Branding Unit 6
“Branding gives a company and its products distinct personalities”
Branding Branding is an important component of the product planning process. A brand is a name, term, design, symbol, or combination of these elements that identifies a business, product, or service, and sets it apart from its competitors.
Branding Developing a brand strategy can be one of the most challenging steps in the process. However, it is the most crucial step when creating a company identify.
Elements of Branding Brand Name Trade Name Brand Mark, Trade Character and Trademark
Elements of Branding Brand name: A product brand, is a word, group of words, letters, or numbers that represent a product or service. An effective brand name should be easily pronounced, distinctive, and recognizable. Brand names are marketed and are important company assets. • Barbie • Coke • Pepsi
Elements of Branding Trade Name: A corporate brand, identifies and promotes a company or a division of a particular corporation. The trade name is a legal name of the business. The name reflects the quality, value and reliability of the organization. • Proctor & Gamble • Kellogg’s • Nike
Elements of Branding Brand Mark, Trade Character, and Trademark Brand Mark – Incorporates a unique symbol, coloring, lettering or design element. A brand mark is visually recognizable.
Trade Character A specific type of brand mark, one with a human form or characteristics.
“Trade Characters help build successful brands for the product categories.” Why might companies use trade characters when advertising their brand?
Trademark Brand name, brand mark, trade name, trade character, or a combination of these elements that is registered with the federal government and has legal protection. Trademarks are used to prevent other companies from using a similar element that might be confused with the trademarked one. ® is a registered trademark, for example: Kellogg’s Rice Krispies ™ is an unregistered trademark
Importance of Brands in Product planning Branding establishes and image for a product or company and projects that image to its customers and the marketplace. Branding: Builds product recognition and customer loyalty – if they recognize a brand it’s easier for repeat purchases To ensure quality and consistency – 9 out of 10 people will pay 25% more to buy a GE light bulb than a competitor for its quality
Importance of Brands in Product planning, Cont. Capitalize on brand exposure – extend products into new target markets. BK announced new products customers are willing to try it. Change company or product image – with careful planning companies can adjust or reposition image. For example, old and new Apple Brand mark
Generate brand names Estimated 75% of all companies introduce a new product every year. US Patent and Trademark Office registers 400,000 trademarks a year. Some companies use software programs to generate brand names, or naming consultants, or public relations firms. Branding is so important that more than 60% of all companies conduct market research to test brand names before a product is released.
Branding strategies Brand extension – uses an existing brand name to promote a new or improved product in a company line. Brand licensing legal authorization by a brand owner to allow another company to use its brand.
Branding strategies, Cont. Mixed brands – offers a combination of manufacturer, private distributors and generic brands to consumers. Co-branding – combines one or more of the brands in the manufacture of a product or in the delivery of a service.