Introduction to Branding

Rahma Akhter
BRAC Business School
BRAC University
 Branding: Historical Origin

The word “brand” is derived from the Old Norse word

“brandr,” which means “to burn” as brand were and
still are the means by which owners of livestock mark
their animals to identify them.
Fleur-de-lis
 Maverick

The term "maverick," originally meaning an

unbranded calf, comes from Texas rancher
Samuel Augustus Maverick who, following the
American Civil War, decided that since all other
cattle were branded, his would be identified by
having no markings at all.
Even the signatures on paintings of famous artists
like Leonardo Da Vinci can be viewed as an early
branding tool.
 Just How Old is Branding?

Branding goes back even further.  As far back as

1300 BC, potter's marks were used on pottery and
porcelain in China, Greece, Rome and India. 
Branding of cattle and livestock go back as far as
2000 BC.  And archaeologists have found evidence of
advertising among Babylonians dating back to 3000
BC.  So, how far back does branding go?  At least
5000 years.
 What is a brand?
 A name, term, sign, symbol or design, or a
combination of them, intended to identify
the goods or services of sellers and to
differentiate them from those of
competitors.
American Marketing Association
 What is a brand name?
 That part of a brand which can be
vocalized – the utterable.
American Marketing Association
 What is a brand mark?
 That part of a brand which can be recognized
but is not utter able, such as symbol, design,
or distinctive coloring or lettering.
American Marketing Association

Golden arches Swoosh

What is a trade mark?
 A brand or part of a brand that is given
legal protection because it is capable of
exclusive appropriation. A trademark
protects the seller’s exclusive rights to
use the brand name and/or brand mark.
American Marketing Association
 Day before
yesterday…
A brand was 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
…(identity)
Brands are much more than logos
 Yesterday…

A BRAND WAS A BUNDLE OF

BENEFITS DELIVERED BY
PRODUCTS/SERVICES TO
CONSUMERS…(UTILITY)
 Today…
A BRAND IS AN EXPERIENCE THAT REAL
PEOPLE ENJOY (HOPEFULLY)
EVERYDAY…
AND IT HAS A NAME AND A
PERSONALITY WHICH FITS WITH ME.

Jayanta Sengupta
Brand: today
 examples…

Marlboro is ‘masculine’ while Virginia

Slims is ‘feminine’
IBM is ‘older’ while Apple is ‘younger’

India Today is ‘old-fashioned’ while

Outlook is ‘trendier’
Coke is ‘conforming’ while Pepsi is
‘irreverent’
 More examples…

Axe
Seduction, masculinity, individuality,
unconventionality

Marlboro
Masculinity, freedom, adventure

Levi’s
Rebellion, sensuality, being cool
 Today…
People are looking for experience:

67% of consumers say:

“Even though there are many things I would like
to own, I prefer spending my money on
experiences that will enrich my life.”

Lifestyle Link, May 2001, Yankelovich Monitor

 Branding Today

A brand is an intangible asset that

resides in people’s minds, which is
defined by the expectations people
have about the benefits they will
receive. These expectations of benefits
are developed over time by
communications and - more
importantly - by actions.

D. Semans,AMA Internal Branding

 Brand: today
Performance Experience/emotional
Benefits Benefits
Handling Prestigious

Responsiveness Part of a select group

Stability “I’ve made it”

Speed/Acceleration “I’m treating myself”

Technology
“Important/Successful”

“Performance”

D. Semans, AMA Internal Branding

 The brand: A Marketing Odyssey

Experience and
Brand identity Brand utility express
Own identity
 Where do you all fit in ?
(i) All of you have a name

(ii) All of you have Distinguishable features like brand

mark

(iii) All of you have trade mark

 Can everything be branded?

A brand resides in the minds of consumers.

Consumers perceive differences among brands in a
product category.
Even commodities can be branded:
 Coffee (Nestle), bath soap (Lux), flour (Iwisa), beer (Castle),
salt (Morton), oatmeal (Jungle), pickles (Branston), and even
water (Perrier), mirkadim (cow), puffed rice (ruchi), sugar
 De Beers Group added the phrase “A Diamond Is Forever”
 What is branded?
Physical goods
Services
Retailers and distributors
Online products and services
People and organizations
Sports, arts, and entertainment
Geographic locations
Ideas and causes

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 What is branded?
Physical Goods
 Sony

* Aesthetics – integrated family

look. All products bear some
common elements.
* Style of use – interface design
– unique way of operating a
product.
* Some functions special to the
brand

The Sony Vaio series – one voice by Sony

Services
 Ritz Carlton Hotel

 Hotel design
 Location
 Customer service
 Restaurants
 Quality of products
In- room
Retailers and distributors
Online products and services
 NetFlix:
An online DVD and Blue-ray Disc rental
service, offering flat rate rental-by-mail

 Convenience
 Service
 Speed
 Cost
People and organizations
Sports, arts, and entertainment
When a Brand’s a Place

OR A PLACE IS A BRAND?
Where?

The brand
 Who?

 An emirate on the Arabian Gulf that started out as a small

trading post
 Now a modern city that aims to be in the same league as
NY, London and Paris
 Fastest growing economy in the world (17% in 2004; double
that of China)
 80% of population are expatriates, only 20% are nationals
 Tax-free haven
 Home to every multinational corporation on the planet
 Cultural makeup is very diverse: Arab, English, Russian,
Iranian, Filipino, Indian, Australian, Kiwis, American,
French, etc.
1990 2003

Main street in Dubai

 2015

Main street in Dubai

 Brand Personality
Ostentatious

Man-made Palm Island Tallest bldg in world Tallest hotel in world

Only 7 star hotel in world
 Brand Promise

No compromises on your life

Upward mobility High-class living

Stable economy
Cheap fuel
High salary

Tax-free International cuisine Beaches

Low interest rates Relatively cheap real estate properties

Warm weather
E-facilities
Did I mention TAX-FREE?
Middle East’s first and only indoor ski dome Irish themed pub with live music
and lots of Guinness
Ideas and causes
Products Vs Brands
 PRODUCT

Product: anything we can offer to a market for

attention, acquisition, use, or consumption that
might satisfy a need or want.

May be a physical good, a service, a retail outlet,

a person, an organization, a place, or even an
idea.
 Brand is more than a Product

BRAND
 Products exist to expand choice.
                        Brands exist to simplify choice.
 
A product occupies functional territory.
                        A brand occupies mental and emotional territory.

A product is something made in a factory.

                        A brand is something that is bought by a customer.
 
A product can easily be copied by a competitor.
                        A brand is unique.
 
A product can be quickly outdated.
                        A successful brand is timeless.
 
 A product does  something.
                        A brand stands  for something in someone’s mind, in addition to doing
something.
 
A product is defined by it’s heaviest users.
                        A brand, by the attraction of what it stands for, defines it’s users.
 
Products seek out their customers.
                        Brands are sought out by their customers.
 
 To establish a powerful, relevant identity in the minds of
customers in order to encourage their initial purchases and
nurture an ongoing relationship between the marketer and the
end user.

 Creating customer loyalty through value innovation – is the

ultimate objective and meaning of brand.
In 'blind' taste tests, people prefer
the taste of Pepsi over the taste of
Coke. However, if the test is not
'blind' and the tasters know which
beverage is which, they prefer the
taste of Coke over Pepsi! That is
the emotional power of a brand.
The Coca-Cola brand has the power
to actually change an individual's
taste!

Coca-cola was the no.1 brand in the

world.
The first shape that was registered is
the coca cola bottle.
 Why do Brand matters?
To Consumer

• Help buyers identify the product that they like/dislike.

• Identify marketer
• Helps reduce the time needed for purchase.
• Helps buyers evaluate quality of products especially if
unable to judge a products characteristics.
• Helps reduce buyer’s perceived risk of purchase.
• Buyer may derive a psychological reward from owning
the brand, Rado or Ford.
 Why do brand matter?
To Manufacturer
•Differentiate product offering from competitors
• Brand identifies the companies products making repeat
purchases easier for customers.
• Brand helps firm introduce a new product that carries the
name of one or more of its existing products...half as much as
using a new brand, lower co. designs, advertising and
promotional costs.
• Easier cooperation with intermediaries with well known
brands
• Facilitates promotional efforts.
• Helps foster brand loyalty helping to stabilize market share.
• Firms may be able to charge a premium for the brand.
•Legal Protection
•Financial returns
Coca-Cola cost $2.85, is only 2 liters.

Generic cola cost $1.23, is 2.25 liters

Importance of Brand Management

Brands are vulnerable, and susceptible

to poor brand management.

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What are the strongest brands?
Branding Challenges and Opportunities
Savvy customers
Brand proliferation
Media fragmentation
Increased competition
Increased costs
Greater accountability
Regulation

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 The Brand Equity Concept
No common viewpoint on how it should be
conceptualized and measured
It stresses the importance of brand role in
marketing strategies.
Brand equity is defined in terms of the marketing
effects uniquely attributable to the brand.
 Brand equity relates to the fact that different outcomes result in the
marketing of a product or service because of its brand name, as
compared to if the same product or service did not have that name.

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 Strategic Brand Management
 It involves the design and implementation of marketing
programs and activities to build, measure, and manage
brand equity.
 The Strategic Brand Management Process is defined as
involving four main steps:
1. Identifying and establishing brand positioning and values
2. Planning and implementing brand marketing programs
3. Measuring and interpreting brand performance
4. Growing and sustaining brand equity

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Strategic Brand Management Process

Steps Key Concepts

Mental maps
Identify and establish Competitive frame of reference
brand positioning and values Points-of-parity and points-of-difference
Core brand values
Brand mantra

Plan and implement Mixing and matching of brand elements

brand marketing programs Integrating brand marketing activities
Leveraging of secondary associations

Brand value chain

Measure and interpret Brand audits
brand performance Brand tracking
Brand equity management system

Brand-product matrix
Grow and sustain Brand portfolios and hierarchies
brand equity Brand expansion strategies
61 Brand reinforcement and revitalization