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• Basics Understanding of Brands
• Definitions
• Branding Concepts
• Functions of Brand
• Significance of Brands
• Different Types of Brands
• Co branding
• Store brands.
• A brand can take many forms, including a
name, sign, symbol, color combination or
• A legally protected brand name is called a
• The word brand has continued to evolve to
include identity - it affects the personality of a
product, company or service.
It is possible to brand everything……
• A physical good (Nestle soup, Pantene shampoo or
Maruti Swift
• A service (Kingfisher Airlines, TATA AIG medical
• A store (Big Bazaar, BATA stores),
• A place (The state of Tamilnadu),
• An event (Chittirai festival)
• A person (Shahrukh Khan, Sachin Tendulkar,
Kalam, Tiger Woods, Roger Federer)
• An organization (PSNACET, UNICEF or BCCI)
• Godrej acquired Hit and Goodnight brands of
mosquito repellents for a consideration of
Rs.131 crores.
• Marico acquired Saffola and Parachute
brands for an estimated of Rs.30 crores from
Bombay Oil Industries.
• Philip Morris bought Kraft brand for $12.9
• Brands are new avatars for fighting
competition and achieving superiority.
The AMA defines it as:
• "A brand is a name, term, sign, symbol, or design, or a
combination of them, intended to identify the goods or
services of one seller or group of sellers and to
differentiate them from those of competitors."
There are three aspects of this definition.
• Firstly, it focuses on 'What' of the brand.
• Secondly, it emphasizes on what the brand 'does'.
• Brand is the personality that identifies a product, service
or company (name, term, sign, symbol, or design, or
combination of them) and how it relates to key
constituencies: customers, staff, partners, investors etc.
• A brand name is used by the marketers because of the roles it can
perform. It identifies the product or service. This helps consumers to
specify, reject or recommend brands. This is how string brands
become part and parcel of a consumer's life.
• Secondly, brands help in communication. Brands communicate either
openly or subconsciously.
• For instance, the brand 'Fair and Lovely' Communicates what the
product does. Similarly, a brand like Johnson and Johnson is a
symbol of expression of a mother's love.
• Finally, a brand becomes an asset or property which only the owner
has the right to use. The brand property is legally protected. All the
registered names are the valuable assets of the owners.
• Coca-Cola brand name is perhaps the most valued asset of Coca-
Cola Corporation.
• Brands were seen to perform identification and
differentiation functions. But mere identification may not
be a sufficient condition for survival in competitive
• For instance, the brand Premier identified the
automobiles with the Premier Automobiles Limited very
• At the same time the 'Premier' brand distinguished
these cars from rest of the competitors Iike Hindustan
Motor's Ambassador, Maruti, and others.
The customers' choice behavior is influenced by five types
of values which they tend to satisfy:
• First, the functional value: It is the physical or functional
performance of the product or service.
• Second, social values: It means the satisfaction that the
consumer seeks by association with certain social groups
of the society.
• Third, emotional value: It means the ability of the product
or service to satisfy the customer by creating feelings like
joy, love, and respect ete.
• Fourth epistemic value: It means the need to know or learn
something new'
• Finally, situational value: It refers to the ability of the
product to satisfy' situational needs.
• There are six perspectives on brand
1. Visual/Verbal Perspective
The visual and verbal aspects of brand serve important
functions of identification and differentiation.
Symbols enhance brand recognition and brand recall, visual
images leave imprints in the visual memory of the prospects,
even at the pre-processing level.
For instance, the strong connection between colour and
brands helps prospects retrieve or recall brand name upon
seeing the colours.
– Red connects with Colgate and Coke,
– Blue is tied to Pepsi,
– Yellow reminds one of Kodak.
2. Positioning Perspective
• The brand must hold a position in the consumer’s mind
that sets it apart from the host of the players in the
category. The route to achieving a unique position is to
get into concept of Brand the prospect's mind first.
• For instance IBM owns 'computers',
• Kodak owns photography' and Xerox owns
'photocopying' in the prospect's mind.
• The brand is nothing more than a position occupied in
the perceptual space of the consumer.
3. Value Perspective
• A brand starts with a product and name. The product is
extended by adding values around it. There are three
tiers of values that a brand offers:
• Functional, expressive and central values.
• The functional values refer to performance aspects of
the brand. That is what it does at the functional level.
• For example,
• Watch keeps time. Bottle of water reduces thirst.
• So these may by the functional sides of a brand like
• Titan and Bisleri.
• The expressive values reflect the customer side of brand.
• They state more about the customer and less about the
• Customers buy brands for their ability to express values.
• For instance, Mercedes, Rolex, Asmi brands offer status
values to customers.
• Central values, at their purest, are alive in religious,
national or political persuasion.
• For instance, in today's world of suspicion, the respect
associated with brands like Nike or Pepsi makes them very
powerful in the same way as the Michael Jackson also
carries a value which is central to today's younger
4. Brand Image Perspective:
• Brand image building is "The effort to differentiate the
brand psychologically rather than physically.“
• Pepsi is choice of the new generation because it is
essence of what youthfulness is all about.
• The brand image building must begin with thorough
understanding of consumers' psychological self - the
thoughts and feelings.
• The brand must project what target consumers are and
what they want to be in a social setting. This approach
must be taken with caution.
• Symbolism alone may not be sufficient to attract and keep
the customer. The brand must also be satisfying
5.Added Value Perspective
• This perspective's thrust is on the value added by the
brand in making the product more satisfying. "The
difference between a brand and a commodity can be
summed up in the phrase 'added values'.
• A brand is more than the sum of its component parts.
• The cement supplied as a generic product to a contractor
is not the same as it comes in bags named 'Raymonds'.
• The brand name adds value to the generic product,
making it more desirable for the buyer.
• The brand in this case brings a host of assurances in the
form of reliability, consistent quality, confidence and
6. Perceptual Appeal Perspective

• Brands like Aspirin and 555 differ. Aspirin’s appeal is more

rational whereas 555 appeals to emotions.

• Thus a brand may be rational, sensory emotional or a

combination there of depending upon the product category
and target customers.

• It is proposed that 'there are three sorts of appeal; they

are all inter related and each brand has a different blend of
three - an appeal to the senses, an appeal to the reason,
and appeal to the emotions."
• Gillette focuses on the theme 'the best a man can get'

an appeal emotional in nature while

• Dettol appeals to reason with its 'antiseptic' properties to

the shaving cream buyer.

• This approach is helpful in designing brands precisely in

accordance with the buyers states which enhance the

acceptability of a brand.

• The focus here is on the brand's anatomy and appeal.

Brand Architecture:
• The types of architecture are:
1. Monolithic Structure: The corporate brand name appears on all
– Ex: Nirma, Samsung
2. Fixed Endorsed Structure: Powerful brand name with individual
product name
– Ex: Maruti 800, Tata Indica
3. Flexible Endorsed Structure: Corporate name appears but
individual brand name dominates.
– Ex: Cadbury‘s Dairy Milk
4. Discrete Structure: Individual brand name alone dominates with
identity and status
– Ex: Liril, Close-up
1. User Imagery:
• Many brands portray their 'typical user' both demographically and
• The user image signals self-image, values and life style of the intended
target customer.
– Raymond brand of suiting and shirting convey very distinct user imagery
in their communications (‘the complete man').
– Elle 18's brand is directed at young girls, not influenced by the
environment or social setting (‘be yourself').
2. Emotional/psychological Benefits:
• Brands also transform the user experience. Brands create satisfying
emotional states.
• Through communications, the marketers associate certain feelings and
emotions with the brand in the consumer's mind.
– Maggi noodles show the joy of giving (easy to cook in two minutes and
serve easy).
– Johnson and Johnson brand is the essence of 'love and care'.
3. Brand Personality:
• Brand personality is the visualization of brand in human terms.
– For instance, the respondents are asked if ‘Nike’ were a person what he
or she would be like.
• The description that would follow generally revolves around demographic
and psychographic traits of the person.
• Filling a brand with a personality consistent with the target customers helps
strike a relationship with them.
4. Brand Image:
• It is how a brand is perceived by the customers in its 'totality'. Image
encompasses both product and perceptual components.
• It is everything that is associated with a brand in a prospect's perception.
• Another way a brand would be seen is as consisting of two dimensions: the
functional dimension and emotional or symbolic dimension.
5.Brand name:

• The brand name is quite often used interchangeably with "brand", although it

is more correctly used to specifically denote written or spoken linguistic

elements of any product.

• In this context a "brand name" constitutes a type of trademark, if the brand

name exclusively identifies the brand owner as the commercial source of

products or services.

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

name through trademark registration and such trademarks are called

"Registered Trademarks".
• There are three main types of brand name:
(1) Family brand names:
• A family brand name is used for all products. By building customer trust and
loyalty to the family brand name, all products that use the brand can benefit.
• Good examples include brands in the food industry, including Kellogg’s,
Heinz and Del Monte.
(2) Individual brand names:
• An individual brand name does not identify a brand with a particular
• For example, take the case of Heinz. Heinz is a leading global food
manufacturer with a very strong family brand. However, it also operates
many well-known individual brand names.
• Examples include Farleys (baby food), Linda McCartney Foods (vegetarian
meals) and Weight Watcher’s Foods (diet/slimming meals and
(3) Combination brand names:

• A combination brand name brings together a family brand name and an

individual brand name.

• The idea here is to provide some association for the product with a strong

family brand name but maintaining some individuality so that customers

know what they are getting.

• Examples of combination brand names include Microsoft XP and Microsoft

Office in personal computing software and Heinz Tomato Ketchup and Heinz

Pet Foods.

• Brands functions for the buyers are:

• Brands make the choice of the product easier for the buyers.

• Brands reduce the cost of product search for the buyers.

• Brands reduce the time for product search.

• Brands reduce the risk factors for the buyers, in terms of

quality, quantity, guarantee, resale price, after sales service

• Brands add to the identity and status of the buyers —Mercedes.

• Brands functions for the sellers are:
• Brands sellers cost of sales reduce as brands almost presale the
• Brands reduce their advertising and promotion costs.
• Brands reduce the cost of training of sales staff.
• Brands sellers can charge premium or skimming prices.
• Brands sellers can sell the entire brand line at the skimming price.
• Brands provide an entry barrier for firms planning to enter the market
with the same product
• Brands help in increasing the firm’ share value.
• Brands provide an automatic product differentiation.
• Brands help in providing the promotional plans of a market.
• Brands help in making the advertising messages simple as the name
itself conveys everything to the buyers.
• Brands help sell the entire product range under one name.