Brand vocabulary
Awareness 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.
Brand 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.
Brand Architecture 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.
Brand Associations 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.
Brand Commitment 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.
Brand Earnings The share of a
brand-owning business's cashflow that can be attributed to the brand alone.
Brand Equity 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 and valuable.
Brand Essence 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.
Brand Experience 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.
Brand Extension Leveraging the
values of the brand to take the brand into new markets/sectors.
Brand Harmonisation 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.
Brand Identity 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.
Brand Image 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.
Brand Licensing 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.
Brand Management 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.
Brand Mission See Brand Platform.
Brand Parity 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.
Brand Personality 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 employees.
Brand Positioning 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 mix.
Brand Strategy 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 Brand Platform.
Brand Valuation 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. (See also Brand Platform.)
Brand Vision See Brand Platform.
Branding Selecting and
blending tangible and intangible attributes to differentiate the product,
service or corporation in an attractive, meaningful and compelling way.
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Consumer Product Goods (consumer
goods) or services (consumer services) purchased for private use or for other
members of the household.
Core Competencies Relates to a
company's particular areas of skill and competence that best contribute to
its ability to compete.
Corporate Identity 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
organizations.
Counterfeiting 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.
Customer Characteristics 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 (CRM) 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.
Customer Service 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).
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Demographics 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.
Differentiation Creation or
demonstration of unique characteristics in a company's products or brands
compared to those of its competitors.
Differentiator Any tangible or
intangible characteristic that can be used to distinguish a product or a
company from other products and companies.
Diversion 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 activities.
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FMCG Fast moving consumer goods. An expression used to describe frequently purchased consumer items, such as foods, cleaning products and toiletries.
Focus Group 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.
Freestanding Brand (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 it.
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Goods A product consisting predominantly of tangible values. Almost all goods, however, have intangible values to a greater or lesser extent.
Group Discussion See Focus Group.
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High Technology (high tech) 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. |
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Intangibles "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.)
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Market Leader A company that has achieved a dominant position - either in scale (e.g., British Airways) or influence (e.g., Virgin) - 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.
Market Position A measure of the
position of a company or product on a market. Defined as market share
multiplied by share of mind.
Market Segment 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.
Market Share 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 sold).
Mass Marketing Simultaneous
standardized marketing to a very large target market through mass media.
Other names for this are market aggregation and undifferentiated marketing.
Masterbrand 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, Durex, Nescafe and Lego, for
example, are all used as master brands.
Monolithic Brand 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.
Multibrand Strategy /Multiple Branding 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, multbrand strategy may be its only option for increasing sales still
further without sacrificing profitability. For example, Lever Brothers sells
washing powders under the Persil, Omo and Surf names; Cadbury sells
chocolates under the Dairy Milk, Bournville and Fruit & Nut names; Heinz
sells canned convenience foods under the Baked Beans, Spaghetti Hoops and
Alphabetti Spaghetti names.
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Names There are three
basic categories of brand (or corporate) name:
The following are also helpful:
Niche Marketing 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.
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OEM market 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.
Offering 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.
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Packaging Design The design of
the pack format and graphics for a product brand.
Parent Brand A brand that
acts as an endorsement to one or more sub-brands within a range.
Passing Off 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 competition action."
Perceptual Mapping 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 dimensions.
Positioning Statement 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.
Power Branding 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. Lever's and
Procter & Gamble's detergents are good examples of power brands.
Product Brand A brand which is
synonymous with a particular product offering, for example, Cheerios.
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Rebrand 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.
Relaunch 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 or
repositioned.
Repositioning 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 them.
Rollout The process by
which a company introduces a new product or service to different geographical
markets or consumer segments.
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Selective Media 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).
Service Brand 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.
Sub-brand A product or
service brand that had its own name and visual identity to differentiate it
from the parent brand.
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Tangibles "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.
Target Market The market
segment or group of customers that a company has decided to serve, and at
which it consequently aims its marketing activities.
Top-of-Mind 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.
Trademark "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).
Trademark Infringement 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 services.
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 an iMac.
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User Segmentation 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 powder)? 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).
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(Collected From brandchannel)
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