(1.1) Defining brands

Question 1

How does Jef Bezos define brands?

Answer 1

Brand for a company = reputation for a person. You earn reputation by trying to do hard things well. ==> Creating value

Question 2

What is the origin of the word brand?

Answer 2

Animals got branded with fire as a trade mark.

Question 3

What is the product-centered definition of brands?

Answer 3

• Sign used to identify goods/services
• Distinction from other sellers
• Trade mark can be protected by registration

Question 4

Give the kinds of trademarks with an example

Answer 4

• Word mark - Levi’s
• Figurative mark - Adidas
• Figurative mark with letters - Gore-tex
• Shape mark - Toblerone
• Pattern mark - Gucci
• Colour single mark - Milka

Question 5

How to achieve a trade mark?

Answer 5

Long application proces: examination - proceedings - reaction of other brands - expiry date
After this period, you have to apply again, so trade marks don’t last forever

Question 6

What are the rules for a trade mark?

Answer 6

Distincitive + not describing what is sold. The brand must be useful

Question 7

What is genericide?

Answer 7

Firms lose the right to use a trademark when consumers employ the brand name as the product category label.
Ex. Kleenex, Aspirin, Bic, Spa, Tupperware

Question 8

How to protect brands from genericide?

Answer 8

Emphasize trade mark status + use category advertising

Question 9

What are trademark threats?

Answer 9

• Brand misappropriation
  = Unauthorized use of an identical brand name or brand elements on a product in the same category to falsely claim affiliation (38%)
• Counterfeiting
  = Working under a trademark that is identical to or indistinguishuable form a registered trademark, without permission > clear that it is not the same brand, but clear association (31%)
• Brand imitation or copy cats
  = Using similar brand elements in the same category (17%)

Question 10

What is the customer-centered definition of brands?

Answer 10

• A brand resides in consumers’ minds and hearts
• Identify the products/services of a seller
• Differentiate them from competitors

Question 11

What is an important implication of the consumer-centered vision on brands?

Answer 11

That EVERYTHING can be branded: cournties, people, universities, sport clubs,…

Question 12

Explain the interaction between products and brands

Answer 12

Product = anything that can be offered to a market and that satisfies a certain need.
> Brands create competitive advantage by differentiating a product from competing products that satisfy the same need
> Added value by the brand = non-product-related means (image)
Ex. Chiquita Banana

Question 13

How do brands influence perception and preferences?

Answer 13

• Blind test Coca Cola X Pepsi –> with brand information, Coca Cola tastes better.
• Golfers strike more with good brand of golf putter
  »> BRAND PLACEBO EFFECT