Note 29

Brands and
Branding

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 Introduction

 Brand - a name, term, design, symbol, or any other

feature that identifies one seller’s good or service as
distinct from those of other sellers
 The legal term for brand is trademark
 As concepts in customers’ minds and hearts, brands have
rich symbolism and meanings that go beyond their
identifying function

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 Introduction

 Strategic roles of a brand

 To identify the product and its producer to consumers
 To differentiate the offering in a valued way
 To command margin

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 Brand Marks and the Functions of Brands

 A brand’s identifying characteristics include:

 The brand name (or “trade name”)
 Logos and marks (“trademarks”)
 Distinguishing features such as packaging, colors, and
sounds

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Table Note 29-1 - The Benefits of Brands

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 Brand Meaning and Brand Equity

 Brands hold meaning that can encompass:

 Functional and hedonic benefits
 Social significance and symbolism
 These meanings reside in the minds of consumers
 Brand equity - a summary of brand meaning/associations
along with brand awareness, brand loyalty, brand quality,
and other brand assets

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Figure Note 29-1 - Brand Meaning and Brand
Equity

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 Who Owns the Brand?

 Brands begin with producers and marketers

 Brand managers may influence the brand’s meaning
 But, brands belong to the consumers who use them and
who assign meaning to them

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 Building Brands

 Building or maintaining a brand must begin with a clear

understanding of what the brand is meant to be in
consumer perceptions
 The strategic position that the brand intends to claim in
the marketplace must be determined, based on
customer and competitive analyses
 Should be recorded in a positioning statement
 The marketing strategist has a variety of tools to use in
claiming and reinforcing the brand’s position

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Figure Note 29-2 - Building Brand Identity and
Brand Equity

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Table Note 29-2 - Dimensions of Corporate
Image

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 Measuring Brands

 Measuring brands can be approached in at least two

basic ways:
 Consumer-level brand meaning, brand equity, and brand
strength
 Firm- or brand-level value

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Table Note 29-3 - Brand Personality

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Figure Note 29-3 - Millward Brown’s
BrandDynamics® Model

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 Figure Note 29-4 - Hypothetical Effect of a
Communications Investment on Brand Dynamics

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 Brand Valuation

 It is a brands:
 Worth taken as a whole
 Contribution to the firm’s financial value
 The brand is valuable to the firm because:
 It can be expected to generate sales and command margin
in the future
 Sales and margins are the product of cumulative
individual-level feelings about the brand

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