Chapter 1

What Is A Brand?
Brand- name, term, sign, symbol, design, or a combo of them to identify the goods of a seller and to differentiate them from competition

Brand elements - logo, symbol, package design, other char that identifies a product

5 Levels of MEANING for a PRODUCT: ex. AC
1) Core Benefit Level - fundamental need/want consumers satisfy by consuming it - cooling and comfort

2) General Product Level - containing only those attributes/characteristics necessary for its functioning but with no distinguishing features - sufficient cooling capacity, adequate air intakes, exhausts

3) Expected Product Level - set of attributes/char that buyers expect/agree to when they purchase a product - consumers should expect at least 2 cooling speeds, removable air filter, power cord 60 inches long, 1 year warranty

4) Augmented Product Level - features/benefits that distinguish product from comp - optional features -> electric touch pad control, display to show inside/outside temp, toll free customer service num, automatic mode for fan

5) Potential Product Level - includes all augmentations and transformations that a product might undergo in the future - silently running, completely energy self-sufficient

Role That Brands Play
Consumers
Identification of source of product
Assignment of responsibility to product maker - what they expect
Reduces risk and search cost
Promise, bond, or pact with maker of product
Symbolic device
Signal of quality

Search goods (ex. groceries) - consumers can evaluate product attributes like size, color, style, design, weight, anything from visual inspection

Experience goods (ex. tires) - trial and experience is necessary, cannot assess attributes such as durability, service quality, safety, or ease by handling by visual inspect

Credence goods (ex. insurance) - consumers may rarely learn product attributes

Consumer risks in buying a product:
(i) Functional Risk - product doesn’t perform to expect
(ii) Physical Risk - product harms well-being of person
(iii) Financial Risk - product isn’t worth the price paid
(iv) Social Risk - product embarrasses people
(v) Psychological Risk - product affects mental well-being of person
(vi) Time Risk - failure of product results in an opp cost of finding a substitute

Firms
Simplify product handling/tracing
Organize inventory & accounting records
Offers firm legal protection for unique features of product
Property rights, giving legal title to brand owner, trademarks, patents, copyrights
Ensure firm to safely invest in the brand and reap the benefits
Security of consumer demand for firm
Creates barriers of entry for other firms

What Can Be Branded?
Marketers must give consumers a LABEL for the product (here’s how you can identify the product) and MEANING for the brand (here’s what it can do for you and why it’s diff).

Branding creates mental structures and helps consumers organize their knowledge about products in a way that clarifies their decision making.

Physical Goods
(i) Business-to-business products
-creates positive image and reputation for the company as a whole
-creating goodwill with business customers leads to greater selling opp and profitable rel
-can provide a strong competitive advantage

1. Ensure the entire org understands and supports branding and brand mgt
2. Adopt a corporate branding strategy and create a brand hierarchy
3. Frame value perceptions
4. Link relevant non-product related brand associations (ex. apple being “innovative”)
5. Link relevant emotional associations for brand
6. Segment customers both