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Branding, Packaging, and Labeling. Branding Elements & Strategies The nature, scope, and importance...

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Branding, Packaging, and Labeling
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Branding, Packaging, and Labeling

Branding Elements & Strategies

• The nature, scope, and importance of branding in product planning

• The various branding elements• The different types of brands• How to classify branding strategies

What you’ll learn:

A brand is a name, term, design, or symbol (or combination) that identifies a business or organization and its products.

Brands can include a number of elements:

• Brand name – the word, group of words, letters, or numbers representing a brand that can be spoken. Ex: Mountain Dew, PT Cruiser, SnackWells

• Also called a product brand

• Trade name – identifies the company or a division of a particular corporation – the legal name a company uses when it does business. Ex: Kellogg’s, Dell, Xerox

• Also called a corporate brand.

• Brand mark – the part of the brand that is a symbol or brand name – it may include distinctive coloring or lettering. It usually is not spoken

• Trade character – a brand mark with human form or characteristics. Ex: Jolly Green Giant, Pillsbury Doughboy, Kellogg’s Tony the Tiger

• Trademark – a brand name, brand mark, trade name, trade character, or a combination of these that is given legal protection by the federal government• Trademarks are followed by a registered

trademark symbol

Characteristics of a Good Brand Name

• The name should describe the product's benefits and use(s)

• The name should convey what the product does for the consumer or how it works.• EXAMPLE: The name Jiffy Lube gives

consumers the impression that their motor oil will be changed quickly, which benefits them by saving time.

• The name should be easy to read, pronounce, and remember• Makes the product easy to recognize

• Effective names are often brief• EXAMPLES: Joy, Raid, Tide

Deciding Whether or Not to Brand

• Without brands, consumers couldn’t tell one product from another, and advertising would be nearly impossible.

• Since branding is an expensive process, companies must make sure that their investment will be worth the effort

• Involves researching, developing, and marketing new brands

• Can cost $20 to $50 million

Use of Brands• Brands must be built on differences in images,

meanings, and associations• When consumers feel good about brands, they buy them

• EXAMPLE: Compare your feelings about a Jaguar with your feelings about a Yugo

Importance of Brands in Product Planning

• To build product recognition and customer loyalty

• To Ensures quality and consistency• To Capitalize on brand exposure

Generating Brands

• Hard to find the right name• Generated by employees, computer

programs, PR agencies• Most companies do research to

determine if the brand name is effective

Types of Brands• National Brands –owned and initiated by manufacturers. Ex:

General Electric, Heinz, and Motorola.• When consumers buy food products, they buy manufacturer

brands nearly 75 percent of the time.

• Private Distributor Brands – also called Private Brands, Store Brands, or Dealer Brands – owned and initiated by wholesalers and retailers. Ex: Radio Shack and Kmart, Craftsman, Kirkland

• This type of brand can be controlled by retailers and it yields the highest profits.

• Generic Brands – represent a general product category and do not carry a company or brand name. The packaging only describes the product – “pancake mix” or “paper towels”• Often priced below branded products

Branding Strategies – the ways companies use brands to meet sales and company objectives

Branding Strategies

• Brand Extension – uses an existing brand name for an improved or new product in the product line.

• Ex: Cheerios

Branding Strategies• Brand Dilution occurs when the

original brand loses its strength in brand identity because it has been stretched to too many products.

• Brand Licensing – legal authorization by a trademarked brand owner to allow another company (the licensee) to use its brand, brand mark, or trade character for a fee (royalty)

Ex: McDonald’s pays Disney to associate Disney related toys in Happy Meals

• Mixed Brands – simultaneously offering a combination of manufacturer, private distributor, and generic brands

Ex: Michelin manufactures tires for Sears as well as under its own brand name

• Co-Branding – combines one or more brands to increase customer loyalty and sales for each individual brand

Ex: Ford creates the limited edition Harley Davidson pickup truckEx: Starbucks Coffee opens outlets in Barnes & Nobel Bookstores

Brand Image• One of the most important strategic purposes of marketing.• All advertisements in all media should present the same brand

image.

Businesses Benefit from Brand Loyalty

• This is evidence by repeat sales and pre-sold items• When consumers get into the habit of buying certain

brands, they automatically buy them again, thereby reducing the amount of time needed to make a sale

• The obvious goal of all marketers is to build a high degree of loyalty for their brands

Now that’s Brand Loyalty!


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