In this journey, you will learn about branding, benefits, and types of brands.

Brand - A brand consists of any name, term, design, style, words, symbols or any
other feature that distinguishes the goods and services of one seller from another.

Tangible brand: individual product, such as a car or drink.

Product brand: This type of brand is associated with a range, such as the Mercedes
S-class cars or all varieties of Colgate toothpaste.

Brand name: A term, design, symbol, or any other feature that identifies one seller’s
goods or services as distinct from those of other sellers.

Registered trademark: This is designated by ® (the circled capital letter “R”), is a

symbol used to provide notice that the preceding mark is a trademark or service
mark that has been registered with a national trademark office.

Market research: The systematic collection and evaluation of data regarding

customers’ preferences for actual and potential products and services.[1]

Desarrolle su pensamiento crítico

A medida que avanza en este viaje, complete las siguientes instrucciones

instructivas guiadas. Anótelos ahora para que esté listo para responder y desarrollar
su pensamiento crítico sobre cada tema. Esto le ayudará a prepararse para sus
evaluaciones y exámenes.

● Branding choices – A brand refers to a name, image, term, or symbol.

Most people tend to purchase products based on certain brands. What
brands have you purchased in the past? Why did you select that brand?
Record this response in your journal.
 ● Applying Branding – What is your favorite brand of clothing? Why is it
your favorite? Record your response in your journal.
● Real-World Connection – In high school having a good image is very
important, especially for females. Having a bad reputation impacts how
people would treat you. How is this like having a good or bad brand for a
business? Record this in your online journal.

In this journey you, you’ll be introduced to the study of branding and its basic
concepts.

If you walk through a parking lot at school, work, or the local mall, chances are good
that you could identify all the car brands just by looking at hood emblems. When you
spot someone with a “swoosh” on her T-shirt, you probably already know she’s
wearing Nike-brand apparel without even asking. How is it possible to know so much
just by looking at an image or a shape? The answer is branding!

To understand branding, it is important to master a set of key terms and understand

how they interconnect. For example, a brand is a name, term, symbol, or any other
type of feature that defines or identifies a seller’s product or service.

Companies can do a lot to create and build brands, but the net impact and value is
what happens inside the mind of the consumer. The supreme challenge of brand is
to make your vision of your brand the same thing other people experience and
believe about your brand. Are you ready to be inspired? Please read on! [1]

Defining a Brand

A brand consists of any name, term, design, style, words, symbols or any other
feature that distinguishes the goods and services of one seller from another. A brand
also distinguishes one product from another in the eyes of the customer. All of its
elements (i.e., logo, color, shape, letters, images) work as a psychological trigger or
stimulus that causes an association to all other thoughts we have about this brand.
Tunes, celebrities, and catchphrases are also oftentimes considered brands. History
The word “brand” is derived from the Old Norse ‘brand’ meaning “to burn,” which
refers to the practice of producers burning their mark (or brand) onto their products.
Italians are considered among the first to use brands in the form of watermarks on
paper in the 1200s. However, in mass-marketing, this concept originated in the 19th
century with the introduction of packaged goods.

During the Industrial Revolution, the production of many household items, such as
soap, was moved from local communities to centralized factories to be
mass-produced and sold to the wider market. When shipping their items, factories
branded their logo or insignia on the barrels used, thereby extending the meaning of
“brand” to that of trademark. This enabled the packaged goods manufacturers to
communicate that their products should be trusted as much as local competitors.
Campbell Soup, Coca-Cola, Juicy Fruit gum, Aunt Jemima, and Quaker Oats were
among the first products to be “branded. ”

Connotations

A successful brand can create and sustain a strong, positive, and lasting impression
in the mind of a consumer. Brands provide external cues to taste, design,
performance, quality, value and prestige if they are developed and managed
properly. Brands convey positive or negative messages about a product, along with
indicating the company or service to the consumer, which is a direct result of past
advertising, promotion, and product reputation.

A brand can convey up to six levels of meaning:

● Attributes: The Mercedes-Benz brand, for example, suggests expensive,

well-built, well-engineered, durable, high-prestige automobiles.
● Benefits: attributes must be translated into functional and emotional
benefits.
● Values: Mercedes stands for high performance, safety, and prestige.
● Culture: Mercedes represents German culture, organized, efficient, high
quality.
● Personality: the brand projects a certain personality.
● User: the brand suggests the kind of consumer who buys and uses the
product.

Value of Branding

Branding is a long term exercise, but one that reaps long-term profitability through
increased customer loyalty.

What is the Purpose of Branding and Why Is It So Important?

Branding involves researching, developing, and implementing brand names, brand

marks, trade characters, and trademarks. It undoubtedly requires a significant
contribution from marketing communications and is a long term exercise, but one
that reaps long-term profitability. Branding is crucial to the success of any tangible
product. In consumer markets, branding can influence whether consumers will buy
the product. Branding can also help in the development of a new product by
facilitating the extension of a product line or mix, through building on the consumer’s
perceptions of the values and character represented by the brand name. Benefits of
Branding for the Consumer Effective branding of a product enables the consumer to
easily identify the product because the features and benefits have been
communicated effectively. This will increase the probability that the product will be
accessible and therefore purchased and consumed. Dunkin’ Donuts, for example, is
a brand that has an established logo and imagery that is familiar to most consumers.
The vivid colors and image of a DD cup are easily recognized and distinguished from
competitors.

Benefits of Branding for the Manufacturer

Branding helps create loyalty, decreases the risk of losing market share to the
competition by establishing a differential advantage, and allow premium pricing that
is acceptable by the consumer because of the perceived value of the brand. Good
branding also allows for effective targeting and positioning. For example, Starbucks
is a brand known its premium coffee. Starbucks has a loyal fan base due to its
established global branding that communicates value.

Benefits of Branding for the Retailer

Branding enables the retailer to benefit from brand marketing support by helping to
attract more customers (ideally ones who normally don’t frequent the establishment).
For example, a customer who truly values organic brands might decide to visit a
Babies R Us to shop for organic household cleaners that are safe to use around
babies. This customer might have learned that a company called BabyGanics, which
brands itself as making “safe, effective, natural household solutions”, was only
available at this particular retailer.

Brand Loyalty

Brand loyalty entails commitment and repeated consumer purchase behavior

following perceived value, satisfaction, and brand trust.

Brand Loyalty

In marketing, brand loyalty refers to a consumer’s commitment to repurchase or

otherwise continue using a particular brand by repeatedly buying a product or
service. The American Marketing Association defines brand loyalty as:

1.) “The situation in which a consumer generally buys the same

manufacturer-originated product or service repeatedly over time rather than buying
from multiple suppliers within the category” (sales promotion definition).
2.) “The degree to which a consumer consistently purchases the same brand within
a product class” (consumer behavior definition). Aside from a consumer’s ability to
repurchase a brand, true brand loyalty exists when a.) the customer is committed to
the brand, and b.) the customers have a high relative attitude toward the brand,
which is then exhibited through repurchase behavior. For example, if Joe has brand
loyalty to Company A, he will purchase Company A’s products even if Company B’s
products are cheaper and/or of a higher quality. Brand loyalty is viewed as a
multidimensional construct, determined by several distinct psychological processes,
such as the customers’ perceived value, brand trust, satisfaction, repeat purchase
behavior, and commitment.

Commitment and repeated purchase behavior are considered as necessary

conditions for brand loyalty, followed by perceived value, satisfaction, and brand
trust. Philip Kotler defines four customer-types that exhibit similar patterns of
behavior:

a) Hardcore Loyals, who buy the brand all the time

b) Split Loyals, loyal to two or three brands

c) Shifting Loyals, moving from one brand to another

d) Switchers, with no loyalty (possibly “deal-prone,” constantly looking for bargains,

or “vanity prone,” looking for something different).

Benefits of Brand Loyalty

The benefits of brand loyalty are longer tenure (or staying a customer for longer),
and lower sensitivity to price. Recent research found evidence that longer-term
customers were indeed less sensitive to price increases. According to Andrew
Ehrenberg, consumers buy “portfolios of brands.” They switch regularly between
brands, often because they simply want a change. Thus, “brand penetration” or
“brand share” reflects only a statistical chance that the majority of customers will buy
that brand next time as part of a portfolio of brands. It does not guarantee that they
will stay loyal. By creating promotions and loyalty programs that encourage the
consumer to take some sort of action, companies are building brand loyalty by
offering more than just an advertisement.

Offering incentives like big prizes creates an environment in which customers see
the advertiser as more than just the advertiser. Individuals are far more likely to
come back to a company that uses interesting promotions or loyalty programs than a
company with a static message of “buy our brand because we’re the best.”

Popular Loyalty Programs

Below are some of the most popular Loyalty Programs that are currently being used
by major companies as a means of engaging their customers beyond traditional
advertising.

Sweepstakes and Advergames - Branded digital games that engage consumers with
prize incentives

Contests - Skill tests and user-generated promotions such as video and photo
contests, Social Media, Applications and Management, Develop promotions, and
offers within social media channels

Ongoing management and maintenance of brand Facebook pages and other social
medi.

Brand Equity

Brand equity is the value of a brand that is well-known and conjures positive
associations, which helps it remain relevant and competitive.

Key Terms

Brand loyalty: where a person buys products from the same manufacturer
repeatedly rather than from other suppliers

David Aaker: He is a consultant and author on the field of marketing, particularly in

the area of brand strategy. He is currently the Vice Chairman of Prophet, a global
brand and marketing consultancy firm, Professor Emeritus at the Haas School of
Business of the University of California, Berkeley, and an advisor to Dentsu, a major
Japanese advertising agency. He blogs on Aaker on brands.
Brand awareness: The extent to which a brand is recognized by potential
customers, and is correctly associated with a particular product. Expressed usually
as a percentage of target market, brand awareness is the primary goal of advertising
in the early months or years of a product’s introduction.

Brand Equity: This phrase describes the value of having a well-known brand name,
based on the idea that the owner of a well-known brand name can generate more
money from products with that brand name than from products with a less
well-known name.

Brand Equity

In marketing, brand equity refers to the value of a brand that is well-known and
conjures positive mental and emotional associations. For any given product, service,
or company, brand equity is considered a key asset because it helps it remain
relevant and competitive. Brand equity can manifest itself in consumer recognition of
logos or other visual elements, brand language associations made by consumers’
perception of quality, and value among other relevant brand attributes.

When consumers trust a brand and find it relevant, they may select the offerings
associated with that brand over those of competitors even at a premium price. For
example, Starbucks can sell its coffee at a higher price than solid market competitors
because consumers associate the brand with quality and value. This is why brand
equity is oftentimes directly correlated with a brand’s profitability.

Measuring Brand Equity

Brand equity is strategically crucial, but also very difficult to quantify. As a result,
many experts have developed tools or metrics to analyze this asset, although there
is no universally accepted way to measure it. For example, while it can be measured
quantitatively using numerical values such as profit margins and market share, this
approach fails to capture qualitative elements such as prestige and mental and
emotional associations.
According to David Aaker, a marketing professor and brand consultant, there are ten
attributes of a brand that can be used to assess its strength:

1. Differentiation
2. Satisfaction or loyalty
3. Perceived quality
4. Leadership or popularity
5. Perceived value
6. Brand personality
7. Organizational associations
8. Brand awareness
9. Market share
10. Market price and distribution coverage

Brand Asset Valuator

Young & Rubicam, a marketing communications agency, has developed the brand
asset valuator, a tool to diagnose the power and value of a brand. The agency uses
this tool to survey and measure consumers’ perspectives along four dimensions:

● Differentiation: The defining characteristics of the brand and its

distinctiveness relative to competitors
● Relevance: The appropriateness and connection of the brand to a given
consumer
● Esteem: Consumers’ respect for and attraction to the brand
● Knowledge: Consumers’ awareness of the brand and understanding of
what it represents

Other ways that brand equity can be measured (these can be used individually or in
combination):

● At the firm level – Brand equity can be studied as a financial asset by

making a calculation of a brand’s worth as an intangible asset. For
example, a company can estimate brand value on the basis of projected
 profits discounted to a present value. In turn, the present value can be
used to calculate the risk profile, market leadership, stability, and global
reach.
● At the product level – The price of an equivalent well-known brand can be
compared to that of a no-name or private label product.
● At the consumer level – This measure seeks to map the mind of the
consumer to uncover associations with the given brand. For example,
projective techniques can be commonly used to identify tangible and
intangible attributes, attitudes, and various perceptions about the brand.
Under this approach, the brands with the highest levels of awareness and
most favorable and unique associations are considered high equity
brands. [1]

Types of Brands
The different types of brands include: individual products, product ranges, services,
organizations, persons, individuals, groups, events, geographic places, private label
brands, media, and e-brands.
The most common type of brand is a tangible, individual product, such as a car or
drink. This can be very specific, such as the Kleenex brand of tissues or can
comprise a wide range of products. Product brands can also be associated with a
range, such as the Mercedes S-class cars or all varieties of Colgate toothpaste.
A service is another type of brand as companies move from manufacturing products
to delivering complete solutions and intangible services. Service brands are
characterized by the need to maintain a consistently high level of service delivery.
This category comprises the following:
Classic service brands (such as airlines, hotels, car rentals, and banks).
Pure service providers (such as member associations).
Professional service brands (such as advisors of all kinds – accountancy,
management consultancy).
Agents (such as travel agents and estate agents).
Retail brands (such as supermarkets, fashion stores, and restaurants).
Another type of brand is an organization. This can be a company that delivers
products and services. Mercedes and the US Senate are all defined organizations
and each have qualities associated with them that constitute their brand.
Organizations can also be linked closely with the brand of an individual. For
example, the U.S. Democratic party is closely linked with President Barack Obama.
A person can also be considered a brand. It can be comprised of one, as in the case
of Oprah Winfrey, or a few individuals, where the branding is associated with
different personalities, such as with the American Democratic Party. Not much higher
in detail than an individual is the brand of a group. In particular, when this is a small
group and the individuals are known, the group brand and the individual brand
overlap. For example, the OWN brand of the Oprah Winfrey Network and the brand
of its known members (Oprah and her team) are strongly connected.
Events have brands too, whether they are rock concerts, the Olympics, a
space-rocket launch, or a town-hall dance. Event brands are strongly connected with
the experience of the people attending. Product, service and other brands realize the
power of event brands and seek to have their brands associated with the event
brands. Thus, sponsorship of events is now a thriving big business as one brand
tries to get leverage from the essence of the event, such as the excitement and
danger of car racing.
Places or areas of the world also have essential qualities that are seen as
characterizations and hence also have a brand. These areas can range from
countries to states to cities to streets to buildings. Those who govern or represent
these geographies will work hard to develop the brand. Cities, for example, may
have de facto brands of being dangerous or safe, cultural or bland, which will be
used by potential tourists in their decisions to visit and by companies in their
decisions on where to set up business.

Private label brands, also called own brands, or store brands, exist among retailers
that possess a particularly strong identity (such as Save-A-Lot).

Media brands include newspapers, magazines, and television channels such as

CNN. The primary activity of e-brands is to deliver physical products or services, as
in the case of Amazon.com. These online brands focus on delivering a service or
experience in the virtual environment.

Key Terms

Brand Name: A term, design, symbol, or any other feature that identifies one seller’s
goods or services as distinct from those of other sellers. Registered Trademark:
Designated by ® (the circled capital letter “R”), is a symbol used to provide notice
that the preceding mark is a trademark or service mark that has been registered with
a national trademark office.

Brand Ownership
Brand ownership is about building, developing and sustaining a brand that reflects
your principles and values and which effectively persuades consumers to believe in
and purchase your product/service.

In order to really own your brand, you must have a clear understanding of where
your brand stands in the marketplace today, and a concrete strategy that outlines
how you wish to manage and grow your brand moving forward. Equally important is
understanding what makes your brand different. You must also create clear and
persuasive messaging communication targeting your end consumer. You should also
develop a plan to reach your goals in a realistic and organized fashion.

When you truly own your brand, your money is spent wisely on marketing that is
targeted, sharp and effective because you have a sophisticated understanding of the
marketplace, your product/service, your consumer base and your strategy. This will
translate into disciplined and effective brand management that will enable you to
remain relevant in a rapidly-changing [and oftentimes saturated] marketplace.

Brand ownership should also be considered the responsibility of its management and
employees. Steve Jobs, for example, was considered a leader in shaping the identity
of Apple, which has helped fuel a very high stock price for the company. As a result,
the brand image and reputation has attracted some of the world’s best talent which,
in turn, has yielded an variety of innovative mobile products that will undoubtedly be
marked in the history of popular consumer culture.

A brand owner may seek to protect proprietary rights in relation to a brand by

registering the trademark such that it becomes a “Registered Trademark.” Also, a
firm or licensor can also grant the right to use their brand name, patents or sales
knowledge in exchange for some form of payment.

Naming Brands

Naming a brand is crucial to a product’s reputation and success because it reflects

its image and benefits in a way that can be differentiating.

Key Terms

Brand Name: A term, design, symbol, or any other feature that identifies one seller’s
goods or services as distinct from those of other sellers.
Market Research: The systematic collection and evaluation of data regarding
customers’ preferences for actual and potential products and services.

A brand is a term, design, or symbol that identifies a commercial product or service

as distinct from those of other sellers. A brand name is the part of the brand that can
be vocalized. A brand name can also be a name under which a business or
company operates. Naming a brand is crucial to its reputation, development, and
future success because the primary function of the brand (name and image) is to
identify the product or service in a way that it differentiates it from those of other
competitors.

Selecting a brand name is one of the most important product decisions a seller will
need to make. A brand name reflects the overall product image, positioning and,
ideally, its benefits. A successful brand name can enable a product to: be
meaningfully advertised and distinguished from competitors, be tracked down by
consumers, and be given legal protection. At its best, a brand can provide a
carryover effect when customers are able to associate quality products with an
established brand name.

For example, Apple has chosen to name all of its mobile products with a lower-case
i, as in the case with the iPad and iPod. Another example of a brand name is
Starbucks, the coffee company which is globally recognized and chooses to name its
coffee sizes in Italian.

The process of naming a brand is key because it requires a systematic effort that
includes generating potential brand names, screening them (oftentimes conducting
market research to test their potential among consumers), and ultimately selecting
the one that holds the most potential. Brand names are mandatory if the
manufacturer or distributor plans to produce mass advertising for their product.

But before this process even begins, a basic branding strategy must be employed
where a company or seller must select from among the following three viable options
to follow:

1. A strict manufacturer’s branding policy under which a producer can only

manufacture merchandise under his own brand
2. An exclusive distributor’s brand policy where a producer does not have a
brand of his own but agrees to sell his products only to a particular
 distributor and carry his brand name (typically employed by private
brands)
3. A mixed brand policy, which allows elements of both extremes (options 1.
and 2.) and leads to the production of manufacturer’s as well as
distributor’s brands

Brands and Brand Lines

Strong brands are a powerful asset, and can be used to extend product lines to
expand the scope and distribution of the organization.

When understanding the potential in building a brand, it’s useful to recognize the way
in which brands can extend. Brand extensions are usually accomplished by
expanding the existing product line offerings, or potentially creating new product
lines with the same brand (often in complementary markets). To provide some
context, let’s define a few simple examples of spinning off a brand. Coca-Cola and
Pepsi are fairly classic examples of simple product line extensions to expand the
brand. Diet Coke fulfills a different need than regular Coke, in that it contains fewer
calories. Through extending their product line, they now had the potential to capture
health conscious consumers. Car companies are another good example. There are
tons of different Toyota automobiles on the market, each catering to slightly different
needs, price points, and geographies. Brand lines and product extensions are a key
aspect of brand management.

Brand Management

To apply concepts of product extensions by adding to the brand line, an

understanding of brand management strategies is a useful starting point. Investing in
an intangible asset such as a brand can be a difficult process for organizations, as
the return on this investment is not realized in the shorter term. However, building a
strong repertoire with the target market in a given industry, and catering the product
lines to fulfill various broader or niche needs within those markets, is a powerful
strategic tool.

Product Extensions
Extending brands is often accomplished through new lines of product, referred to as
product extensions. When considering product extensions, it’s important to identify
diverse needs that can be filled by the organization through core processes. This
means that organizations must understand the needs of the market, and determine if
the organization has the ability to fulfill some of these needs.

While there are countless, unique reasons to pursue a brand extension based on
which industry is being discussed, there are a few common areas where extensions
often occur:

Low Cost

Extending into the lower cost segment is a common move for brands as they gain
power and scale in the industry. As successful companies grow in revenue and size,
they often attain the ability to produce at higher scale economies. Once this is
accomplished, spinning off a cheaper version of a brand is a great way to achieve
higher levels of growth. Tesla is a great example of this. Tesla began by selling
extremely high end vehicles, with the plan to utilize the return on those sales to begin
producing higher quantities of lower cost models, all of which maintain the powerful
Tesla brand.

Differentiation

A broad term, which can be applied to a variety of tactics, differentiation is all about
identifying a unique need that users are willing to pay a premium for. Consider the
beer and wine industry. Microbreweries have seen enormous growth (and, in turn,
acquisition by big companies) in recent years. Microbreweries focus on creating a
unique, specialized beer which often costs more. Due to the unique experience, local
support and potential variety, customers are willing to pay a premium for a
differentiated product (compared to the bigger brand names).

Co-branding
Another interesting example is co-branding. Sometimes co-branding can help an
organization spread into new markets. For example, some cars come with built in
surround sound systems. These cars are often partnered with strong brands, such
as Bose, which provides mutual benefit and enables Bose to enter a new market. In
this situation, the Bose brand is noted by car purchasers just as the car brands are
considered in the context of good sound systems.

Conclusión

While extending product lines and spinning off the brand into new product formats
can be a great opportunity for revenue growth, it also exposes the brand to new
market forces and new risks. Careful quality control and brand maintenance is a key
consideration in any new extensions to the brand. With proper execution, a brand
can be a powerful asset for new product development.

Provide responses in your own words to the following reflective journal instructions
below within your online journal.

Reflection Time

List the five most interesting, controversial, or rich ideas you found in the readings
from Journey 16: Did you Know and Journey 16: Ready for More. Include the topics
and a short rationale of 200 words, but no more than 250 words for your selection.
Record this information your journal.

Destacado de carrera

Industrial designers consult with clients to determine requirements of designs,

research various ways a product will be used, sketch ideas or create renderings of
images on paper or computer that provide visual design ideas, use computer
software to develop virtual models, create physical prototypes of designs, exam
materials and manufacturer requirements to determine costs, evaluate product
safety, appearance, and present designs to clients for approval. A bachelor’s degree
in industrial design, architecture, or engineering is required for industrial design jobs.
There is a 4% projected growth from 2016 to 2026.