Unit 28: Brands and branding

A brand

A brand is a name given to a product or group of products so that they can be easily recognized

Branding

Branding refers to the process of creating and managing a brand. It involves designing and promoting a product or company in such a way that it is easily recognizable and stands out in the market.

Brand image

What people think of when they think about a brand

Brand loyalty

The degree to which people continue to buy a brand

Brand awareness

The degree to which people know about a brand

Brand identity

What a brand means, represents, etc.

Brand recognition

The degree to which people recognize a brand

Brand equity

The value of a brand to its owners, as sometimes shown on a firm’s balance sheet

To create

To make something new or to bring something into existence

To maintain

To keep something in good condition or to continue something at the same level

To protect

To keep safe from harm or damage

To enhance

To improve something or to make something better or stronger.

Brand positioning

A firm can position a brand by emphasizing its characteristics and benefits in relation to other brands

Product positioning

A company can position its products in a particular way in relation to each other and/or to competing products or it can position itself in relation to other companies

Positioning map

Products positioning can be represented on a positioning map

Differentiation

Differentiation is when a company designs a product in a way that distinguishes it from competitors' brands and communicates the comparative benefits to customers in its sales documentation, advertising, etc. For example, Air New Zealand ran a series of advertisements with scenes 'filmed recently in our cabins'. By showing these authentic scenes, the airline wanted to differentiate itself as genuinely more caring towards customers, more human, etc.

A flagship brand

A flagship brand is the most important brand owned by an organization - for example, 'Coke' is the most famous of the many soft drink brands owned by Coca-Cola

A generic brand

A generic brand is one used on a variety of different products. For example, the brand name 'Nestle' is used on all the food products the company owns, even if another brand name is also used on some of the products

Brand stretching or brand extension

Brand stretching or brand extension is when a company uses an existing brand name for new types of product. (Consumers are expected to associate some of the same characteristics with the new product - think of the product in the same ways - but there are limits to this)

To associate

To connect or to relate.

Brand dilution

The weakening of a brand’s strength or value

To damage the core or main brand

To harm or weaken the original/main brand.