Brand Elements

Brand elements are devices, which can be trademarked, that identify and differentiate the

brand. Most strong brands employ multiple brand elements. Nike has the distinctive “swoosh”

logo, the empowering “Just Do It” slogan, and the “Nike” name from the Greek winged goddess

of victory. Marketers should choose brand elements to build as much brand equity as possible.

The test is what consumers would think or feel about the product if the brand element were all

they knew. Based on its name alone, for instance, a consumer might expect SnackWell’s

products to be healthful snack foods and Panasonic Toughbook laptop computers to be durable

and reliable.

Brand Element Choice Criteria

There are six criteria for choosing brand elements. The first three—memorable, meaningful, and

likable—are “brand building.” The latter three—transferable, adaptable, and protectable—are

“defensive” and help leverage and preserve brand equity against challenges.

1) Memorable:

How easily do consumers recall and recognize the brand element, and when—at both

purchase and consumption? Short names such as Tide, Crest, and Puffs are memorable

brand elements.

2) Meaningful:

Is the brand element credible? Does it suggest the corresponding category and a product

ingredient or the type of person who might use the brand? Consider the inherent meaning in

names such as Die-Hard auto batteries, Mop & Glo floor wax, and Lean Cuisine low-calorie

frozen entrees.

3) Likable:

How aesthetically appealing is the brand element? A recent trend is for playful names that

also offer a readily available URL, like Flickr photo sharing, Wakoopa social networking, and

Motorola’s ROKR and RAZR cell phones.

4) Transferable:

Can the brand element introduce new products in the same or different categories? Does it

add to brand equity across geographic boundaries and market segments? Although initially

an online book seller, Amazon.com was smart enough not to call itself “Books ‘R’Us.”The

Amazon is famous as the world’s biggest river, and the name suggests the wide variety of

goods that could be shipped, an important descriptor of the diverse range of products the

company now sells.

5) Adaptable:

How adaptable and updatable is the brand element? The face of Betty Crocker has received

more than seven makeovers in 87 years, and she doesn’t look a day over 35.

6) Protectable :

How legally protectable is the brand element? How competitively protectable?Names that

become synonymous with product categories—such as Kleenex, Kitty Litter, Jell-O, Scotch

Tape,Xerox, and Fiberglass—should retain their trademark rights and not become generic.

Developing Brand Elements

Brand elements can play a number of brand-building roles. If consumers don’t examine

much information in making product decisions, brand elements should be easy to recall and

inherently descriptive and persuasive. The likability of brand elements may also increase

awareness and associations. The Keeblerelves reinforce home-style baking quality and a

sense of magic and fun for their line of cookies; Michelin’s friendly tire-shaped Bibendum

helps to convey safety for the family. Often, the less concrete brand benefits are, the more

important that brand elements capture intangible characteristics. Many insurance firms use

symbols of strength for their brands (the Rock of Gibraltar for Prudential and the stage for

Hartford), security (the “good hands” of Allstate and the hard hat of Fireman’s Fund), or

some combination (the castle for Fortis). Like brand names, slogans are an extremely

efficient means to build brand equity. They can function as useful “hooks” to help consumers

grasp what the brand is and what makes it special, as in “Like a Good Neighbor, State Farm

Is There,” “Nothing Runs Like a Deere,” “Citi Never Sleeps,” “Every Kiss Begins with Kay”

for the jeweler, and “We Try Harder” for Avis rental cars. But choosing a name with inherent

meaning may make it harder to add a different meaning or update the positioning.

D) Packaging :

Packing and packaging plays a very important role in modern markets. Packing means to cover the goods. Such goods are covered for handling, transporting and delivering it to consumer. It is the process of covering and wrapping goods. It is very important for the delivery of the goods.

Meaning :

Packaging is an important activity. Packaging is called as “a silent salesman.” It is an inevitable element in the marketing function. Packaging is the process of covering goods with a package. It is done for the purpose of delivering the goods to the customers. It is a promotional device for increasing the sales of the firm. It is an important activity in the marketing function, so it requires careful consideration by the management. A good packaging indicates a combination of the designer’s creative skill and the product, marketing and sales knowledge of the manufacturer’s management team.

Definition :

William J. Stanton :

“Packaging is the general group of activities in product planning which involves designing and producing the container or wrapper for a product”.

Packaging is an important display and technique. It is a very vital salesmanship aid. It creates a better chance of being sold in the market.

Functions of Packaging or Advantages of Packaging :

a) Protection :

The basic function of packaging is to protect the goods in transit or in storage. It protects the products from various kinds of damages. It adds to the quality of the product by providing reasonable protection against breakage.

b) Cleanliness and Purity :

Packaging ensures cleanliness and purity of the product. Many goods are packed in airtight containers.

c) Convenience :

It provides the convenience in handling the goods. It provides storage convenience, convenience in use etc.

d) Durability :

It provides durability of the product.

e) Attractiveness :

Packaging gives attractiveness to goods or products. It is useful in advertising.

f) Identification :

It becomes easy to identify a particular product or good with the help of packaging.

g) Kinds of Packaging :

There are different types of packaging.

1) Consumer Packaging,

2) Family Packaging,

3) Transit Packaging,

4) Multiple Packaging,

5) Reuse Packaging.

E) Labelling :

Meaning and Definition :

Business and Finance Dictionary :

“Anything whether a piece of paper, printed statement, imprinted metal, leather etc. which is either a part of, or attached to some items of merchandise or its package describing the nature of the product, the content of the package or indicating destination, origin or price”.

A label is a small slip affixed on the product. It denotes the nature, date, contents etc. of that product. It is affixed on the package. It is a printed material on the slip affixed on the package. Such labels are regarded as a medium through which the manufacturer gives essential information about his product to the customers. Labels should give buyers accurate and up-to-date information of the contents and necessary guidance regarding the use of the product. It gives information regarding the product of the seller. Under Packaged Commodities (Regulation) Order, 1975 the manufacturer should indicate the details regarding the identity of the product, its contents, weight, size, colour, date of manufacture, date of expiry, instructions to use etc. A label gives all such type of information according to the provisions of the Packaged Commodities (Regulation) Orders. Labelling is an integral part of product planning and development. It is a part of product. It is also a part of a package or it may be attached directly to the product. Labelling has social significance also.

Functions of Labelling :

1) Identification Becomes Easy :

Due to the labels affixed to the product it becomes easy to identify the product. It offers definiteness to the product.

2) Detailed Information is Provided :

It stresses the standard and other special features of the product which are advertised. It is helpful to encourage production of quality products only.

3) Instructions to Use, Content, Weight : 

It is helpful for the manufacturer to give the information about his products to the consumers and he can also give the clear instructions about the proper use of the product.

4) Commission of Middlemen is Omitted :

The price of the product is printed on the label. So it helps to avoid under variations in the prices by the middleman. Thus, the prices of the products are maintained.

5) Facilitates in Building Relation :

It provides method for the manufacturer by which a contact and relation with the customer is established.

6) Facilitates to Maintain Standardisation (Social Responsibility) :

It encourages to produce only standardised and quality products.

Kinds of Labels :

William J. Stanton has classified the labels into four categories. They are as follows :

1) Brand Label :

These labels are exclusively used for popularising a particular brand name of the product. Manufacturer of cosmetics use this kind of labels. They are interested in their products e.g. cigarettes, soaps, creams etc.

2) Grade Label :

It gives emphasis on standards or grades. This is used as an indirect method of product identification e.g. clothes, tea etc.

3) Descriptive Labels :

These are the labels which are descriptive in nature. Such labels are illustrative in nature and they explain the various uses of the product. Some household products have such type of labels.

4) Informative Label :

It gives the maximum possible information about the product. It may contain the characteristics of a product and the method of using it properly. (e.g. medical, surgical, etc., products.)

Advantages of Labelling :

1) Help in Campaign :

It is helpful for the advertising campaign of the organisation.

2) Avoidance of Price Variation :

It avoids the price variations because the price of the product is published on the label.

3) Assessment of Superiority :

It is helpful for the customers to assess the superiority of a product.

4) Assurance of Quality :

It is an assurance of the standard and quality of the product. It helps to raise the prestige of the product and its manufacturer.

5) Prevention of False Claims :

It helps to prevent false claims. The features of the products are given on the labels.

6) Information about the Product :

The customers can get the information about the product, advantages of product before use. So it is helpful for the customers to compare it with other products in the market.

7) Use of Labels as Gift Coupons :

These labels are used as gift coupons by some manufacturers. They advertise to collect and present a specified number of labels to registered dealer and to get a free gift.

Disadvantages of Labelling :

1) Cost Increase :

It results in increasing the cost of the product. The manufacturer has to bear the additional expenditure for it.

2) No Use for Illiterates :

It is useless for the illiterate people.

3) Brevity of Description :The description given on the label is brief, so it is of limited use to the customers.

The price a business charges needs to take account of, and be consistent with, the objectives of

the business. Businesses are free to set their prices and discount their goods and services as

they see fit, but they must set their prices independently of their competitors. Price setting

process starts with understanding of the company and marketing objectives. A firm determines

the price for its product after evaluating various factors.

Factors to consider when Setting Price:

There are several factors a business needs to consider in setting the price:

1) Objectives :

What are the marketing objectives of the firm?

2) Competitors :

This is really important. Competitor strength  influences whether a business can set prices

independently, or whether it simply has to follow the normal market price

3) Costs :

A business cannot ignore the cost of production or buying a product when it comes to

setting a selling price.  In the long-term, a business will fail if it sells for less than cost, or if

its gross profit margin is too low to cover the fixed costs of the business

4) The State of the Market for the Product :

If there is a high demand for the product, but a shortage of supply, then the business can

put prices up.

5) The State of the Economy :

Some products are more sensitive to changes in unemployment and workers wages than

others.  Makers of luxury products will need to drop prices especially when the economy is

in a downturn

6) The Bargaining Power of Customers in the Target Market :

Who are the buyers of the product? Do they have any bargaining power over the price set? 

An individual consumer has little bargaining power over a supermarket (though they can

take their custom elsewhere).  However, an industrial customer that buys substantial

quantities of a product from a business may be able to negotiate lower or special prices.

7) Legislation in the Market :

Some businesses operate in markets where prices are regulated by government

legislation – e.g. the rail industry

8) Other Elements of the Marketing Mix :

It is important to understand that prices cannot be set without reference to other parts of the

marketing mix.  The distribution channels used will affect price – different prices might be

charged for the same product sold direct to consumers or via intermediaries.  The price of a

product in the decline stage of its product life-cycle will need to be lower than when it was

first launched

Steps in Price Setting:

The value of a product indicated in terms of money or money’s worth is price. To arrive at a

correct price, following steps should be studied :

a) Analysing Market Conditions :

It should be noted that price is changing, comparative and situational element. It keeps on

changing according to market conditions. Therefore, it is necessary to analyze these

conditions. The fluctuations in price levels depend on demand for the product, production life

cycle, policies of Government, prices offered by competitors and the policy of management

to boost up the sale of a particular product. For e.g. To boost up the sale of Pepsi, Pepsi

manufacturers reduced its price considerably. Bajaj Auto Ltd. reduced the price of its 4

stroke vehicle Boxer by Rs. 4000 and increases the prices of its scooter, branding names

are Chetak and Super.

b) Identifying Limits :

There are certain factors which limit the prices of the product fixed up by a company or a

firm. One has to consider these constraints to take logical decision for pricing of the product

such as Government rules and regulations, customer’s attitude towards a product, pressure

created by competitors, cost of production, negotiations with trade unions etc. By minimising

production cost and making successful negotiations with trade unions, lower limits can be

set for the price. However, there is great impact of consumer perceptions and prices offered

by competitors on the price of the product.

c) Establishing Objectives :

A company can achieve its predetermined objectives by taking practicable and accurate

decisions in respect of pricing. Normally, an organisation can achieve the goals like boosting

up sales quota, establishing monopoly in a particular market, undertakes expansion and

diversification projects, etc.

d) Analysing Profit Expectations :

Profit is a reward for accepting risk and uncertainty in business operations. It is a difference

between price and cost. The manufacturer should always bear in mind purchasing power of

mass especially, the ability of purchasing the products of economically weaker sections of

the society. For e.g. The manufacturers of Akai and Aiwa have reduced prices of 21 inches

Colour Televisions by 5 to 6 thousand Rupees as compared to BPL, Videocon, Thomson.

The reduction in the prices by these companies attracts the attention of economically poor

section of the society. Now - a - days, one can experience a maximum turnover of Akai and

Aiwa in slum areas. In short, higher price reduces the profit potential and the lower price

increases it as per the expectations of businessman.

e) Fixing up Initial Price Level :

Now - a - days, there is mushroom growth of products and services. There is a growing

pressure of competitors and market conditions on price of the product. Therefore, a

businessman or a company newly entering into production activity should set the initial price

level as low as they can. For e.g. Amul Butter Company has brought a range of Ice Cream

products three years back in market, the initial price of chocobar was Rs. 7, small cup of

vanilla Rs. 3, mango Rs. 4. Similarly, Mahanagar Telephone Nigam Limited (MTNL) entering

into mobile has announced the rate of incoming call Rs. 1.70 per minute and outgoing call

Rs. 2.70 per minute to capture the market.

f) Adjusting Prices :

The last step is to adjust the prices in response to a particular situation or changing market

situation. For e.g. Maruti Udyog Ltd. is set to drop prices of its Maruti Suzuki and Maruti Van

by Rs. 22,000 and now - a - days, most disputed Enron is set to drop the price of electricity

per unit to Rs. 4 as a result of reduction in the price of Naptha (raw material required for the

production of electricity).

Problems in Setting Prices

Every firm faces problems in setting prices for its products and services. Many times, it may be

quite a task for a firm to decide on the pricing function. We will list below the general types of

situations that pose a challenge in setting pricing functions.

1) Problem for New Entrant in Setting Price:

For a new entrant in a market, price setting is a problem/ task. For example, a firm desires

to enter the detergent market which has already attained maturity and many players are

operating business. What 'price' should the new entrant set?. If it sets a high price, it may

not generate enough demand. If it sets a low price, it may not be enough to recover costs.

Hence, a new entrant will face the problem of setting right price.

2) Need to Generate Alternative Options :

When the competitor (close rival) initiates a price change, how should one react? The price

change may mean a cut in price or increase in the existing price. If it is a price cut then the

firm has to react fittingly. Otherwise, the competitor may pull away customers. Hence, the

firm has to generate alternative options to react in a way that would enable it to retain

customers. Suppose, the competitive firm increases its price, then hold your price at the

current level and analyse what has led to competitor’s price increase. In either case, a firm

has to generate options to meet the competitor's price change.

3) Compulsive Rate Cut from Profit:

When circumstances force the initiation of a price cut, a firm has to meet the price cut even

if this cuts into profit. For example, when a government agency applies a price control

measure on specific goods, the firm cannot ignore it. It should show compliance.

4) Problem in setting Pricing Structure :

With products that have interrelated costs and use the same raw materials and components,

a firm faces the problem of pricing. For example, a two-wheeler (motor cycle) manufacturer

makes several types of motor cycles with different power capacities (cc). He uses the same

materials and components for different vehicles which have interrelated costs. Hence, it is a

problem to decide the price of different motor cycles. Generally, vehicle cc, design and style

are used as criteria for pricing of two-wheeler’s.

5) Problem in Entering into a Particular Segment:

When a firm wants to enter into a particular segment with a new model of already existing

products, pricing becomes a problem. For example, Maruti Udyog Ltd came with a new

variant of its mid-size car 'Esteem VX, to enter into mid-size car segment recently. The new

variant mid-size car "Esteem LXI" has to fight competitive models like 'Ford Ikon', 'Opel

Corsa' and 'Hyundai Accent' in the mid-size car segment. All these competitive models are

sold within the price range of Rs 5·6 lakhs. Then, what price should Maruti Udyog set for its

new 'Esteem LXI’? Surely, this price would add to the excitement at the entry level in the p

mid-size car segment.