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4.2 Marketing - Branding

4.2 Marketing - Branding. I.B. BUSINESS & MANAGEMENT A COURSE COMPANION P206-207. BRANDS. Brands are well-known names of individual companies or products.

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4.2 Marketing - Branding

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  1. 4.2 Marketing - Branding I.B. BUSINESS & MANAGEMENT A COURSE COMPANION P206-207

  2. BRANDS • Brands are well-known names of individual companies or products. • The most successful brands become synonymous with the name of the product itself: for example the brand name Coke is usually interchangeable with the generic (general product) name `cola`. • When people say that they would like a Coke in a restaurant, they are usually prepared to accept Coca Cola or Pepsi, whatever the restaurant happens to stock.

  3. Strong Brands • A strong brand will allow a business to differentiate itself from its rivals. • If people perceive a strong brand to be better than a rival product, it almost does not matter if it is actually better or not. • Customers will choose the branded product when given the choice. • This also means that businesses owning strong brands can sell their products at higher prices than their rivals, making higher levels of profit and adding to their perception of quality.

  4. Strong Brands - NIKE • Nike can sell shoes that cost them very little to make at extremely high prices because their brand has value – it is seen as cool to be wearing the latest pair of Nike basketball shoes and many people will pay for that privilege. • The Nike swoosh logo transmits the information and attributes associated with the brand, such as being good quality, fashionable and reliable.

  5. Brand Awareness • Building brand awareness is ensuring that customers recognize the offerings, name and products of a particular business. • This is particular important in markets where there is not a massive difference in terms of product quality between rival businesses. • Eg: There is very little difference in terms of taste between Sprite and some other lemonades on the market. However, the fact that people instantly recognize the name and brand allows it to outsell its rivals.

  6. Brand Development • Brand development is trying to increase the power of a name or logo in order to increase the brand awareness and therefore gain higher sales. • Spending on promotional activities such as advertising, sales offers and free samples can help to develop a brand and get it into consumer minds. • Eg: Nescafe often offers free samples at busy transport hubs such as airports and train stations. The aim is to get customers to gravitate towards Nescafe the next time they are buying coffee in a supermarket.

  7. Brand Loyalty • The better known, the more brand loyalty there is likely to be. • Brand loyalty is the willingness of consumers to purchase the same brand repeatedly and even to act as a marketing tool by telling their friends how good the brand is. • Given that consumers are far more likely to act on the advice of friends and family, rather than on a company’s promotional activity, this can be of huge benefit to a business. • Example: Apple is a good example of a company that has successfully built large brand loyalty among its computer users and has benefited from word of mouth advertising.

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