BrandingElements and Strategies

What is branding?Name, term, design, or symbol that identifies

a business or organization

Brand NameWord, group of words, letters, or numbers

representing a brand that can be spoken.Brand name products cost more than similar

unbranded products because of higher advertising costs.

Brand MarkPart of the brand that is a symbol or design

May include distinctive coloring or letteringElement of the brand that usually is not spoken

Trade NameIdentifies the company or a division of a

particular corporation.

Brand Name Trade Name

Cereal Cereal manufacturer

Car Car manufacturer

Athletic shoes Shoe manufacturer

Trade CharacterA brand mark with human form or

characteristicsBird Eye’s Jolly Green GiantKellogg’s Tony the TigerPillsbury Doughboy

TrademarkBrand name, Brand mark, Trade name, trade

character, or a combination of these that is given legal protection by the federal government.Cannot be used or misused by other companies

Harley-Davidson applied for a sound trademark consisting of the exhaust sound from its motorcycle engine

Boston Duck Tours received a sound trademark for the sound of a human voice making duck-like quacking noises

Apply the termsLocate the brand name, brand mark of the brand on the left.

Locate the trade name, trade character, trademark

Why are brands important?Helps build customer loyaltyProducts carrying the same brand are of a

consistent qualityCan address new target marketsEstablishes an image

Types of BrandsManufacturer Brands

Owned and initiated by manufacturers General Electric, Heinz

Indicate a standard quality and pricePrivate Distributor Brands

Owned and initiated by wholesalers and retailersThe manufacturer’s name does not appear on the

product Radio Shack, Kmart

Appeal to customers who want the quality and performance of manufacturer brands at a lower price

Types of BrandsGeneric Brands-represent a general product

category and do not carry a company or brand name.Often priced 30-50% lower than manufacturer

brands and 10-15% lower than the private distributor brands

Branding StrategiesThe way companies use brands to meet sales

and company objectivesBrand ExtensionBrand LicensingMixed BrandsCo-branding

Brand ExtensionA branding strategy that uses and existing

brand name of an improved or new product in the product line.Starbuck ice cream

Companies can reduce the risk of failure by using an already established brand name.

Brand dilution occurs when the original brand has been stretched to include too many products

Brand LicensingThe legal authorization by a trademarked

brand owner to allow another company to use its brand, brand mark, or trade character for a fee

Enhance their company image and sell more of their core products

Mixed BrandsInvolves simultaneously offering a

combination of manufacturer, private distributor, and generic brands.

Allows a business to reach several target markets

Co-BrandingCombines one or more brands to increase

customer loyalty and sales for each individual brand.Limited edition 2000 Harley-Davidson F-150 pickup

truckStarbucks has an agreement with Barnes & Nobles

bookstores to open coffee shops inside the storeWorks best if both companies complement each

other and each brand receives equal billing in advertisements, direct mail, and other promotions