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PRINCIPLES OF BRANDING

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Aim:

To recognise and identify the strategies of branding.

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The distinctive nature of branding

  • Branding separates the business, product or service and makes it stand out from its competitors. This makes it easier to sell in a new market and easier for customers to recognise in an established market.

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The different dimensions of a distinctive brand

  • A brand is not just a name. It is everything associated with it – from the price and quality to the image and the feeling customers get when they think about the brand.

  • Consistency is vital. Whether the brand is focused on luxury, quality, fun, reliability or value for money, all the elements associated with it must reinforce that image to the customer.

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Components of a brand

  • Logo – makes the brand instantly recognisable. The distinctive lettering used is called logotype e.g.. IKEA, Argos and Google.
  • Symbols – can be used e.g. Hello Kitty, Apple, BMW, & Twitter. Some combine a symbol with logotype e.g. British Airways & BP
  • Colours – make the brand instantly recognisable on a retail display and the colours themselves can reflect the image. Broadly, black, gold or silver denote luxury, green reflects nature, yellow links to sunshine, white to cleanliness and red/orange to speed or danger.
  • Images – visual representatives used by the brand. Flawless skin is essential for skincare products. Banks show friendly staff to imply they are customer focused.
  • Celebrity endorsements - add value, most people associate walkers crisps with Gary Linekar.

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The benefits of building brands

  • Value – is added through increased recognition and customer loyalty. Brand lovers will pay more to get their preferred brand which gives the brand a value.
  • Marketing costs can be reduced because loyal customers make repeat purchases and often promote the brand to others on Facebook & Twitter.

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The benefits of building brands

  • Brand personality - endows it with human attributes and is reflected in how people feel about the brand. This can be reinforced by the brand itself. Churchill insurance uses a bulldog to characterise solidity and strength. Pixar is seen as clever, young, creative, lively and inquisitive and their use of an animated lamp, Luxo in their logo adds to this.

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Strong Brands

  • Can spread their image to other products more easily and cheaply.

  • Brand Extensions – are new or adapted products, for example Mars & Galaxy went from chocolate bars to ice-cream and Ariel from washing powder to stain remover.