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20 Cards in this Set
- Front
- Back
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What is a brand? |
- Products and services that have added value which was deliberately designed and presented by marketing managers - they are meaningful to their customers - both managers and customers are involved in the branding process - "Products are made in the factory, but brands are created in the mind" - Walter Landor |
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Why are brands important? |
- They can be products, services, people or places - Permeates all aspects of all societies - signifies a relationship - Add value in the quality & emotional attachments they provide - Strong enough to influence taste perception - Sufficiently important for backlash |
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What is brand identity? |
- Represents the "true self" of the brand - Based on the brand's vision, aim, nature - included in a document (i.e. the brands charter which defines what must stay and what is free to change) |
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What are the functions of Brands within companies? |
- they are a source of value
- analysts prefer companies with strong brands: often less risky > potential for future profits > premium pricing; brand-conscious consumers are less price sensitive > Helps to secure shelf space > Source of loyalty: retention is cheaper than acquisition - NPD allows for brand/line extensions (brand stretching) - Allows companies to differentiate their brands in crowded marketplaces which enables buyers to recognise that brand quickly so as to make fast, unhindered purchase decisions - Can allow manufacturers to set premium prices e.g. Andrew, L'Oreal (often around 20% higher prices) - Premium prices allow brand managers to re-invest in brand development which is important in order to remain competitive. |
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What are the functions of Brands for Consumers? |
- Makes choices easier - Saves time, energy & anxiety > Guarentee of quality > Risk reduction - Brand symbolism & the social role of brands > Defines who i am, who I want to be or what groups I belong to or want to belong to > Acts as a form of communication between people - Branding helps customers to identify the products and services that they prefer to use in order to satisfy their needs and wants - Helps them to avoid the brands that they dislike - Branding helps to reduce financial, social and functional risks so customers can proceed with a purchase without fear or uncertainty - In markets unknown to buyers or where there is technical complexity, consumers use branding to make judgements about the quality of a product (saves shopping time and reduces risk) - Nokia, Google, and Kellog's are some of the most trusted brands - Many brands are deliberately imbued with human characteristics to the point when they are identifies as having particular personalities. |
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Building a new brand |
- Identify what qualities, values and experiences customers identify with your brand
- need to think about every part of the company and to ensure that the brand is in line with all aspects of this - Send out consistent brand messages - develop a distinctive visual brand |
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Brand Positioning - The 3 C's |
Customers Competition Channel - these are very important in such a competitive environment where customers are bombarded with advertisements from different brands wherever they go. |
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Customers |
- Customers and audiences
- need to think about demographics which describe the structural attributes of a market and its audiences - need to think about psychographics, such as industry trend and technology which can affect your branding - brands who feel that they need to appeal to everyone often fail to communicate effectively with the buyer |
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Competition |
- differentiation is critical to success - important to become familiar with competitions brands and marketing messages (you can become successful just from realising the realities of your competitors) |
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Channel |
- this is the way that your product reaches the end consumer and is arguable the most important as this is how they will find out about it. |
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What is a Brand Extension? |
- a way of capitalising on the recognition, goodwill and any positive associations of an established brand - using the same name to lever the brand into a new market |
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Vertical Extension |
- a product is introduced into the same category - normally at a different price/quality point |
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Horizontal Extension
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- where an existing brand introduces a new product in a similar or completely new category
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Positioning a Band in the marketplace - Hogan et al. Definition of a brand extension |
"The addition of a new product to an already established line of products under the same name" E.g. McGraw-Hill's foray into children's educational software - already had great grand awareness and high marks - viable to move into something else as they were seen as high quality but hard because they were not seen as exiting or interactive - had to do some work to extend its well defined brand image to the software market - made sure to combine their old and new vision allowing them to move into an entirely new area without violating their original parameters. |
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Why do marketers need to come up with new brands? |
- the world is changing so quickly that marketers are constantly challenged to come up with new ways to define and position brands
- the following factors are conductive to line extensions and necessitate them > Demographic shifts and the identification of new classes of consumers with specific needs > Technology, has spawned new channels of marketing and distribution e.g. the internet and satellite TV > Industry consolidation, results in fewer consumers having fewer brand choices and a greater likelihood that they will become loyal to one brand over others > an increasing emphasis on relationships. Consumers today want brands to be accountable for both their product and their promises. |
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What are the 4 'hot' ways to extend an already well-positioned brand? |
- Licensing - Co-branding - Sponsorships - Brand Agents |
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What is Licensing? |
- cashing in on your name can be lucrative
E.g. Disney brand is very clearly defined, issues 140 licenses to sell approximately 10,000 items bearing the 101 Dalmatians "endorsement", the move could have been poor at the box office but it was always going to generate millions of $ in licensing fees from t-shirts/stuffed animals. |
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What is co-branding? |
- by supplementing or complementing another brands strengths can contribute to growth E.g. between Disney and McDonald's, Jeep and Orvis - Especially good when between a manufacturer and a retailer - 98% of retailers predicted that it would become commonplace in the next 5 years - There must be a "fit" between partners - complementary/supplementary relationship that makes sense to the marketplace. |
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What are sponsorships? |
- Borrowed interest from successfully linking with a headline event can strengthen a brand - Olympic sponsorships - those that go in with a |
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What are brand agents? |
- Living, breathing embodiments of a brand - The individual represents the brand E.g. Nike and Michael Jordan and Tiger Woods Premier Inn and Lenny Henry |
