Brand management seeks to increase the product's perceived value to the customer and thereby increase brand franchise and brand equity.
Customers see a brand as an implied promise that the level of quality they have come to expect from a brand will continue with future purchases of the same product.
This may increase sales by making a comparison with competing products more favourable. It may also enable the manufacturer to charge more for the product.
The value of the brand is determined by the amount of profit it generates for the manufacturer.
A good brand name should:
- be protected (or at least protectable) under trademark law.
- be easy to pronounce.
- be easy to remember.
- be easy to recognise.
- be easy to translate into all languages in the markets where the brand will be used.
- attract attention.
- suggest product benefits
- suggest the company or product image.
- distinguish the product's positioning relative to the competition.
- be attractive.
- stand out among a group of other brands.
Types of brands:
A number of different types of brands are recognised.
A "premium brand" typically costs more than other products in the same category. These are sometimes referred to as 'top-shelf' products.
An "economy brand" is a brand targeted to a high price elasticity market segment. They generally position themselves as offering all the same benefits as a premium product, for an 'economic' price.
A "fighting brand" is a brand created specifically to counter a competitive threat
.When a company's name is used as a product brand name, this is referred to as corporate branding, where all products carry this name and all advertising speaks with the same voice. A good example of this brand architecture is the UK-based conglomerate Virgin. Virgin brands all its businesses with its When one brand name is used for several related products, this is referred to as family branding. When all a company's products are given different brand names, this is referred to as individual branding.
Major corporations spend millions of pounds supporting their brands, which come to represent the company and its inherent market value to potential take over (Cadbury v Kraft for example)
Focused Marketing Ltd.
Sales and Marketing Consultant