Chapter 2: Brand and positioning Flashcards
What is the definition of brand
a name, symbol, design, or combination of these that try to identify the products of a company, differentiating them from the competition.
What are the 5 Brand Objectives for a company
1 Distinguish the product from competitors
2 Achieve repeat customers who are satisfied
3 Facilitate product advertising
4 Have a better negotiation position within the channel than the competition
5 Establish product strategies depending on the brand
What are the 3 brand objectives for the consumer
1 Ensure that you receive the same product when you do a repeat purchase
2 Facilitate the purchasing process
3 Reflection on your status in society
What things are important when choosing a brand name? (5)
*Easy to pronounce
*Easy to remember
*Evocative (bringing strong images, memories, or feelings to mind.)
*Distinctive
*Registrable
What 6 brand strategies are there
- Single brand strategy
- Individual brand strategy
- Individual brand with generic brand support
- Brand Strategy, product line
- Multiple Brand Strategy
- Private Brand Strategy
What is a family brand
the same brand for all company products.
What is the single brand strategy
Similar products without contrasted images, targeting the same market with a similar level of quality/price.
Example: Nesquik, Marc Jacobs
What is the individual brand strategy
Different brands for each product. Very different product or contrasting images that goes to different markets and with different quality/price ratios.
Example: Inditex
What is the ‘Individual Brand with generic brand support’ strategy
Brands by-product but always with reference to the main company brand. Example: Virgin (virgin airlines, virgin casino, virgin radio)
What is the Product Line Brand Strategy?
Different brands for each product line, this happens when a brand wants to differentiate the products very well.
What is the multiple brand strategy
Consists of launching the same manufacturing product into the market with different brands
What is the private brand strategy
The manufacturer also is in the market with its brand and sells its product to distributors under the brand name of them.
Explain Expansion Law (3)
→ The power of a brand is inversely proportional to its reach
→ Customers want brands that are limited in scope and distinguished by a single word
→ Contract a brand, do not expand it
Explain Concentration Law (4)
→ Limit focus
→ Brand becomes stronger when it concentrates its focus
→ When too much is offered, the quality of the product or service will be mediocre
→ A narrow focus is better
Explain Communication Law (4)
→ The birth of a brand is achieved with communication not with advertising
→ New brand must be able to generate favorable communication in the media
→ Media wants to talk about what is new, and first. Not about what is best
→ The best way to generate news is to announce a new category, not a new product
Explain Advertisement Law (2)
→ Once a brand is born it needs advertising to stay
→ The advertising budget of a company is like the defense budget of a country
Explain Word Law (2)
→ The brand must bring up a word in the mind of the customer
→ Once a word is associated with a brand it is impossible for a competitor to have the same
Explain Credentials Law (3)
→ The main ingredient for success is authenticity
→ The credentials are the guarantee of compliance of a brand, which makes every expression of the brand much more credible
→ Advertisements are perceived as puffery unless they are structured around some aspect of the brand’s credentials
Explain Quality Law (2)
→ Quality is important but brands are not built by quality alone
→ Quality resides in the mind.
Explain Category Law (2)
→ The leasing brand should promote the category not the brand
→ Increasing market share is not the most useful aspect of branding, but rather creating a new category, starting something totally new
Explain Name Law (2)
→ A brand is nothing more than a name
→ In the long-term the unique idea or novel concept disappears and only the difference between the brand’s name and those of the competition remains
Explain Extension Law (2)
→ The easiest way to destroy a brand is to put your name on everything
→ If the market is changing, do not move and launch a second brand. If not, keep your position and continue to build your brand
Explain Law of Companionship (4)
→ To develop the category, a brand must welcome the arrival of other brands
→ The competition broadens the category and allows brands to stay focused
→ One brand cannot capture the entire market. 50% market share should be the limit
→ Being able to choose stimulates demand
Explain Generic Law (2)
→ One of the fastest routes to failure is to use a generic brand name
→ If we use a generic name there will be no way to differentiate ourselves from the competition
Explain Company Law (2)
→ Brands are brands, companies are companies
→ Consumers want brands, they do not want companies
Explain law of sub-trademarks (2)
→ What branding builds can be destroyed by the creation of sub-brands
→ A brand can be marketed in more than one model as long as those models do not erode the essence of the original brand.
Explain Law of Brothers (4)
→ There is always a time and a place to launch a second brand
→ Focussing on a high-volume product sector. For example motor, fashion, accessories
→ Choose a single attribute to segment, the price being the most common, or using attributes such as sex, age, etc.
→ Create rigid distinctions between brands, taking price as the easiest attribute to segment because you can put specific numbers
Explain law of Form (3)
→ A logo must be designed for both eyes
→ Words are what communicate the power of brands
→The fonts used in logos van help or hinder the communication process, but only slightly
Explain Color Law (2)
→ A brand must use the opposite color to that used by its main competitor
→ By standardizing on a single color and using it consistently over the years, you can build a strong visual presence in the clutter of a world full of brands
Explain Law of Borders (4)
→ A brand should now know any borders
→ Keep a narrow brand focus on your home country, and then globally
→ Your product must adapt to the perceptions of your country of origin
→ When a brand is in tune with the positive perceptions of its country, the brand has the potential to become a global brand
Explain Law of Coherence (5)
→ The brand is not created in a day
→ Success is measured in decades, not years
→ A brand cannot enter the mind unless it stands out for something
→ Once you occupy a position, it shouldn’t change (improve, yes)
→ Brand building is boring, but what works best is absolute consistency over a long period of time
Explain Law of Change (2)
→ Brand can be changed but infrequently and with great care
→ The brand is weak or non-existent in the consumer’s mind so you want to move the mark to another segment
Explain Law of Mortality (3)
→ No brand will live forever, euthanasia is often the best solution
→ A well-known brand that represents nothing or that represents something obsolete, has no value
→ A brand that represents something has value, even if it is not well known
Explain Law of Singularity (2)
→ The most important aspect of a brand is its concentration on a single idea
→ A brand is a singular idea or concept that is held in the mind of the potential customer
What is Positioning
Positioning is the value that the brand has in the mind of the customer, as a result of the comparison of the image/reality set of the brand and of those same concepts referred to the products of the competition
Why is positioning important (3)
→ It allows detecting the existing ‘gaps’ before designing a new product with which to cover it
→ It allows knowing the positioning of other existing brands to decide with which to compete or which to avoid when launching a new product
→ It allows knowing the positioning of the company’s brand, compared to others, with possible similarities or differences
