BRANDS AND BRANDING
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BRANDS:
A brand is a symbol that represents a firm. According to Kotler, P. "A brand is a name, term, sign, symbol, or design, or a combination of these, that identifies the marker or seller of a product or service" (p.233). For instance, the "m" is recognized such as McDonald's company, and a ✓ is known as the Nike's logo. Marketers use especial symbols in order to facilitate the recognition of a firm. Customers tend to remember the international brands easily, because those are exposed everywhere. But in reality, almost every product and service use a brand, including the produce at the supermarkets. An apple, for example, has a small tag added to its peel, which identify the fruit as part of a firm. Brand is an important part of a product or a service. It also facilitates the marketing extension of a product or company. During the practicum # 7's presentation (chapter 19-The Global Marketplace,) our group uses Disney World as an example of internationalization. The Mickey's ears are recognized all around the world as part of Disney company (p.560). Another example is the product that my team and I presented through the practicum, Nestlé's Kitkat. This product was introduced to the market in 1935, and so far the product is available in more than 100 countries around the world. In Japan, Kitkat is commercialized in more than 200 flavors. The brand KitKat is internationally recognized, as well as Nestlé.
BRANDING:
Branding is a marketing strategy that is divided into four steps:
Positioning:
The first step of branding is positioning. Marketers study the target market so that they use an effective branding strategy to position a product or service on the mind of their customers. According to Kotler, P. "Marketers need to position their brands clearly in target customers' minds" (p. 245). Customers learn to recognize a company by its brand or logo. So, for this reason, the use of a brand is essential for a firm or a product. It must be compatible with customers' values and beliefs.
Name selection:
According to Kotler, P. "Finding the best brand name begins with a careful review of the product and its benefits, the target market, and proposed marketing strategies. After that, naming a brand becomes part science, part art, and a measure of instinct" (p.247). It states that a name must have connection with the product and what it offers to customers according to their own characteristics, needs, and wants. At the end, the logo appears to be an artistic piece, but it represents more than that for its company. It represents an unique name that reflects the benefits that the product offers to customers. So, our Marketing team, for example, decided to use in the Marketing plan, which we were development throughout the semester, the name of HereHere for our app, because it represents the presence of the app, such as a helping hand,over there where it is needed.
Sponsorship:
Sponsorship is divided into manufacturer's brand, private brand, licensing, and co-branding.
Manufacturer's brand relies on the brands that are exposed everywhere in the country. When a brand is positioned in the whole country based principally on customer satisfaction, it is easily to offer a new brand of products among customers.
Private brand relies on the brand created similar to another brand with the objective of generating revenues. During a lecture, the instructor mentioned Costco, such as an example of private brand. Costco creates its own brand of products, such as detergent, to offer its customers another product with the same quality of a recognized brand for less money.
Licensing relies to names that are protected to its own use. It means, when a company possesses a licensing brand, it can not be used for another company. Generally, celebrities and known characters use it, such as Disney World.
Co-branding relies to a combination of two brands. Two companies can create a new product and name it with both brands. Thus, both companies use the same brand with a combined name.
Development:
Development relies on the brand extension. It is divided in four categories: line extensions, brand extension, multibrands, and new brand. All categories follow the objective or expansion. When a firm is well established, it is usual to look for extensions because those generate more revenues, while expenditures or costs are shared with more brands or products. The following graph helped me to understand these concepts in an easy way:
A brand is a symbol that represents a firm. According to Kotler, P. "A brand is a name, term, sign, symbol, or design, or a combination of these, that identifies the marker or seller of a product or service" (p.233). For instance, the "m" is recognized such as McDonald's company, and a ✓ is known as the Nike's logo. Marketers use especial symbols in order to facilitate the recognition of a firm. Customers tend to remember the international brands easily, because those are exposed everywhere. But in reality, almost every product and service use a brand, including the produce at the supermarkets. An apple, for example, has a small tag added to its peel, which identify the fruit as part of a firm. Brand is an important part of a product or a service. It also facilitates the marketing extension of a product or company. During the practicum # 7's presentation (chapter 19-The Global Marketplace,) our group uses Disney World as an example of internationalization. The Mickey's ears are recognized all around the world as part of Disney company (p.560). Another example is the product that my team and I presented through the practicum, Nestlé's Kitkat. This product was introduced to the market in 1935, and so far the product is available in more than 100 countries around the world. In Japan, Kitkat is commercialized in more than 200 flavors. The brand KitKat is internationally recognized, as well as Nestlé.
BRANDING:
Branding is a marketing strategy that is divided into four steps:
- Brand positioning
- Brand name selection
- Brand sponsorship
- Brand development
Positioning:
The first step of branding is positioning. Marketers study the target market so that they use an effective branding strategy to position a product or service on the mind of their customers. According to Kotler, P. "Marketers need to position their brands clearly in target customers' minds" (p. 245). Customers learn to recognize a company by its brand or logo. So, for this reason, the use of a brand is essential for a firm or a product. It must be compatible with customers' values and beliefs.
Name selection:
According to Kotler, P. "Finding the best brand name begins with a careful review of the product and its benefits, the target market, and proposed marketing strategies. After that, naming a brand becomes part science, part art, and a measure of instinct" (p.247). It states that a name must have connection with the product and what it offers to customers according to their own characteristics, needs, and wants. At the end, the logo appears to be an artistic piece, but it represents more than that for its company. It represents an unique name that reflects the benefits that the product offers to customers. So, our Marketing team, for example, decided to use in the Marketing plan, which we were development throughout the semester, the name of HereHere for our app, because it represents the presence of the app, such as a helping hand,over there where it is needed.
Sponsorship:
Sponsorship is divided into manufacturer's brand, private brand, licensing, and co-branding.
Manufacturer's brand relies on the brands that are exposed everywhere in the country. When a brand is positioned in the whole country based principally on customer satisfaction, it is easily to offer a new brand of products among customers.
Private brand relies on the brand created similar to another brand with the objective of generating revenues. During a lecture, the instructor mentioned Costco, such as an example of private brand. Costco creates its own brand of products, such as detergent, to offer its customers another product with the same quality of a recognized brand for less money.
Licensing relies to names that are protected to its own use. It means, when a company possesses a licensing brand, it can not be used for another company. Generally, celebrities and known characters use it, such as Disney World.
Co-branding relies to a combination of two brands. Two companies can create a new product and name it with both brands. Thus, both companies use the same brand with a combined name.
Development:
Development relies on the brand extension. It is divided in four categories: line extensions, brand extension, multibrands, and new brand. All categories follow the objective or expansion. When a firm is well established, it is usual to look for extensions because those generate more revenues, while expenditures or costs are shared with more brands or products. The following graph helped me to understand these concepts in an easy way:
During the practicum # 7, my team and I talked about Kit Kat, as an example of a Nestlé's brand extension. Also, we introduced the different flavors of Kit Kat, as line extensions. One example is the green tea's flavor that team # 7 offered for tasting to the class. Martin, S., a classmate, expressed in our practicum's forum "I thought the product that your group chose was very relatable and interesting. I personally love KitKats, but I think I am going to stick with the normal chocolate ones. I never knew that there were over 200 flavors of KitKat offered in Japan. This really demonstrated the difference between the target markets internationally" (iLearnCSUMB, 2014).
Because in the United States Kit Kat is only marketed through its original chocolate flavor, the variety flavors around the world, especially in Japan, shocked to the whole Marketing class. Also, the video that we presented during our presentation called "American Try Exotic Japanese Kit Kats" (watch it below) helped team # 7 to introduce the variety of Kit Kat flavors in Japan.
These line extensions have growth and very fast in few years. For example, Silverstein, B. says in the year 2010, "Japan is home to Kit Kat's greatest adventure in line extension. Currently, Kit Kat is available in 19 flavors in Japan, with availability varying by region. Some of the more unusual flavors include aloe vera yogurt, azuki red bean, cola and lemon soda, green tea, maple syrup, roasted corn, soy sauce (the nation's most popular), and yubari melon" (Brand channel, 2014). Today, there are more than 200 flavors in Japan, which show us that the brand has been positioned effectively in the market.
http://<iframe width="560" height="315" src="//www.youtube.com/embed/eGsqlEW-uC0" frameborder="0" allowfullscreen></iframe>
References:
Buzz Feed (2014, October 20). Americans try exotic Japanese Kit Kats. Retrieved November 10, 2014 from
<iframe width="560" height="315" src="//www.youtube.com/embed/eGsqlEW-uC0" frameborder="0" allowfullscreen></iframe>
Kotler, P., & Armstrong, G. (2014). Principles of Marketing. Upper Saddle River, NJ; Pearson.
Martin, Sophia (2014, November 20). Forum for practicum 7. iLearn CSUMB. Retrieved December 16, 2014
from https://ilearn.csumb.edu/mod/forum/view.php?f=15887
Silverstein, Barry (2010, August 13). Kit Kat extending sweetness. Brand Channel. Retrieved November 05, 2014,
from http://www.brandchannel.com/features_profile.asp?pr_id=505