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B2B branding ... understanding its functional purpose is essential.

Let's first define "BRANDING": Brands facilitate the identification of products, services and businesses as well as differentiate them from competition.

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

Contributing Editor

phillips@chemarkconsulting.net
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
Author:Phillips, Phil
Publication:Coatings World
Date:Sep 1, 2015
Words:613
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