Marketing Communications

BRANDS 39

Introduction

Since the early days of marketing, brands have always been important. Consistent and

long-term investment in brand awareness and brand image resulted in famous brands that

survived the storms of changing marketing environments and were powerful instruments of

marketing strategy. Later, the pressure for short-term results and the changing power balance

between manufacturers and retailers has led to a situation in which patient and long-term

investment in brand value no longer seems to be a priority. Short-term profi t goals seem to

be at least as important as long-term investments in goodwill. However, the value of brands

in modern marketing strategy, and the important role of marketing communications in

building and maintaining brand value, are still recognised. Brands are powerful instruments

of strategic marketing and important vehicles on the road to long-term profi tability.

What is a good brand? What are suitable branding strategies? Why are brands so import-

ant, and for whom? What is the value of a brand (oft en referred to as brand equity)? What is

a brand portfolio and what diff erent functions can brands fulfi l in a portfolio? And, last but

not least, what is the role of marketing communications in building and supporting brands?

Brands

Th e American Marketing Association defi nes a brand as ‘a name, term, sign, symbol or design,

or a combination of these, intended to identify the goods or services of one seller or group

of sellers, and to diff erentiate them from those of a competitor’. Defi ned like this, a brand

is a set of verbal and/or visual cues, and as such it is a part of a product’s tangible features.

A brand name is that part of a brand that can be spoken, including letters, words and numbers,

like BMW, Danone or HP. A brand mark is the element of a brand that cannot be spoken, oft en

a symbol, design or specifi c packaging, like the Mercedes logo or the Absolut Vodka bottle.

A trademark is the legal designation indicating that the owner has exclusive use of the brand.

However, Keller goes beyond the pure constituting brand elements and defi nes a brand

as an identifi er that adds either rational and tangible dimensions (related to product per-

formance) or symbolic, emotional and intangible dimensions (related to what the brand

represents) that diff erentiate it from other products designed to fulfi l the same need.^1

A brand can be defined as ‘a cluster of meanings’, or a cluster of associations concerning attributes, benefits and

values. These associations are created or enhanced by every contact or experience the consumer has with the

brand. Batey describes the difference between a brand and a product as follows:^2

RESEARCH INSIGHT

A brand is a bundle of meanings

Product Brand

You buy a product for what it does You choose a brand for what it means

A product sits on retailers’ shelves A brand exists in consumers’ minds

A product can quickly be outdated A brand is timeless

A product can be copied by a competitor A brand is unique

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