Chapter 3: Brand strategy Flashcards
Brand concept
Name, term, symbol, design or any other characteristic which identifies the product of a vendor and differentiates from competitors
Advantages of branding for the company
- Supports commercial strategy
- Differentiation
- Help create a positive image for the company
- Get loyalty
- Can be legally protected
Advantages of branding for the consumer
- Identify the product
- Facilitate the act of purchase
- Guarantees performance and quality
Brand value concept
Added value assigned to a product or service based on the brand they display
Advantages to brand value
- Brand loyalty
- Brand recognition
- Perceived quality
Characteristics of a brand
- Short
- Easy to read and pronounce
- Easy to remember
- Evocative of the product
- Applied for foreign markets
- Must be registrable
- Associated with target audience
Types of marketing activities
- Ads
- Telephone or online experiences
- Payment methods
- Interactions with employees
- Membership clubs
Types of secondary associations
- Link with geographic location
- With other brands
- With public figure
- With sports
Types of brands
- Brand that’s just a name
- Logo
- Name+logo
- Brand that includes a slogan
Brand strategies: Unique brand
Pros:
- Facilitates introduction of new products
- Savings in promotion and advertising
- Allows to avoid legal problems
Cons:
- Failure of a product affects image of the rest
- Market is not segmented
Brand strategies: Multiple brands
Pros: - Failure of a product only affects that family - Allows penetrating different segments Cons: - Higher costs - Great commercial efforts - Cannibalism between company’s brands
Brand strategies: Second brands
Belong to other, bigger companies
- Segment and expand the market
- Defend main brand from aggressive competition
- Test products and services
Brand strategies: Vertical brands
- Integrate the concept of the establishment’s environment with products offered in it
- Establishment usually markets it’s own brand exclusively
Brand strategies: Manufacturer brands
Used to distinguish them from those owned by the dealer
Brand strategies: Distributor brands
Belong to distributors who sell them
- Relatively lower price
- Ensured customer loyalty
- Allows to change manufacturer/supplier more easily
