Everything you need to know about brand in marketing management. Branding refers to the practice of creating a name, symbol or design that identifies and differentiates a product from other products available in the market.
It simply means the process of creating a unique name and image for a product in the consumer’s mind. It aims at establishing a significant and differentiated presence in the market that is able to attract and retain loyal customers.
The branding can also be considered as an important tool of marketing mix. It is an area where standardization appears relatively higher, while planning for overseas market.
The American Marketing Association has defined a brand as a name, term, symbols or design or a combination of them which is intended to identify the goods and services of one seller or groups of sellers and to differentiate them from those of competitors’.
Branding: Meaning, Classification, Selection, Elements and Types of Branding
Contents:
- Meaning of Brand
- Classification of Brand
- Brand Selection and its Management in Marketing
- Brand Decision
- Brand Protection
- Brand Protection in Marketing
- Elements of Brand
- Types of Brand Names
- Types of Brand Strategies
- Components for Successful Branding Strategy
- Role of Consumers in Branding
- Brand Personality
- Advantages and Limitation of Branding
- Common Misconceptions and Facts with Respect to Branding in Marketing
Brand – Meaning
The American Marketing Association has defined a brand as a name, term, symbols or design or a combination of them which is intended to identify the goods and services of one seller or groups of sellers and to differentiate them from those of competitors’. A trade mark is a brand that has been given legal protection thus ensuring its use exclusively by one seller. ‘Trade mark’ is thus a legal term.
We are living in an age of brands. Whether in industrial goods or consumer goods, there is a proliferation of brands. Fifteen years ago in India, there were hardly 4 to 5 brands of tooth pastes. Today we have more than a dozen brands. Similarly, among soaps, one had to choose from a handful of brands. Today we have a big assortment of brands, and brand competition has development as a feature of the Indian marketing scene.
In an age of brands, the brand name is quite often the major selling tools, and the most important component of the total product offering.
Giving brand names to products facilitate an effective promotional campaign. Advertising an undifferentiated or unbranded product becomes a difficult task. A brand name facilitates advertising and functions as a demand stimulant.
The intensive brand promotion undertaken by the marketers of various products have made consumers extremely brand conscious. These days no one asks for just tooth paste. He or she asks specifically for Binaca Fluoride, Signal, Colgate or Forhans. No woman asks for just bathing soap, she may insists on a particular brand.
A man who wants a steel cupboard may straight away go in for a Godrej without thinking twice about several other brands available. The brand image developed by sales promotional measures creates different degrees of brand loyalty among consumers. The significance of the brand name on the total sales appeal is evident from the fact that several goods products have failed in the market solely due to wrong brand appeal.
In India, a brand receives such legal protection under the Trade and Merchandise Marks Act, 1958 after it fulfills the following conditions as laid down under Sections 11 and 12 of this Act:
1. It is not similar to any existing trade mark.
2. It is otherwise not entitled to protection in court.
3. It does not hurt the religious sentiments or feelings of any class or section of the citizens.
4. It does not comprise or contain scandalous or obscene matter.
5. It is not contrary to any law for the time being in force.
6. It is not likely to deceive or cause confusion.
When a brand mark is registered and legalised it becomes a trade mark. Thus registered brands are Trade Marks. In that sense all trademarks are brands but all brands are not trade marks. Trade marks is defined as a “brand or part of a brand that is given legal protection because it is capable of exclusive appropriation.” — (Glossary of Marketing Terms — AMA). Thus, the trade mark is essentially a legal term protecting the manufacturer’s right to use the brand name or trade mark.
Brand – Classification: Manufacturer’s Brand, Distributor’s or Private Brand and Mixed Brand (With Examples)
Brands may be classified into the following three kinds:
i. Manufacturer’s Brand – A brand which is owned by a manufacturer and/or registered as a trade mark under the manufacturer’s name is referred to as manufacturer’s brand.
ii. Distributor’s or Private Brand – A brand which is owned by a distributor and/or registered under a distributor’s name is referred to as a distributor’s or private brand. It is private because the manufacturer is not identified or the product is not recognised because of him. The manufacturer simply manufactures the product and brands it as per specifications of the distributor.
iii. Mixed Brands – A company may opt for both its own and its distributors’ brands in respect of its products. It may sell some products in its own brand name and the rest may be sold to dealers under their own brand names.
Both manufacturer’s and distributor’s brands may be further divided on the basis of persons and region.
Products may carry an individual brand name for each product item as, for example, Hindustan Lever’s Surf detergent power and Lux toilet soap or Government Soap Factory, Bangalore’s point detergent powder. Products may also carry the family name of the manufacturer as for example, Tata’s trucks, Modi’s Continental truck Tyre or Mafetlal’s Cotton Fabrics. The family name may blanket all products or there may be separate family names for different products.
Sometimes products may carry just the company’s name or the company’s name coupled with product’s own generic name as, for example, Colgate Palmolive & Co’s., Colgate Tooth Paste or Lakme Lipstick or Face Cream.
Geographical coverage of a product is still another way of classifying brands. A brand is referred to as a national brand when the product is to be identified throughout the country by only one brand. For example, Hindustan Lever’s Dalda brand of Vanaspati ghee is a national brand. But when a product is identified by different brands in different regions of the country, these brands are referred to as regional brands.
Brand Selection
A brand is a distinctive name, image or design that provides a way for the buyers to distinguish a product from its competitors. The reputation of a company can be enhanced by establishing a strong and positive brand image. It is also known as brand equity. A marketer is to give full consideration to the brand image that how it will be maintained in different market places. The brand is the image of a company and it can be controlled to a great degree of extent by skilled management.
If the brand image is not controlled and managed properly, they are likely to be destroyed more easily than created.
1. Big Company, Big Name:
Some of the companies have established themselves globally. Their brand name is recognized everywhere in the international market, for example, Coca-Cola, Toyota, Mc Donald and Nestle etc. On the other hand most of the companies are not equipped with such goodwill of their brand in advance of their arrival. Therefore they are to start from the scratch, while entering into new markets. It has both positive and negative aspects.
The positive aspect may be that the target markets have no preconceived notion about what the company is representing. The reputed company’s product not only bear the quality standard but are also seen as representatives of foreign cultures. For example nestle is often taken to task for the clinical impact of its products on a global scale. It is not possible for a company to come up against enormous local protest.
Further it is assumed in the new market that big company can throw huge amount of money both legally and illegally. It may force the local partners to become indignant about the financial control, which is also a part and parcel of international business.
2. Small Company, Big Problems:
There may be a problem for the unknown company in the international market. It is very much possible that business leaders or the government in the target market are reluctant to meet with an obscure foreign marketer. It is pertinent to explain here that the marketers have to spend more extra time to explain the company’s back ground and reliability of their products.
Further both the distributors as well as customers may have little value as well as perception, while buying or using any unrecognized product. Therefore it must be taken as a challenge as in the domestic market. The marketers may face same kind of problems in the global market for their brands, as they have faced in the domestic market. Even additional problems like language problem, legal problem and cultural difference etc. may also be there. Therefore an awareness campaign through various promotional methods should be carried out as to acquaint and manage the new or old product in the new market.
3. An Attractive and Distinctive Brand Name:
This can be a very delicate issue. Retaining the same domestic name without any change or translation in the international market may cause problems. It may be an unattractive word for the foreign buyers because of different language. Therefore it is for the marketers to choose such brand name, which should be based upon the image desired, cultural perception of the consumers and should also be based upon the marketer’s product line. It will definitely be helpful in controlling as well as managing the brand effectively.
4. Attractive and Distinctive Symbol or Logo:
The symbols often create a very strong reaction among consumers about the product image and also a company itself. For examples in Japan the flowers symbolize perfection and symmetry in Japanese domestic culture therefore a Japanese base company may use flowers as part of its logo.
On the other hand in U.S. market flowers are associated with feminine images and they are not used in the factories generally. But now a days most of the companies have moved towards more generic images for their logos. For example Microsoft windows use that window frame pattern which can be easily recognized in the market. If the logos are having a neutral image, it must be tested out in the foreign market before committing it to exposure.
5. Attractive Slogans:
The slogan should be attractive and customized to each targeted market. The slogan must have certain meaning. For example, Japanese marketed Toyota with its slogan like, “you want it you got it-Toyota!” These kinds of slogans tend to stay in the consumers mind for the extended periods. Their contents may vary from one culture to another culture but their effectiveness remains same.
6. Brand Extension:
Brand extension is the process of applying an established brand name to the new product lines. However this is a risky concept both in domestic market as well as while entering in the foreign market. But it has also a great potential for the big success. The companies are always looking to consider their established brand name to their product line.
The extension of brand name to new products may enhance its exposure. It is for the marketers to select their product line carefully so as not to confuse consumers. The consumers may accept some brand extensions, while they do not accept some other extensions. For example, Nike moved from shoes to clothing company and has been accepted well in the market. On the other hand Mc Donald has not been accepted in most markets for its sandwich product.
7. Co-Branding:
This technique involves the direct linkage of brand names from separate companies. For example “Intel inside logo is displayed on the cabinet of most personal computers.” By this way if computer will be performing well, both the Intel as well as computer manufacturer will perform, as well as gain well.
On the other hand if the things are adverse both companies shall suffer. Therefore it is for the marketers to choose his co-branding partners very carefully. For example a foreign company entering in a new market may join hands with a successful local company or successful and already established foreign company. In case of unstable market conditions, local partners may be the best choice. It may also be useful to get economic as well as political protections.
8. Brand Name or Logo on the Packaging:
When the brand name or Logo is prominently displayed on the packaging of the products, it can stimulate the consumers to purchase a particular product. This is why, in the super markets the brand name or logos are displayed in such a way that a consumer can see them early on the packaging of each product. By this way this is the last chance with the marketers to reach up till the customers. It is also considered as the best way to put the product in the market with its brand name or logo on the packaging.
Branding Decisions – 3 Important Brand Decisions: Brand Name Selection, Brand Sponsor and Brand Strategy
Branding decisions are very important and they are challenging in nature.
The branding decisions include:
1. Brand name selection,
2. Brand sponsor, and
3. Brand strategy.
1. Brand Name Selection:
The Company has to select suitable brand name and it should protect it. One has to consider cultural, social, and religious factors before fixing a brand name. The brand name should consist of the qualities like distinctiveness, product benefits and most importantly easy to pronounce, recognize, and remember. When the product is associated with brand names, psychologically customers attribute value to their purchase.
For example, Raymond, Godrej, Zodiac etc. If brand name is easy to spell, with words in common use brand remembering is easy. For example, Sony, Usha, Vimal, Nirma are very easy to remember. Brands describe about the product and its characteristic features. For example, Fair & Lovely, Glucose) Protinex, Fair Glow, Fair Ever.
The brand name when translated into a foreign language, should not give a wrong meaning. For example, the brand name Nova goes well with Indian car buyers but not with Spanish customers because meaning of the word Nova in Spanish language is ‘it doesn’t go’. Brand name should not infringe with the existing brands.
2. Brand Sponsor:
The product may be introduced as – manufacturers brand, private brand, licensed brand, and co brand. The company’s name itself acts as a brand name, for example, Godrej, BPL Tata. A brand created and owned by distributors or retailers is known as private brand. For example, Spencer’s at Chennai, Nilgiri at Bangalore have become popular private brands in south India.
The practice of using the established brand name of two different companies on the same product is known as co-branding. For example, Thomas Cook- Master Card International, ECILBDPS, Indian Oil Corporation-City Bank International. In co-branding both the brands will get the benefit of each other.
3. Brand Strategy:
There are four different brand strategies.
They are:
i. Line Extension,
ii. Brand Extension,
iii. Multi brands, and
iv. New brands.
i. Line Extension:
When a company introduces additional items in a related product category with the same brand name it is called line extension. Products with new flavours, sizes, colours, shapes, ingredients in the same category with the same brand name will be introduced.
ii. Brand Extensions:
A brand extension is using a successful brand name to launch new or modified products in a new category. Here the brand name is same but the product category is new. A brand extension gives a new product immediate recognition and faster acceptance. As the brand awareness is already there, the costs of advertising to build a new brand can be saved. However the brand extension is risky when the failure of a new product will dilute the image of an existing brand.
ii. Multi Brands:
This strategy is about introducing additional brands in the same category. P&G, HLL, Godrej follows multi branding strategy in soaps and detergents category. It helps companies to occupy more shelf space at retail level.
The same company may launch separate brands in different countries. P&G dominates in US detergent market with Tide brand and it leads in other countries with Ariel brand. This multi branding strategy is costly because each brand has to be promoted by the firm separately. Each brand might obtain only a small market share.
iv. New Brands:
A company may go in for a new brand when it enters a new product category far which none of the company’s current brand names are suitable. If a company wants to enter into a new product category and the existing brands may not be suitable, then the company has to go in for a new brand. Sometimes the company may acquire new brands acquisitions.
The branding of a product is of strategic importance. It is an associated attribute and has been given due weightage in strategy formulation. Branding plays a significant role in international marketing. Thus a brand is a symbol, a mark or a specific name that acts as means of communication to bring about an identity of a given product. It can be said that brand is an image of a product, a mark of quality, a value and a personality as well. For example, LUX, PEARS, REXONA, CLOSE-UP, COLGATE, PEPSODENT and PROMISE, etc.
Branding is the process of finding and deciding the means of identification. It is merely naming the product like naming a newly born child. Once a product is designed it requires an identity and that is in terms of its brand name. Therefore it can be said that brand is a name, term, symbol or a particular identity intended to identify the goods or services of a manufacturer and to differentiate them from those of competitors.
An identification of a multinational company is considered to be a valuable asset in international marketing as well as in domestic markets. They try to link the company image with its product and brand and thus establish their market strengths for its products or brands.
While formulating its policy at international level, it faces numerous problems like cultural differences, language problems and nationalistic approach etc. A multinational company is to make strategic decisions on its multinational identification. It is about the brand name and its use, use of trade mark etc.
The role of trade mark is very significant in strategic planning. To understand this phenomenon, the understanding of a trade mark is essential from the legal point of view. A trademark is something other than a name. It may be defined as a device, brand, label, name or any other combination used in connection with goods of the proprietor by virtue of manufacturers and offered for sale in the market. When a trade mark is registered for service, it is known as service mark.
In most of the countries, branding is used by putting a manufacturer’s name, signature or any other mark on its product or packaging. The basic objectives of branding are similar everywhere in the world.
Broadly the following are the basic objectives behind branding:
1. To create product identification.
2. To create awareness about brand or product.
3. To guarantee a certain level of quality, quantity and customer satisfaction.
4. To assist in product promotion.
It is pertinent to mention that an overseas buyer is always brand conscious. It is because of their belief and social aspiration and meanings about a particular brand that what it can offer to them. Some of the powerful brands which are recognized by foreign buyers are Sony, Ford, Toyota and Adidas etc.
When a company is for the sale, the reputation of the company is measured in terms of its goodwill. It is a remainder of purchase price after deducting the face value of all physical assets. It is an intangible asset. In case of service industry, all the purchase value tends to be goodwill, which a company generates. When a value is attached to a particular brand, it is termed as brand equity. The Coca Cola Company is the best example of it. The most valuable asset of Coca-Cola Company is its brand equity.
The branding can also be considered as an important tool of marketing mix. It is an area where standardization appears relatively higher, while planning for overseas market. According to Rosen, Boddewyn and Louis “Standardization in branding is 82.5 percent among U.S. consumer goods Manufactures”. It is also noted that socioeconomic factors and cultural factors are also considered in planning global brand strategy. The multinational firms can also use its strategy. The multinational firms can also use its standardization strategy by extending its brand image policies and objectives to other similar markets.
In case the markets are not similar the multinational companies may employ the image- customization strategy.
Brand Protection
A brand is a complex symbol or name that conveys up to following levels of meaning:
(i) Attributes
(ii) Benefits
(iii) Values
(iv) Culture
(v) Personality
(vi) User or kind of consumer.
The job of the branding may not be over, just after obtaining a symbol or name which express all above features. The brand should also be protected. The very first step towards brand protection is getting the trade mark registered. It is not feasible to get the name registered in all the countries at once because of cost factor and somewhere the demand for the particular product may be weak.
There are many arrangements at global level to simplify the registration process. International convention for the protection of industrial property at Paris is the most important multilateral agreement in this regard. It is based on the principles of reciprocity. It allows an international trade mark owner to enjoy the same protection of its trade mark in other member countries as he enjoys in his home country.
However the degree of protection varies while preventing discrimination against non-nationals. “The Trade mark Registration Treaty (TRT) allows a company to file for trade mark protection with the international Bureau of the World Intellectual Property Organization (WIPO) without being required as in the case of Madrid agreement, to have a prior home registration. Among other treaties it includes the Central American Arrangement and the African Intellectual Property Organization (OAPI).”
In most of the countries a specific language is not required to display the trade mark. A trade mark may be written in local language, but it should give the same and equivalent pronunciation. In some countries like China, the trade mark is required to be displayed in Chinese.
The trade mark registration can be renewed for the indefinite period. In most of the countries the company is to pay trade mark fee annually as to keep registration in force. The technical requirements are different in different countries. In some counties the registration fee may be paid by the owner, who is residing abroad. Where as in some countries the fee can be paid only by the local representatives.
The political environment plays an important role in this regard. It may make registration and its requirements are difficult in some countries. For example, in South Africa Mc Donald could not open its restaurant with in five years of its registration and lost its trade mark there. It happened because of international economic sanction and according to the South African laws a foreign company could lose its right by not using the trade mark for five years. Finally Mc Donald entered in the market during 1995.
Further the complete protection cannot be offered by registration itself. In order to maintain copyright, other legal requirements should also be met.
The procedure for the registration and maintenance of trade mark varies from country to country. In most of the countries, a company can obtain registered trade mark subject to its cancellation if not used within a specified period of time. For example, in China if a company fails to use its registered trademark for three years it terminates all rights.
The non-use period condition may vary from one country to another. For example, in South Korea it is one year. It is pertinent to mention here that to hold the legal right to a trademark is one thing and to prevent others from illegally using it through counter feiting is another thing.
Elements of Brand – Top 10 Brand Elements
Brands are made up of following elements, which have been briefly discussed:
1. Logo – is the visual trademark that identifies the brand. Many products are recognized by their logo. For example, ‘a star’ is used as a logo by Bank of India, hence, where ever this red star is seen one can assume that either there is bank branch or the bank ATM.
2. Name – name is the other element of the company. Every business must have a name and two companies cannot have the same name. It is an important element as the name is unique and distinctive to every company.
3. Tagline or Catchphrase – all marketers try to keep a tagline that becomes a symbol of recognition for the product. The more catchy the tagline, more popular it becomes with the consumers. It is more significant when the consumers are children or teenagers. For example “thanda mane coca-cola” tagline was a very good strategy of the company as it tried to associate the cold drink with thirst.
4. Graphics – these are the special visuals used by the company which can be seen and identified from afar. For example the dynamic red coloured M is a trademarked part of Mc Donald’s brand. Even ‘Haldiram’ uses special high name boards and similar entry design to the outlet.
5. Shapes – The distinctive shapes are trademarked elements of a particular brand. For example ‘Apple’ uses the design and shape of an apple fruit from which a bite has been taken.
6. Colours – in visual signs, colours play a very big role. Sometimes a colour becomes the symbol of recognition. Therefore the companies try to choose a bright colour to become easily noticeable by the consumer.
7. Sounds – A unique tune or set of notes can denote a brand. For example-IDEA had kept the song and sound – “you are my pumpkin, pumpkin, you are my honey bunny”, which became very popular tune.
8. Tastes – in hospitality industry, taste is of utmost importance, particularly when it cannot be duplicated. For example, in ‘Panchi Bhujia and Petha’ have maintained the unique taste and Kentucky Fried Chicken has trademarked its special recipe of eleven herbs and spices for fried chicken.
9. Movements – the companies, such as in automobiles business must focus on special movement features which the competitor does not have for example, Lamborghini has trademarked the upward motion of its car doors.
10. Customer relationship management – every business tries to not only woo customers but also tries to retain them by using various CRM techniques.
Types of Brand Names: 9 Types
Keeping a brand name is as difficult as or even more difficult than keeping your baby’s name. Brand names come in many styles and forms.
A few examples are as follows:
1. Initialism – A name made of initials such, as UPS or IBM
2. Descriptive – Names that describe a product benefit or function
3. Alliteration and rhyme – Names that are fun to say and stick in the mind, such Dunkin’ Donuts
4. Evocative – Names that evoke a relevant vivid image, such as Amazon or Crest
5. Neologisms – These are completely made-up words, Kodak
6. Foreign word – Adoption of a word from another language, such as Volvo or Samsung
7. Founders’ names – Using the names of real people, especially a founder’s name, such as TATA or BIRLA
8. Geography – Many brands are named for regions and landmarks, such as Fuji Film
9. Personification – Many brands take their names from myths, such as Nike
Brand Strategies: 5 Types of Brand Strategies
A company may choose any one or a combination of the above referred to classes of brands and formulates its own brand strategy.
Usually, the following strategies options are available to a company:
Strategy # 1. Multi-Brand Product:
It refers to the practice of offering more than one brand in a product category. For example, Hindustan Lever offers Lux and Pears in its toilet soap category and Bata Shoe Company offers Ambassador and Exclusive brands of shoes in men’s wear category.
Strategy # 2. Single-Brand Product:
It refers to the use of a single brand name for all the products sold by a company whether the brand name is that of a family, company or an individual. For example, the ‘Erasmic’ brand is put on shaving blades, shaving cream and after shave lotions manufactured by Hindustan Lever Ltd.
Strategy # 3. Mixed Brand:
In this strategy, a manufacturer offers his products to consumers in his own as well as distributor’s brand names. For example, a manufacturer sells detergent washing powder both under its owns as well as its distributors’ brands.
Strategy # 4. Distributor’s or Private Brand:
A manufacturer may opt to introduce his products under a distributor’s brand name. For example, in the Indian cotton textile industry it is a common practice for dealers, usually whole-salers, to prescribe their own brand names while booking orders. Sahakari Bhandar (Super Bazar) of Bombay has been selling toilet soap, talcum powder, detergents, etc. under its own brand name Aparna.
Strategy # 5. Trading-Up and Trading-Down:
When marketers known for marketing low-priced products introduce products with high price and presumably of higher quality, it is known as trading-up. Conversely, when marketers, introduce cheaper products than their original links, it is regarded as trading-down. When this kind of strategy is adopted has to be blended with adequate brand differentiation. Marketers, therefore, use different brands for products traded-up and traded-down so as not to alienate the current clientele.
Components of Branding
There are seven components of a comprehensive brand strategy that will help keep a company going strong for many years.
1. Consistent policy – Once the key brand attribute has been decided by the marketer, it must remain common in all communications with the customer.
2. Brand must be in sync with the Business Model – It relates to what the customers perceive about the company, and how the company makes the consumers feel about the brand. For example, Apple does not just sell computers and music equipment; it sells well-designed products that are easy to use.
3. Connect emotionally with the buyer – Customers can either think rationally about the product or service, or they can think emotionally about it. Company must find a way to connect to buyers on a deeper emotional level.
4. Cultivate buyers by rewarding – when buyers shower love by being loyal customers, the company must return the gesture by coming out with schemes especially designed to reward such buyers.
5. Measuring results – By staying vigilant, the company can measure whether the branding strategies are aligning well with overall brand strategy.
6. Ensuring Flexible – Marketers must remain flexible to stay relevant.
7. Keeping watch on Competitors – The Company must take the competition as a challenge to improve its own strategy and create greater value in overall brand.
Role of Consumers in Branding
Brands vary in the amount of power and value they have in the market place. At one extreme are brands that are not known by most consumers, then these are brands for which consumers have a fairly high degree of brand awareness. Beyond this, are brands with a high degree of brand acceptability, then these are brands that enjoy a high degree of brand preference. Few customers are brand loyal.
David Aaker distinguished five levels of a customer attitude toward a brand, from lowest to highest:
1. Customers will change brands, especially for price reasons. No brand loyalty.
2. Customer is satisfied. No reason to change costs by changing brand.
3. Customer values tie brand and sees it as a friend.
4. Customer is devoted to the brand.
Brand-Building Tools and Consumers:
A common misconception is that brands are basically built by advertising. It is true that TV advertising in its early days was the most effective brand building tool. Now, it is observed, many consumers are not watching T.V. They are busy on their computers or engaged in recreational activities.
Brand-Sponsor Decisions and Consumers:
A manufacturer has several options with respect to brand sponsorship. The product may be launched as a manufacturer brand, a distributor brand or a licensed brand. Although manufacturers’ brands dominate, large retailers and wholesalers have been developing their own brands.
Distributors and retailers want brand names because brands make the product easier to handle, hold production to certain quality standards, strengthen buyer preferences and make it easier to identify suppliers. Consumers want brand names to help them identify quality differences and shop more efficiently.
Role of Motives and Consumers:
The role of motive in consumer behaviour is to arouse and direct the behaviour of consumers. The aroused component activates bodily energy so that it can be used for mental and physical activity.
In their directive role, motives have several important functions for guiding behaviour such as:
(a) Denning basic striving- Motives influence consumers to develop and identify their basic striving which includes general goals such as safety, affiliation, achievement and other desired states which consumers seek to achieve.
(b) Identifying goal objects- Consumers often view products or services as a means by which they can satisfy their motives. They even think the product to be their goal. We can call this as “consumer’s illusion”.
(c) Influencing choice criteria- Motives themselves can guide consumers to buy a certain product and not the other.
(d) Motives influence consumer’s perception and learning process including how people process information.
Motives can be classified in various ways, depending on their strength, degree, direction or state. Coming to the strength of motive, he can be a strong one that can work in favour of the market, or it can be a weak motive.
Weak motive may be either because consumers are not aware of the importance of the buying decision or there was no need or occasion for the marketer to address the consumers on the importance of the decision that the consumers make for themselves in other words, there is no strength to the buying motive due to consumer ignorance. In that case, the marketers can inject some of their own strength to these ‘weak’ motives to facilitate consumer’s action to reach the desired goal.
Motives can be at a conscious or unconscious level. Consumers are well aware of buying certain products while there can be occasions when consumers are not aware while they are buying or what they buying.
The reasons can be varied. It may be that consumers have got too used to buying the product and it has become a ‘habit’, or it may be that consumers do not want to confront the true reason for their purchase and simply follow the people around them. Impact of colour on buying pattern is an unconscious motive, like red is associated with vigour and vitality, blue with royal-ness, pink with youthfulness, so on and so forth.
Motive can have positive or negative direction. When the consumers feel a driving force towards an object or condition, it is a positive motive. On the other hand, if they feel a driving force away from an object or condition, it is a negative motive. Consumer can buy the same object by getting positively attracted towards it or by getting distracted (repulsed) by the situation of not having it.
Psychologists call this positive drive as need, and the negative drive as aversion or fear. The consumer will like to avoid the situation of the absence of the product by buying the product or by availing that service.
One can go to a gym to tone up his body, this is a positive drive; or he may be going because of the fear of the state of getting fat, a negative drive; but both the drives take you towards the same behaviour of gym. Sometimes people are more aroused towards a product if you make them aware of the situation of not having it.
Finally, motives can be classified based on the state of appeal, i.e., rational versus emotional. If the consumer’s buying behaviour is a carefully chosen and well-considered one, it is a rational behaviour. Here the buying motive is ‘objective’ based on objective criteria like weight, price or miles per liter. This motive basically guides you towards buying products, satisfying physiological need or safety need.
If the consumer is emotionally guided in selecting the object, it will be based on the subjective criteria like individuality, pride, emotion, status, etc. the basic logic of distinguishing the motive being rational or emotional is that it is inherently assumed that an emotional decision is irrational and hence is not maximising consumer’s utility.
But the concept of utility or satisfaction is highly subjective. A woman buying an expensive perfume may seem to be an irrational buyer (women are known to be emotional buyers), but may be for her, it is an extremely satisfying experience.
All these motives, whether emotional or logical, positive or negative, are aroused in an individual either through physical, emotional or cognitive process, or some combination of them.
Physical arousal, whether it is the hunger, or need for clothes, shelter, are involuntary and universal. One cannot influence or manipulate the physical arousal in a man beyond a point. However, attractive the model looks, but there will be a limit to your wearing woolens.
If your stomach is filled up, you will not eat till the next time you feel hungry, but yes, you can decide to order a Domino’s Pizza next time you feel hungry, or Pringle Knitwear next time you want a cardigan, if you are motivated to have it.
To appeal to man’s unfulfilled desire is to trigger the emotional arousal. “Be a perfect man” is the basic underlying concept in any Raymonds advertisement, be it a man who desires to fly, or a young successful man who cares for the less privileged and poor, somewhere all of us want to be a perfectionist, the advertisement aims at that.
The advertisement of VIP suitcases of- “Kal bhi, aaj bhi, kal bhi” linking the past, present and future by showing the flashback of a family with a child, and now the child has grown up and getting married, the family for all these years is using the same VIP suitcases, are some of the examples where emotional arousement in the consumer has been chosen as a route by the marketer.
Cognitive arousal takes place when the advertisement reminds you of something which is a ‘happening’ tiling and you must do or get it before it is too late. Advertisements on computer courses or a MBA course are seeking cognitive arousal in you. Cognation emphasises on one’s thinking ability.
Brand Selection and Consumers:
One of the prime goals of teaching consumers is to make them ‘brand loyal’. A brand loyal consumer provides the basis for stability to the marketer along with helping the marketer to increase his market share. Every market economy goes through business cycles.
In the time of recession, brand loyalty acts as a shock absorber, not allowing the business to fall as sharply as rest of the market, while during expansion brand royalty helps the business to grow faster. In general brands with larger market shares have proportionately larger groups of loyal buyers.
Nevertheless, brand loyalty is not a simple concept a buyer may continue to buy products of the same brand, simply because better choices are not available in the market. Hence, by his ‘behaviour’, he is a brand loyal but not by his ‘attitude’. A real brand loyal person is the one who is loyal even when he has equally good options available to him.
A marketer should be able to identify the real ones from the superficial ones if they want to develop an effective brand loyalty. This brings us to the question as how can we measure a true brand loyalty?
According to one study, brand loyalty can be measured in three different ways; by brand market share; how many ‘same brand’ product has been purchased in given time period (it can be 4 months, 6 months or 1 year); and average number of brands bought per buyer.
Given the person’s ‘evoked set’ or the acceptable range, larger the number of acceptable brands for a given product, lower is his brand loyalty. A more favourable attitude towards one brand compared to its competitors, together with repeat patronage, are seen as desirable traits of brand loyalty.
Thus, we get two distinct traits in consumer’s loyalty, namely, repeat patronage (which can be seen in repeat buying) and attitude towards the brand (which can seen how a customer behaves strong attitude or positive behaviour towards the brand). The first one can be measured quantitatively while the second one has to be judged qualitatively.
People who are attitude wise loyal along with loyal buying of the branded product, these are really loyal customer. Second group of buyers, potentially loyal hold much significance to the marketer, these are the customers who are positive in their attitude towards the brand but when it comes to buying for some reason or the other this does not get reflected in their buying behaviour.
A marketer should find out the reason as to why high involvement is not getting transmitted into actual buying, reason may be as simple as non-availability of the brand in the shop from which the customer does his shopping, this then becomes a question of marketing distribution.
Exactly opposite are the superficially loyal, they continue buying the branded product because it is the only one available in the shop, they are the risky group of buyers who can any time switch brand.
Potential loyal customer can be made real loyal customer by introducing facilities like after-sales service, and be rewarded with occasional discounts, by improving the distribution network, etc. Finally, we are explicitly disloyal.
The most common way of developing brand loyalty is initiating the customer to buy the product and satisfying him by making the benefits and attributes he attaches with the product available with the product.
This ‘reinforces’ repetition of his behaviour and minimising the chances of cognitive dissonance. Cognitive researchers believe that consumers play a more active role than this in becoming brand loyal. They believe that consumers involve themselves in the search process, comparing the attributes of the product of the competitive brand and then form the purchase behaviour.
Whichever argument we follow, the core of brand loyalty is in repeat patronage. A cognitive buyer, even after extensive market search buys a branded product and still remains unrewarded will switch brand. But a cognitive buyer since he starts the process with lot of involvement, hence is likely to get rewarded. Such a buyer generally turns out to be a truly loyal buyer.
From the marketer’s point of view, it is not only important to know how brand loyalty is developed but also when it develops. This will depend on the nature of the products. If as a child you have loved reading “Amar Chrtra Kathas”, as parent you would love your child to read them. So brand loyalty is built early in family life-cycle.
As a school-going adolescent, your parents have rewarded you with a Titan quartz watch for getting good grades in school you were buy a Titan watch only. Advertiser precisely captures this “nostalgic effect” in making some of their advertisements.
Sometimes modifying the product increases sales by revigorating the buying behaviour of the brand loyal buyer since sometimes out of sheer need in search of variety, consumers switch brand. But a marketer should know exactly when and do what extent you have to modify.
The classic example of product modifying blunder was done by the Coca-Cola Company in 1985 in the U.S.A. The company in order to increase the market share vis-a-vis Pepsi, introduced a new flavour of coke, withdrawing the existing one from the market. The company had to suffer the retaliation from the angry customers, in the form of a decrease in market share.
Loyal consumers of Coke felt cheated on the withdrawal and switched brand, this compelled Coca-Cola to bring back the old flavour under the new name of Coke-classic. Since brand loyalty is a long- term phenomenon, advertisers try to develop ways to make a permanent impression on consumer’s mind with rhymes, one liners so that brand name is rehearsed in consumer minds.
Examples of such are- “It’s different” (Maggi Ketchup); “Perfect Man, Raymonds Man”; “Lux- filimi sitaron ka saundarya sabun”; “Wah Taj” (Taj Mahal Tea); “Connecting people” (Nokia); “The big small car” (Matiz), “Let’s make things better” (Phillips), etc.
Brand Equity and Consumers:
This refers to the value inherent in a well-established brand name. For a consumer, brand equity is the value addition in the product of the brand. Brand equity results in increase in sales through consumer’s acceptance.
When the consumer perceives an incremental value to the branded product, marketer can attach a premium price to the product. Many marketers value the brand name above all other attributes. Once a brand name is established, it is easier to extend the brand name increase the price and still increase the market share by getting loyal customer.
For example, Godrej, starting with manufacture products as diverse as refrigerator, soaps, etc. Marketers also go for co-branding whereby two brand names are associated, this sometimes confuse the consumer as which brand is actually been promoted.
Well-known names in the market are called mega-brands like Archies Cards, Titan Watches, Blue Dart Services, McDonald’s, etc. Their names are like ‘icons’ in the market, whose names advertise for themselves.
Brand Personality in Marketing
Brand Image and Personality:
K.L. Keller has defined brand image as the set of associations linked to the brand that consumers hold in memory. Consumer loyalty is associated with positive brand image and they are willing to search for their preferred brand.
Advertising people talk of brand image, brand character and brand personality. These expressions often become confusing to some. Let us has a look at what authorities have to say and dispel whatever confusion we can.
David Ogilvy regards brand ‘image’ and brand ‘personality’ as meaning the same thing.
“The manufacturer who dedicates his advertising to building the most favourable image, the most sharply defined personality, is the one who will get the largest share of the market at the highest profit in the long run.”
In one of his earlier book, he wrote- “You now have to decide what image you want for your brand. Image means personality… the personality of a product is an amalgam of many things … its name, its packaging, its price, the style of its advertising and above all, the nature of the product itself.”
Christine Restall, of McCann Erickson has drawn a distinction between brand image and brand personality in the following words:
“In many markets there are no real differences among the competitors. So you begin to explore a more emotional level and this is where the brand personality comes in. Brand image refers to rational measurements like quality, strength, flavor. Brand personality explains why people like some brands more than others even when there is no physical difference between them.”
Christine Restall, seemingly, considers brand personality to be made up of the emotional associations of the brand, while the brand image represents physical features and benefits.
One belief is that since ‘personality’ is believed to be the sum total of all characteristics, psychological and physical, brand personality and ‘character’ most likely mean the same thing. We, however, believe that brand ‘image’ and brand ‘personality’ have quite different connotations.
We believe that the sum total of impressions created by the brand in the consumer’s mind is the brand image. This includes consumer’s impressions about the brand’s physical characteristics, its performance, the functional benefits, the kind of people who use the brand, the emotions and associations it develops, and the imagery or the symbolic meanings it generates.
The brand personality, we believe, represents that part of brand image which, in the consumer’s mind, is associated with the brand’s emotional aspects and symbolism. Consumers often cannot distinguish brands by their tangible features or functional benefits. Instead the consumer makes a choice based on whether she/he considers the brand to be reflective of her/his own personality.
Joseph Plummer, former research director of Young & Rubicam agency, thus explains- “Do I see myself in the brand?” The thought in the consumer’s mind and sometimes expressed verbally is “This is my type of brand or product.” It seems the importance of associated emotional aspects and symbolism in brand choice increases as the rational aspects of buying decision decrease.
For instance, in the Surf ad Lalitaji’s samcijhdari is more of a rational decision in purchasing detergent powder. However, in case of fashion garments, cosmetics, soft drinks, cigarettes, beer, and many other ego-intensive or ‘feel’ category of products, there is less rationality and more of symbolism and emotionality.
Joseph Plummer is of the opinion that there are three components to a brand image:
1. Attributes
2. Consequences
3. Brand personality
He believes that brand image is inclusive of all associations that a consumer has for the brand such as all the thoughts, feelings, imagery, sounds, colours, smells, etc., that the consumer links mentally to the brand in her/his memory. Brand personality includes associations with specific characters, symbols, endorsers, types of users and lifestyles.
It is not unusual to see that some consumers might relate quite intensely to a brand. Owners of Harley-Davidson motorcycles in USA or Mazda’s sports car, Miata, serve as excellent examples.
When we think of a person we consider gender (male or female), his/her age (young or old) and income level of the persons to assign the position in social hierarchy (rich, middle class or economically weak). In the same manner, a brand can be thought of masculine or feminine, upper class or middle class, contemporary or old-fashioned.
For example, certain motorcycles are considered as modern, macho, thrifty, etc.; some cars are considered as exclusively upper class. Likewise even retail stores are considered upper or middle class. Their number of trait adjectives is infinite and hence at least theoretically these can be used to measure personality. Researchers have reduced the number of traits to “the big five”.
These are:
1. Introversion/extroversion (example of adjectives- cautious/adventurous, loner/sociable).
2. Agreeableness (examples- good-natured/irritable, gentle/headstrong).
3. Conscientious (example- responsible/irresponsible, meticulous/careless).
4. Emotional stability (example- composed/excitable, carefree/anxious).
5. Culture (example- artistically inclined/insensitive, refined/crude).
In the same manner, characteristics can be attributed to brands and they may be said to be responsible or dependable, excitable or composed, etc. Advertising can create associations with certain types of users or endorsers. For example, the ad of Rajdoot showed Dharmendra (the film star) saying, “Jandar Logon Ki Shandar Pasand”. Woodland ad says, “The leather that weathers”, the beer ad says, “Inke Josh Se Bach Kar Kahan Jaoge”.
A brand acquiring a familiar, well-known and favourable personality is more like an ‘old friend’ and consumers feel more comfortable with it because it is reassuring and offers a sense of security. Consumers would prefer to buy such a brand rather than one which is new and unfamiliar to minimise risk.
Probably this is one of the reasons that old brands such as Vicks Vaporub, Burnol, Dettol, Index, Lifebuoy and many others, tend to be favoured by consumers because they have acquired this ‘good friend’ personality over the years.
A brand’s personality is often unique and cannot be copied. For example, 7 Up’s personality as the Un-Cola soft drink is almost impossible to copy. Many branded noodle snacks have entered the market. However, that two-minute personality of Maggi has stayed the onslaught of competitors.
Consumers by products and services to satisfy many different needs and wants. The satisfaction of higher order needs such as social and esteem needs is largely associated with non-functional ones. For example, the Arrow or Chirag Din shirts, Rolex watch or expensive branded jewellery, carry symbolic meanings for the consumer and her/his friends. The consumer pays a premium price for this symbolic meaning.
In an attempt to define their self, consumers select those brands that they see as having a brand personality that matches with their own self-concept. This has major implications for marketers, particularly of those product categories which are considered as socially conspicuous and thought to be reflective of consumer’s self-concept.
Needless to say, Aaker and colleagues Susan Fournir, associate professor of business administration at Harvard Business School and S. Adam Brasel, a doctoral student in marketing at the Stanford Graduate School of Business, don’t suggest that angering customer is preferred marketing strategy. In a recently completed study, however, they did find that brand personality has a significant impact on consumer relationships and the ability of a brand to recover from mistakes.
“Marketers seem to have thought personalities of their brands were something flavourful to add to their advertising. But now we have evidence that brand personalities can affect the very existence and strength of the consumer relationship. It is a powerful tool that is underleveraged and poorly understood”, they argue. And like human personality traits, brand personality traits “once conceived, as unidimensional and static are, in fact, multi-dimensional and quite active”.
It is interesting to see how brand personality is formed — it is like saying to your customers — hey let’s all take this brand forward — each of us is a stakeholder – and along the way there emerges a distinct, dynamic and vibrant brand personality, any marketer or researcher knows that brand personality can foster brand loyalty — and stronger is the loyalty when it is not borne out of habitual consumption or high perceived switching costs but because you like the brand — it is like a friend — and you are committed to it. Friendster certainly seems to have a strong brand personality and a band of loyal users, and when you feel ‘at home’ with the brand, when you feel a sense of proprietorship and pride.
The relationship between brand and user is strengthened the deeper the relationship, the higher the passion and drama in the emotions you display towards the brand also higher is the trust — in other words, higher the personal investment and commitment you make in the brand, in growing it together and perhaps, the bigger the fall if the brand lets you down — but this can go either way — you either reject the brand and stop using it, or, if seen more positively — in strong relationships cuts and wounds are enabled to heal better, and the process of healing can infact strengthen the bond.
Don’t we all have stories to tell from our own lives, where the deeper the relationship we share with another person, the more passionate are we about it — the greater is our sense of proprietorship and pride and commitment in the other. And the more difficult it is for us to really abandon the person when they cause us hurt.
With the ever-growing number of social networks, it is likely to be the more human brand personalities that define the relationship users will have with each, that determine the strength of loyalty, and that will provide pointers to differentiate one network from another.
The Brand as a Friend:
One important relationship for many brands is a friendship link characterised by trust, dependability, understanding, and caring. A friend is there for you, treats you with respect, is comfortable, is someone you like, and is an enjoyable person with whom to spend time.
General Foods, in fact, defines brand equity as a ‘liking’ or a ‘friendship’ relationship between the customer and the brand. WordPerfect, a software company that has always been a leader in customer service, would rate high on the friendship dimension.
A friend relationship can involve very different brand personalities. Some friends are fund irreverent. Others are serious and command respect. Others are reliable and unpretentious. Still others are just comfortable to be around. A focus on the friend relationship rather than the brand personality can allow more scope and flexibility in the implementation of the brand identity.
When considering brand personality, the natural tendency is to consider the brand to be a passive element in the relationship. The focus is upon consumer perceptions, attitudes, and behaviour toward the brand; attitudes and perceptions of the brand itself are hidden behind the closed doors of the organisation.
Yet your relationship with another person is deeply affected by not only who that person is but also what that person thinks of you. Similarly, a brand-customer relationship will have an active partner at each end, the brand as well as the customer.
Max Blackston of Research International has argued that to understand brand- customer relationships, it is necessary to consider what a brand thinks of you. One approach to obtaining this information is to ask what the brand would say to you if it were a person. The result can be illuminating.
Blackston illustrates this approach with a doctor-patient example. Consider a doctor who is perceived by all to be professional, caring, capable, and funny — characteristics that most would like in a doctor. But what if the doctor also felt you were a boring hypochondriac? The resulting negative relationship would be impossible to predict based only upon perceptions of the doctor’s personality or external appearance.
Blacktston’s approach was used in a research study of a credit card brand. Customers were divided into two groups based on how they thought the personified brand would relate to them. For one customer segment (labeled the aspect’ segment), the personified brand was seen as a dignified, sophisticated, educated world traveler who would have a definite presence in a restaurant.
These customers believed that the card would make supportive comments to them like the following:
“My job is to help you get accepted.”
“You have good taste.”
A second ‘intimidated’ segment, however, described a very different relationship with the brand. This group’s view of the brand personality was similar to that observed in the respect segment, but had a very different spin. The credit card was perceived as being sophisticated and classy but also snobbish and condescending.
This segment believed that the personified card would make negative comments such as the following:
“Are you ready for me, or will you spend more than you can afford?”
“If you don’t like the conditions, get another card.”
“I am so well-known and established that I can do what I want.”
“If I were going to dinner, I would not include you in the party.”
These two user segments had remarkably similar perceptions of the brand personality especially with respect to its demographic and socio-economic characteristics. The two different perceived attitudes of the credit card toward the customer, however, reflected two very different relationships with the brand, which in turn resulted in very different levels of brand ownership and usage.
Contexts in which it is often worthwhile to consider what a brand might say to a customer include those listed below:
Upscale brands with a snobbish spin. Nearly any prestige or badge brand risks appearing snobbish to some in the target market. This risk is often much greater for those on the fringe of or just beyond the target market. In part, this perceived attitude restricted the market for Grey Poupon, advertised as the mustard of limousine riders. The brand has since tried to soften this message in order to expand its market and the usage rate.
Performance brands talking down to customers. Talking down to customers is a common danger for performance brands. Consider the VW Fahrvergnugen campaign. The use of the German word provided some nice associations (especially if one knew German) but risked implying that the brand looked down on those who did not ‘get’ the clever symbol and campaign. A discarded campaign for Martel — “I assume you drink Martel” — ran the risk of talking down to all customers who were drinking a competitor’s brand.
Power brands flexing their muscles. A brand that has power over the marketplace, like Microsoft and Intel in the 1990s or IBM in the past, has a real advantage as a result of being the industry standard.
The risk is that by promoting this advantage, the brand may be perceived as being arrogant and willing to smother small, defenseless competitors. One respondent in a focus group reportedly said that if IBM was a vehicle, it would be a stream roller and would park in a handicapped space.
Intimidated brands showing their inferiority. A brand might risk appearing inferior if it tries too hard to be accepted into a more prestigious competitive grouping. Thus Sears could attempt to associate itself with trendier retailers and simply come off as being pathetic. The humorous thrust of the Sears campaign from Young & Rubicam, in which a woman goes there for a Die Hard battery but ends up buying great clothes, helps avoid this pitfall.
Any active brand relationship, though, needs to be managed. Sometimes adding a sense of humor or a symbol can help. In one study for a cigarette brand, the brand personality profile was a sophisticated individualists, stylish and corporate but also aging. Further, there was a segment, most of whom did not use the brand, who saw it as snobbish.
This segment rejected the brand in part because it felt rejected by the brand. To combat this problem, the brand kept its upscale imagery but added, with gentle humor, a sense of irony about its status and prestige to soften the hard edge of the image.
Kepferer’s Brand Identity Prism:
A comprehensive understanding of the brand may be gained from an analysis of these six facets explained below:
1. Physique:
A brand first has a physique — a combination of independent characteristics which may be either prominent (springing readily to mind when the brand is mentioned) or door mat (though nevertheless distinguishable). Physique is a necessity, but no of itself, sufficient, forming only stage in brand construction.
2. Personality:
A brand has a personality. It acquires a character. It is restrictive to summarise the brand as simply having a physique and a character. Power brands have further depth.
3. Culture:
The brand has its own culture from which every product derives. The product is the physical embodiment and vector of this culture. Culture implies a system of values, a source of inspiration and brand energy. The cultural facet relates to the basic principles governing the brand in its outward signs (i.e. products and communication). A deep-seated facet, it is the mainspring for the brand.
4. Relationship:
Between the brand and user.
5. Reflection:
A brand reflects a customer’s image. There is often confusion between this reflection and a brand’s target. Target describes the brand’s potential purchasers or users. Reflection is not necessarily the target, but the image of that target which the brand offers to the public. It is a type of identification.
6. Self-Image:
The sixth facet of brand identity is customer’s self-image. If reflection is the target’s outward mirror, the self-image is the target’s own internal mirror. Through our attitude towards, we develop a certain type of inner relationship with ourselves.
These are the six facets, which define brand identity and its potential territory. The brand identity prism demonstrates that these facets form a structured whole. The content of one facet echoes that of another.
The identity prism allows us to examine any brand in detail in order to detect its strengths and weaknesses. It will put the brand under the microscope of each of its facets and come up with diagnoses. Also useful when brand identity prisms are worked out for competitors.
Advantages and Limitation of Branding
1. Consumers’ Advantages and Limitations:
Advantages:
(a) It is easier to lodge complaints and claims against marketers when a branded product fails to live up to its proclaimed value satisfaction. Thus, it gives to consumers both trade and legal protection against unscrupulous trade practices.
(b) There is a considerable saving of time and energy in shopping for goods because a brand render product identification much easier. The money value of this saving, is significant in the industrial buying.
(c) Certain brands provide status and prestige to consumers which endow them a somewhat conspicuous psychological satisfaction otherwise not normally available.
(d) When a product is distinguishable by its brand, consumer has an assurance of quality and consistency in the product attributes being offered.
Limitations:
(a) Popularity of brands renders them out of the common man’s reach because they command a premium price.
(b) Consumers are often confused in product selection on account of the plethora of brands offered in the market. The confusion is confounded when all the brands carry an assurance of similar value satisfaction.
(c) Brand loyalty helps save time and energy in product selection but it discourages the consumer from trying out other new brands which may possibly be more satisfying.
2. Marketer’s Advantages and Limitations:
Advantages:
(a) Brand loyalty ensures repeat and replacement purchases and considerably helps the marketers in overcoming competitive pressure.
(b) Brand as a peripheral product attribute also has significant communication value. It assists advertising and sales promotion in building up demand for product (s).
(c) Brand builds up an unique reputation for its owner which facilitates new product introduction in terms of easy and immediate recognition and favourable consumer disposition.
(d) It discourages price competition because every product item has a distinctive image and is considered an exclusive offering. It ensures marketer’s independence in pricing decisions.
(e) Brand reputation ensures some kind of market control in as much as it serves as an antidote to possible retailer hostility (when their margins are reduced).
Limitations:
(a) Brand imposes responsibility for maintaining consistent quality and delivering proclaimed value satisfactions. In case of failures, marketer cannot escape identification owning to brand recognition.
(b) Some products by their very nature do not lend themselves to branding. For examples, nails, rivets, pins, fruits and vegetables (unless canned.)
(c) Building up brand recognition and loyalty are very expensive. Small business cannot afford it. Thus, it helps promote market monopolies.
Common Misconceptions and Facts with Respect to Branding
Small businesses often feel that they do not have sufficient budget and knowledge to develop a competitive and effective brand and product strategy. Because of this, they may choose to forgo any brand planning and strategy at all.
For example – A small dress designer who started the business on a small scale started with the “tag line”- “straight from soul” which worked in her favour.
Proper branding can result in higher sales of not only one product, but on other products associated with that brand. For example, if a customer loves Pillsbury biscuits and trusts the brand, he or she is more likely to try other products offered by the company such as chocolate chip cookies.
Brand is the personality that identifies a product, service or company that is name, term, sign, symbol, or design, or combination of them and how it relates to key constituencies such as customers, staff, partners, investors etc.
Careful brand management seeks to make the product or services relevant to the target audience. Brands should be seen as more than the difference between the actual cost of a product and its selling price.
A brand which is widely known in the marketplace acquires brand recognition. When brand recognition builds up to a point where a brand enjoys positive sentiment in the marketplace, it is said to have achieved brand franchise.
Brand recognition is most successful when people can state a brand without being explicitly exposed to the company’s name, but rather through visual signifiers such as logos, slogans, and colours. For example, Disney has been successful at branding with their particular script font which it used in the logo for go(dot)com.
Consumers may look on branding as an aspect of products or services, as it often serves to denote a certain attractive quality or characteristic. From the perspective of brand owners, branded products or services also command higher prices. Where two products resemble each other, but one of the products has no associated branding, such as a generic, store-branded product, people may often select the more expensive branded product on the basis of the quality of the brand or the reputation of the brand owner.