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DEPARTMENT OF BUSINESS AND
MANAGEMENT STUDIES
PROGRAMME: Bsc. MARKETING
COURSE TITLE: PACKAGING AND BRANDING
COURSE CODE: MAMA213
TOTAL CREDITS: 3
BY
NGANG PEREZ (MAJOR 1)
PAN AFRICAN INSTITUTE FOR DEVELOPMENT
-WEST AFRICA (PAID-WA) BUEA
LECTURE NOTES FOR PACKAGING AND
BRANDING
2
WEEK 3:
SESSION 3/ CHAPTER 3 UNDERSTANDING THE BRAND
1.0 Brief Introduction:
Branding today has moved into everyday life in Western societies and is steadily peaking steam in
the developing economies. Its impacts are diverse affecting more sectors than ever before as
competition for audiences intensifies. It is no longer a practice limited to companies, universities,
charities but even the arts industry now uses branding techniques. The concept is widely while
branding is also applied to countries, cities, celebrities and individuals who want to ‘rebrand’
themselves.
This chapter draws on the theory and practice that sits behind brand creation. It discusses aspects
of branding such as brand history, brand values, strategy and measurement.
3.1 Learning Objectives
By the end of this session, students should be able to:
• Define actually what a brand is
• Outline the elements that make up a brand
• Describe briefly the brand origin
• Explain the basic brand development process
• Analyze the guidelines for good brand management
3.2 Definition of Key Terms
(a) The promise: A brand promise is a statement made by an organization to its customers stating
what customers can expect from their product and services. This is in terms of the benefits and
experience- the tangible and the intangible, i.e., the value proposition. It is the most important
aspect of a brand.
(b) The personality: Brand personality is a set of human characteristics that are attributed to a
brand name. A brand personality is something to which the consumer can relate; an effective brand
increases its brand equity by having a consistent set of traits that a specific consumer segment
enjoys.
(c) The USP (unique selling proposition): A unique selling proposition (USP, also seen as unique
selling point) is a factor that differentiates a product from its competitors, such as the lowest cost,
the highest quality or the first-ever product of its kind. A USP could be thought of as “what you
have that competitors don’t.”
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3.3 Main Content
As branding becomes a mainstream practice and concept, it also risks being widely
misunderstood. Branding is not simply about creating a logo, strapline and graphics to ‘paste’ onto
a company, country or person. A ‘rebrand’ will not instantly change the way that an organization
or entity is perceived or behaves. A brand encompasses the perception of it and its reputation, as
well as its tangible ‘look and feel’. It relates to the behaviour of a company as well as to the
customer experience of it. Its impact is quantifiable. The brand itself applies both within and
outside of an organisation – to customers and employees. Successful brands are those that are
dynamic and adaptable, that are able to evolve as markets change and audiences segment. A brand
is not simply about looking good.
3.3.1 What is a Brand?
The terms brand and branding are now commonly used in everyday vocabulary; yet, they are also
terms that are often misinterpreted. In recent years, branding has become a fundamental part of
companies, organizations and even individuals. It is now so closely linked to the workings of a
company, that if a brand suffers damage, so too does the company. On the other hand, a strong
brand will boost the value of the company.
But what exactly is a brand? It is much more than a logo or a name. A brand represents the full
‘personality’ of the company and is the interface between a company and its audience. A brand
may come into contact with its audience in various ways: from what we see and hear, through to
our physical experiences with the brand and general feelings or perceptions we have about a
company. A brand encapsulates both the tangible and the intangible and can be applied to almost
anything – a person (like David Beckham), a business (Apple, Coca-Cola, and Microsoft), a
country, or even a nebulous idea (George Bush’s ‘War on Terror’). The products, services and
people of an organization or entity are all part of the brand and affect the way that audiences both
perceive and interact with a given brand.
Let’s break it down by looking at real-life examples:
You’ve got clients coming in from out of town and you want to put them up in a really lush,
comfortable hotel. Are you going to make reservations at “Auberge Cisco Buea Town”? Of course
not, because you know that Auberge Cisco is a low-cost, low-frills, low-comfort meant more for
young boys and girls wanting freedom and being influenced by peer pressure.
On the hand imagine traveling out of state, and you pass by Mountain Hotel right around dinner
time. Do you need to wonder what to expect? No, because only the interior design, menu offerings,
portions, and taste are pretty much exactly the standard of gentleman or lady.
In each case, you instinctively know what you can expect—even if you’ve never actually visited
the Mountain hotel or Auberge Cisco. Their reputation is such that consumers know what to expect
from each, and know that their experience will be the same regardless of whether you even go to
another town with the same organizations. That reputation is the brand.
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I can tell you that the logo—along with other visual and audio elements such as colors, fonts,
taglines, and even musical affiliations (think “by Mennen”)—is the tangible (for lack of a better
word) element that provides recognition of the brand. It represents the brand. As soon as consumers
see a logo, they can reach into their mental filing cabinets containing every brand they’ve ever
come in direct (or indirect) contact with, and establish an immediate expectation upon which to
base a purchasing decision.
3.3.2 Elements that make up a Brand
Reputations and expectations must be based on something if consumers are going to put their trust
in a brand. The elements that make up the brand and work toward building this trust include the
following:
a. The promise: A brand promise is a statement made by an organization to its customers
stating what customers can expect from their product and services. This is in terms of the benefits
and experience- the tangible and the intangible, i.e., the value proposition. It is the most important
aspect of a brand.
Although this isn’t always expressly stated, it’s one of the key factors in branding. What is being
promised to the consumer? Nike doesn’t just make sneakers. Anyone with rubber and laces can do
that. Nike is promising a better athletic and fashionable experience through use of their product.
They’re promising a lifestyle, where their buyers will be part of an in crowd that includes sports
and music stars. Do they ever come out and say that? Not that I’ve heard…but the promise is
clearly there.
b. The personality: Brand personality is a set of human characteristics that are attributed to
a brand name. A brand personality is something to which the consumer can relate; an effective
brand increases its brand equity by having a consistent set of traits that a specific consumer
segment enjoys.
Like people, brands have their own personalities. Some are quirky (think Volkswagen); others are
refined (think Jaguar); and still others can range from downright silly and approachable to
corporate and wise. The brand’s personality creates that emotional connection that draws in a target
market. That doesn’t mean the brand’s personality is strictly a part of the marketing process
(although it’s always important to market with the personality in mind). Rather, the brand’s
personality is something consumers come to rely on. Part of a brand’s enduring reputation is how
true they stay to that personality.
5
Figure 3.1: Brand Personality
There are five main types of brand personalities: excitement, sincerity, ruggedness, competence
and sophistication. Customers are more likely to purchase a brand if its personality is similar to
their own. Examples of traits for the different types of brand personalities are as follows.
Excitement is synonymous with a carefree, spirited and youthful attitude. Sincerity is highlighted
by a feeling of kindness, thoughtfulness, and an orientation toward family values. Ruggedness is
thought of as rough, tough, outdoorsy and athletic. Competence, in the mind of a consumer, is
considered to be successful, accomplished and influential, highlighted by leadership. Finally,
sophistication makes a brand seem elegant, prestigious and sometimes even pretentious.
c. The USP (unique selling proposition): A unique selling proposition (USP, also seen as
unique selling point) is a factor that differentiates a product from its competitors, such as the lowest
cost, the highest quality or the first-ever product of its kind. A USP could be thought of as “what
you have that competitors don’t.”
A unique selling proposition is what your business stands for. It’s what sets your business apart
from others because of what your business makes a stand about. Instead of attempting to be known
for everything, businesses with a unique selling proposition stand for something specific, and it
becomes what you’re known for. Let me explain.
Many businesses make the mistake of attempting to stand for everything when they first get started.
They want to do everything well, and they want to be all things to all people. They want to be
known for having the highest quality products AND the lowest prices. They want to have the best
food AND the cheapest prices. They want to be known for the best burgers AND the most delicious
salads AND the juiciest steaks and ribs.
The problem is this: When you attempt to be known for everything, you don’t become known for
anything.
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3.3.3 Is there a difference between a Brand, a Product and a company?
In simple terms, there is a difference between company and brand. Company refers to the
organization that markets or produces products or services; brand refers to the image and
“personality” a company applies to its products. In reality, the two can overlap. Famous brands
such as Sony, IBM, Nike or Shell are also the names of the parent companies. However, a company
such as Procter & Gamble does not feature as a brand name although it markets many famous
brands, including Gillette, Olay, Duracell and Iams.
There is definitely a difference, although in everyday writing and conversation “brand” is often
used interchangeably with “company” and “product.” But while people may substitute the word
“brand” for the word “company” in their everyday writing or conversation, it’s important to
understand the conceptual difference. Anyone with 50,000 FRS can register an enterprise with the
One-Stop Shop in Limbe or Douala and, in less than a week, be the owner of his or her own
company. Notice that I said company—not brand.
A company is legal paperwork, shares of stock, permits, and infrastructure. It’s an entity organized
for the purposes of taking action. The same goes for products. Products are materials, ingredients—
they are physical items as well as intangible items that can be sold and transferred from one entity
to another. But that’s no more a brand than a company is.
Where it gets fuzzy is in the naming, because a single name can refer to all of the above. Take
Pepsi, for example. Few people ever refer to the company by its proper name, PepsiCo. Instead,
for most people, “Pepsi” interchangeably refers to the company (the entity that manufactures and
sells the product), the product (the cola drink), and the brand (the reputation for being a consistently
refreshing beverage with a distinct taste that’s connected to a younger generation).
In everyday usage, it’s inevitable that everyone will confuse company, product, and brand with
each other—and that’s okay. The truth is that while yes, there is a difference, and no, the brand is
neither the company nor the product (nor the logo, for that matter), it really doesn’t matter. As
long as marketers understand that building and promoting the brand is vital to growth and
necessary for building consumer trust.
3.3.4 Brand History
The word brand comes from the Old Norse brandr, meaning to burn, and from these origins made
its way into Anglo-Saxon. Brands have been around for a long time. They were used centuries ago
as an identifier for ownership – from branding cattle, horses and even slaves. It was of course by
burning that early man stamped ownership on his livestock. Visit any cattle ranch and you’ll see
herds of cows with letters or icons burnt into their butts with a branding iron. This practice of
marking animals is at the very root of branding. Because cows pretty much all look alike (I’ve
always wondered how a bull knows which cow is his wife…), headsmen needed a way to tell
which cows belong to which headman. To solve this problem, headsmen started to burn a mark on
their cattle to distinguish which cows belong to which headsman should their cattle ever become
intermingled. The mark (brand) helps to differentiate one cow (product) from another. Therefore
a farmer with a particularly good reputation for the quality of his animals would find his brand
7
much sought after, while the brands of farmers with a lesser reputation were to be avoided or
treated with caution. Thus the utility of brands as a guide to choice was established, a role that has
remained unchanged to the present day.
Some of the earliest manufactured goods in “mass” production were clay pots, the remains of
which can be found in great abundance around the Mediterranean region, particularly in the ancient
civilizations of Etruria, Greece and Rome. There is considerable evidence among these remains of
the use of brands, which in their earliest form were the potter’s mark. A potter would identify his
pots by putting his thumbprint into the wet clay on the bottom of the pot or by making his mark: a
fish, a star or cross, for example. From this we can safely say that symbols (rather than initials or
names) were the earliest visual form of brands.
In the 17th and 18th centuries, when the volume manufacture of fine porcelain bowl, furniture and
tapestries began in France and Belgium, largely because of royal patronage, factories increasingly
used brands to indicate quality and origin. At the same time, laws relating to the hallmarking of
gold and silver objects were enforced more rigidly to give the purchaser confidence in the product
The emergence of brands in the commercial world most probably started at the end of the 19th
century after the Industrial Revolution. The wide scale use of brands is essentially a phenomenon
of the late 19th and early 20th centuries. The industrial revolution, with its improvements in
manufacturing and communications, opened up the western world and allowed the mass-marketing
of consumer products. Many of today’s best-known consumer brands date from this period: Singer
sewing-machines, Coca-Cola soft drinks, Bass beer, Quaker oats, Cook’s tours, Sunlight soap,
Shredded Wheat breakfast cereal, Kodak film, American Express travellers’ cheques, Heinz baked
beans and Prudential Insurance are just a few examples.
But it is the period after the end of the Second World War that has seen the real explosion in the
use of brands. Propelled by the collapse of communism, the arrival of the internet and mass
broadcasting systems, and greatly improved transportation and communications, brands have
come to symbolize the convergence of the world’s economies on the demand-led rather than the
command-led model. But brands have not escaped criticism. Recent anti-globalization protests
have been significant events. They have provided a timely reminder to the big brand owners that
in the conduct of their affairs they have a duty to society, as well as customers and shareholders.
3.3.5 The marketing matrix
The role of marketing for companies is now an established part of most company processes. It is
as important to a company’s development and long-term existence as is the financial and legal arm
of the business. This is because many industries are now service-based rather than manufacturing
based and competitors often differentiate themselves through services. So the way that a company
communicates to its internal and external audiences is critical. This applies not just to companies
that own consumer brands but also to those playing within the business-to-business (B2B) market
– where companies buy and sell services to one another. Marketing, therefore, requires a long-
term investment and commitment.
8
Over the past decade, the role of the marketing teams raised the status of marketing on the business
agenda. Many companies now have a marketing representative at board level, often as a marketing,
brand or communications director. For major global companies such as Virgin or Nike, it is the
company’s marketing and message that has differentiated the brand over other companies that may
offer a similar product. For example, Virgin has always positioned itself as the ‘consumer
champion’ – the brand that protects the ‘little guy’ – when entering a competitive new market.
This recognition of the importance of branding means that brand agencies often forge a direct
relationship with the head of the company (often the Chief Executive Officer, or CEO) who may
also input into the brand’s development.
The diagram on figure 3.2 offers a basic overview of the marketing process. Brand development
tends to involve a number of different agencies, including a brand, advertising, digital and public
relations agency. Other specialist agencies may be involved in campaign execution such as an
affinity marketing agency (for partnership opportunities), social marketing (for online networking
presence) or a corporate responsibility agency (to help communicate a ‘sustainability’ campaign).
Sometimes the client will appoint a ‘lead’ agency to work with the other agencies to ensure that
the brand ‘look and feel’ is consistent.
9
Figure 3.2 the Marketing Process
3.3.6 The basic brand development process
Large brands have complex management systems but tend to be tightly managed, with small close
teams from the company and selected agencies working together. Any brand development is an
investment for companies and will involve a step-by-step process. The level of depth of the process
is also dependent on the project and the allocated budget.
Understanding the market in which the brand will operate, as well as the audience, is obviously
critical for any brand. Market research and analysis is often applied at the outset of any brand
project, and can be carried out through focus groups (offline or online) and market testing. The
10
objective of most research is to support strategic decisions and provide a thorough understanding
of the market.
Research offers raw information that should lead to insights about audience tastes and reactions to
products, services, names and logos, for example, depending on the brief from the client. The
results should feed into brand planning, the brand proposition and also into the creative
development of the brand. Any final creative output should be checked against the original
research to ensure that the brand is delivering to the audience.
The following stages outline the different skills involved when developing brands. This applies to
creating new brands as well as to refreshing or updating brands.
a. Formulating a brand strategy:
A brand strategy is critical to determine the direction for the brand. This may be managed ‘in-
house’ (within the company itself) or done in tandem with an agency or brand consultants. As a
general guide, it is often the branding agency, or lead marketing agency, that helps to create a
brand strategy. A strategy should detail areas such as understanding the brand’s audience, its
market (including competitors) and should also integrate with the vision of the company. A
company may also commission research into audience needs and experiences of the brand.
b. Creative execution: Naming and logo.
The strategy will feed into the brand development stage, which involves creating a look and feel
for the brand, including the brand language (often referred to as its ‘tone of voice’) as well as the
logo and name. An entire rebrand such as a name or logo change may not be necessary, but
changing the visual aspects of the brand can reinvigorate or modernize it. This stage of the
branding process tends to be carried out by the branding agency, which will have designers and
writers as part of the team.
c. Creative Implementation: Advertising and Digital Presence
Brand implementation will involve advertising and design agencies. Advertising agencies still play
a very powerful role in brand execution, often working in long term collaborations with companies.
In many cases, the ad agency will ‘own’ the brand’s execution – the part that is visible on
billboards, TV and in print. Design agencies are often key to the brand implementation process –
and there are many smaller design agencies that will do full brand implementation, from concept
to development. Some specialize in executing the brand online, which can involve a full translation
of the brand to the digital sphere, with strategy and a creative process to ascertain how a brand
should look, feel and communicate online. The digital presence of a brand is now as important as
traditional advertising in the brand execution process.
d. Communicating the brand
A critical part of brand execution is defining how to best communicate the brand. Branding
agencies should play a key role here, by developing a communications plan for the brand’s ongoing
presence. Some public relations agencies also specialize in this area. A communications strategy
should cover both the employee and external communications execution for the brand.
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3.3.7 Guidelines for good brand management
Some of the guidelines given below are the factors that influence the process of brand management.
a. Protect your brand. You must be able to protect your brand with a trade mark. Trade
mark law offers provision for the protection of your brand and corporate names, your logo and
colours, the shape of your packaging, smells, and the advertising jingle you use. This protection
can last indefinitely, subject to payment of a fee and the observation of some none too onerous
rules of use. Patent law allows you to protect your product for periods of up to 20 years, provided
the product is your invention and is a novel or non-obvious idea. Copyrights allow you to protect
artistic, literary, dramatic and musical works for up to 50 years after the death of the author or
originator. Protect these elements of your brand on a wide geographical scale: you may not yet be
an international player, but the real opportunities are for brands whose appeals are potentially
universal.
b. Honor your stakeholders. Your customers expect attractive, well-differentiated products
and services that will live up to their expectations and are well priced. Your employees want to
work for a company with a compelling business idea, where they feel engaged and where they can
make a difference. Your shareholders expect sound corporate governance and a well-managed
company with a commitment to growing shareholder value. Your trade partners want fairness and
respect in their dealings with you, and they want your reputation to enhance their own. Opinion
leaders and industry commentators expect performance, innovation, transparency and a sense of
social responsibility. Interest groups want you to listen and to act.
c. Treat your brand as an investment, not a cost. Brands are among the most important
assets that a business can own, and strong brands can ensure business continuity in times of
difficulty. Brands must remain relevant to their customers, contemporary and appealing. This
means that sufficient investment must be made in advertising and marketing as well as in new
product development. For many businesses active in mature markets, brand support and
development is often the single biggest item of overhead cost. Investors and analysts will, quite
rightly, expect the management of the business to account for the effectiveness of this expenditure;
but they will look in vain at the balance sheet for evidence of this. Periodic valuations of the brands
in the business will help explain how successfully management is steering the brands for the
benefit of shareholders.
d. Understand that successful brand management nowadays is a complex task. It requires
skills not normally associated with the traditional marketing function. The ability to brief market
research companies, advertising agencies and designers, to liaise with the sales and distribution
people and to survive the odd skirmish with the “bean counters” is no longer enough. Brand
managers certainly need to be adept in all these areas, but they also need to understand how a brand
can be managed for the benefit of shareholders. This requires an understanding of how, in financial
terms, a brand contributes to the success of a business and the creation of shareholder value.
Managers of services brands need to become adept at internal communication and training, to
ensure that customer satisfaction is delivered consistently in support of their brand’s promise. And
if the brand is the corporation, the brand manager needs to understand not just the subtle art of
corporate communications but the infinitely more demanding role of stakeholder accountability.
12
3.4 Conclusion
The marketing profession is in crisis. Books abound with gloomy titles like The End of Advertising
as We Know It and Big Brands, Big Trouble. Most big branded consumer-goods companies, from
Gillette, McDonald’s and Disney in America to Unilever and Nestlé in Europe and Panasonic in
Japan, are facing slowing growth, declining market share or worse. Brands are getting weaker not
stronger. As well as being under attack from the anti-corporate brigade, a lack of global economic
growth has put pressure on corporate profits and share prices. Marketers are under pressure to
produce better results with fewer resources, to “do more with less”. They have to demonstrate the
true value of marketing to chief executives and the board or face further cuts. Company
managements, meanwhile, are questioning the effectiveness of advertising and are busy
streamlining marketing departments; the purge of layers of marketing management at Procter &
Gamble in 2003 will surely not be the last such restructuring.
Many marketers are reacting to such pressures by focusing not on the nuts and bolts of building
brands and margins with product improvements, high prices and ensuring their customer base
remains loyal, but on desperately trying to hang on to the customers they have, tempting them with
price cuts, free offers and loyalty programs. Chasing short-term sales at the expense of brand
building is a dangerous and short-sighted strategy.
In order to regain appeal for their brands, marketers will have to learn to adopt new tactics that are
only gradually catching on, such as guerrilla marketing (one-off events designed to be startling
enough that people talk about them), sponsoring events and product placement in hit shows.
BMW’s series of series of mini-movies from famous directors and starring BMW cars are one
example of how to do things differently. Companies will also have to face up to the fact that they
need to overhaul their recruiting procedures, incentive programs and career structures to improve
the quality of people that choose marketing as a career.
3.5 Summary
So far, we have seen that as branding becomes a mainstream practice and concept, it also risks
being widely misunderstood. The terms brand and branding are now commonly used in everyday
vocabulary; yet, they are also terms that are often misinterpreted. It is much more than a logo or a
name. A brand represents the full ‘personality’ of the company and is the interface between a
company and its audience. The word brand comes from the Old Norse brandr, meaning to burn,
and from these origins made its way into Anglo-Saxon. Brands have been around for a long time.
They were used centuries ago as an identifier for ownership – from branding cattle, horses and
even slaves. It was of course by burning that early man stamped ownership on his livestock
The elements that make up the brand and work toward building its trust include the following: the
promise, the personality and the USP (unique selling proposition). There is a difference between
company and brand. Company refers to the organization that markets or produces products or
services; brand refers to the image and “personality” a company applies to its products. In reality,
the two can overlap. The role of marketing for companies is now an established part of most
company processes. It is as important to a company’s development and long-term existence as is
the financial and legal arm of the business. Large brands have complex management systems but
13
tend to be tightly managed, with small close teams from the company and selected agencies
working together. The following stages outline the different skills involved when developing
brands: formulating a brand strategy, creative execution (Naming and logo), creative
implementation (advertising and digital presence) and communicating the brand. This applies to
creating new brands as well as to refreshing or updating brands.
Some of the guidelines for brand management are worthy for attention. These guidelines include
the following: protect your brand, honor your stakeholders, treat your brand as an investment and
not a cost and finally understand that successful brand management nowadays is a complex task.
The marketing profession is in crisis. Most big branded consumer-goods companies, from Gillette,
McDonald’s and Disney in America to Unilever and Nestlé in Europe and Panasonic in Japan, are
facing slowing growth, declining market share or worse. Brands are getting weaker not stronger.
Marketers are under pressure to produce better results with fewer resources, to “do more with less”.
They have to demonstrate the true value of marketing to chief executives and the board or face
further cuts.
3.6 Review Question
I. State and explain the guidelines for good brand management
II. Describe the different skills involved when developing brands
III. With the aid of a diagram draw and describe the marketing matrix
IV. The word brand comes from the Old Norse brandr, meaning to burn. Briefly describe the
origins of branding giving its different stages of evolution.
V. Is there a difference between a Brand, a Product and a company?
VI. With the aid of practical examples, outline and explain the elements that make up a Brand
VII. Define a brand.
3.7 References
 David A. Aaker Building Strong Brands 2002, Simon & Schuster Ltd; 2nd edition
 Michael Braungart and William McDonough Cradle to Cradle: Remaking the Way We
Make Things 2002, North Point Press; 1st edition
 Melissa Davis More Than a Name: an Introduction to Branding 2006, AVA Publishing
 Iain Ellwood The Essential Brand Book 2002, Kogan Page Ltd; 2nd revised edition
 John Gerzema and Edward Lebar The Brand Bubble: The Looming Crisis in Brand Value
and How to Avoid it 2008, Jossey-Bass
14
3.7 Task
 Read the notes on unit 3.3.7 (Guidelines for good brand management) and make a brief
summary of not more than half a page
3.8 Reading Assignment/Suggested Readings
 Read the introduction to this article titled ‘Wally Olins On Brand 2004, Thames & Hudson”
accessed from https://www.researchgate.net/publication/281745896_WALLY_OLINS_1930-
2014_ CORPORATE_BRAND_J/download, December 13, 2018
3.9 Reading Assignment Supplementary Source
 You Tube Video lecture: Brand building - How to build a brand
 Video highlights: -video explains how to prevent competitors from copying an unpatented
brand
 Note: To access the video, copy and paste this Playlist
 URL: https://youtu.be/earTl3C3WQc?t=6
 Source: https://www.youtube.com/watch?v=earTl3C3WQc. Retrieved 13 December 2018.
3.10 Written Assignment
 With the aid of practical examples, outline and explain the elements that make up a Brand
3.11 Discussion Assignment
 Is there a difference between a Brand, a Product and a company?
3.14 Graded Quiz
 Will be provided by the end of the lecture

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Understanding the brand dox

  • 1. 1 DEPARTMENT OF BUSINESS AND MANAGEMENT STUDIES PROGRAMME: Bsc. MARKETING COURSE TITLE: PACKAGING AND BRANDING COURSE CODE: MAMA213 TOTAL CREDITS: 3 BY NGANG PEREZ (MAJOR 1) PAN AFRICAN INSTITUTE FOR DEVELOPMENT -WEST AFRICA (PAID-WA) BUEA LECTURE NOTES FOR PACKAGING AND BRANDING
  • 2. 2 WEEK 3: SESSION 3/ CHAPTER 3 UNDERSTANDING THE BRAND 1.0 Brief Introduction: Branding today has moved into everyday life in Western societies and is steadily peaking steam in the developing economies. Its impacts are diverse affecting more sectors than ever before as competition for audiences intensifies. It is no longer a practice limited to companies, universities, charities but even the arts industry now uses branding techniques. The concept is widely while branding is also applied to countries, cities, celebrities and individuals who want to ‘rebrand’ themselves. This chapter draws on the theory and practice that sits behind brand creation. It discusses aspects of branding such as brand history, brand values, strategy and measurement. 3.1 Learning Objectives By the end of this session, students should be able to: • Define actually what a brand is • Outline the elements that make up a brand • Describe briefly the brand origin • Explain the basic brand development process • Analyze the guidelines for good brand management 3.2 Definition of Key Terms (a) The promise: A brand promise is a statement made by an organization to its customers stating what customers can expect from their product and services. This is in terms of the benefits and experience- the tangible and the intangible, i.e., the value proposition. It is the most important aspect of a brand. (b) The personality: Brand personality is a set of human characteristics that are attributed to a brand name. A brand personality is something to which the consumer can relate; an effective brand increases its brand equity by having a consistent set of traits that a specific consumer segment enjoys. (c) The USP (unique selling proposition): A unique selling proposition (USP, also seen as unique selling point) is a factor that differentiates a product from its competitors, such as the lowest cost, the highest quality or the first-ever product of its kind. A USP could be thought of as “what you have that competitors don’t.”
  • 3. 3 3.3 Main Content As branding becomes a mainstream practice and concept, it also risks being widely misunderstood. Branding is not simply about creating a logo, strapline and graphics to ‘paste’ onto a company, country or person. A ‘rebrand’ will not instantly change the way that an organization or entity is perceived or behaves. A brand encompasses the perception of it and its reputation, as well as its tangible ‘look and feel’. It relates to the behaviour of a company as well as to the customer experience of it. Its impact is quantifiable. The brand itself applies both within and outside of an organisation – to customers and employees. Successful brands are those that are dynamic and adaptable, that are able to evolve as markets change and audiences segment. A brand is not simply about looking good. 3.3.1 What is a Brand? The terms brand and branding are now commonly used in everyday vocabulary; yet, they are also terms that are often misinterpreted. In recent years, branding has become a fundamental part of companies, organizations and even individuals. It is now so closely linked to the workings of a company, that if a brand suffers damage, so too does the company. On the other hand, a strong brand will boost the value of the company. But what exactly is a brand? It is much more than a logo or a name. A brand represents the full ‘personality’ of the company and is the interface between a company and its audience. A brand may come into contact with its audience in various ways: from what we see and hear, through to our physical experiences with the brand and general feelings or perceptions we have about a company. A brand encapsulates both the tangible and the intangible and can be applied to almost anything – a person (like David Beckham), a business (Apple, Coca-Cola, and Microsoft), a country, or even a nebulous idea (George Bush’s ‘War on Terror’). The products, services and people of an organization or entity are all part of the brand and affect the way that audiences both perceive and interact with a given brand. Let’s break it down by looking at real-life examples: You’ve got clients coming in from out of town and you want to put them up in a really lush, comfortable hotel. Are you going to make reservations at “Auberge Cisco Buea Town”? Of course not, because you know that Auberge Cisco is a low-cost, low-frills, low-comfort meant more for young boys and girls wanting freedom and being influenced by peer pressure. On the hand imagine traveling out of state, and you pass by Mountain Hotel right around dinner time. Do you need to wonder what to expect? No, because only the interior design, menu offerings, portions, and taste are pretty much exactly the standard of gentleman or lady. In each case, you instinctively know what you can expect—even if you’ve never actually visited the Mountain hotel or Auberge Cisco. Their reputation is such that consumers know what to expect from each, and know that their experience will be the same regardless of whether you even go to another town with the same organizations. That reputation is the brand.
  • 4. 4 I can tell you that the logo—along with other visual and audio elements such as colors, fonts, taglines, and even musical affiliations (think “by Mennen”)—is the tangible (for lack of a better word) element that provides recognition of the brand. It represents the brand. As soon as consumers see a logo, they can reach into their mental filing cabinets containing every brand they’ve ever come in direct (or indirect) contact with, and establish an immediate expectation upon which to base a purchasing decision. 3.3.2 Elements that make up a Brand Reputations and expectations must be based on something if consumers are going to put their trust in a brand. The elements that make up the brand and work toward building this trust include the following: a. The promise: A brand promise is a statement made by an organization to its customers stating what customers can expect from their product and services. This is in terms of the benefits and experience- the tangible and the intangible, i.e., the value proposition. It is the most important aspect of a brand. Although this isn’t always expressly stated, it’s one of the key factors in branding. What is being promised to the consumer? Nike doesn’t just make sneakers. Anyone with rubber and laces can do that. Nike is promising a better athletic and fashionable experience through use of their product. They’re promising a lifestyle, where their buyers will be part of an in crowd that includes sports and music stars. Do they ever come out and say that? Not that I’ve heard…but the promise is clearly there. b. The personality: Brand personality is a set of human characteristics that are attributed to a brand name. A brand personality is something to which the consumer can relate; an effective brand increases its brand equity by having a consistent set of traits that a specific consumer segment enjoys. Like people, brands have their own personalities. Some are quirky (think Volkswagen); others are refined (think Jaguar); and still others can range from downright silly and approachable to corporate and wise. The brand’s personality creates that emotional connection that draws in a target market. That doesn’t mean the brand’s personality is strictly a part of the marketing process (although it’s always important to market with the personality in mind). Rather, the brand’s personality is something consumers come to rely on. Part of a brand’s enduring reputation is how true they stay to that personality.
  • 5. 5 Figure 3.1: Brand Personality There are five main types of brand personalities: excitement, sincerity, ruggedness, competence and sophistication. Customers are more likely to purchase a brand if its personality is similar to their own. Examples of traits for the different types of brand personalities are as follows. Excitement is synonymous with a carefree, spirited and youthful attitude. Sincerity is highlighted by a feeling of kindness, thoughtfulness, and an orientation toward family values. Ruggedness is thought of as rough, tough, outdoorsy and athletic. Competence, in the mind of a consumer, is considered to be successful, accomplished and influential, highlighted by leadership. Finally, sophistication makes a brand seem elegant, prestigious and sometimes even pretentious. c. The USP (unique selling proposition): A unique selling proposition (USP, also seen as unique selling point) is a factor that differentiates a product from its competitors, such as the lowest cost, the highest quality or the first-ever product of its kind. A USP could be thought of as “what you have that competitors don’t.” A unique selling proposition is what your business stands for. It’s what sets your business apart from others because of what your business makes a stand about. Instead of attempting to be known for everything, businesses with a unique selling proposition stand for something specific, and it becomes what you’re known for. Let me explain. Many businesses make the mistake of attempting to stand for everything when they first get started. They want to do everything well, and they want to be all things to all people. They want to be known for having the highest quality products AND the lowest prices. They want to have the best food AND the cheapest prices. They want to be known for the best burgers AND the most delicious salads AND the juiciest steaks and ribs. The problem is this: When you attempt to be known for everything, you don’t become known for anything.
  • 6. 6 3.3.3 Is there a difference between a Brand, a Product and a company? In simple terms, there is a difference between company and brand. Company refers to the organization that markets or produces products or services; brand refers to the image and “personality” a company applies to its products. In reality, the two can overlap. Famous brands such as Sony, IBM, Nike or Shell are also the names of the parent companies. However, a company such as Procter & Gamble does not feature as a brand name although it markets many famous brands, including Gillette, Olay, Duracell and Iams. There is definitely a difference, although in everyday writing and conversation “brand” is often used interchangeably with “company” and “product.” But while people may substitute the word “brand” for the word “company” in their everyday writing or conversation, it’s important to understand the conceptual difference. Anyone with 50,000 FRS can register an enterprise with the One-Stop Shop in Limbe or Douala and, in less than a week, be the owner of his or her own company. Notice that I said company—not brand. A company is legal paperwork, shares of stock, permits, and infrastructure. It’s an entity organized for the purposes of taking action. The same goes for products. Products are materials, ingredients— they are physical items as well as intangible items that can be sold and transferred from one entity to another. But that’s no more a brand than a company is. Where it gets fuzzy is in the naming, because a single name can refer to all of the above. Take Pepsi, for example. Few people ever refer to the company by its proper name, PepsiCo. Instead, for most people, “Pepsi” interchangeably refers to the company (the entity that manufactures and sells the product), the product (the cola drink), and the brand (the reputation for being a consistently refreshing beverage with a distinct taste that’s connected to a younger generation). In everyday usage, it’s inevitable that everyone will confuse company, product, and brand with each other—and that’s okay. The truth is that while yes, there is a difference, and no, the brand is neither the company nor the product (nor the logo, for that matter), it really doesn’t matter. As long as marketers understand that building and promoting the brand is vital to growth and necessary for building consumer trust. 3.3.4 Brand History The word brand comes from the Old Norse brandr, meaning to burn, and from these origins made its way into Anglo-Saxon. Brands have been around for a long time. They were used centuries ago as an identifier for ownership – from branding cattle, horses and even slaves. It was of course by burning that early man stamped ownership on his livestock. Visit any cattle ranch and you’ll see herds of cows with letters or icons burnt into their butts with a branding iron. This practice of marking animals is at the very root of branding. Because cows pretty much all look alike (I’ve always wondered how a bull knows which cow is his wife…), headsmen needed a way to tell which cows belong to which headman. To solve this problem, headsmen started to burn a mark on their cattle to distinguish which cows belong to which headsman should their cattle ever become intermingled. The mark (brand) helps to differentiate one cow (product) from another. Therefore a farmer with a particularly good reputation for the quality of his animals would find his brand
  • 7. 7 much sought after, while the brands of farmers with a lesser reputation were to be avoided or treated with caution. Thus the utility of brands as a guide to choice was established, a role that has remained unchanged to the present day. Some of the earliest manufactured goods in “mass” production were clay pots, the remains of which can be found in great abundance around the Mediterranean region, particularly in the ancient civilizations of Etruria, Greece and Rome. There is considerable evidence among these remains of the use of brands, which in their earliest form were the potter’s mark. A potter would identify his pots by putting his thumbprint into the wet clay on the bottom of the pot or by making his mark: a fish, a star or cross, for example. From this we can safely say that symbols (rather than initials or names) were the earliest visual form of brands. In the 17th and 18th centuries, when the volume manufacture of fine porcelain bowl, furniture and tapestries began in France and Belgium, largely because of royal patronage, factories increasingly used brands to indicate quality and origin. At the same time, laws relating to the hallmarking of gold and silver objects were enforced more rigidly to give the purchaser confidence in the product The emergence of brands in the commercial world most probably started at the end of the 19th century after the Industrial Revolution. The wide scale use of brands is essentially a phenomenon of the late 19th and early 20th centuries. The industrial revolution, with its improvements in manufacturing and communications, opened up the western world and allowed the mass-marketing of consumer products. Many of today’s best-known consumer brands date from this period: Singer sewing-machines, Coca-Cola soft drinks, Bass beer, Quaker oats, Cook’s tours, Sunlight soap, Shredded Wheat breakfast cereal, Kodak film, American Express travellers’ cheques, Heinz baked beans and Prudential Insurance are just a few examples. But it is the period after the end of the Second World War that has seen the real explosion in the use of brands. Propelled by the collapse of communism, the arrival of the internet and mass broadcasting systems, and greatly improved transportation and communications, brands have come to symbolize the convergence of the world’s economies on the demand-led rather than the command-led model. But brands have not escaped criticism. Recent anti-globalization protests have been significant events. They have provided a timely reminder to the big brand owners that in the conduct of their affairs they have a duty to society, as well as customers and shareholders. 3.3.5 The marketing matrix The role of marketing for companies is now an established part of most company processes. It is as important to a company’s development and long-term existence as is the financial and legal arm of the business. This is because many industries are now service-based rather than manufacturing based and competitors often differentiate themselves through services. So the way that a company communicates to its internal and external audiences is critical. This applies not just to companies that own consumer brands but also to those playing within the business-to-business (B2B) market – where companies buy and sell services to one another. Marketing, therefore, requires a long- term investment and commitment.
  • 8. 8 Over the past decade, the role of the marketing teams raised the status of marketing on the business agenda. Many companies now have a marketing representative at board level, often as a marketing, brand or communications director. For major global companies such as Virgin or Nike, it is the company’s marketing and message that has differentiated the brand over other companies that may offer a similar product. For example, Virgin has always positioned itself as the ‘consumer champion’ – the brand that protects the ‘little guy’ – when entering a competitive new market. This recognition of the importance of branding means that brand agencies often forge a direct relationship with the head of the company (often the Chief Executive Officer, or CEO) who may also input into the brand’s development. The diagram on figure 3.2 offers a basic overview of the marketing process. Brand development tends to involve a number of different agencies, including a brand, advertising, digital and public relations agency. Other specialist agencies may be involved in campaign execution such as an affinity marketing agency (for partnership opportunities), social marketing (for online networking presence) or a corporate responsibility agency (to help communicate a ‘sustainability’ campaign). Sometimes the client will appoint a ‘lead’ agency to work with the other agencies to ensure that the brand ‘look and feel’ is consistent.
  • 9. 9 Figure 3.2 the Marketing Process 3.3.6 The basic brand development process Large brands have complex management systems but tend to be tightly managed, with small close teams from the company and selected agencies working together. Any brand development is an investment for companies and will involve a step-by-step process. The level of depth of the process is also dependent on the project and the allocated budget. Understanding the market in which the brand will operate, as well as the audience, is obviously critical for any brand. Market research and analysis is often applied at the outset of any brand project, and can be carried out through focus groups (offline or online) and market testing. The
  • 10. 10 objective of most research is to support strategic decisions and provide a thorough understanding of the market. Research offers raw information that should lead to insights about audience tastes and reactions to products, services, names and logos, for example, depending on the brief from the client. The results should feed into brand planning, the brand proposition and also into the creative development of the brand. Any final creative output should be checked against the original research to ensure that the brand is delivering to the audience. The following stages outline the different skills involved when developing brands. This applies to creating new brands as well as to refreshing or updating brands. a. Formulating a brand strategy: A brand strategy is critical to determine the direction for the brand. This may be managed ‘in- house’ (within the company itself) or done in tandem with an agency or brand consultants. As a general guide, it is often the branding agency, or lead marketing agency, that helps to create a brand strategy. A strategy should detail areas such as understanding the brand’s audience, its market (including competitors) and should also integrate with the vision of the company. A company may also commission research into audience needs and experiences of the brand. b. Creative execution: Naming and logo. The strategy will feed into the brand development stage, which involves creating a look and feel for the brand, including the brand language (often referred to as its ‘tone of voice’) as well as the logo and name. An entire rebrand such as a name or logo change may not be necessary, but changing the visual aspects of the brand can reinvigorate or modernize it. This stage of the branding process tends to be carried out by the branding agency, which will have designers and writers as part of the team. c. Creative Implementation: Advertising and Digital Presence Brand implementation will involve advertising and design agencies. Advertising agencies still play a very powerful role in brand execution, often working in long term collaborations with companies. In many cases, the ad agency will ‘own’ the brand’s execution – the part that is visible on billboards, TV and in print. Design agencies are often key to the brand implementation process – and there are many smaller design agencies that will do full brand implementation, from concept to development. Some specialize in executing the brand online, which can involve a full translation of the brand to the digital sphere, with strategy and a creative process to ascertain how a brand should look, feel and communicate online. The digital presence of a brand is now as important as traditional advertising in the brand execution process. d. Communicating the brand A critical part of brand execution is defining how to best communicate the brand. Branding agencies should play a key role here, by developing a communications plan for the brand’s ongoing presence. Some public relations agencies also specialize in this area. A communications strategy should cover both the employee and external communications execution for the brand.
  • 11. 11 3.3.7 Guidelines for good brand management Some of the guidelines given below are the factors that influence the process of brand management. a. Protect your brand. You must be able to protect your brand with a trade mark. Trade mark law offers provision for the protection of your brand and corporate names, your logo and colours, the shape of your packaging, smells, and the advertising jingle you use. This protection can last indefinitely, subject to payment of a fee and the observation of some none too onerous rules of use. Patent law allows you to protect your product for periods of up to 20 years, provided the product is your invention and is a novel or non-obvious idea. Copyrights allow you to protect artistic, literary, dramatic and musical works for up to 50 years after the death of the author or originator. Protect these elements of your brand on a wide geographical scale: you may not yet be an international player, but the real opportunities are for brands whose appeals are potentially universal. b. Honor your stakeholders. Your customers expect attractive, well-differentiated products and services that will live up to their expectations and are well priced. Your employees want to work for a company with a compelling business idea, where they feel engaged and where they can make a difference. Your shareholders expect sound corporate governance and a well-managed company with a commitment to growing shareholder value. Your trade partners want fairness and respect in their dealings with you, and they want your reputation to enhance their own. Opinion leaders and industry commentators expect performance, innovation, transparency and a sense of social responsibility. Interest groups want you to listen and to act. c. Treat your brand as an investment, not a cost. Brands are among the most important assets that a business can own, and strong brands can ensure business continuity in times of difficulty. Brands must remain relevant to their customers, contemporary and appealing. This means that sufficient investment must be made in advertising and marketing as well as in new product development. For many businesses active in mature markets, brand support and development is often the single biggest item of overhead cost. Investors and analysts will, quite rightly, expect the management of the business to account for the effectiveness of this expenditure; but they will look in vain at the balance sheet for evidence of this. Periodic valuations of the brands in the business will help explain how successfully management is steering the brands for the benefit of shareholders. d. Understand that successful brand management nowadays is a complex task. It requires skills not normally associated with the traditional marketing function. The ability to brief market research companies, advertising agencies and designers, to liaise with the sales and distribution people and to survive the odd skirmish with the “bean counters” is no longer enough. Brand managers certainly need to be adept in all these areas, but they also need to understand how a brand can be managed for the benefit of shareholders. This requires an understanding of how, in financial terms, a brand contributes to the success of a business and the creation of shareholder value. Managers of services brands need to become adept at internal communication and training, to ensure that customer satisfaction is delivered consistently in support of their brand’s promise. And if the brand is the corporation, the brand manager needs to understand not just the subtle art of corporate communications but the infinitely more demanding role of stakeholder accountability.
  • 12. 12 3.4 Conclusion The marketing profession is in crisis. Books abound with gloomy titles like The End of Advertising as We Know It and Big Brands, Big Trouble. Most big branded consumer-goods companies, from Gillette, McDonald’s and Disney in America to Unilever and Nestlé in Europe and Panasonic in Japan, are facing slowing growth, declining market share or worse. Brands are getting weaker not stronger. As well as being under attack from the anti-corporate brigade, a lack of global economic growth has put pressure on corporate profits and share prices. Marketers are under pressure to produce better results with fewer resources, to “do more with less”. They have to demonstrate the true value of marketing to chief executives and the board or face further cuts. Company managements, meanwhile, are questioning the effectiveness of advertising and are busy streamlining marketing departments; the purge of layers of marketing management at Procter & Gamble in 2003 will surely not be the last such restructuring. Many marketers are reacting to such pressures by focusing not on the nuts and bolts of building brands and margins with product improvements, high prices and ensuring their customer base remains loyal, but on desperately trying to hang on to the customers they have, tempting them with price cuts, free offers and loyalty programs. Chasing short-term sales at the expense of brand building is a dangerous and short-sighted strategy. In order to regain appeal for their brands, marketers will have to learn to adopt new tactics that are only gradually catching on, such as guerrilla marketing (one-off events designed to be startling enough that people talk about them), sponsoring events and product placement in hit shows. BMW’s series of series of mini-movies from famous directors and starring BMW cars are one example of how to do things differently. Companies will also have to face up to the fact that they need to overhaul their recruiting procedures, incentive programs and career structures to improve the quality of people that choose marketing as a career. 3.5 Summary So far, we have seen that as branding becomes a mainstream practice and concept, it also risks being widely misunderstood. The terms brand and branding are now commonly used in everyday vocabulary; yet, they are also terms that are often misinterpreted. It is much more than a logo or a name. A brand represents the full ‘personality’ of the company and is the interface between a company and its audience. The word brand comes from the Old Norse brandr, meaning to burn, and from these origins made its way into Anglo-Saxon. Brands have been around for a long time. They were used centuries ago as an identifier for ownership – from branding cattle, horses and even slaves. It was of course by burning that early man stamped ownership on his livestock The elements that make up the brand and work toward building its trust include the following: the promise, the personality and the USP (unique selling proposition). There is a difference between company and brand. Company refers to the organization that markets or produces products or services; brand refers to the image and “personality” a company applies to its products. In reality, the two can overlap. The role of marketing for companies is now an established part of most company processes. It is as important to a company’s development and long-term existence as is the financial and legal arm of the business. Large brands have complex management systems but
  • 13. 13 tend to be tightly managed, with small close teams from the company and selected agencies working together. The following stages outline the different skills involved when developing brands: formulating a brand strategy, creative execution (Naming and logo), creative implementation (advertising and digital presence) and communicating the brand. This applies to creating new brands as well as to refreshing or updating brands. Some of the guidelines for brand management are worthy for attention. These guidelines include the following: protect your brand, honor your stakeholders, treat your brand as an investment and not a cost and finally understand that successful brand management nowadays is a complex task. The marketing profession is in crisis. Most big branded consumer-goods companies, from Gillette, McDonald’s and Disney in America to Unilever and Nestlé in Europe and Panasonic in Japan, are facing slowing growth, declining market share or worse. Brands are getting weaker not stronger. Marketers are under pressure to produce better results with fewer resources, to “do more with less”. They have to demonstrate the true value of marketing to chief executives and the board or face further cuts. 3.6 Review Question I. State and explain the guidelines for good brand management II. Describe the different skills involved when developing brands III. With the aid of a diagram draw and describe the marketing matrix IV. The word brand comes from the Old Norse brandr, meaning to burn. Briefly describe the origins of branding giving its different stages of evolution. V. Is there a difference between a Brand, a Product and a company? VI. With the aid of practical examples, outline and explain the elements that make up a Brand VII. Define a brand. 3.7 References  David A. Aaker Building Strong Brands 2002, Simon & Schuster Ltd; 2nd edition  Michael Braungart and William McDonough Cradle to Cradle: Remaking the Way We Make Things 2002, North Point Press; 1st edition  Melissa Davis More Than a Name: an Introduction to Branding 2006, AVA Publishing  Iain Ellwood The Essential Brand Book 2002, Kogan Page Ltd; 2nd revised edition  John Gerzema and Edward Lebar The Brand Bubble: The Looming Crisis in Brand Value and How to Avoid it 2008, Jossey-Bass
  • 14. 14 3.7 Task  Read the notes on unit 3.3.7 (Guidelines for good brand management) and make a brief summary of not more than half a page 3.8 Reading Assignment/Suggested Readings  Read the introduction to this article titled ‘Wally Olins On Brand 2004, Thames & Hudson” accessed from https://www.researchgate.net/publication/281745896_WALLY_OLINS_1930- 2014_ CORPORATE_BRAND_J/download, December 13, 2018 3.9 Reading Assignment Supplementary Source  You Tube Video lecture: Brand building - How to build a brand  Video highlights: -video explains how to prevent competitors from copying an unpatented brand  Note: To access the video, copy and paste this Playlist  URL: https://youtu.be/earTl3C3WQc?t=6  Source: https://www.youtube.com/watch?v=earTl3C3WQc. Retrieved 13 December 2018. 3.10 Written Assignment  With the aid of practical examples, outline and explain the elements that make up a Brand 3.11 Discussion Assignment  Is there a difference between a Brand, a Product and a company? 3.14 Graded Quiz  Will be provided by the end of the lecture