The percentage of population or target market who are aware
of the existence of a given brand or company. There are
two types of awareness: spontaneous, which measures the
percentage of people who spontaneously mention a particular
brand when asked to name brands in a certain category; and
prompted, which measures the percentage of people who recognise
a brand from a particular category when shown a list.
A brand is a mixture of attributes, tangible and intangible,
symbolised in a trademark, which, if managed properly, creates
value and influence. "Value" has different interpretations:
from a marketing or consumer perspective it is "the
promise and delivery of an experience"; from a business
perspective it is "the security of future earnings";
from a legal perspective it is "a separable piece of
intellectual property." Brands offer customers a means
to choose and enable recognition within cluttered markets.
Selecting and blending tangible and intangible attributes
to differentiate the product, service or corporation in
an attractive, meaningful and compelling way.
How an organization structures and names the brands within
its portfolio. There are three main types of brand architecture
system: monolithic, where the corporate name is used on
all products and services offered by the company; endorsed,
where all sub-brands are linked to the corporate brand by
means of either a verbal or visual endorsement; and freestanding,
where the corporate brand operates merely as a holding company,
and each product or service is individually branded for
its target market.
Functional or emotional associations that are assigned to
a brand by its customers and prospects. Brand attributes
can be either negative or positive and can have varying
degrees of relevance and importance to different customer
The feelings, beliefs and knowledge that consumers (customers)
have about brands. These associations are derived as a result
of experiences and must be consistent with the brand positioning
and the basis of differentiation.
A comprehensive and systematic examination of all collateral
(both tangible and intangible) which relates to a brand.
The proportion of target customers that recall a brand.
Realization by a consumer of the existence and availability
of a particular product. Brand awareness is a common measure
of marketing communications effectiveness. Unaided awareness
is spontaneous; aided or prompted awareness is when the
name is recognized among others that are listed or identified.
The degree to which a customer is committed to a given brand
in that they are likely to re-purchase/re-use in the future.
The level of commitment indicates the degree to which a
brand's customer franchise is protected form competitors.
The share of a brand-owning business's cashflow that can
be attributed to the brand alone.
The sum of all distinguishing qualities of a brand, drawn
from all relevant stakeholders, that results in personal
commitment to and demand for the brand; these differentiating
thoughts and feelings make the brand valued and valuable.
Brand Equity Protection
Is the implementation of strategies to reduce risk and liability
from the effects attributable to counterfeiting, diversion,
tampering and theft so that the differentiating thoughts
and feelings about the brand are maintained and remain valued
The brand's promise expressed in the simplest, most single-minded
terms. For example, Volvo = safety; AA = Fourth Emergency
Service. The most powerful brand essences are rooted in
a fundamental customer need.
The exposure of a brand to a broader target customer market,
geographic market, or distribution channel.
The means by which a brand is created in the mind of a stakeholder.
Some experiences are controlled such as retail environments,
advertising, products/services, websites, etc. Some are
uncontrolled like journalistic comment and word of mouth.
Strong brands arise from consistent experiences which combine
to form a clear, differentiated overall brand experience.
Leveraging the values of the brand to take the brand into
Ensuring that all products in a particular brand range have
a consistent name, visual identity and, ideally, positioning
across a number of geographic or product/service markets.
The outward expression of the brand, including its name
and visual appearance. The brand's identity is its fundamental
means of consumer recognition and symbolizes the brand's
differentiation from competitors.
The customer's net "out-take" from the brand.
For users this is based on practical experience of the product
or service concerned (informed impressions) and how well
this meets expectations; for non-users it is based almost
entirely upon uninformed impressions, attitudes and beliefs.
The leasing by a brand owner of the use of a brand to another
company. Usually a licensing fee or royalty rate will be
agreed for the use of the brand.
The strength of preference for a brand compared to other
similar available options. This is often measured in terms
of repeat purchase behavior or price sensitivity.
Practically, this involves managing the tangible and intangible
aspects of the brand. For product brands the tangibles are
the product itself, the packaging, the price, etc. For service
brands (see Service Brands), the tangibles are to do with
the customer experience - the retail environment, interface
with salespeople, overall satisfaction, etc. For product,
service and corporate brands, the intangibles are the same
and refer to the emotional connections derived as a result
of experience, identity, communication and people. Intangibles
are therefore managed via the manipulation of identity,
communication and people skills.
See Brand Platform.
A measure of how similar, or different, different brands
in the same category are perceived to be. Brand parity varies
widely from one category to another. It is high for petrol,
for example: about 80% of respondents (BBDO survey) see
no real difference between brands. By contrast, brand parity
for cars is low: only about 25% of respondents say that
one make is much the same as another.
The attribution of human personality traits (seriousness,
warmth, imagination, etc.) to a brand as a way to achieve
differentiation. Usually done through long-term above-the-line
advertising and appropriate packaging and graphics. These
traits inform brand behavior through both prepared communication/packaging,
etc., and through the people who represent the brand - its
The Brand Platform consists of the following elements:
Brand Vision: The brand's guiding insight
into its world.
Brand Mission: How the brand will act on
Brand Values: The code by which the brand
lives. The brand values act as a benchmark to measure behaviors
The distinctive position that a brand adopts in its competitive
environment to ensure that individuals in its target market
can tell the brand apart from others. Positioning involves
the careful manipulation of every element of the marketing
Brand Positioning Statement
A statement that describes the “place” that
a brand should occupy in the minds of target customers.
Focuses on the equities that meaningfully set a brand apart
from the competition. Typically constructed in the following
format: “To (target market), Brand X is the brand
of (frame of reference) that (point of difference).”
E.g. “to the brand of (frame of reference) that (point
of difference).” E.g. “to caffeine-concerned
coffee drinkers, Sanka is the brand of coffee that has no
caffeine to upset you.”
A measure of the ability of the brand to dominate its product
The alignment of a brand - its attributes, identity and
personality with the primary needs/wants of its target audience.
A plan for the systematic development of a brand to enable
it to meet its agreed objectives. The strategy should be
rooted in the brand's vision and driven by the principles
of differentiation and sustained consumer appeal. The brand
strategy should influence the total operation of a business
to ensure consistent brand behaviors and brand experiences.
Brand Tone of Voice (See
also Brand Platform)
How the brand speaks to its audiences.
(See also Brand Platform)
The process of identifying and measuring the economic benefit
- brand value - that derives from brand ownership.
Brand Values The code by which the brand lives. The brand
values act as a benchmark to measure behaviors and performance.
Brand Value Proposition
The functional, emotional, and self-expressive benefits
delivered by the brand that provides value to the customer:
provides the rationale for making one brand choice over
(See Brand Platform)
The use of two or more brand names in support of a new product,
service or venture.
Consumer Product Goods
(Consumer goods or services purchased for private use or
for other members of the household.
Relates to a company's particular areas of skill and competence
that best contribute to its ability to compete.
At a minimum, is used to refer to the visual identity of
a corporation (its logo, signage, etc.), but usually taken
to mean an organization's presentation to its stakeholders
and the means by which it differentiates itself from other
When an organization or individual produces a product that
looks like a branded product and is packaged and presented
in a manner to deceive the purchaser.
Country of Origin
The country from which a given product comes. Customers'
attitudes to a product and their willingness to buy it tend
to be heavily influenced by what they associate with the
place where it was designed and manufactured.
All distinguishing, distinctive, typical or peculiar characteristics
and circumstances or customers that can be used in market
segmentation to tell one group of customers from another.
Customer Relationship Management
Tracking customer behavior for the purpose of developing
marketing and relationship-building processes that bond
the consumer to the brand. Developing software or systems
to provide one-to-one customer service and personal contact
between the company and the customer.
The way in which the brand meets its customers' needs via
its various different channels (for example, over the telephone
or Internet in the case of remote banking, or in person
in the case of retail or entertainment).
The description of outward traits that characterize a group
of people, such as age, sex, nationality, marital status,
education, occupation or income. Decisions on market segmentation
are often based on demographic data.
Differential Product Advantage
A feature of a product that is valuable to customers and
is not found in other products of the same category.
Creation or demonstration of unique characteristics in a
company's products or brands compared to those of its competitors.
Any tangible or intangible characteristic that can be used
to distinguish a product or a company from other products
When genuine product is sold to a buyer in one market/channel
and then resold by the same buyer into another market/channel,
without the consent or authority of the brand owner, to
take advantage of a price arbitrage situation. Definition
also applies to parallel trade, gray market or gray market
(See Brand Architecture)
Generally a product or service brand name that is supported
by a masterbrand - either dominantly e.g. FedEx Ground or
lightly e.g. Nestle Kit-Kat.
Fast moving consumer goods. An expression used to describe
frequently purchased consumer items, such as foods, cleaning
products and toiletries.
A qualitative research technique in which a group of about
eight people is invited to a neutral venue to discuss a
given subject, for example hand-held power tools. The principle
is the same as an in-depth interview, except that group
dynamics help to make the discussion livelier and more wide-ranging.
Qualitative groups enable the researcher to probe deeper
into specific areas of interest (for example, the nature
of commitment to a brand). The result adds richer texture
to the understanding of broader data (for example, quantitative),
which may paint general trends or observations. Also known
as a group discussion.
(See Brand Architecture)
A brand name and identity used for a single product or service
in a portfolio, which is unrelated to the names and identities
of other products in the company's portfolio.
Functionality What a product does for the buyer and user;
the utility it offers the user; what he or she can do with
A product consisting predominantly of tangible values. Almost
all goods, however, have intangible values to a greater
or lesser extent.
(See Focus Group)
A term with vague and far-reaching meaning. This covers
electronics, data technology, telecommunications, medical
technology and bio-chemistry. In order to be classed as
a high tech company, one definition is that at least 35
percent of staff should have a technical qualification,
and at least 15 percent of sales should be used for R&D.
Another definition states that the company must employ twice
as many scientists and engineers and invest twice as much
in R&D as the average of all manufacturing companies
in the country.
"Intangible" - incapable of being touched. (1)
Intangible assets - trademarks, copyrights, patents, design
rights, proprietary expertise, databases, etc. (2) Intangible
brand attributes - brand names, logos, graphics, colors,
shapes and smells. (See Service Brand .)
The initial marketing of a new product in a particular market.
The way in which the launch is carried out greatly affects
the product's profitability throughout its lifecycle.
A company that has achieved a dominant position - either
in scale (e.g., United Airlines) or influence (e.g., jetBlue)
- within its field. This leading position often comes about
because the company was the first to market a certain type
of product and, with the protection of a patent, has managed
to consolidate its position before direct competition was
possible. Alternatively, a company may overtake a previous
market leader through greater efficiency and skilful positioning.
A measure of the position of a company or product on a market.
Defined as market share multiplied by share of mind.
A group of customers who (a) share the same needs and values,
(b) can be expected to respond in much the same way to a
company's offering, and (c) command enough purchasing power
to be of strategic importance to the company.
A company's share of total sales of a given category of
product on a given market. Can be expressed either in terms
of volume (how many units sold) or value (the worth of units
Simultaneous standardized marketing to a very large target
market through mass media. Other names for this are market
aggregation and undifferentiated marketing.
A brand name that dominates all products or services in
a range or across a business. Sometimes used with sub-brands,
sometimes used with alpha or numeric signifiers. (See also
Monolithic Brand.) Audi, Sony, Nescafe and Lego, for example,
are all used as masterbrands.
A single brand name that is used to "masterbrand"
all products or services in a range. Individual products
are nearly always identified by alpha or numeric signifiers.
Companies like Mercedes and BMW favor such systems.
Marketing of two or more mutually competing products under
different brand names by the same company. The motive may
be that the company wishes to create internal competition
to promote efficiency, or to differentiate its offering
to different market segments, or to get maximum mileage
out of established brands that it has acquired. When a company
has achieved a dominant market share, multibrand strategy
may be its only option for increasing sales still further
without sacrificing profitability. For example, Mars sells
chocolates under the M&Ms, Snickers & Twix.
There are three basic categories of brand (or corporate)
Descriptive Name: A name which describes
the product or service for which it is intended, e.g., Yellow
Associative Name: Aname which alludes to
an aspect or benefit of the product or service, often by
means of an original or striking image or idea, e.g., Visa.
Freestanding Name: A name which has no
link to the product or service but which might have meaning
of its own, e.g., Penguin.
Abstract Name: A name which is entirely
invented and has no meaning of its own, e.g., Zeneca. Abstract
names are a sub-set of freestanding names because they also
have no link to the product of service.
Coined Name: Any name which is in some
way invented. Coined names can be descriptive (Co-create),
associative (Imation) and freestanding/abstract (Zeneca).
Marketing adapted to the needs, wishes and expectations
of small, precisely defined groups of individuals. A form
of market segmentation, but aimed at very small segments.
Niche marketing characteristically uses selective media.
OEM stands for Original Equipment Manufacturers. The OEM
market consists of companies that use another company's
product as a component in their own production. A manufacturer
of ball bearings, for example, sells both to OEM customers
who build the bearings into machines, and to end users who
need the bearings as spare parts for machines that they
have bought from the OEMs. Most manufacturing companies
thus have an OEM market and a replacement market. The latter
is usually called the MRO market or aftermarket.
What a company offers for sale to customers. An offering
includes the product and its design, features, quality,
packaging, distribution, etc., together with associated
services such as financing, warranties and installation.
The name and brand of the product are also part of the offering.
The design of the pack format and graphics for a product
A brand that acts as an endorsement to one or more sub-brands
within a range.
The name given to a legal action brought to protect the
"reputation" of a particular trademark/brand/get
up. In essence, the action is designed to prevent others
from trading on the reputation/goodwill of an existing trademark/brand/get
up. The action is only available in those countries that
recognize unregistered trademark rights (for example the
UK and US). In some countries, it is called "unfair
Graphic Analysis and presentation of where actual and potential
customers place a product or supplier in relation to other
products and suppliers. Most perceptual maps show only two
dimensions at a time, for example price on one axis and
quality on the other. There also are methods of graphically
analyzing and presenting measurement data in three or more
A written description of the position that a company wishes
itself, its product or its brand to occupy in the minds
of a defined target audience.
A strategy in which every product in a company's range has
its own brand name which functions independently, unsupported
by either the company's corporate brand or its other product
brands. Power branding is a resource-intensive strategy,
since each brand must be commercially promoted and legally
protected. This strategy is used mainly by manufacturers
of consumer goods. Procter & Gamble's detergents are
good examples of power brands.
A brand which is synonymous with a particular product offering,
for example, Cheerios.
When a brand owner revisits the brand with the purpose of
updating or revising based on internal or external circumstances.
Rebranding is often necessary after an M&A or if the
brand has outgrown its identity/marketplace.
Relative Market Share
Your own company's market share compared to those of your
competitors. A large share confers advantages of scale in
product development, manufacturing and marketing. It also
puts you in a stronger position in the minds of customers,
which has a positive influence on pricing.
Reintroducing a product into a specific market. The term
implies that the company has previously marketed the product
but stopped marketing it. A relaunched product has usually
undergone one or more changes. It may, for example, be technically
modified, rebranded, distributed through different channels
Communications activities to give an existing product a
new position in customers' minds and so expanding or otherwise
altering its potential market. Many potentially valuable
products lead an obscure existence because they were launched
or positioned in an inadequate manner. It is almost always
possible to enhance the value of such products by repositioning
The process by which a company introduces a new product
or service to different geographical markets or consumer
Media that, unlike mass media, reach only small and identifiable
groups of people, for example, members of a particular profession
or industry or other groups defined by geographic, demographic
or psychographic data (otherwise known as targeted media).
A product consisting predominantly of intangible values.
"A service is something that you can buy and sell,
but not drop on your foot" (The Economist). In this
sense, a service is something that you do for somebody,
or a promise that you make to them.
Share of Mind
There are many definitions of share of mind. At its most
precise, share of mind measures how often consumers think
about a particular brand as a percentage of all the times
they think about all the brands in its category. More loosely,
share of mind can be defined simply as positive perceptions
of the brand obtained by market research. Whereas market
share measures the width of a company's market position,
share of mind can be said to measure its depth.
Share of Voice
The media spending of a particular brand when compared to
others in its category.
A product or service brand that had its own name and visual
identity to differentiate it from the parent brand.
A slogan or phrase that visually conveys the most important
company, product or service attribute or benefit that an
organization wishes to convey. Generally, a theme to a campaign
or core essence of a brand identity. There are two types
of tag lines; a positioning tag line and a promotional tag
line. Unlike the traditional promotional tag line which
is more of an advertising slogan, the positioning tag line
establishes and immediate context for the brand, and especially
the brand name.
"Tangible" - capable of being touched. (1) Tangible
assets - manufacturing plant, bricks and mortar, cash, investments,
etc. (2) Tangible brand attributes - the product and its
packaging. (3) Tangible brand values - useful qualities
of the brand known to exist through experience and knowledge.
The market segment or group of customers that a company
has decided to serve, and at which it consequently aims
its marketing activities.
What is present in the uppermost level of consciousness;
the manufacturer or brand that people in market surveys
name first when asked to list products in a specific category.
Top-of-mind is the highest degree of share of mind. To attain
that position, a company normally needs to have a large
share of voice in its category.
"Any sign capable of being represented graphically
which is capable of distinguishing goods or services of
one undertaking from those of another undertaking"
(UK Trade Marks Act 1994).
A trademark registration is infringed by the unauthorized
use of the registered trademark, or of one that is confusingly
similar to it, on the registered goods or services, or in
certain circumstances on similar or dissimilar goods and
Trendsetter Someone or thing that breaks a traditional mold
or routine and gains a following because of it. iMac is
an example of trendsetting in design as now office supplies
come in the familiar colors and translucent packaging of
Division of potential customers into market segments according
to how and for what purpose they use a product. Do they
use it for cleaning their teeth or for making cakes (baking
soda)? For oiling their hair or for frying food? (True story
concerning use of Brylcreem in Nigeria). As a decongestant
chest rub or as an aphrodisiac? (True story concerning Ribby
Rub in Caribbean).
What a brand looks like - including, among other things,
its logo, typography, packaging and literature systems.
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