class 9

Principles of Marketing - Class 9: Branding

Leeds School of Business

UNIVERSITY OF COLORADO BOULDER
Spring 2026 - BCOR-001,002 & BUSM 2010-003

Key Components of Marketing

  • Products

    • Definition: A good or service that meets customer needs and wants.

  • Price

    • Definition: The amount of money customers must pay to acquire the product.

  • Place

    • Definition: The distribution channels used to deliver the product to customers.

  • Promotion

    • Definition: Activities and strategies used to raise awareness and persuade customers to buy the product.

Today’s Focus

  • Branding

  • Brand Equity

  • Brand Strategies & Architecture

Warm-Up Questions

  • What is a brand that you identify with? Why?

  • What is a brand that you don’t identify with? Why?

What is a Brand?

  • Definition:

    • A brand is a customer experience represented by a collection of images and ideas.

    • It often refers to a symbol such as a name, logo, slogan, and design scheme.

  • According to the American Marketing Association (AMA):

    • A brand is the customer's perception based on every interaction they have with your company.

    • It is not what you say it is; it is what they say it is.

    • Promotional tools, distinctive designs, and advertising techniques also contribute to branding.

Branding Is Multifaceted

  • Branding involves more than just a product, including:

    • The product itself

    • Customer Service

    • Packaging

    • Social Media Presence (e.g., TikTok, YouTube)

    • Celebrity Endorsers (paid or unpaid)

    • News about CEO’s behavior and values

    • The monthly invoice a customer receives

    • The physical retail store presentation

Strategic Choices in Branding

  • Considerations for branding strategies:

    • Brand Purpose: What is your business about?

    • Target Audience: Who are your customers?

    • Definition of company/brand:

    • Brand Purpose

    • Mission & Vision

    • Brand Values

    • Unique Selling Proposition / Key Differentiators

    • Representation of brand name:

    • Owners/Founders names

    • Business purpose

    • Acronym, metaphor, or a made-up name

    • Strategic goals and objectives

    • Competitive landscape

Branding as an Asset

  • Brand Value:

    • A brand is an asset that has significant financial value.

  • Examples of valuable brands:

    1. Apple

    • Valuation: $488.9 Billion, Change: -3%

    1. Microsoft

    • Valuation: $352.5 Billion, Change: +11%

    1. Amazon

    • Valuation: $298.1 Billion, Change: +12%

    1. Google

    • Valuation: $291.3 Billion, Change: +8%

    1. Toyota

    • Valuation: $72.8 Billion, Change: +13%

    1. Coca-Cola

    • Valuation: $61.2 Billion, Change: +5%

    1. Mercedes-Benz

    • Valuation: $58.9 Billion, Change: -4%

    1. McDonald's

    • Valuation: $53.0 Billion, Change: +4%

    1. Samsung

    • Valuation: $100.8 Billion, Change: +10%

    1. BMW

    • Valuation: $52.0 Billion, Change: +2%

  • Source: Interbrand 2024

Why Do Brands Have Value?

  • Key factors contributing to brand value:

    • Higher unit market share as consumers prefer certain brands over others.

    • Willingness of customers to pay higher prices for preferred brands.

    • Increased distribution opportunities as retailers prioritize popular brands.

    • Reduced vulnerability to competitive actions.

    • Enhanced effectiveness of marketing communication.

    • Support for brand and line extensions.

    • Reduced cost of borrowing due to brand equity.

Brand Equity

  • Definition:

    • Brand equity is the added value endowed on products and services.

    • It is reflected in consumers' thoughts, feelings, actions towards the brand, along with the prices, market share, and profitability that the brand commands.

  • Kotler's Definition:

    • “Added value endowed on products and services, reflected in how consumers think, feel, and act with respect to the brand.”

  • Components of Brand Equity:

    • Brand Awareness: Familiarity and recognition

    • Brand Associations: Attributes, benefits, attitudes linked to the brand

    • Perceived Quality: Overall quality and value perception

    • Brand Loyalty: Commitment to repurchase

    • Other Proprietary Assets: Trademarks, patents, promotional & distribution channels

Creating Brand Equity

  • Steps to control the creation of brand equity:

    • Develop positive brand awareness and associations.

    • Establish a brand’s meaning in consumers' minds.

    • Elicit appropriate responses to that brand meaning.

    • Create intense loyalty among customers.

Consumer Value of Brands

  • Example Brands:

    • Coca-Cola

    • Tylenol

    • Starbucks Coffee

Loyalty Towards Brands

  • Brand Loyalty Components:

    • Functional Loyalty:

    • Consistency, convenience, and quality

    • Emotional Loyalty:

    • Personality, values, trust, and safety

Goodwill and Intangible Assets

  • Discussion of changes in the carrying amount of goodwill for specific fiscal years, impacted by company acquisitions and disposals.

  • Total Goodwill - As of October 30, 2016: $1,699,484,000

  • Adjustments and Sales

  • Importance of maintaining correct accounting records and tracking acquisitions correctly.

Factors Leading to Loss of Brand Value

  • Brands may lose value due to:

    • Misuse of patents and trademarks, e.g., generic term usage can lead to brand dilution.

Brand Architecture Strategies

  • Branded House: A single brand under which various products or services are offered.

  • House of Brands: Multiple brands owned by a parent company, each marketed separately.

  • Multi-Product Types:

    • Product Line Extensions: Using the brand name to enter new markets within the same product class.

    • Sub-branding: Combining the corporate brand with a new brand.

    • Brand Extension: Using an existing brand name to enter a different product class.

    • Co-Branding: Pairing two strong brands for mutual benefit.

Examples of Brand Strategies

  1. Branded House Examples:

    • Amazon (Amazon Kindle, Prime, etc.)

    • Disney (Disney Cruise Line, Walt Disney World, etc.)

  2. House of Brands Examples:

    • Procter & Gamble includes brands like Gillette, Tide, and Crest.

Class Participation Exercise

  • Group Activity:

    • Form small teams with 1-2 classmates.

    • Select a brand, define key equity attributes, and discuss its brand strategy.

    • Share findings with the class.

Assignments and Due Dates

  1. Due Before Class: Class #10 preparation, including textbook assignment; no late submissions accepted.

  2. Beginning of Class: iClicker quiz based on Class #9 lecture; no exceptions or make-ups allowed.