Page 306 - Foundations of Marketing

Product, Branding, and Packaging Concepts | Chapter 10 273

letters, words, and numbers—such as 7 UP or V 8 . A brand name is often a product’s only dis-
tinguishing characteristic. Without the brand name, a firm could not differentiate its products.
To consumers, a brand name is as fundamental as the product itself. Indeed, many brand names
have become synonymous with the product, such as Scotch Tape, Xerox copiers, and FedEx
delivery. Through promotional activities, the owners of these brand names try to protect them
from being used as generic names for tape, photocopiers, and overnight shipping.
The element of a brand that is not made up of words—often a symbol or design—is a
brand mark . Examples of brand marks include McDonald’s Golden Arches, Nike’s “swoosh,”
and the stylized silhouette of Apple’s logo. A trademark is a legal designation indicating that
the owner has exclusive use of a brand or a part of a brand and that others are prohibited by
law from its use. To protect a brand name or brand mark in the United States, an organization
must register it as a trademark with the U.S. Patent and Trademark Office. Finally, a trade
name is the full and legal name of an organization, such as Ford Motor Company, rather than
the name of a specific product.

Value of Branding

Both buyers and sellers benefit from branding. Brands help buyers identify specific products
that they do and do not like, which, in turn, facilitates the purchase of items that satisfy their
needs and reduces the time required to purchase the product. Without brands, product selec-
tion would be quite random because buyers could have no assurance that they were purchasing
what they preferred. The purchase of certain brands can be a form of self- expression. For
example, clothing brand names are important to many consumers. Names such as Abercrombie
& Fitch, Polo Ralph Lauren, Hollister, Nike, and GUESS give manufacturers an advantage in
the marketplace. Especially when a customer is unable to judge a product’s quality, a brand
may symbolize a certain quality level to the customer, and in turn, the person lets that percep-
tion of quality represent the quality of the item. A brand helps to reduce a buyer’s perceived
risk of purchase. Customers want to purchase brands they trust, such as Amazon.com, Coca-
Cola, and Walmart’s Great Value brand. In addition, a psychological reward may come from brand mark The part of a brand
owning a brand that symbolizes status such as Mercedes Benz or Porsche. not made up of words
Sellers benefit from branding because each company’s brands identify its products, which trademark A legal designation
makes repeat purchasing easier for customers. Branding helps a firm introduce a new product of exclusive use of a brand
that carries the name of one or more of its existing products because buyers are already famil- trade name Full legal name of
iar with the firm’s existing brands. It facilitates promotional efforts because the promotion of an organization

Entrepreneurship in Marketing

Ideeli Achieves Success through Discounts

In a time when many companies were shutting their The site has 4.5 million registered members and sells
doors, one company began a journey of success. Ideeli an array of products including apparel, home goods, and
is a flash-sale website where buyers are able to purchase accessories. One leveraging factor Ideeli has over com-
designer products for less than what they cost in stores. petitors is its ability to connect small brands with new
The website offers a mix of high-end designer brands consumers. For instance, Ideeli held an interactive con-
along with reasonably priced brands to present options test that allowed consumers to vote on an up and coming
for members. Paul Hurley, co-founder and CEO, has seen brand they thought should be featured on the site. Ideeli
revenue grow more than 40,000 percent since the reces- was able to get its fans involved while simultaneously
sion hit in 2007. Members receive e-mails announcing giving small businesses the chance to sell through the
b
timed discount sales that can reach up to 80 percent. website.

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