Definition: What Branding is
The image of a product, a brand, or a company corresponds to what branding is as perceived by consumers. This perception can be made on objective criteria (image of a high-end product at a high price) or subjective (“old product”). The brand image is the result of the characteristics of the product or brand considered, but it is also largely influenced by advertising actions.
The image of a brand can be measured and analyzed by studying the associations made with regard to this brand by consumers and possibly with reference to other brands. When positive, the brand image promotes the marketing of a product and the possible practice of high prices. Along with other elements, it can generate a brand preference.
The brand image (commonly called Brand management in English) is the representation perceived by the public of a company, an organization, or an institution (and their services, their products, and their commercial brands). The brand image is produced by the combination of a set of representations resulting from the relations between two or multiple entities, each one being able simultaneously or alternatively to be brought to perceive the other or to want to influence it.
The representations conveyed or associated with the brand image are essentially “mental”: even if they reach us via media and/or concrete supports having explicitly the function of disseminating a constructed and deliberate message, their appropriation by everyone is a matter of the individual act, with all that it can be, that is to say subjective, unstable, selective, partial and simplifying, but also likely to be part of the exchange, to be accessible to reasoning, to allow influence, even manipulation.
A brand is an intangible value, eluding unambiguous definitions and hard frames. Some marketers say it lives in the minds of customers. The American Marketing Association gives a slightly more mundane definition, which assumes that a brand is a name, term, mark, symbol, or combination of all elements, and its purpose is to distinguish certain products or services on the market. It seems, however, that reducing the brand to only individual elements, such as the name or the sign ( logo) is no longer valid. The times when the mere fact of having a branded product, such as iconic jeans, made a great impression on the surroundings and made their owner feel special, are gone. Today, brands carry specific messages, emotions, and stories. Have you ever wondered why Claire Underwood of House of Cards has an apple phone, and why Frank destroys more of the branded blackberry models? Nobody questions the power of Apple, but there are people who choose the business BlackBerry because they judge the products of this brand as more functional and suited to their personality.
Various Forms A Brand Takes
Trademarks:
- Name the word or words used to identify the company, product, or service.
- Logo: the image that identifies the brand visually.
- Slogan: which gives authenticity and brand recognition.
- Graphics: a part that distinguishes the brand from the others.
- Shape: a distinctive shape such as Coca-Cola bottles for example.
- Colors: instant recognition of the brand, which is sometimes a trademark.
- Sounds: a single tone or a series of notes which allow the brand to be recognized.
Brand – what branding is and what is it for?
Shopping is an everyday part of our life. Unfortunately, a wide selection of goods, which theoretically should facilitate shopping, is becoming a nightmare of our times. Why? Suppose we are going to the store for hair shampoo. In front of us, there are rows of shelves bending with various specifics. We have a choice of shampoos for men, children, and women. Next, shampoos are divided into anti-dandruff, anti-brittleness shampoos, giving them shine and volume, ideal for colored, black, or blonde hair. In addition, the products differ in price and added value (some are natural and free from harmful substances, others have not been tested on animals, and still others have a supplement).
Applied to products, the brand image creates added value for the consumer when it:
- guarantees product uniformity over time (recognition of a familiar, continuous, and lasting presence)
- allows you to stand out (announcement of a specific product promise)
- can enhance the consumer (consumer identity )
- identifies the product on the shelves ( logo, packaging ( presentation ), presentation, name)
- allows customer loyalty (creation of a bond of trust)
Applied to the company what branding is, the brand image creates added value for the company when it:
- becomes an intangible marketable asset ( goodwill ).
- becomes a tool for pressure on distribution ( prescription role ).
- Increases the margin on variable cost (justification of a higher price).
- Helps create a sense of belonging ( notoriety and corporate culture ).
- Facilitates hiring with job seekers ( human resources management ).
- Facilitates financing (confidence in the stock market ).
If we were to take into account all the attributes of products and compare their relationships, and then repeat this process with each new product (body lotion, shower gel, etc.), our brain would be completely overloaded and it would take us long hours to make the simplest decisions. Fortunately, nature has protected us against such an eventuality and our brain makes most of the decisions using the so-called cognitive bias. Let’s explain it with an example: when buying the shampoo discussed earlier, we usually don’t analyze each product in turn, choosing the really best proposition, we just simplify the decision by asking ourselves a simple question like which brandit inspires the greatest trust, which I would describe as the most effective in the fight against dandruff, etc. Thus, we choose mainly based on associations with a given brand. This is the strength and power of the brand.
So what are the basic functions of the brand?
- distinguishes the company’s products from others;
- helps to identify product features (e.g. natural product, ideal for fighting dandruff);
- fits into the consumer’s lifestyle;
- communicates the emotional benefits of purchasing a given product;
- makes us remember a given product (so we can come back to it in the future);
- communicates values that are important for a given market segment;
- facilitates purchasing decisions.
Types of product brands
The product brand is divided into four basic types: family brand, individual brand, manufacturer, and broker brand. We will take a closer look at them:
Family brand
The idea of a family brand is to mark all the company’s products with the same brand. Such action is beneficial when the company offers products of the same quality and type. A perfect example is Apple, which presents itself as an innovation leader and offers modern equipment in the consumer electronics industry.
What are the benefits of a family brand?
- introducing a new product requires less expenditure on advertising (everyone knows the brand and sometimes even waiting for the next novelty);
- promotion of a given product simultaneously promotes the entire range of a given brand;
- makes it possible to take advantage of customer loyalty – e.g. a customer satisfied with a smartphone from the x brand, by changing the phone to a newer one, again reaches for the x brand position.
Individual brand
This type is helpful if a given company offers a wide and varied assortment. Individual brands can be tailored to the market segment we want to reach.
What are the benefits of an individual brand?
- the company can reach different market segments with its products;
- in the event that one of the products is very negatively assessed by consumers, the other brands of the company will not suffer.
Manufacturer’s brand
This brand can produce and offer products of the same type or expand its range with completely new products. For example, known from the production of televisions, can introduce other types of equipment, such as telephones, game consoles, or computers. This type of brand can make it easier to attract buyers for a new product. Or, it may decide to sell some of its assortment under its own brand and the rest under the broker’s brand. Unfortunately, the manufacturer’s brand carries some risk, because if one of its products is assessed by consumers as very poor, it may lower consumer confidence in the manufacturer’s other products.
What are the benefits of the manufacturer’s brand?
- the manufacturer’s brand facilitates the introduction of a completely new product line to the market (if the product x has proven itself, then in the eyes of consumers of the product of this brand also gets a greater credit of trust);
- The manufacturer’s brand may only sign some products (e.g. of the same type, of the same quality) and sell others under the brand of intermediaries.
Broker brand
In this case, the retailer, not the manufacturer, is responsible for the brand. Its creation requires the retailer to find a manufacturer determined to produce the product, which will then be branded with the broker. This type has a good chance of success if the broker already has a good reputation, producers have not yet dominated the market and inflate prices, while the promotion of products does not entail very high costs.
What are the benefits of the broker brand?
- the manufacturer can sell his products with a higher margin;
- if a product signed with the broker’s brand turns out to be wrong, the bad consumer opinion about it will not be transferred to the manufacturer’s other products.
Product branding – how to do it
The functions and types of brands are not all you need to know about them. In order to take full advantage of the possibilities offered by creating a brand for your own company, let’s learn about ways to brand products. Modern marketing distinguishes two such options:
Product-driven branding – the axis of the brand is the product, and more specifically the attributes and benefits of its use or possession. The brand bases its credibility on expert knowledge, innovative and advanced technologies, or the production process. An example is Coca-Cola.
Brand-driven product – the strength of the brand is based on its created personality, and the products are the result of the brand’s promise. Its credibility is based on emotions, values , and lifestyle.
The role of the driver, i.e. the driving brand. It makes us decide to buy. Taking the example of shampoos, when we ask what shampoo is bought by representatives of the market segment in which the target group is struggling with dandruff, it is very possible that we will hear the well-known Head & Shoulders.
Endorser, i.e. the recommending brand. It gives product-specific features. Such a brand is, for example, Dove. Dove cosmetics are associated with exceptional delicacy and a high degree of skin hydration. For this reason, this brand’s shampoo is also perceived as gentle and moisturizing the hair.
Differentiator, or distinguishing feature. It makes a given product offer us something completely unique that we will not find in the competition, even if it really tries hard to imitate the brand we have chosen. Such a feature can be, for example, ergonomic packaging or a guarantee that the product is 100% hypoallergenic.
Energizer is all the activities around the brand that strengthen and promote it. Such an energizer can be, for example, a well-known campaign of a manufacturer of cosmetics dedicated to women, the message of which is based on the philosophy that every woman is beautiful. What’s important: energizer promotes the product only by the way, but its main task is to offer real value to consumers (e.g. increased self-esteem or simply good entertainment).
Brand power determines whether we will be able to break through and keep on the market. Strong brands gain leadership positions, and firms with weak brands (or worse, without them) are out of the game or are forever left behind in the race for the customer, and their only survival strategy is undercutting prices. For this reason, the answer to the question: to create a brand or not, should not cause any difficulties for any entrepreneur.
