B2B branding ... understanding its functional purpose is essential.
Branding is an effective and compelling means to communicate the benefits and value an offering can provide. They guarantee quality, origin, and performance, thereby increasing the perceived value to the customer and reducing the risk and complexity involved in the buying decision.
Brands, to be effective, must have three dimensions. Brand width, depth and length distinguish the strategic branding options as follows:
* BRAND WIDTH ... Number of products/services sold under one brand
* BRAND DEPTH ... Geographical range of the brands
* BRAND LENGTH ... Basic positioning of the brands
There are seven types of brands:
* Corporate Brands: The most common of all brands, embrace all products and/ or services of the business. The brand serves as an "umbrella" under which corporate values, vision, personality, positioning and image is portrayed.
* Family Brands: Family brands involve two or more related products in one group or product line. The distinction between Corporate and Family is that a business using this option may have several family brands in its portfolio.
* Individual Brands: Individual branding strategies simply means to market every single product/service under its own distinctive brand name. The weakness with this strategy lies in the fact that brand establishment requires a large investment, lending itself to low cost efficiencies. Examples: Ransburg, DeVilbiss and Binks under the Carlisle.
* Premium Brands: Premium brands are characterized by high-quality materials, exclusive design, and are marketed at a high price or premium price. Rolex, Gucci, Rolls-Royce are examples.
* Classic Brands: Is a core product/service with certain additional characteristics attached to it that serves to differentiate it from similar offerings. These brands do approach much larger target groups than premium brands and can become TRUST marks for customers.
* National Brands: These brands are designed to match the local conditions. Strength, no communication barriers: weakness, these brands are vulnerable to attacks from international brands.
* International Brands: A brand can be tagged "international" if it markets in two or more countries.
--International Brand Strategy--must be to market its products/services without extensively customizing its market offerings, brands or marketing efforts to match different local conditions.
--Global Brand Strategy--is to increase profitability by reaping cost reductions resulting from standardization, experience curve effects and location economies.
--Transnational Brand Strategy--develop individual branding concepts for all foreign markets within which they operate.
--Multidomestic Brand Strategy--is an extensive and complete customization of all the marketing elements... brands, offerings and marketing efforts. It is geared to many different domestic markets.
by Phil Phillips, PhD
Brand Strategy Pro Con Brand Corporate * Widest and most * Generic brand Width Brand efficient use of profile. time, resources and brand investments * Possible bad-will transfer on all * Highest stability, products. less complexity. * Reinforces comprehensive solutions. * Maximum market impact. Family * Brand investment * Possible Brand covers a product brand dilution. line. * Limitations for * Positive image and product positioning brand transfer on all products (synergy effect). * Use of brand-related interconnections. Product * Product-specific * Expensive Brand brand profile. product-specific brand creation. * No bad-will transfer. * High brand variety weakens the * Creates diverse perception of single growth platforms brands. Brand Premium * High-profile, * Expensive brand length Brand high quality creation. positioning. * Difficult to * High price premium. approach with a family brand. Classic * Applicable in mass * Requires ubiquity. Brand markets. * High level of brand * Creates high brand awareness needed reliance. (cost intensive). Brand National * No language * Can become useless Depth Brand problems. with later internationalization. * Adapted to national requirements. * Can be too expensive (less standardization). International * Potential * Necessary to comply Brand standardization. with different legal requirements. * Cost effective (economies of scale). * Possible image dilution. * Use of international media. * Language/cultural problems
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|Title Annotation:||Business Corner: Strategies & Analysis|
|Date:||Sep 1, 2015|
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