Learning Resource

Branding Elements
Kong Ding Chek / E+ Collection / Getty Images

Brands have value, both to consumers and to firms. Branding elements are the foundation of a branding
strategy and help distinguish a brand from its competitors. These elements include brand names,
characters, logos, music, sounds, signage, slogans, symbols, packaging, and URLs that are important in
branding.

Marketers choose brand elements to build brand loyalty and brand equity. Brand personality, brand
image, brand identity, brand differentiation, brand positioning, and brand communication all play roles in
distinguishing a brand. Analysis of these elements allows marketers to understand the performance and
value of a particular brand.

What Is a Brand?
When a marketer, or anyone engaged in commerce, creates a new name or identifying feature for a
product (e.g., symbol, logo, sound), he or she has created a brand (Keller, 2013). To be more specific, the
American Marketing Association's (AMA) definition of "brand" is a "name, term, design, symbol, or any
other feature that identifies one seller's goods as distinct from those of other sellers" (AMA, 2017).
Brands also have value. A brand is an intangible asset intended to create associations in the minds of
stakeholders and generate economic value (AMA, 2017).

A brand is more than a product because a brand has elements that differentiate it in some way from
other products designed to meet the same need.

The category of "product" that may be branded is broad in scope. A branded product may be a physical
good such as General Mills Honey Nut Cheerios cereal or a Ford F-150 Lightning electric pickup truck; a
service such as JetBlue airline, Ally Bank, Uber Eats; a store such as Best Buy, Costco, Target, or
Walmart; a person such as Beyonce, Lady Gaga, or Dwayne "The Rock" Johnson; a place such as Paris, a
state such as Texas, a country such as Ireland; an organization such as the Gates Foundation. Even an
idea could be branded, such as corporate social responsibility, free trade, or free speech (Keller, 2013).

Can anything be branded? Going back to the AMA definition, the essential element is whether the brand
resides in the mind of the consumer as different from competitors. What does that mean for
commodities, products so basic they cannot be physically differentiated from one another (e.g., salt,
water, bananas, flour, coffee)?
Surprisingly, there have been many success stories in the branding of commodity products. Perrier
convinced consumers its water is distinctly different. Chiquita has done the same for bananas. Morton
found success in branding salt. What makes these brands valuable is that consumers are convinced there
are meaningful differences in quality. Even commodities can become valuable brands (Keller, 2013).

The key to creating a brand, according to the AMA definition, is to choose a name or symbol that that
identifies the product and differentiates or distinguishes it from others. How that is done is through
brand elements (Keller, 2013).

Brand Elements

Marketers seek to establish brand awareness, positive associations, and enhance recall by using brand
elements. Brand elements are trademarkable devices such as brand names, characters, jingles, logos,
sounds, signage, slogans, symbols, packaging, and URLs.

Choosing brand elements is critical for a successful branding strategy. How does the marketer know
which brand element is the right "tool" for the job? There are six criteria marketers can use to evaluate
brand elements (Keller, 2013).

1. Memorable: Does this element make the brand easily recognized and recalled?
2. Meaningful: Is the element descriptive and/or persuasive?
3. Likeable: Is the element pleasing to the consumer?

4. Transferable: Does the element work across the category and the globe?
5. Adaptable: Is the element flexible to still be relevant into the future?
6. Protectable: Is the element legally and competitively protectable?
It's difficult to find one brand element that would satisfy all six criteria. Some elements are better than
others at being memorable for brand recognition (e.g., brand names, logos), but those elements have
limits on transfer or are difficult to adapt over time. Other elements may be preferable for likeability
(e.g., characters) but may be less transferable. The more meaningful a brand element (e.g., slogans,
jingles), the less transferable that meaning may be to other cultures or adaptable the element may be
over time.

Apple has been ranked the world's most valuable brand (Interbrand, 2021). What brand elements does
Apple use to maintain its brand dominance? First, the brand name is unique. It has nothing to do with
technology. Rumor has it Steve Jobs came up with the name related to an apple garden (Perch, 2020).
It's fun, likeable, and memorable. There is meaningful product naming. The iPhone and other products
owe part of their success to the naming convention that began with the first iMac. From then on, it was
understood that an "I" product connected you to the internet.

The Apple logo is instantly recognizable, so much so it no longer needs to appear in the original
multicolor stripes. The most memorable Apple slogan, "Think Different," set Apple apart for being willing
to take a risk with its marketing as well as grammar.

Design and packaging of Apple products is memorable. A specific palate emphasizes minimalism and the
color white. Signage is a silver apple on white or clear background. All these brand elements set Apple
apart by working together to make the brand identifiable without an introduction (Perch, 2020). Apple
has a sonic signature known as the Mac start-up chime for which it obtained a trademark (Clover, 2012).
When you see or hear Apple, you know it. The mix of brand elements make this recognition happen.

Marketers choose brand elements to build brand loyalty and brand equity. Brand personality, brand
image, brand identity, brand differentiation, brand positioning, brand communication all play a role in
distinguishing a brand.
Brand Personality
Aside from just being likeable, successful brands acquire a distinct brand personality over time; a
personality is a set of human characteristics that is associated those brand name. Consumers associate
specific products with human personality traits—for example, rugged, romantic, rebellious, or
sophisticated—and choose those brands that are more in line with their "desired self-image" (Kerin &
Hatley, 2017). Marketers can instill a brand with a personality; for example, Pepsi's personality traits
include exciting and young, while Coca-Cola is real and all-American. On the other hand, Harley-
Davidson portrays defiance, masculinity, and individualism (Kerin & Hartley, 2017).

The five key dimensions of brand personality include the following (Kawamoto, 2017):

brand competence: Is the company branding its expertise? The attributes represented by this brand
personality are success, intelligence, expertise, and reliability.
brand sincerity: Does the company have a genuine brand? The attributes represented by this brand
personality are honesty, wholesomeness, genuineness, and cheerfulness.
brand excitement: How daring is the company's brand? The attributes represented by this brand
personality are daring, playfulness, spirit, and imagination.
brand sophistication: Would James Bond ever use the company's brand? The attributes represented
by this brand personality are poise, elegance, and charm.
brand toughness: Can the company's brand stand against the competition? The attributes
represented by this brand personality are potency, forcefulness, power, and ruggedness.

Brand Image
The American Marketing Association (AMA) (n.d.-b) defines brand image as the "perception of a brand in
the minds of persons. The brand image is a mirror reflection (though perhaps inaccurate) of the brand
personality or product being. It is what people believe about a brand—their thoughts, feelings,
expectations."

There are two conventional—but incorrect—wisdoms about brand image (Johansson, 2009):

1. Brands are only important for luxury products. The typical reasoning behind this misconception is
that luxury products are hedonic (i.e., not bought for functional utility).
2. Brands are not at all important for B2B products. The typical reasoning behind this misconception is
that business buyers are coldly rational and are not influenced by emotions.

Research has shown that even utilitarian product choices are influenced by brands, and the driving force
is competition. When competition is intense, all products will soon offer equal functional advantages
(benchmarking, "me-too" strategies, follow-the-leader, etc.). Accordingly, the one sustainable advantage
is the brand image. Remember, anything can be differentiated and branded, even a commodity
(Johansson, 2009).

Brand Identity
Brand identity refers to the distinct and relatively lasting characteristics of a brand. A brand tends to
have an appealing and solid identity when consumers perceive its identity as more distinct and
prestigious (Bhattacharya & Sen, 2003).

Brand identity is often confused with the brand element of the company brand name or logo. However,
the identity includes so much more. Think of brand identity as all the brand elements that convey trust
and relevance. Brand identity is based on a company's core values, and building a brand identity takes
years. It must be nurtured over time, and it's hard work (Jansen, 2018a). Brand identity is a promise, and
that promise must be kept continually.

A strong brand identity can help a company succeed (e.g., Apple and Amazon). This success requires a
strong focus and strict brand guidelines to maintain the company's brand and keep it elevated in the face
of the changing market forces. In order to do this, companies are advised to heed the following
guidelines (Jansen, 2018b):

Keep things simple and focus on their core values.

Be flexible and adapt to changing market trends.

Follow data but do not ignore emotion.

Do not jump on market trends without thinking of the bigger picture.
Do not wait too long to rebrand.
Do not ignore market trends.

It is generally thought that Kodak, once one of the most valuable brands in the world, missed an
opportunity in the era of digital disruption. Was it a strategic error or simply a rebranding misstep? Some
think Kodak owned the right technology, but simply gave it the wrong name (Anthony, 2016).

Brand Differentiation
Building a strong brand is crucial to success in today's business world, and strong differentiation is
necessary to build a compelling and powerful brand. Brand differentiation is the means by which a
company's brand is set apart from its competition, by associating a superior performing aspect of its
brand with multiple consumer benefits (Carter, 2014).
Be different, yet intriguing.
 Compassionate Eye Foundation / Stone / Getty Images

Brand differentiation is related to a company's corporate reputation. Consumers are attuned to elements
of reputation in the buying process that equate to good customer service; these include packaging,
prompt response to problems, and product-specific comments. These elements not only provide a way
for the company to improve its reputation, but also help it appear favorably compared to competitors
(Vahabzadeh et al., 2017). A brand has an opportunity to enhance its image by engaging in technological
innovation and promotion. Consumers are companies' most important reputation asset (Vahabzadeh et
al., 2017).

In this era of globalization and hypercompetition, companies need to rethink the way that they manage
their customer portfolio, as well as how they interact with their customers. Fader (2012) stresses that
customers are an asset (customer equity) that should have a place on a company's balance sheet. The
author defines customer equity as "the sum of the customer lifetime values across a firm's entire
customer base" (p. 62). Since every company's objective is to maximize its overall equity and since
customers are perceived as an asset (customer equity) that is an integral part of the company's overall
equity, the company should dedicate the necessary resources to maximize its customer equity (Fader,
2012).

Employees can also enhance a company's reputation, and many companies use that reputation to
develop strategic value. Attributes include corporate social responsibility, innovativeness, and honest
communication, which customers see as enhancing the products (Vahabzadeh et al., 2017).

Brand Positioning
Brand positioning is the designing of a company's offering and image to occupy a distinct place in the
mind of the target customers (Kotler & Keller, 2015). Brand positioning is the sum of all the marketing
activities that position the brand in the target customers' minds relative to the competition. Positioning
does not create something new or different, but rather manipulates the mindset (Ries & Trout, 2001).

Positioning is a crucial stage in a brand management strategy. A good brand positioning strategy helps in
the development of new products, communication, market expansion, pricing, and the selection of the
distribution channels (Fayvichenko, 2018). Brand positioning creates an image for the brand, with
positive associations (Fayvichenko, 2016). Today, brand positioning is perceived as a process that begins
with the design of a trademark position; however, it is "difficult to specify the essence of positioning
when its ultimate goal is not clearly understood" (Fayvichenko, 2018, p. 245). To understand the essence
of brand positioning, it is crucial to determine the ideal position of the brand. A clear representation of
the ideal position of a brand is a "prerequisite for researching positioning as a target process and
developing a system for evaluating its effectiveness" (Fayvichenko, 2018, p. 245).

Ideally, a brand will be positioned so that the customer has positive associations with a brand, is
convinced of its unique advantages over other brands, and considers the brand to be of high value or a
necessity. This brand-supporting customer is convinced that people who buy other brands are making
the wrong choice, considers it a duty to recommend this brand to other consumers, and feels a spiritual
unity with consumers who have chosen this brand (Kendukhov, 2008).

Accordingly, Kendukhov (2008) perceives brand positioning as a process of managing the perception of a
brand by a customer. The purpose of this process, according to Fayvichenko, is "persuasion of the
consumer in the unique advantages of this trademark over other brands; formation of the consumer's
exclusive affiliates with this trademark; formation of the consumer's sense of the indispensability and
vital necessity of the brand; formation of fanatical devotion to the brand; raising a sense of duty to
recommend this brand to other consumers; forming a sense of spiritual unity with consumers who chose
this brand; forming a belief in the consumer that other consumers who buy goods under other brands
make the wrong choice" (Fayvichenko, 2018, p. 246).

Brand Communication
Brand communication involves communicating a company's values and core benefits to the customer
and to its employees. Even strong brands must continually communicate in order to build and maintain
value. Successful brand communication involves both satisfied customers and enthusiastic employees.
At one time, companies could reply on PR and advertising for communicating their brand value. In
today's social media environment, customers and employees continually define brand reputation. Brand
trust is formed only "when the customers receive a consistent and credible brand experience"
(BrandTrust, 2018). Employees can credibly communicate the brand's values and positioning. Brand
communication directly affects the value of a company's brand (BrandTrust, 2018).

Social media provides an array of constantly changing brand communication tools in the corporate
world, which play a crucial role in how customers research and share information and learn about their
brands. Similarly, companies use social media networks for the advertising and sponsorship of their
products and services brands in order to develop trust and create and sustain relationships with their
customers (Khadim et al., 2018).
VioletaStoimenova / E+ Collection / Getty Images

Social media comprises well-built platforms that have a significant and substantial impact on brand
loyalty. Customers use social media as a tool to communicate and respond quickly to each other at any
time (that information moves much faster on social media compared to traditional media). In addition,
social media allows a company to send its brand messages to multiple audiences and collect their
recommendations. This feature is crucial, as markets and customer preferences, needs, and wants
change quickly, especially in this era of globalization. Social media allows a company to judge how its
customers think about its brand and what they want from it. It also enables the company to make
improvements to its brand and think forward to anticipate changes in customer needs and preferences
(Khadim et al., 2018).

Brand Loyalty
Consumers usually benefit from branding, and trademarks may help them shop more efficiently, as they
avoid brands they dislike and buy the brands they like most. Brand loyalty is a favorable perception of,
and the consistent buying of, a certain brand over time.

The marketplace has been dramatically changing in the past decade thanks to advanced and cheaper
communications technologies, which enable consumers to make better choices and share their buying
experiences with others, worldwide. Consumers are now increasingly dependent on the internet to
acquire information and compare brands before buying. Consumers can easily shift brands if they
believe that they have not been treated fairly by a certain company (Kotler & Keller, 2015).
Eva-Katalin / E+ Collection / Getty Images

Brand Equity
AMA (n.d.-a) defines brand equity as "the value of a brand. From a consumer perspective, brand equity
is based on consumer attitudes about positive brand attributes and favorable consequences of brand
use."
According to Johansson (2009), brand equity is "the value of the positive associations that consumers
have with a product's brand name. These associations often involve emotional attachments, affinity,
positive brand image, and brand identity. They also involve cognitive factors such as familiarity,
knowledge and perceived quality, as well as social factors including peer-group acceptance. When these
associations turn negative (as in antiglobalization sentiments against global brands), the brand equity can
go down very quickly."

Brand equity is basically the added value that a brand gives to a product beyond the functional benefits
that it provides. Brand equity provides competitive advantages; for example, Mercedes-Benz implies
quality. A second advantage is that consumers are willing to pay more for a product with a brand equity.
Here, brand equity is represented by the premium that a consumer is willing to pay for a certain brand
over another when both brands provide similar functional benefits. Acura, Infinity, and Lexus cars enjoy
a price premium that arises from their brand equity (Kerin & Hartley, 2017).

Brand equity takes time to develop and is carefully crafted and nurtured by marketers who forge unique,
strong, and favorable experiences and associations with the brand. Brand equity resides in the
consumers' minds, and results from what they have seen, heard, felt, and learned about the brand over
time. Brand equity is not quickly or easily achieved (Kerin & Hartley, 2017).

Financial brand equity is the monetary value of a brand in terms of net revenues the brand is expected
to generate over time, across all country markets. The set of assets linked to a brand name include the
following (Johansson, 2009):

brand name awareness

brand loyalty
perceived quality
 brand associations (in the consumer's mind)

Financially lucrative brand licensing agreements may arise from brand equity. Successful brand licensing
needs a thorough marketing analysis to ensure compatibility between the licensor's brand and the
licensee's products. Companies such as Ralph Lauren, Disney, and Luxottica eyewear earn millions every
year from licensing their brand names to others (Kerin & Hartley, 2017).

Global Brands
Why are global brands often the most valuable assets of a company? Global brands are important
because product differentiation is difficult to sustain. Accordingly, global brands become the most
sustainable competitive advantage. Global brands have become more important because financial brand
equity is strongly correlated with global reach (Johansson, 2009).

Global brands often become beacons for their product categories. If you are successful at integrating
your brand with a product category, your brand will become synonymous with the product resulting in
what is known as "top of mind awareness." For instance, when you think of soft drinks, you probably
think immediately of Coke even if it isn't your preferred beverage. You might also think of 7-Eleven
when you think of convenience stores even if that isn't the name of your local store.  
Suriyapong Thongsawang / Moment / Getty Images

Brand Integration
Your brand will create resonate more and develop more awareness if you properly integrate other
elements of the value offering ("product") component of the marketing mix. You've worked hard to
create a strong brand; be sure to integrate it into your offerings. You'll want your name and logo to be
apparent. Your brand differentiates your offering from others in a visual and emotional way. Customers
use your images, terms, and combinations of the two to separate you from your competition.  

Your brand images such as logos can reinforce your position in the marketplace. Your logo, slogans, and
name should add to your product.

When you add such items to your packaging, you create another message touchpoint with your
customers. "Wrap rage" was a term coined by those customers that felt they were spending so much
time trying to open products with overly aggressive packaging that it created a sense of "rage" just
opening the item (Morales, 2004). Amazon responded by creating "frustration-free" packaging that
allows customers to open their packages without knives or scissors.

Beyond packaging, many companies integrate their brand by building additional communication into the
labels or packaging. For instance, inside each Snapple lid you will find a Snapple fact that has become
part of the Snapple experience. Even small businesses will brand their checkout bags. There is no doubt
that the visual connections that consumers make with brands are very powerful.

Here are a few examples of brands that have immediate recognition for their logos:

BMW: This logo is often thought to be a propeller due to the history of the company's contribution to
the German Air Force, but that has been debated over time. Still, the connection is there along with the
obvious connection to the Bavarian colors reflecting the company's namesake (BMW, n.d.).

Nike
 Amazon

Google
Facebook

UPS
LEGO

YouTube
IKEA

Dunkin Donuts

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