's overall equity, the

company should dedicate the necessary resources to maximize its customer equity (Fader,

2012).

Employees are another crucial factor in enhancing a company's reputation. They may help

differentiate the company from the competition, as consumers evaluate the corporate

reputation that is behind the product and brand presented to them. Accordingly, many

companies use their corporate reputation as a vital resource in developing their strategic

value. Reputation includes corporate social responsibility, innovativeness, and honest

communication, which customers subconsciously convert into brand differentiation of the

company's products (Vahabzadeh et al., 2017).

Brand Positioning

Brand positioning is the designing of a company's offering and image to occupy a distinct

place in the mind of the target customers (Kotler & Keller, 2015). Brand positioning is the

sum of all the marketing activities that position the brand in the target customers’ minds

relative to the competition. Positioning does not create something new or different, but

rather manipulates the mindset (Ries & Trout, 2001).

Positioning is a crucial stage in a brand management strategy. A good brand positioning

strategy helps in the development of new products, communication, market expansion,

pricing, and the selection of the distribution channels (Fayvichenko, 2018). Brand

positioning is a process of creating the brand's own image, values, positive associations,

and distinctive properties in the customers' minds in order to create a sustainable brand

image and ensure consumers' attachment to that brand (Fayvichenko, 2016). Today, brand

positioning is perceived as a process that begins with the design of a trademark position;

however, it is "difficult to specify the essence of positioning when its ultimate goal is not

clearly understood" (Fayvichenko, 2018, p. 245). To understand the essence of brand

positioning, it is crucial to determine the ideal position of the brand. A clear representation

of the ideal position of a brand is a "prerequisite for researching positioning as a target

process and developing a system for evaluating its effectiveness" (p. 245).

Ideally, a brand will be positioned so that the customer has positive associations with a

brand, is convinced of its unique advantages over other brands, and considers the brand to

be of high value or a necessity. This brand-supporting customer is convinced that people

10/22/2020 Branding Elements

https://leocontent.umgc.edu/content/umuc/tgs/mba/mba640/2208/learning-topic-list/branding-elements.html?ou=516043 5/9

who buy other brands are making the wrong choice, considers it a duty to recommend this

brand to other consumers, and feels a spiritual unity with consumers who have chosen

this brand (Kendukhov, 2008).

Accordingly, Kendukhov (2008) perceives brand positioning as a process of managing the

perception of a brand by a customer. The purpose of this process is "persuasion of the

consumer in the unique advantages of this trademark over other brands; formation of the

consumer's exclusive affiliates with this trademark; formation of the consumer's sense of

the indispensability and vital necessity of the brand; formation of fanatical devotion to the

brand; raising a sense of duty to recommend this brand to other consumers; forming a

sense of spiritual unity with consumers who chose this brand; forming a belief in the

consumer that other consumers who buy goods under other brands make the wrong

choice" (Fayvichenko, 2018, p. 246).

Brand Communication

The value of a company's brand may rise or fall with its brand communication. Even strong

brands must communicate their values and core benefits to the customers in order to sell.

Successful brand communication involves satisfied employees and enthusiastic customers.

Companies used to communicate their brands using PR and advertising. Nowadays,

customers and company employees define the reputation and reality of a brand. They

discuss their experience with the company and its products around the clock using social

media. Trust plays a crucial role here, and is only built up when the customers receive a

consistent and credible brand experience. Employees help a company earn its customers'

trust if they credibly communicate the brand's values and positioning (BrandTrust, 2018).

Social media provides an array of constantly changing brand communication tools in the

corporate world, which play a crucial role in how customers research and share

information, and learn about their brands. Similarly, companies use social media networks

for the advertising and sponsorship of their products and services brands in order to

develop trust and create sustaining relationships with their customers (Khadim, Hanan,

Arshad, Saleem, & Khadim, 2018).

Social media comprises well-built platforms that have a significant and substantial impact

on brand loyalty. Customers use social media as a tool to communicate and respond

quickly to each other at any time (that information moves much faster on social media

compared to traditional media). In addition, social media allows a company to send its

brand messages to multiple audiences and collect their recommendations. This feature is

crucial, as markets and customer preferences, needs, and wants change quickly, especially

in this era of globalization. Social media allows a company to judge how its customers

10/22/2020 Branding Elements

https://leocontent.umgc.edu/content/umuc/tgs/mba/mba640/2208/learning-topic-list/branding-elements.html?ou=516043 6/9

think about its brand and what they want from it. It also enables the company to make

improvements to its brand and think forward to anticipate changes in customer needs and

preferences (Khadim et al., 2018).

Brand Loyalty

Consumers usually benefit from branding, and trademarks may help them shop more

efficiently, as they avoid brands that they dislike, while buying the brands that they like

most. Brand loyalty is a favorable perception of, and the consistent buying of, a certain

brand over time. The marketplace has been dramatically changing in the past decade

thanks to advanced and cheaper communications technologies, which enable consumers

to make better choices and share their buying experiences with others, worldwide.

Consumers are now increasingly dependent on the internet to acquire information and

compare brands before buying. Consumers can easily shift brands if they believe that they

have not been treated fairly by a certain company (Kotler & Keller, 2015).

Brand Equity

AMA (n.d.-a) defines brand equity as "the value of a brand. From a consumer perspective,

brand equity is based on consumer attitudes about positive brand attributes and favorable

consequences of brand use."

According to Johansson (2009) brand equity is “the value of the positive associations that

consumers have with a product's brand name. These associations often involve emotional

attachments, affinity, positive brand image, and brand identity. They also involve cognitive

factors such as familiarity, knowledge and perceived quality, as well as social factors

including peer-group acceptance. When these associations turn negative (as in

antiglobalization sentiments against global brands) the brand equity can go down very

quickly.”

Brand equity is basically the added value that a brand gives to a product beyond the

functional benefits that it provides. Brand equity provides competitive advantages; for

example, Mercedes Benz implies quality. A second advantage is that consumers are willing

to pay more for a product with a brand equity. Here, brand equity is represented by the

premium that a consumer is willing to pay for a certain brand over another when both

brands provide similar functional benefits. Acura, Infinity, and Lexus cars enjoy a price

premium that arises from their brand equity (Kerin & Hartley, 2017).

10/22/2020 Branding Elements

https://leocontent.umgc.edu/content/umuc/tgs/mba/mba640/2208/learning-topic-list/branding-elements.html?ou=516043 7/9

Brand equity takes time to develop and is carefully crafted and nurtured by marketers who

forge unique, strong, and favorable experiences and associations with the brand. Brand

equity resides in the consumers' minds, and results from what they have seen, heard, felt,

and learned about the brand over time. Brand equity is not quickly or easily achieved

(Kerin & Hartley, 2017).

Financial Brand Equity

Financial brand equity is the monetary value of a brand in terms of net revenues the brand

is expected to generate over time, across all country markets. The set of assets linked to a

brand name include the following (Johansson, 2009):

brand name awareness

brand loyalty

perceived quality

brand associations (in the consumer's mind)

Financially lucrative brand licensing agreements may arise from brand equity. Successful

brand licensing needs a thorough marketing analysis to ensure compatibility between the

licensor's brand and the licensee's products. Companies such as Ralph Lauren, Disney, and

Luxottica eyewear earn millions every year from licensing their brand names to others

(Kerin & Hartley, 2017).

Global Brands

Why are global brands often the most valuable assets of a global company? Global brands

are important because product differentiation is difficult to sustain. Accordingly, global

brands become the most sustainable competitive advantage. Global brands have become

more important because financial brand equity is strongly correlated with global reach

(Johansson, 2009).

References

AMA (n.d.-a). Brand equity. Retrieved from

https://www.ama.org/resources/Pages/Dictionary.aspx?dLetter=B

AMA (n.d.-b). Brand image. Retrieved from

https://www.ama.org/resources/Pages/Dictionary.aspx?dLetter=B

10/22/2020 Branding Elements

https://leocontent.umgc.edu/content/umuc/tgs/mba/mba640/2208/learning-topic-list/branding-elements.html?ou=516043 8/9

Bhattacharya, C. B., & Sen, S. (2003). Consumer-company identification: A framework for

understanding consumers' relationships with companies. Journal of Marketing, 67(2),

7688. doi:10.1509/jmkg.67.2.76.1860

BrandTrust (2018). Brand communication. Retrieved from https://www.brand-

trust.de/en/glossary/brand-communication.php

Carter, L. (2014). Brand differentiation: 30 ways to differentiate your brand. Persona

Design [Web log]. Retrieved from https://www.personadesign.ie/brand-differentiation-30-

ways-to-differentiate-your-brand/

Fader, P. (2012). Customer centricity (2nd ed.). Philadelphia, PA: Wharton Digital Press.

Fayvichenko D. (2016) The concept of brand positioning. Mignarodnii naukovo-

praktuchniy gurnal «Tovaru I runki», 1(21), 25–32.

Fayvishenko, D. (2018). Formation of brand positioning strategy. Baltic Journal of

Economic Studies, 4(2), 245–248.

ImagiBrand (2017). The 5 key dimensions of brand personality. Retrieved from

http://imagibrand.com/5-key-dimensions-brand-personality/

Jansen, K. (2018, a). The dos and don'ts of building a brand identity (Part 1). Forbes.

Retrieved from https://www.forbes.com/sites/forbesagencycouncil/2018/03/05/the-dos-

and-donts-of-building-a-brand-identity-part-1/#7287b18a61bc

Jansen, K. (2018, b). The dos and don'ts of building a brand identity (Part 2). Forbes.

Retrieved from https://www.forbes.com/sites/forbesagencycouncil/2018/04/02/the-dos-

and-donts-of-building-a-brand-identity-part-2/#1f763498644a

Johansson, J. (2009). Global marketing (5th ed.). New York, NY: McGraw-Hill.

Kendyuhov V. (2008) Effectivnist vucorustannya marochnogo capital [Effectiveness of

using branded capital]. Donetsk: Institute economy promislovist, 96–103.

Kerin, R. & Hartley, S. (2017). Marketing (13th ed.). New York, NY: McGraw Hill.

Khadim, R. A., Hanan, M. A., Arshad, A., Saleem, N., & Khadim, N. A. (2018). Revisiting

antecedents of brand loyalty: impact of perceived social media communication with brand

trust and brand equity as mediators. Academy of Strategic Management Journal, 17(1), 1–

13.

10/22/2020 Branding Elements

https://leocontent.umgc.edu/content/umuc/tgs/mba/mba640/2208/learning-topic-list/branding-elements.html?ou=516043 9/9

Kotler, P., & Keller, K. (2015). Marketing management (15th ed.). Upper Saddle River, NJ.

Pearson.

Vahabzadeh, A., Vatanpour, H., Dinarvand, R., Rajabzadeh, A., Salamzadeh, J., &

Mohammadzadeh, M. (2017). Impact of corporate reputation on brand differentiation: An

empirical study from Iranian pharmaceutical companies. Iranian Journal of Pharmaceutical

Research, 16(4), 1658–1670.

© 2020 University of Maryland Global Campus

All links to external sites were verified at the time of publication. UMGC is not responsible for the validity or integrity

of information located at external sites.