Basic concepts of

Branding

What is a brand?
O A name, term, design, symbol, or

any other feature that identifies one

seller's good or service as distinct
from those of other sellers.
O The legal term for brand is
trademark. A brand may identify one
item, a family of items, or all items
of that seller.
O If used for the firm as a whole, the
preferred term is trade name

Thums up

Pepsi

Coco cola

Akshay Kumar

Ranbir kapur
Shahrukh khan

Amir khan

taste thunder

Yeh hai
youngistaan meri
jaan

Thanda Matlab
Coca-Cola

What a brand means to common person ?

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.

When you cannot do

this
The product is a
commodity

O Commodities are bought on the basis

of price and availability, not on the

name of the manufacturer or brand.
Example: Petrol, vegetables.
O However, by adding value,
commodities can be converted into a
brand.

A brand comprises of
O Tangible attributes
O Intangible attributes

Tangibles
Eg.
O Product
O Packaging
O Labeling
O Attributes
O Functional benefits

Intangibles
Eg.
O Quality
O Emotional benefits
O Values
O Culture
O Image

Brand Identity
It is the marketers promise to give
a set of features, benefits and
services consistently

Brand Building
Involves all the activities that are
necessary to nurture a brand into
a healthy cash flow stream after
launch

What kind of activities?

Eg.
O Product development
O Packaging
O Advertising
O Promotion
O Sales and distribution

Brand Equity
When a product becomes a brand, it is

said to have equity

Elements that can be included in the
valuation of brand equity include
changing market share, profit margins,
consumer recognition of logos and
other visual elements, brand language
associations made by consumers,
consumers' perceptions of quality and
other relevant brand values.

What is brand equity?

OThe premium it can

command in the market

ODifference between the
perceived value and the
intrinsic value

Benefits of brand
equity
O Include:
1. Brand name recognition or

awareness
2. Customer loyalty
3. Perceived quality
4. Strong emotional or mental
associations

Brand equity as an
asset
OCoca Cola $69bn
OMicrosoft $65bn
ODisney$32.6bn
OAmerican Express $17bn
OEricsson $7bn

What happens when equity

increases?

Commodity

Brand

Power Brands
Presence
+
Personality

What happens when brands

have high equity?
O The company can have more

leverage with the trade

O The company can charge a premium
on their product
O The company can have more brand
extensions
O The company can have some
defense against price competition

Brand Loyalty Pyramid

Committed buyer

Likes the brand. Considers

it a friend
Satisfied buyer. Would
incur costs to switch
Satisfied buyer/no
reason to change
Switchers/Price
sensitive

Functions of a brand:
O Creates brand awareness
O Reduces risk
O Provides specific information like

quality
O Provides symbolic consumption