Unit 7 Brands - PDF

**Unit 7** **Definition of a Brand (Seth Godin):**\ *A brand is the collection of expectations, memories, stories, and relationships that drive a consumer's choice over another.* **1. Role of the Brand in Marketing Strategy** **Legal Perspective (EU Trademark Definition):**\ A trademark can be an...

**Unit 7** **Definition of a Brand (Seth Godin):**\ *A brand is the collection of expectations, memories, stories, and relationships that drive a consumer's choice over another.* **1. Role of the Brand in Marketing Strategy** **Legal Perspective (EU Trademark Definition):**\ A trademark can be any sign (names, colours, designs, sounds) capable of: - Distinguishing products or services from others. - Being registered for legal protection and enforcement. **Marketing Perspective (AMA Definition):**\ A brand is a combination of name, term, symbol, or design to identify products and differentiate them from competitors. **Benefits of a Brand in Strategy**: 1. Differentiation 2. Positioning 3. Customer Loyalty 4. Recognition 5. Perceived Value 6. Brand Extension 7. Emotional Identity 8. Credibility and Trust **Trademark Utilisation and Rights**: 1. **Registration and Protection**: Exclusive rights for legal defence and against infringement. 2. **Commercial Use**: Trademarks can be mortgaged, sold, or licensed. 3. **Franchising**: Allows brand usage with business models and expertise. 4. **Cobranding**: Two brands collaborate for combined values and audience **\ ** **2. Brand Positioning** A brand strategy outlines customer needs, desired benefits, and price tolerance compared to competitors.\ **Core Positioning Strategy:** - Guides product offerings, pricing, communication, and distribution plans. **Adjustments to Align with Target Customers**: - Define target audience. - Adapt brand name, pricing, packaging, and communication. ***Examples**:* - ***Intel vs. AMD**: Creating low-price processors to maintain market share.* - ***Loctite**: Expanded positioning through customer-focused adjustments.* **Insights on Data Usage**: - Data enhances credibility but can overwhelm certain segments. Balance is critical. **3. Identity and Brand Differentiation** **Importance of Differentiation**: - Strong brands project consistent identity, elicit positive product evaluations, and create awareness. - Differentiation involves enhancing desired benefits while simplifying offerings to avoid confusion. ***Example**:* - *Coca-Cola omitted its logo on Powerade to differentiate and appeal to simplicity-loving customers.* **\ ** **4. Brand Management** **Ownership Models**: - **With a Brand**: Creates identity and loyalty. - **Without a Brand**: May reduce costs but lacks differentiation. - **Ownership Decisions**: - Manufacturer or intermediary ownership impacts pricing, customer loyalty, and market control. **Brand Architecture**: 1. **Branded House**: Single brand for all products/services (e.g., Apple). 2. **House of Brands**: Independent brands for different categories (e.g., Procter & Gamble). 3. **Endorsed Brand**: Combining corporate and individual brands for mutual benefit. 4. **Mixed Architecture**: Flexible strategies based on product lines or acquisitions. **Brand Extensions and Second Brands**: - **Extensions**: Leveraging the core brand for new categories (e.g., Tous expanding from jewelry to accessories). - **Second Brands**: Offering simpler, affordable alternatives (e.g., Movistar and O2). **5. Brand Equity** **Definition**: Brand equity is the value a brand adds to a product beyond its functional benefits. **Key Brand Assets**: 1. Awareness (e.g., Coca-Cola). 2. Emotional connection (e.g., BMW). 3. Loyalty (e.g., Apple). 4. Price Premiums (e.g., Rolex). **Key Brand Liabilities**: 1. **Volkswagen\'s Dieselgate**: Environmental deception. 2. **Primark's Rana Plaza Collapse**: Poor labor conditions. 3. **H&M Greenwashing**: False sustainability claims. **Scorecards for Measuring Equity**:\ Evaluate assets and liabilities to guide brand strategy and mitigate risks. **\ ** **6. Conclusion** **Key Takeaways**: 1. Strong brand strategies build loyalty and trust by aligning with consumer values. 2. Differentiation and equity enhance competitive advantage. 3. Brand positioning balances perceived value with costs. **Final Thought (Howard Schultz):**\ "If people believe they share values with a company, they will stay loyal to the brand."