Coca-Cola Bottling Company United, Inc. is a private Coca-Cola bottling company headquartered in Birmingham , Alabama . Coca-Cola United is the second-largest privately held Coca-Cola bottler in the United States and in which the Coca-Cola Company does not own an interest.
98-604: Coca-Cola United is a direct store delivery bottler. The finished product is delivered to customers within a geographic area. Therefore, they are considered the brand 's local Coca-Cola bottler distributors . Coca-Cola Bottling Company United, Inc., founded in 1902 and headquartered in Birmingham, Alabama, is the third-largest bottler of Coca-Cola products in the United States and the largest privately held Coca-Cola bottler employing roughly 10,000 people. Coca-Cola United
196-424: A firm's other products. The concept was proposed by Edward Chamberlin in his 1933 book, The Theory of Monopolistic Competition . Firms have different resource endowments that enable them to construct specific competitive advantages over competitors. Resource endowments allow firms to be different, which reduces competition and makes it possible to reach new segments of the market. Thus, differentiation
294-439: A target audience . Marketers tend to treat brands as more than the difference between the actual cost of a product and its selling price; rather brands represent the sum of all valuable qualities of a product to the consumer and are often treated as the total investment in brand building activities including marketing communications. Consumers may look on branding as an aspect of products or services, as it often serves to denote
392-469: A titulus pictus . The inscription typically specified information such as place of origin, destination, type of product and occasionally quality claims or the name of the manufacturer. Roman marks or inscriptions were applied to a very wide variety of goods, including, pots, ceramics, amphorae (storage/shipping containers) and on factory-produced oil-lamps. Carbonized loaves of bread , found at Herculaneum , indicate that some bakers stamped their bread with
490-636: A brand may recognize that advertising touchpoints are most effective during the pre-purchase experience stage therefore they may target their advertisements to new customers rather than to existing customers. Overall, a brand has the ability to strengthen brand equity by using IMC branding communications through touchpoints. Brand communication is important in ensuring brand success in the business world and refers to how businesses transmit their brand messages, characteristics and attributes to their consumers . One method of brand communication that companies can exploit involves electronic word-of-mouth (eWOM). eWOM
588-400: A brand may showcase its primary attribute as environmental friendliness. However, a brand's attributes alone are not enough to persuade a customer into purchasing the product. These attributes must be communicated through benefits , which are more emotional translations. If a brand's attribute is being environmentally friendly, customers will receive the benefit of feeling that they are helping
686-403: A brand name is a "memory heuristic": a convenient way to remember preferred product choices. A brand name is not to be confused with a trademark which refers to the brand name or part of a brand that is legally protected. For example, Coca-Cola not only protects the brand name, Coca-Cola , but also protects the distinctive Spencerian script and the contoured shape of the bottle. Brand identity
784-463: A brand with consumers. For example, a jingle or background music can have a positive effect on brand recognition, purchasing behaviour and brand recall. Therefore, when looking to communicate a brand with chosen consumers, companies should investigate a channel of communication that is most suitable for their short-term and long-term aims and should choose a method of communication that is most likely to reach their target consumers. The match-up between
882-478: A brand, the more they trusted the brand. This suggests that a company could look to employ a social-media campaign to gain consumer trust and loyalty as well as in the pursuit of communicating brand messages. McKee (2014) also looked into brand communication and states that when communicating a brand, a company should look to simplify its message as this will lead to more value being portrayed as well as an increased chance of target consumers recalling and recognizing
980-518: A broad range of goods. In 1266, makers' marks on bread became compulsory in England. The Italians used brands in the form of watermarks on paper in the 13th century. Blind stamps , hallmarks , and silver-makers' marks —all types of brand—became widely used across Europe during this period. Hallmarks, although known from the 4th-century, especially in Byzantium, only came into general use during
1078-412: A category is differentiated from its competing brands, and thus the brand helps customers & potential customers understand which brand satisfies their needs. Thus, the brand offers the customer a short-cut to understanding the different product or service offerings that make up a particular category. Brand awareness is a key step in the customer's purchase decision process, since some kind of awareness
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#17327875165131176-417: A certain attractive quality or characteristic (see also brand promise). From the perspective of brand owners, branded products or services can command higher prices. Where two products resemble each other, but one of the products has no associated branding (such as a generic , store-branded product), potential purchasers may often select the more expensive branded product on the basis of the perceived quality of
1274-452: A combination of both and they are not the only way to define differentiation. Another way to differentiate a product is through spatial differentiation. Spatial Product Differentiation is using a geographical location as a way to differentiate. An example of Spatial Differentiation is a firm locally sourcing inputs and producing their product. According to research conducted by combining mathematics and economics, decisions of pricing depend on
1372-1021: A corporation hopes to accomplish, and to explain why customers should choose one brand over its competitors. Brand personality refers to "the set of human personality traits that are both applicable to and relevant for brands." Marketers and consumer researchers often argue that brands can be imbued with human-like characteristics which resonate with potential consumers. Such personality traits can assist marketers to create unique, brands that are differentiated from rival brands. Aaker conceptualized brand personality as consisting of five broad dimensions, namely: sincerity (down-to-earth, honest, wholesome, and cheerful), excitement (daring, spirited, imaginative, and up to date), competence (reliable, intelligent, and successful), sophistication (glamorous, upper class, charming), and ruggedness (outdoorsy and tough). Subsequent research studies have suggested that Aaker's dimensions of brand personality are relatively stable across different industries, market segments and over time. Much of
1470-407: A decisive factor in purchasing. Horizontal differentiation seeks to affect an individual's subjective decision-making, that is the difference cannot be measured in an objective way. For example, different color versions of the same iPhone or MacBook. A lemon ice cream is not superior to a chocolate ice cream, is completely based on the user's preference. A restaurant may price all of its desserts at
1568-420: A difference; hence, causes of differentiation may be functional aspects of the product or service, how it is distributed and marketed, or who buys it. The major sources of product differentiation are as follows. The objective of differentiation is to develop a position that potential customers see as unique. The term is used frequently when dealing with freemium business models, in which businesses market
1666-472: A different stage in a customer's cognitive ability to address the brand in a given circumstance. Marketers typically identify two distinct types of brand awareness; namely brand recall (also known as unaided recall or occasionally spontaneous recall ) and brand recognition (also known as aided brand recall ). These types of awareness operate in entirely different ways with important implications for marketing strategy and advertising. Brand recognition
1764-450: A free and paid version of a given product. Given they target the same group of customers , it is imperative that free and paid versions be effectively differentiated. Differentiation primarily affects performance through reducing directness of competition: as the product becomes more different, categorization becomes more difficult and hence draws fewer comparisons with its competition. A successful product differentiation strategy will move
1862-462: A given category, when prompted with a brand name, a larger number of consumers are typically able to recognize it. Brand recognition is most successful when people can elicit recognition without being explicitly exposed to the company's name, but rather through visual signifiers like logos, slogans, and colors. For example, Disney successfully branded its particular script font (originally created for Walt Disney's "signature" logo ), which it used in
1960-432: A given segment have a lower sensitivity to other features (non-price) of the product. Edward Chamberlin ’s (1933) seminal work on monopolistic competition mentioned the theory of differentiation, which maintained that for available products within the same industry, customers may have different preferences. However, a generic strategy of differentiation popularized by Michael Porter (1980) proposed that differentiation
2058-493: A high level of brand equity. Brand owners manage their brands carefully to create shareholder value . Brand valuation is a management technique that ascribes a monetary value to a brand. The word brand , originally meaning a burning piece of wood, comes from a Middle English brand , meaning "torch", from an Old English brand . It became to also mean the mark from burning with a branding iron. Branding and labeling have an ancient history. Branding probably began with
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#17327875165132156-507: A low-involvement purchasing decision. Brand recognition is often the mode of brand awareness that operates in retail shopping environments. When presented with a product at the point-of-sale, or after viewing its visual packaging, consumers are able to recognize the brand and may be able to associate it with attributes or meanings acquired through exposure to promotion or word-of-mouth referrals. In contrast to brand recall, where few consumers are able to spontaneously recall brand names within
2254-513: A product better suited to themselves, the negative to this is prices within the market segment tend to rise. The level of differentiation between goods can also affect demand. For example within grocery stores, If a category of goods is relatively nondifferentiated then a high amount of assortment depth leads to less sales. During the 1990s, steps taken by government on deregulation and European integration persuaded banks to compete for deposits on many factors like deposit rates, accessibility and
2352-497: A product from competing based primarily on price to competing on non-price factors (such as product characteristics, distribution strategy, or promotional variables). Most people would say that the implication of differentiation is the possibility of charging a price premium ; however, this is an over-simplification. If customers value the firm's offer, they will be less sensitive to aspects of competing offers; price may not be one of these aspects. Differentiation makes customers in
2450-399: A receiver, it runs the risk of the receiver incorrectly interpreting the message. Therefore, a brand should use appropriate communication channels to positively "…affect how the psychological and physical aspects of a brand are perceived". In order for brands to effectively communicate to customers, marketers must "…consider all touch point |s, or sources of contact, that a customer has with
2548-414: A trademark from the late 1870s, with great success. Pears' soap , Campbell's soup , Coca-Cola , Juicy Fruit chewing gum and Aunt Jemima pancake mix were also among the first products to be "branded" in an effort to increase the consumer's familiarity with the product's merits. Other brands which date from that era, such as Ben's Original rice and Kellogg's breakfast cereal, furnish illustrations of
2646-407: A trademark in the form of a 'White Rabbit", which signified good luck and was particularly relevant to women, who were the primary purchasers. Details in the image show a white rabbit crushing herbs, and text includes advice to shoppers to look for the stone white rabbit in front of the maker's shop. In ancient Rome , a commercial brand or inscription applied to objects offered for sale was known as
2744-509: A visual or verbal cue. For example, when looking to satisfy a category need such as a toilet paper, the customer would firstly be presented with multiple brands to choose from. Once the customer is visually or verbally faced with a brand, they may remember being introduced to it before. When given a cue, consumers able to retrieve the memory node associated with the brand exhibit brand recognition. Often, this form of brand awareness assists customers in choosing one brand over another when faced with
2842-413: Is a brand's personality . Quite literally, one can easily describe a successful brand identity as if it were a person. This form of brand identity has proven to be the most advantageous in maintaining long-lasting relationships with consumers, as it gives them a sense of personal interaction with the brand Collectively, all four forms of brand identification help to deliver a powerful meaning behind what
2940-420: Is a collection of individual components, such as a name, a design, a set of images, a slogan, a vision, writing style, a particular font or a symbol etc. which sets the brand aside from others. For a company to exude a strong sense of brand identity, it must have an in-depth understanding of its target market, competitors and the surrounding business environment. Brand identity includes both the core identity and
3038-403: Is a fundamental asset to a brand's equity , the worth of a brand's identity would become obsolete without ongoing brand communication. Integrated marketing communications (IMC) relates to how a brand transmits a clear consistent message to its stakeholders . Five key components comprise IMC: The effectiveness of a brand's communication is determined by how accurately the customer perceives
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3136-469: Is a precondition to purchasing. That is, customers will not consider a brand if they are not aware of it. Brand awareness is a key component in understanding the effectiveness both of a brand's identity and of its communication methods. Successful brands are those that consistently generate a high level of brand awareness, as this can be the pivotal factor in securing customer transactions. Various forms of brand awareness can be identified. Each form reflects
3234-410: Is a relatively new approach [Phelps et al., 2004] identified to communicate with consumers. One popular method of eWOM involves social networking sites (SNSs) such as Twitter . A study found that consumers classed their relationship with a brand as closer if that brand was active on a specific social media site (Twitter). Research further found that the more consumers "retweeted" and communicated with
3332-456: Is a two factor game: one is of offering of remote access and the other is of deposit rates. Hypothetically, there will be two consequential scenarios if only one bank offers remote access. First, the bank gains a positive market share for all types of remote access, giving rise to horizontal dominance. This occurs when the transportation cost prevail over the quality of service, deposit rate and time. Second, vertical dominance comes into picture when
3430-707: Is any product (tangible or intangible) perceived as “being unique” by at least one set of customers. Hence, it depends on customers' perception of the extent of product differentiation. Even until 1999, the consequences of these concepts were not well understood. In fact, Miller (1986) proposed marketing and innovation as two differentiation strategies, which was supported by some scholars like Lee and Miller (1999). Mintzberg (1988) proposed more specific but broad categories: quality, design, support, image, price, and undifferentiated products, which received support from Kotha and Vadlamani (1995). However, IO literature (Ethiraj & Zhu, 2008; Makadok, 2010, 2011) did deeper analysis into
3528-422: Is inconsistent with the conditions for perfect competition , which include the requirement that the products of competing firms should be perfect substitutes . There are three types of product differentiation: The brand differences are mostly minor; they can be merely a difference in packaging or an advertising theme. The physical product need not change, but it may. Differentiation is due to buyers perceiving
3626-421: Is often little to differentiate between several types of products in the 21st century, hence branding is among a few remaining forms of product differentiation . Brand equity is the measurable totality of a brand's worth and is validated by observing the effectiveness of these branding components. When a customer is familiar with a brand or favors it incomparably over its competitors, a corporation has reached
3724-442: Is one of the initial phases of brand awareness and validates whether or not a customer remembers being pre-exposed to the brand. Brand recognition (also known as aided brand recall ) refers to consumers' ability to correctly differentiate a brand when they come into contact with it. This does not necessarily require consumers to identify or recall the brand name. When customers experience brand recognition, they are triggered by either
3822-837: Is principally engaged in the production, marketing, and distribution of over 750 non-alcoholic beverages, which include over 200 no or low-calorie options. Starting in 2013 United has acquired several territories across the SouthEast region, including the Savanna River Division and the Atlanta Division. The Atlanta Division covers The Coca-Cola Company's headquarter in Atlanta. Among the brands are Coca-Cola , Coke Zero , Diet Coke , Sprite , Dr Pepper , Fanta , Dasani , Powerade , Minute Maid , vitaminwater and many more under exclusive franchise agreements with
3920-406: Is stronger than brand recognition, as the brand must be firmly cemented in the consumer's memory to enable unassisted remembrance. This gives the company huge advantage over its competitors because the customer is already willing to buy or at least know the company offering available in the market. Thus, brand recall is a confirmation that previous branding touchpoints have successfully fermented in
4018-564: Is the herbal paste known as chyawanprash , consumed for its purported health benefits and attributed to a revered rishi (or seer) named Chyawan. One well-documented early example of a highly developed brand is that of White Rabbit sewing needles, dating from China's Song dynasty (960 to 1127 CE). A copper printing plate used to print posters contained a message which roughly translates as: "Jinan Liu's Fine Needle Shop: We buy high-quality steel rods and make fine-quality needles, to be ready for use at home in no time." The plate also includes
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4116-420: Is the process of distinguishing the differences of a product or offering from others, to make it more attractive to a particular target market . Although research in a niche market may result in changing a product in order to improve differentiation, the changes themselves are not differentiation. Marketing or product differentiation is the process of describing the differences between products or services, or
4214-481: The Hotelling model . The major theory in this is that all consumers prefer the higher quality product if two distinct products are offered at the same price. A product can differ in many vertical attributes such as its operating speed . What really matters is the relationship between consumers' willingness to pay for improvements in quality and the increase in cost per unit that comes with such improvements. Therefore,
4312-784: The Qin dynasty (221-206 BCE); large numbers of seals survive from the Harappan civilization of the Indus Valley (3,300–1,300 BCE) where the local community depended heavily on trade; cylinder seals came into use in Ur in Mesopotamia in around 3,000 BCE, and facilitated the labelling of goods and property; and the use of maker's marks on pottery was commonplace in both ancient Greece and Rome. Identity marks, such as stamps on ceramics, were also used in ancient Egypt. Diana Twede has argued that
4410-481: The "consumer packaging functions of protection, utility and communication have been necessary whenever packages were the object of transactions". She has shown that amphorae used in Mediterranean trade between 1,500 and 500 BCE exhibited a wide variety of shapes and markings, which consumers used to glean information about the type of goods and the quality. The systematic use of stamped labels dates from around
4508-484: The "cool" factor. This began the modern practice now known as branding , where the consumers buy the brand instead of the product and rely on the brand name instead of a retailer's recommendation. The process of giving a brand "human" characteristics represented, at least in part, a response to consumer concerns about mass-produced goods. The Quaker Oats Company began using the image of the Quaker Man in place of
4606-400: The "…potential to add positive – or suppress negative – associations to the brand's equity" Thus, a brand's IMC should cohesively deliver positive messages through appropriate touch points associated with its target market. One methodology involves using sensory stimuli touch points to activate customer emotion. For example, if a brand consistently uses a pleasant smell as a primary touchpoint,
4704-518: The 1st century CE. The use of hallmarks , a type of brand, on precious metals dates to around the 4th century CE. A series of five marks occurs on Byzantine silver dating from this period. Some of the earliest use of maker's marks, dating to about 1,300 BCE, have been found in India. The oldest generic brand in continuous use, known in India since the Vedic period ( c. 1100 BCE to 500 BCE),
4802-606: The 6th century BCE. A vase manufactured around 490 BCE bears the inscription " Sophilos painted me", indicating that the object was both fabricated and painted by a single potter. Branding may have been necessary to support the extensive trade in such pots. For example, 3rd-century Gaulish pots bearing the names of well-known potters and the place of manufacture (such as Attianus of Lezoux , Tetturo of Lezoux and Cinnamus of Vichy ) have been found as far away as Essex and Hadrian's Wall in England. English potters based at Colchester and Chichester used stamps on their ceramic wares by
4900-547: The Coca-Cola Company and other soft drink manufacturers. On 28 May 2024, Coca-Cola Bottling Company United, Inc. announced a $ 330 million investment in a new facility in Birmingham's Kingston community. The development, set to create up to 50 new jobs and retain over 750 positions, will feature a 150,000-square-foot office complex and a 300,000-square-foot warehouse, and will serve as a major operational hub for
4998-534: The Medieval period. British silversmiths introduced hallmarks for silver in 1300. Some brands still in existence as of 2018 date from the 17th, 18th, and 19th centuries' period of mass-production. Bass Brewery , the British brewery founded in 1777, became a pioneer in international brand marketing. Many years before 1855, Bass applied a red triangle to casks of its pale ale. In 1876, its red-triangle brand became
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#17327875165135096-476: The atrium, and bearing labels as follows: Scaurus' fish sauce was known by people across the Mediterranean to be of very high quality, and its reputation traveled as far away as modern France. In both Pompeii and nearby Herculaneum, archaeological evidence also points to evidence of branding and labeling in relatively common use across a broad range of goods. Wine jars, for example, were stamped with names, such as "Lassius" and "L. Eumachius"; probably references to
5194-524: The barrels used, effectively using a corporate trademark as a quasi-brand. Factories established following the Industrial Revolution introduced mass-produced goods and needed to sell their products to a wider market—that is, to customers previously familiar only with locally produced goods. It became apparent that a generic package of soap had difficulty competing with familiar, local products. Packaged-goods manufacturers needed to convince
5292-427: The beginnings of brand management. This trend continued to the 1980s, and as of 2018 is quantified by marketers in concepts such as brand value and brand equity . Naomi Klein has described this development as "brand equity mania". In 1988, for example, Philip Morris Companies purchased Kraft Foods Inc. for six times what the company was worth on paper. Business analysts reported that what they really purchased
5390-401: The brand and is termed the consumer's brand experience . The brand is often intended to create an emotional response and recognition, leading to potential loyalty and repeat purchases. The brand experience is a brand's action perceived by a person. The psychological aspect, sometimes referred to as the brand image , is a symbolic construct created within the minds of people, consisting of all
5488-412: The brand has a much higher chance of creating a positive lasting effect on its customers' senses as well as memory. Another way a brand can ensure that it is utilizing the best communication channel is by focusing on touchpoints that suit particular areas associated with customer experience . As suggested Figure 2, certain touch points link with a specific stage in customer-brand-involvement. For example,
5586-413: The brand or on the basis of the reputation of the brand owner. Brand awareness involves a customer's ability to recall and/or recognize brands, logos, and branded advertising. Brands help customers to understand which brands or products belong to which product or service category. Brands assist customers to understand the constellation of benefits offered by individual brands, and how a given brand within
5684-425: The brand". Touch points represent the channel stage in the traditional communication model, where a message travels from the sender to the receiver. Any point where a customer has an interaction with the brand - whether watching a television advertisement, hearing about a brand through word of mouth or even noticing a branded license plate – defines a touchpoint. According to Dahlen et al. (2010), every touchpoint has
5782-400: The brand's intended message through its IMC. Although IMC is a broad strategic concept, the most crucial brand communication elements are pinpointed to how the brand sends a message and what touch points the brand uses to connect with its customers [Chitty 2005]. One can analyze the traditional communication model into several consecutive steps: When a brand communicates a brand identity to
5880-509: The brand, he or she is more likely to try other products offered by the company – such as chocolate-chip cookies, for example. Brand development, often performed by a design team , takes time to produce. A brand name is the part of a brand that can be spoken or written and identifies a product, service or company and sets it apart from other comparable products within a category. A brand name may include words, phrases, signs, symbols, designs, or any combination of these elements. For consumers,
5978-455: The brand. In 2012 Riefler stated that if the company communicating a brand is a global organization or has future global aims, that company should look to employ a method of communication that is globally appealing to their consumers, and subsequently choose a method of communication with will be internationally understood. One way a company can do this involves choosing a product or service's brand name, as this name will need to be suitable for
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#17327875165136076-518: The company. Brand A brand is a name, term, design, symbol or any other feature that distinguishes one seller's good or service from those of other sellers. Brands are used in business , marketing , and advertising for recognition and, importantly, to create and store value as brand equity for the object identified, to the benefit of the brand's customers, its owners and shareholders . Brand names are sometimes distinguished from generic or store brands . The practice of branding—in
6174-501: The consumer through branding. Producers began by attaching simple stone seals to products which, over time, gave way to clay seals bearing impressed images, often associated with the producer's personal identity thus giving the product a personality. Not all historians agree that these markings are comparable with modern brands or labels, with some suggesting that the early pictorial brands or simple thumbprints used in pottery should be termed proto-brands while other historians argue that
6272-516: The environment by associating with the brand. Aside from attributes and benefits, a brand's identity may also involve branding to focus on representing its core set of values . If a company is seen to symbolize specific values, it will, in turn, attract customers who also believe in these values. For example, Nike's brand represents the value of a " just do it " attitude. Thus, this form of brand identification attracts customers who also share this same value. Even more extensive than its perceived values
6370-416: The equilibrium or competitive level by coordination between themselves. They have a verbal or written collusion agreement between them. Firms operating in a market of low product differentiation might not coordinate with others, which increases the incentive to cheat the collusion agreement. If a firm slightly lowers there prices, they can capture a large fraction of the market and obtain short term profits if
6468-414: The extended identity. The core identity reflects consistent long-term associations with the brand; whereas the extended identity involves the intricate details of the brand that help generate a constant motif. According to Kotler et al. (2009), a brand's identity may deliver four levels of meaning: A brand's attributes are a set of labels with which the corporation wishes to be associated. For example,
6566-426: The first registered trademark issued by the British government. Guinness World Records recognizes Tate & Lyle (of Lyle's Golden Syrup ) as Britain's, and the world's, oldest branding and packaging, with its green-and-gold packaging having remained almost unchanged since 1885. Twinings tea has used the same logo – capitalized font beneath a lion crest – since 1787, making it
6664-642: The fourth century BCE. In largely pre-literate society, the shape of the amphora and its pictorial markings conveyed information about the contents, region of origin and even the identity of the producer, which were understood to convey information about product quality. David Wengrow has argued that branding became necessary following the urban revolution in ancient Mesopotamia in the 4th century BCE, when large-scale economies started mass-producing commodities such as alcoholic drinks, cosmetics and textiles. These ancient societies imposed strict forms of quality-control over commodities, and also needed to convey value to
6762-436: The information and expectations associated with a product, with a service, or with the companies providing them. Marketers or product managers that responsible for branding, seek to develop or align the expectations behind the brand experience, creating the impression that a brand associated with a product or service has certain qualities or characteristics, which make it special or unique. A brand can, therefore, become one of
6860-430: The literature on branding suggests that consumers prefer brands with personalities that are congruent with their own. Consumers may distinguish the psychological aspect (brand associations like thoughts, feelings, perceptions, images, experiences, beliefs, attitudes, and so on that become linked to the brand) of a brand from the experiential aspect. The experiential aspect consists of the sum of all points of contact with
6958-465: The location of bank's branch. Vertical differentiation, in this example, occurs whenever one bank offers remote access and the other does not. With remote access, it can spur a negative interaction between transportation rate and taste for quality: customers who have higher taste for remote access face a lower transportation rate. A depositor with a high (low) taste for remote access has low (high) linear transportation costs. Different equilibria emerge as
7056-419: The logo for go.com . Unlike brand recognition, brand recall (also known as unaided brand recall or spontaneous brand recall ) is the ability of the customer retrieving the brand correctly from memory. Rather than being given a choice of multiple brands to satisfy a need, consumers are faced with a need first, and then must recall a brand from their memory to satisfy that need. This level of brand awareness
7154-473: The market that the public could place just as much trust in the non-local product. Gradually, manufacturers began using personal identifiers to differentiate their goods from generic products on the market. Marketers generally began to realize that brands, to which personalities were attached, outsold rival brands. By the 1880s, large manufacturers had learned to imbue their brands' identity with personality traits such as youthfulness, fun, sex appeal, luxury or
7252-540: The marketplace that it aims to enter. It is important that if a company wishes to develop a global market, the company name will also need to be suitable in different cultures and not cause offense or be misunderstood. When communicating a brand, a company needs to be aware that they must not just visually communicate their brand message and should take advantage of portraying their message through multi-sensory information. One article suggests that other senses, apart from vision, need to be targeted when trying to communicate
7350-400: The minds of its consumers. Marketing-mix modeling can help marketing leaders optimize how they spend marketing budgets to maximize the impact on brand awareness or on sales. Managing brands for value creation will often involve applying marketing-mix modeling techniques in conjunction with brand valuation . Brands typically comprise various elements, such as: Although brand identity
7448-569: The modern era, the concept of branding has expanded to include deployment by a manager of the marketing and communication techniques and tools that help to distinguish a company or products from competitors, aiming to create a lasting impression in the minds of customers . The key components that form a brand's toolbox include a brand's identity, personality, product design , brand communication (such as by logos and trademarks ), brand awareness , brand loyalty , and various branding ( brand management ) strategies. Many companies believe that there
7546-433: The most enduring campaigns of the 20th-century. Brand advertisers began to imbue goods and services with a personality, based on the insight that consumers searched for brands with personalities that matched their own. Effective branding, attached to strong brand values, can result in higher sales of not only one product, but of other products associated with that brand. If a customer loves Pillsbury biscuits and trusts
7644-579: The most valuable elements in an advertising theme, as it demonstrates what the brand owner is able to offer in the marketplace . This means that building a strong brand helps to distinguish a product from similar ones and differentiate it from competitors. The art of creating and maintaining a brand is called brand management . The orientation of an entire organization towards its brand is called brand orientation . Brand orientation develops in response to market intelligence . Careful brand management seeks to make products or services relevant and meaningful to
7742-564: The name of the producer. The use of identity marks on products declined following the fall of the Roman Empire . In the European Middle Ages , heraldry developed a language of visual symbolism which would feed into the evolution of branding, and with the rise of the merchant guilds the use of marks resurfaced and was applied to specific types of goods. By the 13th century, the use of maker's marks had become evident on
7840-421: The original literal sense of marking by burning—is thought to have begun with the ancient Egyptians , who are known to have engaged in livestock branding and branded slaves as early as 2,700 BCE. Branding was used to differentiate one person's cattle from another's by means of a distinctive symbol burned into the animal's skin with a hot branding iron . If a person stole any of the cattle, anyone else who saw
7938-428: The perceived difference in quality is different among different consumers, so it is objective. For example, a green product might have a lower or zero negative effect on the environment; however, it may turn out to be inferior to other products in other aspects. Hence, the product's appeal also depends on the way it is advertised and the social pressure felt by a potential consumer. Even one vertical differentiation can be
8036-657: The practice of branding livestock to deter theft. Images of the branding of cattle occur in ancient Egyptian tombs dating to around 2,700 BCE. Over time, purchasers realized that the brand provided information about origin as well as about ownership, and could serve as a guide to quality. Branding was adapted by farmers, potters, and traders for use on other types of goods such as pottery and ceramics. Forms of branding or proto-branding emerged spontaneously and independently throughout Africa, Asia and Europe at different times, depending on local conditions. Seals , which acted as quasi-brands, have been found on early Chinese products of
8134-473: The presence of these simple markings does not imply that mature brand management practices operated. Scholarly studies have found evidence of branding, packaging, and labeling in antiquity. Archaeological evidence of potters' stamps has been found across the breadth of the Roman Empire and in ancient Greece . Stamps were used on bricks, pottery, and storage containers as well as on fine ceramics. Pottery marking had become commonplace in ancient Greece by
8232-518: The producer's name. Roman glassmakers branded their works, with the name of Ennion appearing most prominently. One merchant that made good use of the titulus pictus was Umbricius Scaurus, a manufacturer of fish sauce (also known as garum ) in Pompeii, c. 35 CE . Mosaic patterns in the atrium of his house feature images of amphorae bearing his personal brand and quality claims. The mosaic depicts four different amphora, one at each corner of
8330-443: The product, the consumer lifestyle, and the endorser is important for the effectiveness of brand communication. Product differentiation In economics and marketing , product differentiation (or simply differentiation) is the process of distinguishing a product or service from others to make it more attractive to a particular target market . This involves differentiating it from competitors ' products as well as from
8428-599: The products are highly substitutable. Product differentiation within a given market segment can have both positive and negative affects on the consumer. From the producers perspective building a different product compared to competitors can create a competitive advantage which can result in higher profits. Through differentiation consumers gain greater value from a product, however this leads to increased demand and market segmentation which can cause anti-competitive effects on price. From this perspective greater diversity leads to more choices which means each individual can purchase
8526-409: The quality difference. These two effects, "stealing" depositors versus "substitutability" between banks, determines the equilibrium. For low and high values of the ratio quality difference to transportation rate, only one bank offers remote access (specialization). Intermediate (very low) values of the ratio quality difference to transportation costs yield universal (no) remote access. This competition
8624-530: The quality of financial services. In this example using the Hotelling model, one feature is of variety (location) and one feature of quality (remote access). Remote access using bank services via postal and telephonic services like arranging payment facilities and obtaining account information). In this model, banks cannot become vertically differentiated without negatively affecting horizontal differentiation between them. Horizontal differentiation occurs with
8722-407: The result of two effects. On the one hand, introducing remote access steals depositors from your competitor because the product specification becomes more appealing (direct effect). On the other hand, banks become closer substitutes (indirect effect). First, banks become closer substitutes as the impact of linear transportation costs decreases. Second, deposit rate competition is affected by the size of
8820-500: The resulting list of differences. This is done in order to demonstrate the unique aspects of a firm's product and create a sense of value . Marketing textbooks are firm on the point that any differentiation must be valued by buyers (a differentiation attempt that is not perceived does not count). The term unique selling proposition refers to advertising to communicate a product's differentiation. In economics , successful product differentiation leads to competitive advantage and
8918-468: The same price and lets the consumer freely choose its preferences since all the alternatives cost the same. A clear example of Horizontal Product Differentiation can be seen when comparing Coca Cola and Pepsi: if priced the same then individuals will differentiate between the two based purely on their own taste preference. Whilst Product differentiation is typically broken into two types Vertical and Horizontal, it's important to note that all products exhibit
9016-449: The substitutability between products, the level of substitutability varies as the degree of differentiation between firms’ products change. A firm cannot charge a higher price if products are good substitutes, conversely as a product deviates from others in the segment producers can begin to charge a higher price. The lower non-cooperative equilibrium price the lower the differentiation. For this reason, firms might jointly raise prices above
9114-550: The symbol could deduce the actual owner. The term has been extended to mean a strategic personality for a product or company, so that "brand" now suggests the values and promises that a consumer may perceive and buy into. Over time, the practice of branding objects extended to a broader range of packaging and goods offered for sale including oil , wine , cosmetics , and fish sauce and, in the 21st century, extends even further into services (such as legal , financial and medical ), political parties and people 's stage names. In
9212-443: The theory and explored a clear distinction between the wide use of vertical and horizontal differentiation. Vertical product differentiation can be measured objectively by a consumer. For example, when comparing two similar products, the quality and price can clearly be identified and ranked by the customer. If both A and B products have the same price to the consumer, then the market share for each one will be positive, according to
9310-476: The trend. By the early 1900s, trade press publications, advertising agencies , and advertising experts began producing books and pamphlets exhorting manufacturers to bypass retailers and to advertise directly to consumers with strongly branded messages. Around 1900, advertising guru James Walter Thompson published a housing advertisement explaining trademark advertising. This was an early commercial explanation of what scholars now recognize as modern branding and
9408-400: The way in which consumers had started to develop relationships with their brands in a social/psychological/anthropological sense. Advertisers began to use motivational research and consumer research to gather insights into consumer purchasing. Strong branded campaigns for Chrysler and Exxon /Esso, using insights drawn from research into psychology and cultural anthropology , led to some of
9506-417: The world's oldest in continuous use. A characteristic feature of 19th-century mass-marketing was the widespread use of branding, originating with the advent of packaged goods . Industrialization moved the production of many household items, such as soap , from local communities to centralized factories . When shipping their items, the factories would literally brand their logo or company insignia on
9604-435: Was the brand name. With the rise of mass media in the early 20th century, companies adopted techniques that allowed their messages to stand out. Slogans , mascots , and jingles began to appear on radio in the 1920s and in early television in the 1930s . Soap manufacturers sponsored many of the earliest radio drama series, and the genre became known as soap opera . By the 1940s, manufacturers began to recognize
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