12.1. Brands

- Brands -
1
What is a Brand?
Video: What is a brand?

(Find the attached file)
2
What is a Brand?
• Brand
• Portfolio of qualities associated with a name
• Brands immediately invoke certain images
• Brands have value beyond the benefits of the product
• American Marketing Association

• A brand is “a name, term, sign, symbol, or design, or
a combination of them, intended to identify the
goods or services of one seller or group of sellers and
to differentiate them from those of competitors”
3
Brand Associations
• Marketers control some brand associations

• Product shape and packaging
• Logos, symbols, and colors
• Jingles and slogans
• Spokespeople
• Marketers should control what they can
• All outgoing messages should be positive
• Marketers do not control all associations

• e.g., Personal memories about brands
4
Brand Name
• A brand starts with a name

• Some names immediately convey information
• e.g., YouTube
• Some names suggest their benefits
• e.g., Optical4less
• Some names are those of their founder
• e.g., Christian Dior
• Marketer should choose a brand name that
conveys its benefits
5
Brand Names, Logos, and Color
• Brand name meaning is built over time through

communications with customers
• Brand names and logos are a shorthand way to
communicate with customers
• This is who we are and what we look like
• Brand colors and fonts visually engage
customers
• e.g., The New York Times and Google
6
Brand Names, Logos, and Color
• Some logos combine a brand name with a

symbol meant to suggest the brand’s value
proposition.
• MasterCard
• By using two overlapping circles to indicate the two
opposite spheres of the world—East and West—the logo
indicates that these opposites come together and find
resolution through the spending power of MasterCard.
• Two overlapped circles indicate the interaction between
customer and credit card to generate the third objective:
the outcome of dollar numbers.
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Why Brand?
• Customer benefits of branding

• Brands identify company ownership
• Brands allow for predictable quality
• Brands make it easier for customers to make
decisions; less perceived risk
• Brands serve as status symbols
• Company benefits of branding

• Brands induce loyalty—increasing repeat purchasing
• Brands allow premium prices
• Brands allow a single firm to pursue multiple market
segments
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Hierarchy of Brand Associations
1. Concrete product attributes: 40 mpg

2. Abstract product benefits: Save money
3. Abstract emotional benefits: Feel good
• Attributes are easy to communicate and easy for

competitors to copy
• Benefits are abstract; harder to create and
communicate, but more meaningful
9
Brand Serve Social Functions
• Brands help customers express their ideal selves

• e.g., Certain school, car, and clothing
• Brands become the focal point of bonding

through brand communities
• e.g., Subaru, Harley-Davidson, and Lego
10
Brand Personalities
Video: Harley Davidson

(Find the attached file)
• Brand can have a distinct personality

• Personalities capture
1. Specific information about the brand
2. Holistic perceptions about the brand
11
Type of Brand Experiences
• Consumers experience brands

• Affective (heart), intellectual (mind), and
behavior (action)
12
Brand Communities
• Brand communities
• Customers who connect with like-minded customers
• They have extreme attachments to brands
• e.g., Apple, Nintendo, Harley-Davidson
• Marketers should try to build and capitalize on

these communities
13
Branding Strategies
• Umbrella approach
• Attaching the same brand name to products
• Subsequent product introductions are easier for the
customer to understand and accept
• Higher initial awareness levels
• Builds stronger brand associations
• Stronger financial outcomes
• e.g., Nike, Canon, and GE
14
Branding Strategies
• House of brands approach
• Introducing a new brand name for every product line
• Any problems with one brand should not influence the
other brands
• Brand images do not need to be consistent, which allows
for targeting multiple segments
• Requires more advertising expense
• e.g., Procter & Gamble has 80 major brands
15
Co-branding
• Co-branding
• Two companies form a joint venture to create a
product from both companies
• e.g., Nike & Apple, MasterCard & Apple Pay
• Co-branding works well when a company is
introducing a new product attribute
• e.g., Adding cough medicine to candy
• Ingredient branding
• Form of co-branding in which one company adds
value to a host product
• One company dominates the other
• e.g., Intel in many PCs
16
Global Brands
• Global brand
• 30% of revenues from other countries
• Global strategies
• Glocalization
• Different names in different countries (ex. Burger King,
Twix, Kraft Macaroni & Cheese)
• “Manufacturer globally, brand locally”
• Global brands
• Same brand in all countries
• More advantageous
• e.g., Amazon.com and Amazon.co.uk
17
Store Brands
• Private label brands (aka store brands)

• Good for price-sensitive markets
• Can be more of a “me-too” product offering
• Can be premium private label
• e.g., Walmart’s “Sam’s Choice”
• Retailer can offer decent quality for lower prices due
to reduced advertising costs
18
Store Brands
19
Store Brands
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Store Brands
How can national brands compete with store brands?
ü Manufacturers are
launching second labels to
compete with store brands.
(Ex. GE Basic, GE
appliances)
ü Manufacturers are making

products for retailers. (Ex.
Duracell’s Kirkland
batteries, Kirkland Jelly
Belly, Huggies’ Kirkland
diapers)
21
Brand Equity
• Brand equity
• The worth of a brand
• Measurement approaches
• Determining the price premium of brand
• “How much are you willing to pay for gas at Shell?” vs.
• “How much are you willing to pay at a local station?”
• Comparing branded and unbranded

• “How much do you like this $499 Sony flat screen with
screen-within-a-screen?” vs.
• “How much do you like this $499 unknown brand flat
screen sharing the same features?”
22

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- Brands -

Video: What is a brand?

• American Marketing Association

• Marketers control some brand associations

• Marketers do not control all associations

• A brand starts with a name

• Brand name meaning is built over time through

• Some logos combine a brand name with a

• Customer benefits of branding

• Company benefits of branding

1. Concrete product attributes: 40 mpg

• Attributes are easy to communicate and easy for

• Brands help customers express their ideal selves

• Brands become the focal point of bonding

Video: Harley Davidson

• Brand can have a distinct personality

• Consumers experience brands

• Marketers should try to build and capitalize on

• Private label brands (aka store brands)

How can national brands compete with store brands?

ü Manufacturers are making

• Comparing branded and unbranded

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