Objectives

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Objectives

• To understand
• The meaning and relevance of brands in our lives.
• Developing brand equity, loyalty, and
  relationships.
• Characteristics of a successful brand.
• Branding strategies of producers and
  intermediaries.

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Objectives

• To understand
• Strategies for branding services.
• The nature and importance of packaging and
  labeling.
• The marketing implications of other
  image-building features design, quality,
  warranty, and post-purchase service and how
  these can increase value for the customer.

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Brands and Branding

• Brand The essence of a company.
• An intangible, perceptual concept that resides in
  the mind of the consumer.
• The meaning a brand acquires over time is the
  result of performance presentation and is related
  to reputation and image.
• Meaning of a brand must be managed and protected

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Brands and Branding

• Brand mark
• Trademark
• Many major brands are owned by large companies ?
  national or producer brands
• i.e. Nestle owns Coffee Crisp
• Large retailers often have their own brands ?
  private labels
• i.e. Sears owns Kenmore

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Building a Brand Strategy

• A brand must acquire awareness and recognition.
• Then it must be associated with certain brand
  characteristics or attributes.
• Then a brand may be able to take on a certain
  personality.

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Building a Brand Strategy

• Brand values what the company or product stands
  for or represents in the minds of its customers
  and others.
• Brand relationships a brand to which the
  customer has an emotional attachment.

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The Brand Pyramid
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Cultivating Brand Equity and Relationships

• Brand equity the value that a brand adds to a
  product, as dictated by the loyalty customers
  feel towards it
• Popular brands are valuable assets
• Equity increases as a growing number of consumers
  develop loyalty to the brand
• Creating brand equity involves developing a
  relationship with the customer

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Brand Equity Benefits

• The brand becomes a differential advantage.
• Brand equity can facilitate international
  expansion.
• Brand equity can also help a product survive
  changes in the operating environment.

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Brand Success

• For many companies, their brands are among their
  most valuable assets.
• Companies launch brand extensions
• To trade on the equity in established brands.
• To reduce the risk of new product introductions.

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Brand Name

• The development and protection of brand names is
  a key marketing function
• Brand equity can aid in successful brand
  extensions
• A brand name can
• shorten the consumer buying process
• increase recognition
• reduce price comparisons
• add prestige to commodities

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Characteristics of a Good Brand Name

• Suggests something about the products features.
• Is simple to pronounce, spell, and remember.
• Is distinctive.
• Is adaptable to new products that may be added to
  the product line.
• Is capable of being registered and legally
  protected.

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Branding Strategies

• Producer Strategies
• Marketing entire output under manufacturers own
  brand
• Co-branding of parts and ingredients
• Marketing under intermediaries brands

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Branding Strategies

• Intermediaries Strategies
• Carry only manufacturers brand
• Carry retailers brands alone or with
  manufacturers brands

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Branding Strategies

• Strategies common to manufacturers and
  intermediaries
• Branding a line of products/services.
• Family brand strategy
• Separate name for each product
• Separate family brand for a group
• Company trade name combined with a separate name

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• Branding for market saturation
• A company creates differently-branded products in
  the same product line
• Co-branding strategies

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Packaging

• All of the activities involved in designing and
  producing the container or wrapper for a physical
  product.
• Services are also packaged.

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Packaging

• Why?
• Safety/utilitarian purpose
• Promotion
• Can increase sales and profits

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Packaging Strategies

• Change the package
• Package the product line
• Reuse packaging
• Multiple packaging

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Packaging of Services

• Bundling
• Promotion tangibilize

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Telus vs. Aliant- Which Brand is Better?

• Telus The Future is Friendly
• Name derived from a combination of
  "telecommunications" and "universality- convey a
  friendly and forward-thinking message
• Plan established to communicate unified message
  about strengths, culture, style and future
  direction to each key audience customers,
  employees, agents/partners, potential employees
  and the financial community
• Goal was to be perceived as open, accessible,
  responsive, dynamic, trusted, world class

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• Employees in retail settings underwent training
  to respond to customers in a more friendly and
  responsive way
• Brand identity communicated in onslaught
  changeover on trucks, phones, internal/external
  mail, advertising
• Within six weeks of its launch, TELUS had
  achieved a 60 top of mind awareness, well
  surpassing management's 40 goal
• Source Feakins, Katherine H. The TELUS Story
  Brand Management Strategies for a
  Customer-Focused Identity. Retrieved from the
  World Wide Web on October 15, 2007 from
  www.lippincottmercer.com/pdfs/a_feakins02.pdf

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• Innovative advertising for Telus further
  increased acceptance and revenues
• Has won awards for packaging, retail settings,
  marketing, etc.
• Now compare this to Aliant Here. For you.
• What does Aliants brand mean to you?
• Are they communicating it well?
• Which company is more appealing to you?

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Labeling

• Communicates the image and functional
  information.
• Types of labeling
• Brand labels present the brand.
• Grade labels communicate quality levels.
• Descriptive labels provide information.
• Eco-labeling label states that the product meets
  environmental standards

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Labeling

• There is often an issue over how much information
  the label should carry to protect the consumer
• Much labeling legislation in Canada
• Consumers becoming quite interested in
  food/beverage labeling

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Other Image-Building Features

• Product design and colour are often used to
  distinguish products from competing offerings
• Quality levels are important for products and
  services to ensure customer satisfaction
• Companies offer warranties on their products, and
  increasingly on services, to set themselves apart
• Post-purchase service is a major
  satisfaction-building tool