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Chapter 3: Brand and Positioning

Chapter 3 Brand and positioning

3.1 Branding

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3.1.1 Brand Concept
Branding has been around for centuries as a means to distinguish the goods of one producer from those of another.

Chapter 3 Brand and positioning

The American Marketing Association defines a brand as “ a name, term,sign , symbol or design, or a combination of them, intended to identify goods or services of one seller or group of sellers and to differentiate from those of g p competitors..

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The Role of Brands
Consumers may evaluate identical products differently depending on how it is C l t id ti l d t diff tl d di h i branded. They Learn about brandsthrough past experiences with the product finding out which brands satisfy their needs and which do not. As consumers’ lives become more complicated, rushed, and time starved, a brand s brand’s ability to simplify decision making and reduce risk becomes invaluable.

Chapter 3 Brand and positioning

For both sides, business and consumers, brands are sign of continuity in a constantly shiftingenvironment CUSTOMERS Brands simplify decision making. Brand reduce risk and offers reassurance. eassu a ce. COMPANIES Brands simplify product handling Brands offer legal protection for the unique qualities of the products Brands define territory and create barriers to new competitors.

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Patents expire, copyrights eventually run their course,but brands last forever

Chapter 3 Brand and positioning

Sometimes marketers don’t see the real importance of brand loyalty until they change a crucial element of the brand

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3.1.2 Brand Value
It is the added value endowed on products and services services. It may be reflected in the way consumers think, feel and act with respect to thebrand, as well as in the prices, market share, and profitability the brands commands.

The power of the brand lies in what customers have seen, read, p f , , heard, learned, thought , and felt about the brand over time.

Chapter 3 Brand and positioning

A brand has positive value when consumers react more favorably to a product and the way it is marketed when the brand is identified, thanwhen it is not identified.

A brand has negative value when consumers react less favorably to marketing activity for the brand under the same circumstances.
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-Brand value arises from differences in consumer response. If no differences occur, the brand name product is essentially a commodity, and competition will probably based on price.-Differences in response are a result of consumers brand knowledge all Differences consumers’ knowledge, the thoughts, feelings, images, experiences, and beliefs associated with the brand. Brands must create strong, favorable and unique brand associations Volvo ( security ) -Brand value is reflected in perceptions, preferences and behavior related to all aspects of the marketing of a brand. Thechallenge is ensuring that customers have the right type of experiences with products and marketing programs to create the desired brand knowledge

Chapter 3 Brand and positioning

3.1.3 Benefits from branding
-Improved pe cept o s of product performance p oved perceptions o p oduct pe o a ce -Greater loyalty -Less vulnerability to competitive marketing actions -Less vulnerability to marketingcrises -Larger margins -More inelastic consumer response to price increases -Greater trade cooperation and support -Increased marketing communications effectiveness -Additional brand extension opportunities -Improved employee recruiting and retention

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Marketing Debate
Brands are out of juice?

In time of crisis the brand loyalty has...