Branding of Services

What is a brand: What Is the difference between a product and service brands Why do we need to brand a service a. have a changing level of quality, b. The consumer has to become involved in the consumption of a service actively, c.They are intangible and not storable. Examples:

Branding of services
strong brand can not be established over night The development of a brand takes time, strong financial marketing muscle and good marketing skills such as Insight into customer needs, Ability to offer products or services that meet those needs, Creativity to produce exiting and compelling advertising, Ability to communicate differentiation in a way that customers understand and that motivates them. Without this process you do not have a brand but

Benefits of a brand for Sellers Customers

Sellers:
Identifies the companies products, makes Repeat purchases easier Facilitates promotion efforts Fosters brand loyalty stabilizes market share Allows to charge premium prices and thus to get better margins Allows to extend the brand to new products, new markets and to new geographic areas Can communicate directly with the customer, reach over the shoulder of the retailer More leverage with middlemen Is more resistant to price competition Can have a long life Is more forgiving of mistakes

Benefits of a brand for Sellers Customers

Helps identify products Helps evaluate the quality of a product Helps to reduce perceived risk in buying, Provides assurance of quality, reliability etc. Is dependable (consistent in quality) May offer psychological reward (status symbol) rout map through a range of alternatives Saves customer time Is easier to process mentally

Branding Impacts Marketing Mix

The product gets a higher value in the perception of the customers. This influences the pricing policy in the way that often a premium can be charged. The promotional strategy and mix will be different because it is more focused on the brand than on The individual product. For instance the introduction of a new product under an well established Umbrella brand requires a very different promotion campaign than the introduction of a new brand or an unbranded product

Category of brand by ownership

Manf. Brands Initiated and owned by producers Own Label Brands Initiated and owned by resellers Generic Brands Indicates only the product category, does not include the company name or other identificat ion terms Licensed Brands use of names or symbols of other manufacture rs often used in fashion and luxury goods industry Combination

brands (cobranding, cooperation Of two manufacturers of branded goods for ne product

Structure of Brands
Individual brands naming each product different ly Family branding branding all products with the same name Line family brandin g family brand for all products of a line Brand extension branding brands ( cobrand ing , cooperation Of two Manufacturers of branded goods for one product

Brand structure of service industry

Suitability for all types of media to be used Innovativeness of good or service to be branded Compatibility with all products the name shall stand for

Legal issues

Brand Name

Difficulty to imitate

Way in which the name will be used

Degree of differentiation to be achieved

Marketing, A Services Brands

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