Branding is what is it? Creation, concept, examples
When the word brand appeared in the English language, it meant “stigma”, i.e. a mark that was burned on the body of cattle. So the owners determined the ownership of animals. Then the brand began to call the brand. Today branding is the formation in people of certain positive associations with the product, its manufacturer. The goal is to influence consumer choice. However, modern branding forms not only the image of products, but also the image of media people, regions, even countries.
Appearance of branding
It will focus mainly on the United States, because branding originated there. At the end of the XIX century. there were consumer goods. The reason for this was the development of industry. The quality of products grew, networks of points of sales were formed. Many similar products began to compete with each other in the market, there was a need to stand out. So there were brands. The pioneer was the soap company Procter & Gamble.They called it Ivory Soap, and the promotion was promoted by the slogan “99.44% purity”. It was the first product with a memorable advertisement and original name.
In the first third of the XX century. branding has developed rapidly. At the US Gallup Institute, consumer preferences research began, and the best companies collaborated with organizations that helped promote brands in the market.
From 1930 to 1945, firms one after another mastered marketing and put it into practice. In the companies appeared specialists responsible for managing branding. We are talking about brand managers.
In the 1950s, when the world was restored after the war, the first concept appeared - rational branding. The approach implied a simple but reasonable argument in favor of the goods. In advertising used national motifs, product demonstrations. One of those who stood at the origins of a rational concept was David Ogilvy. He believed that advertising should show the product, talk about it and explain how it is done. Ogilvy said that most consumers are attracted to the words “affordable,” “economical,” and so on.
In the late 50s.Packard, with his book on consumer psychology, laid the foundations for emotional branding. He proved that satisfaction with the quality of the product is not enough - consumers want pleasant emotions. If a rational concept is properties, characteristics of a product, then emotional branding is an image, image advertising. Accessibility, cost effectiveness gave way to emotions: companies began to offer not goods, but “home comfort,” “joyful mood”, “frosty freshness”.
Thanks to the right branding concept, many well-known companies have gained immense popularity. For example, "Cadillac", which is associated with success and is a luxury car. “Marlboro” successfully played on the image of a real man, although before that they positioned themselves as a manufacturer of women's cigarettes.
In the late 90s. formed social (spiritual) branding. This concept arose in response to excessive industrial development, which led to environmental pollution. Large manufacturers have made the idea of improving the environment part of their brand. One of the successful examples is the British cosmetics The Body Shop, which does not test its products on animals. People buying these products consciously support this ethical position.
Assortment study and planning
This is the first stage of branding. Creating a product concept is impossible without analysis and forecasting. Consider what companies need to do:
- Learn what the needs of customers now and what they will be in the future. Analyze how people use the product.
- See what analogs exist, evaluate.
- Based on the products of competitors, decide what to add to the range, and what to remove.
- To decide on the creation of a new product, the improvement of the existing one. Come up with new ways to use it.
- To analyze the production of goods in terms of profitability, prices.
- Test products.
This is the second stage of branding. There are two types of architecture:
- Branded House - is popular in Russia and the countries of the East. A group of products is produced under the same brand, based on common values and advantages. It is very important that the products are similar. An example of a defeated branding is “Dougan”. The company made a gross mistake: it began to produce everything from ketchup to cigarettes. As a result, the image blurred.
- House of Brands - practiced in the USA and Western Europe.In the minds of consumers, brands belonging to one company are not related to each other. Example: General Motors owns Chevrolet, Cadillac and some others. They have a different purpose, the target audience.
At the third stage, potential consumers are told about the product that the brand has launched. They talk about the properties, features, manufacturer, price, etc. Then they show what products are better. So attract the attention of people who will be loyal to the brand. At the end create a corporate identity (name, logo). Sometimes mythologize history.
They include market research, consumer behavior research, competitor analysis, segmentation, customer orientation, and the formation of advantages. Consider each tool in more detail.
They study the market in different ways, but testing works best, it can be of several types:
- Standard. The firm is testing products, selling it through normal channels. The method is expensive and long-lasting, the results can not be kept secret.
- Controlled.The company hires a research firm that sells goods through distributors. The disadvantage of this method is that the sales channels of hired distributors may not coincide with the real ones.
- Electronic. Consumers participating in the experiment buy goods, paying with special identification cards. The disadvantage of this method is the same as the previous one.
- Imitation. People are given money to buy a set of products, among which is the one being investigated. This test is quite accurate.
The most common methods are:
- Focus group. Choose from 5 to 15 people who fit the image of potential consumers of the goods by age, social status, income level, etc. The moderator talks with a group of about 3 hours. Participants freely express their opinions about the brand, share emotions.
- In-depth interview. The researcher encourages the respondent to answer questions in detail to get his opinion. The interview takes place one-on-one, in a relaxed atmosphere, lasts from 30 minutes to several hours.
- Protocol analysis. The task of the method is to find out on the basis of which a person makes a decision about a purchase.The experiment participant is asked to present himself in a certain situation and make a choice.
- Hall-test. Indoors collect more than 100 people. They study the brand, and then answer the questionnaire.
- Home-test. Participants also study the visual and auditory image of the brand, fill out questionnaires, but do it at home.
- Written or telephone questionnaire.
Apply the Porter model, it involves the study of:
- industry situations;
- the threat that substitute products will appear;
- threats of the emergence of competing companies;
- how vendors bargain;
- how consumers are bargaining.
The success of branding is also the correct positioning, i.e. the choice of a market segment. There are such principles of segmentation of consumers:
- Demographic. This is gender, age, wealth of a person. His marital status, education, profession, nationality.
- Geographical. The division is not only by countries, regions, but also by the size of settlements, population density, climate.
- Psychographic. This is a person's psycho-type, lifestyle, social status.
- Behavioral.The division of the frequency of shopping, benefits, brand loyalty.
Branding is not only the formation of the image of the product, but also the definition of the desires of consumers, their satisfaction. Customer orientation includes:
- response - the creation of new products that meet the needs of people;
- anticipation - identifying needs that have not yet been manifested;
- formation of requests - the promotion of a new product, in which no one had a need.
Formation of competitive advantages
Before using this branding tool, you need to decide on a strategy. There are two types:
- Adaptation strategy. When a product has competitors with similar characteristics, promotion comes at the expense of special properties, price, or quality.
- Strategy differences. When the product has no competitors, the niche is free, create a new brand. The path is suitable only for companies that have production facilities, the level of technical equipment allows to do this. Moreover, a niche cannot be too narrow; consumers should be enough. These restrictions make the previous strategy more common.
Internet branding features
Branding on the Web has many advantages:
- Direct communication, feedback from consumers. The opinion of people can be found in various ways: through social networks, chat rooms, emails, blog comments, polls. The company collects complaints and suggestions about the product and improves it.
- Cheapness. The cost of internet branding is always less than the cost of traditional branding. Information about a new product quickly spread through social networks.
- Measurable results. Internet tools allow you to count the number of transitions to the site, ad views, search queries and much more.
- Speed of getting results. Nowhere is information spreading as quickly as on the Internet.
- Personalization. On the Internet, there is a concept of targeting, when information reaches only the target audience. Technology allows you to select it for different indicators and show suggestions personalized.