Basics of Branding - 1 PDF

# Jins of Branding: Basic of Branding - 1- Grammarly ## What is Branding? - It's not just about what a company says about its product, but how customers perceive it and discuss it with each other. - Consumers have the power to make or break a product. - Customers serve as recommendations and advert...

# Jins of Branding: Basic of Branding - 1- Grammarly ## What is Branding? - It's not just about what a company says about its product, but how customers perceive it and discuss it with each other. - Consumers have the power to make or break a product. - Customers serve as recommendations and advertisements. - A powerful marketing tool that builds trust, loyalty, and emotional connection. ## Importance of a Brand: - To differentiate your product from the competition. - To create a sense of value and quality. - To build trust and customer loyalty. - To increase brand awareness. - To become a leader in your market. ## Why Do Brands Matter? ### 1. Employees - **Why?**: Employees feel proud and motivated to work for a well-known and respected brand. - **Example**: Working at Google or Apple makes people excited because these companies have a positive image. It also helps attract talented people who want to join the company. ### 2. Customers - **Why?**: Customers trust well-known brands and stay loyal to them, often recommending them to friends and family. - **Example**: Think of Coca-Cola. People trust the quality and consistency of the drink, and they often suggest it to others at gatherings or parties. ### 3. Investors/Shareholders - **Why?**: A strong brand makes a company more valuable, assuring investors that it can generate profits in the future. - **Example**: Apple's brand value increases its stock price, making shareholders confident in the company's growth. ### 4. Suppliers - **Why?**: Suppliers want to work with strong brands because it boosts their reputation. - **Example**: A leather supplier feels proud to supply materials to a premium brand like Louis Vuitton, which also improves their image. ### 5. Intermediaries (Retailers, Distributors, Wholesalers) - **Why?**: Retailers prefer popular brands because they sell easily and make good profits. - **Example**: Stores like Carrefour or Walmart give prominent shelf space to brands like Nestlé because they know customers will buy them. ### 6. Opinion Leaders (Media, Politicians, NGOs) - **Why?**: Established brands get more positive attention and support from influencers and media. - **Example**: When Nike sponsors a sports event, media outlets are more likely to cover it because of Nike's strong reputation. ### 7. Local Communities - **Why?**: A popular brand brings benefits to the local community, such as jobs and development. - **Example**: When Starbucks opens in a neighborhood, it not only provides jobs but also attracts more foot traffic, helping other local businesses grow. ## How to Build a Strong Brand: - **Clarity**: Clearly define your brand's unique message and target audience. - **Example**: Volvo is known for its focus on safety and security. - **Consistency**: Always maintain a consistent brand image and message across all marketing materials. - **Example**: Volvo consistently uses a color palette of blue and white and its logo is always distinctive. - **Constancy**: Be visible and present consistently to the target audience. - **Example**: Coca-Cola uses various marketing strategies, including celebrity endorsements, to remain visible in the public eye. ## Core 3 C's of Branding: - **Clarity**: Be clear about what your brand is about. - **Consistency**: Be consistent in your brand image and message. - **Constancy**: Be consistently visible to your target audience. ## The 5 Levels of Product Meaning (Kotler): 1. **Core Benefit Level**: This addresses the fundamental needs or wants that your product fulfills. - **Example**: A hotel's core benefit is to provide a place to rest and sleep. 2. **Generic Product Level**: This is the basic version of your product with no distinguishing features. - **Example**: A hotel's generic features might include a bed, bathroom, towels, and a mirror. 3. **Expected Product Level**: This level consists of the minimum customer expectations for the product within the category. - **Example**: A hotel's expected features would include clean sheets, comfortable beds, and Wi-Fi. 4. **Augmented Product Level**: This stage adds extra value and benefits to distinguish your product. - **Example**: A hotel might offer free breakfast, or a swimming pool, to differentiate itself from other hotels. 5. **Potential Product Level**: This involves continual innovation and finding ways to surprise and delight customers. - **Example**: A hotel could offer specialty amenities, like offering a unique experience for guests, to enhance their stay. ## Brand vs. Product - **Product**: A tangible or intangible offering to satisfy a need or want. - **Brand**: The identity and emotions associated with the product that creates a lasting impression. ## Branding Dimensions: - **Essence**: Summarize your brand's core purpose or value in a memorable sentence. - **Slogan**: Create a catchy phrase that captures your brand's essence. - **Personality**: Define your brand's personality traits; could it be playful, sophisticated, reliable, or adventurous? - **Values**: Identify what your brand stands for. - **Taste/Appearance**: Establish a visual identity, logos, colors, typography, and feel. - **Heritage**: Tell brand stories and highlight its history. - **Emotional Benefits**: Describe how your brand makes customers feel. - **Hard Benefits**: Outlines tangible benefits, features, or advantages your product offers. ## Establishing a Brand: - **Building a Brand**: Identify key factors for building brand value. - **Focus on quality**: Consistent quality is essential for building brand loyalty. - **Position your brand**: Find a unique position in the market. - **Communicate**: Be clear and consistent in all communication. - **Stay ahead**: Be a first-mover in your market. ## Points of Parity: - Features expected in your product category. - Without it, you may not be seen as a viable option. ## Points of Difference: - What makes your brand unique and why should customers choose you? ## Something More About Brands: - Brands create a strong perception in the minds of customers. - Brands create a sense of loyalty and trust. - Brands can make or break a product. ## Brand Management: - Ensure that the perception created fits your brand. - Shape and manage the perception of your brand. ## Key Factors to Build a Strong Brand: - **First-mover advantage**: Be the first to market and establish a strong position - **Quality**: High quality always wins. - **Positioning**: Create a unique position in the mind of your customer. - **Communication**: Speak clearly and consistently to your target audience. - **Long-term perspective**: Invest in building a brand for the long term - **Internal marketing**: Ensure your brand is understood within your organization. - **Brand equity**: Build a valuable and recognizable brand. - **Brand extension**: Leverage your brand name to enter new markets. - **Brand stretching**: Expand your brand into different product categories. ## What is Brand Equity? (Simplified Explanation) Brand equity means the value that a brand adds to a product or company. It's not just about the product itself but how people feel about the brand and how much they trust it. Think of it as the "bonus value" that a brand name gives to the product. ## Example of Brand Equity: Coca-Cola vs. Generic Soda - Imagine two sodas: Coca-Cola and an unknown brand. - Even if both sodas taste similar, most people are willing to pay more for Coca-Cola because they trust it and love the brand. - That extra trust and emotional connection is Coca-Cola's brand equity. ## Why is Brand Equity Important? 1. **Higher Prices:** People are willing to pay more for trusted brands. - **Example**: Apple can charge more for iPhones because of its brand value. 2. **Loyal Customers**: Strong brands keep customers coming back. - **Example**: People stick to Starbucks for their coffee, even if cheaper options exist. 3. **Easier Product Launches**: If the brand is strong, new products get accepted quickly. - **Example**: When Heinz launched ketchup in a new flavor, customers trusted it would be good because of their positive experiences with the brand. ## What Adds to Brand Equity? - **Trust**: Customers feel the product will always deliver quality. - **Familiarity**: People recognize the brand easily (like Nike's swoosh). - **Positive Experiences**: Customers have had good experiences in the past (e.g., Amazon's smooth delivery). ## Types of Brands (From Slide 28) There are two main types of brands: 1. **Manufacturer Brands** 2. **Own-Label Brands** ### Manufacturer Brands: - **Explanation**: These are brands created and owned by producers (the companies that make the products). The producers are responsible for marketing and building the brand's reputation. - **Example**: Nike is a manufacturer brand. The company designs and produces the shoes and promotes the brand through ads and sponsorships. Nike owns the brand name and controls its image. ### Own-Label Brands - **Explanation**: These brands are created and owned by retailers (stores that sell products), not the manufacturers. Sometimes called **private label brands**, these products are usually sold only in the store that owns the brand. - **Example**: Carrefour's own brand products (like Carrefour-branded rice or snacks). Carrefour does not manufacture these products themselves but sells them under their own brand name at a lower price than well-known brands like Heinz. ## Difference Between Manufacturer and Own-Label Brands: - **Manufacturer Brands**: Build their identity and reputation directly with customers (e.g., Nike, Apple). - **Own-Label Brands**: Offer products at lower prices and build loyalty within the stores (e.g., Carrefour's in-house products). ## Branding Challenges and Opportunities: - **Savvy Customers**: Customers today are more informed and have higher expectations. - **Economic Downturns**: Recessions can impact consumer behavior. - **Brand Proliferation**: The market is becoming more crowded. - **Media Transformation**: Traditional advertising is declining in effectiveness. - **Increased Competition**: Globalization and deregulation are making the market more competitive. - **Increased Costs**: The cost of launching new products or supporting existing brands is increasing. - **Greater Accountability**: Marketers must be accountable for financial results.