M5

Branding Strategies

BRAND NAME

Based on Dr. Pereda from his book Principles of Marketing, a brand is a name or mark that is intended
to identify the seller's product and differentiate it from the product of the competitors. A brand name
consists of letters, words, or numbers that can be read or verbalized. A brand mark is the part of the
brand that appears in the form of symbols designed in distinctive lettering or colors.

A brand mark is recognized by sight but cannot be expressed. A trademark is a brand that has been
adopted by the seller and given legal protection. The trademark is protected by operation of law under
the DTI. Branding protects the company from imitations and fake products.

PRODUCT BRANDING

A brand is a name or mark that is intended to identify the seller's product and differentiate it from
the product of the competitors. A brand name consists of letters, words, or numbers that can be read
or verbalized. A brand mark is the part of the brand that appears in the form of symbols designed in
distinctive lettering or colors.

Advantages of Branding

1. Brands make it easy to identify the product or service.

2. It assures the buyer that they get the same quality of products.

3. It reduces price comparison

4. It adds prestige to the product of the seller

5. It provides legal protection for the seller.

6. helps in product market segmentation

Selecting a Good Brand Name

1. It should suggest about the product or service

2. It must be easy to pronounce and remember

3. It must be simple and short

4. It must be distinct or different from others

5. It must be adaptable to new company products that may be added.

6. It must be capable of registration and legal protection

BRANDING STRATEGIES

The producers and middlemen are partners in the distribution of the products to their target
consumers. 1 heir partnership is a long life process of mutual concern and cooperation for the
development of customer satisfaction. Producers and middlemen alike must choose strategies with
respect to branding their product mixes and branding for product saturation.

1. Producer's Strategy

The manufacturers have to establish a wide distribution system and rely heavily on their capability
to penetrate the market with the number of resources in promoting the brand to its target market.
This strategy is employed by product manufacturers' that dominate the greater market due to the
superiority of their product. They have built a strong name especially when they are the first in the
market. The manufacturers have established a wide distribution system and rely heavily on their
capability to penetrate the market with a number of resources in promoting the brand to its target
market.

This branding strategy has an advantage when the manufacturer has greatly dominated the widest
market as advertising and promotion could be carried under One name. on the other hand,
middlemen have contested this 1dea as they want to carry a separate brand name for their own
marketing organization.

2. Middleman's Strategy

This is also called co-branding where the producer and sole distributor carry the brand name of the
manufacturer and that of the middlemen. Middlemen usually can sell their brands at lower c0st below
the producer s price index because they can get other products using their own brand name. Brand
equity spells out the value of thé brand in the market. Brand loyalty s developed as customers become
aware of the quality of the product compared with other brands in the market. Powerful brand names
command strong consumer preferences. A product with strong brand equity is one valuable asset and
marketing professionals must have the ability to create, develop, maintain and enhance their brand
name in the market.

Advantages of Co-Branding

1. It creates broader customer appeal.

2. It develops greater brand equity.

3. It expands the middlemen brand in the market

Disadvantages of Co-Branding

1. Coordination is oftentimes difficult with the producer and the middlemen.

2. It entails legal contract which can be complex and difficult.

3. Licensing agreement is necessary

4. It requires mutual trust between the two parties.

BRANDING STRATEGIES FOR PRODUCERS AND MIDDLEMAN

The producers and middlemen are partners in the distribution of the products to their target
consumers. Their partnership is a long-life process of mutual concern and cooperation for the
development of customer satisfaction. Producers and middlemen alike must choose strategies with
respect to branding their product mixes and branding for product saturation.

THE DIFFERENT STRATEGIES USED TO SELL MORE PRODUCTS

1. Branding Within a Product Mix

a. Separate Name for Each Product-This is often termed family branding. It is simple and less
expensive to introduce new and related products to a line. The prestige of the brand can be spread
more easily as it appears on several products.

b. The Company Name Combined with the Product Name - The company name is best suited for
marketing products that are related in quality and use. Customers look at quality products and
mindset for the brand quality is the objective of the marketing organization.

c. The Company Name Alone - Branding with the company name alone places a great burden on the
producers' reputation for quality. Other products carrying the same brand name may not make the
grade and this will affect the other products in the market.

2. Branding for Market Saturation

a. Introduction of Line Extension- This is the strategy where brand names are extended into new
forms and sizes of an existing product category. The marketing organization might introduce line
extension to low-cost and low-risk products to meet customer demand for variety and to command
more shelf space of the middlemen.

b. Introduction of Brand Extension- This strategy calls for the extension of the brand name to new or
modified product categories. It aims to penetrate the market easily with new product categories as
the brand name had performed excellently in the market. This will develop product recognition with
low advertising costs.

c. Introduction of New Brand Name - It is the strategy where a new brand name is attached to a new
product category. The corporate brand acquisition resorts in order to protect the existing brand that
had reached its maturity and declining stage. This is to refocus customer attention to new innovative
products with new brand names with different features and added benefits to the customer.

REASONS FOR THE EXISTENCE OF BRANDS

1. Identification -Brands enable consumers to easily distinguish one product from another.

1.1 Magnolia branded a generic product-dressed chicken, which became the leading brand within
two years from launch. It continues to command a premium in pricing.

1.2 Alaska created sub-brands to distinguish its premium product (evaporated milk) from its low-
price product (evaporada). Its label shows the Alaska boy in the premium line to convey Alaska's long
tradition of quality products, while tempting pictures of halo-halo and fruit salad grace the labels of
the low-price sub-brand to appeal to the budget-conscious housewives or the penny-pinching
vendors.

2. Protection - It enables the owner of the brand name to enjoy the goodwill associated with the name
so as not to be taken advantage of by others.

2.1 Levi's jeans have been resorting to the legal remedy of running after unscrupulous individuals
and companies faking their brand.

2.2 AMC of Germany, a US$1 billion company, sent lawyer's letters warning companies and parties
selling imitations that it is ready to file charges. They are after all the world's leading manufacturer
of stainless steel cookware with operations and sales companies in over 35 countries.
3. Positioning - It enables the owner to communicate the benefits of his product Vis-å-vis competition.

3.1 Bruno's barbershop chain adopted such a name as it immediately conveys masculinity.

3.2 In the pharmaceutical industry, Viagra, a pill for erectile dysfunction, connotes vitality, vigor, and
conjures images of Niagra Falls; Z1throma an antibiotic connotes power; Celebrex, an arthritis pain
reliever, connotes joy.

The brand becomes the consumer's simplifier of choice. Compatibility must always be considered in
choosing brand names. Never choose a soft name like "Betty Boop for a hard product like power
generators.

According to Perede, Pedrito in his book Principles of Marketing, he discussed the following:

CRITERIA FOR CHOOSING A BRAND NAME

1. Distinctive -Is the brand closely associated with another product?

McDonald's is known for fast food, would a McDonald's Hotel (in Europe) be okay?

Betadine is closely associated with antiseptic external wound remedy but would a mouthwash
succeed?

2. Word Association- Does it have a pleasant meaning?

Gardenia was a local motel before a major Singapore bread company decided to enter the market in
the mid-1990s with a similar brand name, Gardenia. Good thing Gardenia motel was not as well
known outside its Sta. Mesa area.

Dumex, the milk product never took off because customers associated it with another product, called
Domex, a household cleanser.

3. Legal Requirements -Can it be registered?

Sharp already owns the brand name so sharp calculators cannot be registered for being confusingly
similar.
"Beer, "Inasal" or "The Spa are generic names so these names cannot be registered.

4. Memnorability- Can your name be remembered easily?

Johnson & Johnson is an institution locally but would a competing brand Zwitsal be as easily
remembered?

Would Corona or a Rizal be better remembered than Olivenza Bueno match sticks?

5. Pronounceability - Can it be pronounced easily?

Mortimer mouse (the original intended name conceived by Walt Disney) is not as easily pronounced
as Mickey Mouse (the name suggested by Disney's wife Lilian).

Unilab is much easier to say than Boehringer.

6. Limitations - Is the brand name too limiting to be used for expansion?

Would a name like "Gee, Your Hair Smells Terrific" be as versatile as a L'Oreal hair care line?

Would the name Aqua Vida be as flexible as an Imarflex?

A product description in project management is a structured format of presenting information about

a project product. The product description is usually created by the project manager and approved
by the project board.

THE STRUCTURE OF PRODUCT DESCRIPTION

1. Identifier

2. Title or topic

3. Purpose or aims

4. Composition

5. Derivation

6. Format and presentation

7. Development Skill Required

8. Quality criteria

9. Quality tolerances

10. Quality method

11. Quality skills required

12. Quality Responsibilities

The company must have quality for every single product description for the best return on investment.
The e-commerce SEO product description writers have created content for both major national store
brands and small e-commerce niches, including jewelry, rug and fashion, cosmetic, medical, and
many more. Be sure to ask for custom turnaround times on the schedule if more than 100 to order
at one time.

The product description should be AUDIENCE-FRIENDLY, speak to the target so that conversions
will be optimized.

For example, if one needs a trendy tone, well keep the sentences short, quirky, and tun. If one needs
in-depth, accurate descriptions for medical products writers will use industry terminology and
include research.

The product description should be AUDIENCE-FRIENDLY. The content will match what the audience
needs to read to improve the conversions and customer retention.

Rewrite existing descriptions and content for fresh benefits. All audience-friendly products must
include the keywords naturally optimized and incorporated into grammatically correct and nigh
quality copy.

Based from Josiah Go's book on Fundamentals of Marketing

Convenience products are the lowest risk and lowest effort products where either none or very small
decision-making is made by target consumers Detore buying the products. Consumers will not spend
a lot of time or money buying these products. There is also no perceived high level of risk in making
a decision.

There are two types of convenience products:

1. Staple goods such as rice, sugar, and other commodities, and

2. Impulse goods such as candles, and snack food.

In the case of convenience products, there is no buyer loyalty involved and prices of different brands
are mostly at par because there is no perceived product differentiation. Marketers can either try to
upgrade their product into preference products or try to be the lowest cost- highest volume producer.
It is important not only to have complete distribution saturation for convenience products but also
place utility which plays an important role in consumer buying behavior.

Convenience products become shopping goods when sold by wholesalers and retailers in bulk, as in
the case of sugar sold in bulk to a soft drinks company and chicken products supplied by Swiff's to
McDonald.

In preference goods, consumers have specific preferences for brands or suppliers but are willing to
make substitutions when necessary, such as during stock-out situations. With increasing product
parity, companies should consciously be moving their products into the preference products category.

The distinction between convenience products and preference products is mainly the perceived risk
by the consumer. Branding and advertising efforts, which aim to build brand loyalty, are usually
responsible for this perception. The strategy in marketing preference goods is acknowledging the risk
of consumers when buying the product, and then reassuring the buyer that the risk can be minimized
by buying your brand. For instance:

Known brands like Colgate, Close-up, or Hapee are perceived to be less risky than buying unknown
brands, which may contain dangerous ingredients and may end up hurting the consumer's gums and
teeth.

Serving cheap beer instead of San Miguel beer at a party may lead to the host being ridiculed by his
guests.

Shopping products are products that consumers feel are worth the time and effort to compare with
other competing products. Examples are provided below:
Consumer products like bathroom tiles and appliances usually entail some form of comparison with
alternatives.

Consumer services like life insurance and housing rentals

Industrial shopping services like the accounting and audit services offered by Ernst and Young (SGV)
or Punongbayan and Araullo.

PRODUCT SATISFYING FEATURES

Product patronage in the market is conditioned by the strategies and policies employed by the
manufacturer and the marketing organization on the product's attributes. The present day customers
look for products that will not only satisfy their needs and wants but also other social attributes that
are attached to the product. This changing customer demand must be given attention by the
marketing organization

1. Design

It matters to the elements that collectively form of good or service that will satisfy customers and gain
competitive advantage. Good design can improve the marketability of the product through its design
and appearance. The distinctive design may significantly differentiate the products from the others
in the market.

2. Product Colors

It is the customer's rejection or acceptance of the product. This could be true in clothing, cars or
furniture and other fixtures. The possibility of the differential advantage comes in knowing the right
color combination that will appeal to customers. Fashion aficionados are very difficult to satisfy when
it comes to color combinations.

Color can be an important consideration for highly technical products. A study shows that consumers
associate darker colors with richness and value. Colorless products run the risk of being perceived
as plaint water. Transparent products ai intended to be associated with purity and mildness.

3. Product Quality
This is a set of features and attributes of a product or service that determine its ability to satisfy
human needs. This set of definitions varies from individual to individual depending on his set of
perceptions about the product. Besides personal taste, individual expectations also affect the
judgment of quality. Optimal quality refers to a situation that the product or service that provides the
customers with an experience that meets their expectations.

Product quality should be the byword of the manufacturer and the provider of service to create a
differential advantage. Many organizations have implemented Total Quality Management (TQM) that
entails the development of specific procedures, policies, and practices to meet the growing demand
for quality products and services. Continuous quality improvement makes the product stay in the
market.

4. Product Warrantees

One very important attribute of the product is the warranty. It is the state where the buyer is assured
that the product meets the specifications stated in the product labels. An implied warranty is
interpreted by law to be intended to warrant the quality of the product.

The term product liability became common in the business world due to numerous lawsuits that
ensued. It is the legal action lodged by the affected consumer that resulted in illness, injury, or
accidents caused by harmful, faulty, and inadequate precautions in the product labels. Producers
have responded to legislations and customers complain by broadening and simplifying their
warranties through a specific warning in the labels.

A prototype can help add value to a project as well as credibility. In some instances, the company will
need to innovate to be able to prove that the concept works and that the theoretical design translates
into a working model.

PROTOTYPE USEFULNESS FOR LICENSING

Prototype development is not essential but can add value to a project. This is particularly the case if
the company needs to prove that the concept works. A prototype would be adequate to demonstrate
the basic fundamentals of the idea. Some people may choose a more refined prototype to strengthen
their presentation, but the associated cost of these needs should be weighed up against other factors.
Sometimes, a prototype may help negotiate a higher percentage of royalties.
Step 1: Document It

This is the first step of patenting the idea and keeping it from being stolen. Write the idea down in an
inventor's journal and have it signed by a witness.

Step 2: Research It

The company will need to research the idea from a legal and business standpoint. Before filing a
patent, one should:

Complete an initial patent search. Visit the website to ensure the requirement for patenting, complete
a rudimentary search for free at www.uspto.gov (Links to an external site.) to make sure no one else
has patented the idea. One should also complete a non-patent "prior art" search.

Research your market. Do some preliminary research of the target market. Is this something people
will actually buy? One can determine these costs by comparing those of similar products currently
on the market. This will also help size up the competition.

Step 3: Make a Prototype

A prototype is a model of the invention that puts into practice all the things that were written in the
inventor's journal. This will demonstrate the design of the invention that will be presented to the
potential lenders and licensees.

Here are some general rules of thumb when prototyping invention:

Begin with a drawing, sketch out all of the ideas into the inventor's journal.

Create a concept mock-up out of any material that will allow one to create a 3-D model of the design.

Create a full-working model of the idea; consider using a computer-animated virtual prototype.

Step 4: File a Patent

There are two main patents to choose from:

a. Utility patent (for new processes or machines)

b. Design patent (for manufacturing new, non-obvious ornamental designs). If the invention is really
valuable, someone will infringe on it
Advantages of Prototype:

1. It tests and refines the functionality of the design.

2 It makes it possible to test the performance of various materials.

3. It will help you describe your product more effectively

4. lt will encourage others to take it more seriously.

BRAINSTORM IDEAS

1. Try making a list of all the things that are interesting. These could be hobbies, jobs, or products
that are used on a regular basis.

2. For each activity or item of interest, make a list of possible improvements that could be made in
the form of an invention. This could include variations of the product or activity or useful add-ons.

3. Make a hefty list. It is better to have too many ideas than too few, so continue listing until nothing
else to add.

4. Keep a journal at all times, to constantly add new items to possible-invention list. Keeping ideas
all organized in one place, a journal, will also help to remain mentally clutter-free and allow reviewing
ideas.

5. Do not rush the brainstorming process. Inspiration may not hit one like lightning and could require
a few weeks or months of listing ideas before epiphany strikes.

PATENTING
Create a thorough record of the invention.

1. Record the process of inventing the product.

List all the things that need to create it, all the possible parts and materials for the invention.

2. Keep records of the research showing that no similar patented products in the same market. Prove
that invention is unique in order to qualify for a patent.

Make sure you have recorded the commercial value and potential income based on sales of you the
invention. This way, one will know that the earning potential of the product outweighs the amount
paid.

4. Create an informal drawing of the invention. An accurate drawing of the invention may be required
in the patent application.

MAKING INVENTION A REALITY

1. Create a prototype

2. Create a presentation

3. Present an invention to a manufacturer

4. Produce your invention

5. Advertise your invention

PRODUCTION FEASIBILITY AND TIME FRAME

An idea is not only concentrated on one entrepreneur. The entrepreneur might have conceived an
idea that is also in the mind of the other person. The case of cellular phone is a concrete example.
Many companies tried the venture, but the leader in the industry is still NOKIA. Others begin to follow
and strong competition emerged in the process but the leading brand has taken off the ground before
others followed tailing behind.

The new product must have its technical feasibility and the time to launch the product must be
immediately done to take ahead before others take the idea. The entrepreneur must analyze the
market demand and how he will.be able to meet this demand on time. He must be able to determine
the risk involved in the new venture and the investments in terms of money and time.

The new product needs testing as to its technical capability to satisfyy customers' needs and wants.
Some customers prefer branded products, those that are produced by big names in the industry.
Filipino innovators and inventors find it difficult to convince the local consumers that their product
is good or better than those imported, hence many are selling their idea to foreign investors.

In the food industry, the growing fast food chain is crowded with growing senior citizens who have
money to buy yet they have not discovered their need for health foods with less cholesterol. A good
restaurant or fast food with fish and vegetables and some wellness program may do the trick for this
demographic sector. This may work wonders in some developing urban sectors outside Metro Manila
as it works wonders in some known restaurant in the metropolis.

Testing a prototype is a vitalor necessary part of the design and manufacturing process. Testing and
evaluation, determine that the product will function as it is supposed to, or if it needs sufficient
analysis. It allows the producer and client to assess the viability of a design. This will help identify
potential so that the producer will make improvements.

Importance:

1. Testing and evaluation, allows the client and customer to determine the prototype and to give its
views. Changes and improvements are done to finish it.

2. A focus group can conduct test to the prototype and give their views and opinions. Criticisms and
problems are often identified at this stage. Suggestions for improvement are often discussed at this
stage.
3. Evaluatng a prototype allows the production costs to be asses sed and finalized. can be scrutinized
for potential costs. Alterations ot design or manutacturing processes may have to be made for future
production.

4. New design or redesign can take place during this part. A component or partof aprouct will be
tested separately and not the entire product. This allows more and direct tests to be carried out.

5. The manutacturer allows the designer to plan an efficient and cost eftective production line.

6. This may lead to improvements and become highly competitive.

7. It can guarantee customer satisfaction; consumer can use the product efficiently and sately lesting
ensures that any user instruction included in the packaging will provide pre cautions and warning.

8. Testing and the design specification should be done separately to ensure a full and relevant
evaluation of a prototype which is carried out in the entire developmernt process. It allows fellow
designers, knowledgeable in the specialist area to orer opinions and suggests critical improvements
that may lead to a more successtul design.

EVALUATION OF PROTOTYPE

Participative users based their evaluation ot à paper or machine prototype on their expectation and
problems to identify usability problems. Its benefits help potential Usability problems can be detected
at an early stage before development is complete. It helps to have a deeper understanding of the users'
expectations and impressions ot the system.

METHOD OF EVALUATION

Planning
Select the most important tasks and user group(s) to be tested (e-g the most frequent or the most
critical).

Select users who are representauve or the user grOup(s). 3-S users are sufticient ide to identity the
main issues.

Consider using user-defhned tasks, where users are asked to define their own goals prior to the
evaluation session

Produce task scenarios ancd nput data and write instructions for the user (tell the User what to
achieve, not how to do it).

Plan sessions allowing time for giving instructions, running the test, and a post- test interview.

Invite developers to observe the sessions if possible. An alternative is to videotape the sessions, and
show developers edited clips of the main.

For a paper prototype a designer is needed to play the role of "computer

RUNNING SESSIONS

Welcome the user, and give the task instructions.

For a paper prototype, as the user selects options on each screen, the designer explains what happens
and presents the next screen to the user.

Do not give any hints or assistance unless the user is unable to complete the task.

Observe the interaction and note arny problems encountered.

The user may be prompted to write for their impressions of a page design, what they think different
elements may do, and what they expect the result of their next action be. The user may also be asked
to suggest how individual elements could be improved.

Interview the user to gain general opinion and ask about specific problems encountered.

OUTPUT

Produce a list of usability problems, categorized by importance (use sticky notes to sort the problems),
and an overview of the types of problems encountered.

Arrange a meeting with the designers to discuss whether and how each problem can be fixed.

QUALITATIVE EVALUATION TECHNIQUE

1. Produces a description, usually in non-numeric

2. May be subjective methods

3. Introspection - by designer- by users

Introspection method designer tries the system (or prototype) out (a walkthrough of the systems
screens and features), most common evaluation method problems is not reliable as completely
subjective. Ask the user to explain what each screen element does or represents as well as how they
would attempt to perform individual tasks.

4. Direct observation - simple observation - think-aloud - constructive interaction

This allows us to gain insight as to a user's initial perception of our intertace and the mental model
they might be constructing as they begin to use the system.

THREE GENERAL APPROACHES

1. Simple observation - is given the task, and evaluator just watches the user problem.

2. Constructive interaction -normal conversation between the two users is monitored

3. Query-interviews (structured and retrospective) - surveys and questionnaires

Variant: Co-discovery learning - use semi-knowledgeable "coach" and naive subject together - use the
interface in making naive subject.

Results in naive subject asking questions semi-knowledgeable coach responding provides insights
into thinking process of both beginner and intermediate users.

How do we record user actions during observation for later analysis? -If no record is kept, evaluator
may forget, miss, or misinterpret events
Paper and pencil -primitive but cheap-evaluators recordevents, interpretations, and extraneous
observations.

Audio recording - good for recording talk produced by thinking aloud/ constructive interaction - hard
to tie into user actions (i.e. what they are doing on the screen) - hard to search through

Video recording - can see and hear what a user is doing - one camera for screen, another for subject
(picture in picture)-can be intrusive during initial period of use generates too much data.

ANALYSIS OF THE RESULTS

1. Determine the audience you want to reach.

2. Tvpical survey: random sample of between 50 and 1000 users of the product.

3. Determine how will you deliver and collect the questionnaire. On-line for computer users Surface
mail (with pre-addressed reply envelope for better response rate)

4. Determine target demographics (e.g. level of experience, age, income, etc.)

STYLES OF QUESTIONS

a. Open-ended questions - asks for unprompted opinions and good for general subjective information
but difficult to analyze rigorously.

b. Closed questions - restricts the respondent's responses by supplying alternative answers and
makes questionnaires a chore for respondent to fill in. It can be easily analyzed but watch out for
hard to interpret responses. Alternative answers should be very specific. Ask user to judge a specific
statement on a numeric scale which scale usually corresponds with agreement or disagreement with
a statement

1. Strongly disagree

2. Disagree
3 Neutral

4. Agree

5. Strongly agree

c. Multiple choice (possibly multiple responses) - respondent offered a choice of explicit responses

d. Ranked respondent places an ordering on items in a list

e. Combining open-ended and closed questions gets specific response, but allows room for user's
opinion. It is easy to recover from mistakes: disagree agree e. Comment

f. Qualitative observational tests are quick and easy to do several methods that reveal what is in a
person's head as they are doing the test Particular methods include Conceptual model extraction.