BM 4.5.1.4-5 - Branding (aspects + importance)

define a brand

a name that is identifiable with a product of a particular business

define branding

The strategic process of creating a unique identity and perception for a company or product in the minds of consumers

What is the goal of branding?

creating a specific emotional connection + trust, loyalty, and recognition → lasting preference

define a trademark

a legally protected symbol, design, or phrase that distinguishes a company's products or services from those of others. The company has exclusive use

list the 4 aspects of branding

• brand awareness

• brand development

• brand loyalty

• brand value

define brand awareness

extent to which people recognize a particular brand

define brand development

Ongoing and long-term marketing process of improving + enlarging brand name

→ boost sales revenue + market share

define brand loyalty

when customers continue buying from the same brand repeatedly over time

4 reasons why brand loyalty is important

• maintain + improve market share

• Enables premium pricing

• reduces brand switching → less competition; barrier to entry

• prolong life cycles → future success

define brand value

The premium that customers are willing to pay for a brand name, over and above the value of the product itself

4 advantages of having good brand value

• strong correlation with high market share

• loyalty → barrier to entry for competitors

• premium pricing

• market leaders -→ industry influence

customer loyalty schemes

sales promotion methods used to entice customers to stick to the brand by rewarding them for doing so

ex. air miles, stamp cards