last updated 2010 April 30
see also
see also
see also
see also
see also
.. This Branding unit is used in
    o MRK106
    o CCT322
    o MGTD06
Not all of the material in this unit will be used in each of these courses; the amount of material covered will be indicated by the actual lecture given in class by the professor. Some courses cover this topic extensively, some courses deal with it briefly.
"A name, term, sign, symbol, or design (or some combination thereof) used to identify the products of one firm and to differentiate them from competitive offering"s. 

Something used to show customers that one product is different than the products of another manufacturer. 

- Ori
Brands and Branding
Chpt 9 in the Sommers book used in CCT322
Chpt 9 in the Shapiro book used in MRK 106 - 10th edition
Chpt 9 in the Wong book used in MRK 106 - 11th edition
- review the powerpoint at
HISTORICAL origins Branding came about as a consequence of mass production to distinguish one "producer" from another - before branding, most consumer products were made in a customized fashion for the user - shoes by a cobbler, clothing by a dress maker, barrels by a carpenter - there was no need for logos or brands because it had no impact on the ability to sell - there was virtually no competitive market.

Originally branding helped trace the source of the guild producer
- In modern era, makes it easier to identify all the products from a particular company
- Makes shopping easier
- helps the companies launching new products

- Ogin.


The following terms are asociated with the degree to which a customer is aware of a brand, and uses a brand

Brand Awareness / Recognition - awareness, loyalty, quality, emotion “customers remember the brand”
- your product is the first that comes to mind in a certain product category eg. 

  • ice tea - Snapple 
  • jeans - Levi’s, 
  • walkman - SONY
  • cellphone - Nokia
  • SUV - Jeep !

Brand Association - the link to favourable images, celebrities, geographic regions ie. Red Strip  - Jamaica, VW - Germany, Screech - NFLD Bailey’s - Eire

Brand Preference /  Loyalty - the degree to which customers are committed to further purchases eg. “choose the brand over other brands”

Brand Insistence - “willing to search for it..”, and if they do not find the brand they want, WILL NOT but a substitute 

Brand Ambassador - a person who not only insists on wearing or using a brand, to the exclusion of all others, but tries to convince their friends and associates to also use the brand - in effect "representing" the brand to others. Compaines love these type of people since it is free advertising. Many companies facilitate this by making their brand logo easily available on clothiing and other products to extend awareness of the brand



Brand Extension means, exactly what you might think, extending the equity, or value of the brand by creating other models, shapes, flavours, styles so you can sell more "stuff" to people who like the original brand model.
click to view larger In late October 2007 General Motors announced the launch of the H3T which is a H3 built like a mid-size pick-up truck

identified as a concept vehicle back in Jan 2004, it has taken a while for GM executives to decide if this would be a good addition to the Hummer lineup


The Toronto Star wrote (2007, Oct 31)

"General Motors Corp. is adding a pickup version of its Hummer H3 sport-utility vehicle at a Louisiana assembly plant as the struggling automaker tries to stem the brand's declining sales."

The Star reported "Smaller Hummer models are part of chief executive officer Rick Wagoner's strategy to change the brand's reputation for excess as gasoline prices have risen. GM eliminated the largest Hummer, the five-tonne H1, last year."
In branding a consumer product, it is always kewl to associate with a hot movie.

The Hummer to the left was "Ratchet" in Transformers

GM bought the licence for the Hummer brand from AM General in 1999 and started selling the H1
2002 - added the H2
2005 - added the H3
2009 GM sold Hummer to China's Sichuan Tengzhong Heavy Industrial Machinery
2010 Feb 26 - sale did not go through

student Linna(Cheng-Si) X in MGTC46 at UTSC emailed to say she found information that explains
"...Sichuan Tengzhong , said  that it withdrew its bid because it was unable to get  approval from the Chinese government, which is trying to put a new  emphasis on limiting China's dependence on imported oil and protecting  the environment."

the term - High Mobility Multipurpose Wheeled Vehicle (a.k.a. HMMWV or Humvee)

Brand Equity - “… the value of a brand’s overall strength in the market …”

almost eveyone in the world knows the Nike logo, which makes this joke universally funny

Brand Equity - “… the value of a brand’s overall strength in the market …”

Sommers in his 10th ed p. 254
"... brand equity, one of the hottest topics in marketing in recent years"

p. 255 says
"Brand Equity is also the value a brand adds to a product from the perspective of the customer"

As for Marketing Information Products & Services, Sommers explains on page 255
"Consumers said they would pay $295 and $232 more for the IBM and Compaq brands..."

"Today, creating brand equity is about more than positioning, packaging and imagery. It involves developing a relationship with customers. Customers want brands they can trust and be happy to tell other about"

Key Points The choice of a good brand - especially for personal consumer products - is often considered by young people as a reflection of their personality, taste, and income earning --- which is why so many young consumers get caught up in buying brands that have an expensive connotation beyond their own personal budget.

This is great for the companies marketing luxury brands, but it is stressful for fashion/brand conscious young people who feel pressure to "keep up". Although there are growing signs that a segment of young people are rejecting brands and using word of mouth to spread awareness of anti-brands, eg. MEC



Online Communities

Brand Equity - enhanced and built by Online Communities
. The enthusiasm for individual consumers contributing to the "reputation building" that results in Brand Equity is something that can come about as a result of a vibrant and enthusiastic online community.

Communities of customers is not a new concept in marketing - they existed before the web - but what the web does is consolidate these communities and allow the members to interact more easily and with more frequency.

WTGR click on the screen capture to go to the special unit on Online Communities
Brand Equity =? Value
For many years, various advertising and marketing communications agencies and associations have tried to create lists of the most valuable global brands. It is very hard toc ompare the different lists because they often have different ways of measuring value, some is objective and some very subjective.


Millard Brown, a U.S. consulting firm in advertising and marketing communications and brand equity has published a list of the Top 10 most valuable brands - which is a list that has been cited by several of the world's leading press agencies such as Agency France-Presse

New York [which ranks higher in Google for searches with the phrase "top 10 brands in the world"] also has a list which contains most of the similar names as Millard Brown's compilation. see

Brand Directory (based in the U.K.) leads off their top 10 list with Wal-Mart

Top 30 Global Brands 2014


Top 10 Global Brands 2009 / 2010
1 Google Coca-Cola Wal-Mart
2 IBM IBM Google
3 Apple Microsoft Coca-Cola
4 Microsoft General Electric IBM
5 Coca-Cola Nokia Microsoft
6 McDonald's McDonald's General Electric
7 Marlboro Google HSBC Bank
8 China Mobile Toyota HP
9 General Electric Intel Nokia
10 Vodafone Disney Citi Bank
according to 
Millard Brown
according to Interbrand according to Brand Directory

Canada's top 10 iconic brands
1 Cirque du Soleil Royal Bank Kraft Tim Horton's
2 Bombardier Research In Motion Roots Canadian Tire
3 CBC TD Bank President's Choice WestJet
4 Roots Manulife Molson Cirque du Soleil
5 Toronto Maple Leafs BCE Inc. Tim Horton's President's Choice
6 Montreal Canadiens Bank of Nova Scotia Maple Leaf Foods Molson
7 Calgary Stampede Loblaws Canadian Tire Loblaw's
8 IMAX Bombardier Labatt Bell
9 CN Tower Bank of Montreal Kellogg's TD Bank
10 Terry Fox CIBC Alexander Keith's Ale Shoppers Drug Mart
Canadian Business 
Online 2007 2009
based on report by 
Brand Finance
BrandSpark Canada's Favourite Brands survey based on customer opinion 2008 2006 ranks by a Canadian industry association
Brand building - not just for consumer products 
- it can also be used for Government activities
Yahoo news carried a story written by Mark Mazzetti in August 2005
"Army Fights to Sell Itself to the Parents of America"

"Ray DeThorne's job is to sell the Army. And these days, it's a difficult product to sell. In marketing terms, the Army is a troubled brand. The daily images of violence from
Iraq are scaring away potential recruits for the service"

"Even the gush of patriotism that followed the Sept. 11 attacks did not translate into a flood of young people signing up at Army recruiting stations, DeThorne said. "There was a surge of people buying American flags after 9/11," he said. "But there was no surge in people rushing in saying that they wanted to join the Army." 

Permission to use the Yahoo! logo and quote from Yahoo! given by Debbie MacLeod, Yahoo! Marketing Manager in email Jan 2005. Copy in the permissions binder.

Examples of companies trying to develop "product evangelism" by creating a community around the brand and other "especially innovative and exciting" situations

Beverage companies do not sell beer, ice tea and cola on the net, why do they have web sites and what do they use them for?
Snapple, in trying to compete against the Cola giants, Pepsi and Coke is trying to use their web site and other promotion to turn customers who are at the brand insistence stage into "evangelists". The point being not only will these people be faithful drinkers of the beverage line, but that they will be "fans" and encourage other people to drink the products.
How do you facilitate their development of fan status - by giving them kewl screen savers, let them order merchandize with the logo, win prizes, enter contest etc.

Snapple can also use the online site to gather specific name and address information of loyal customers which they will use in "direct mail" campaigns

In April of 2000, Molson's got much more reaction than it expected when it launched its TV commercial "I Am Canadian".
The web site (changed to in 2014)
on which the commercial is downloadable became, according to some accounts, the number #1 downloaded feature on the web for Canadian surfers in the spring of 2000. 
the original "I am Canadian" from 2000
When YouTube became popular in the later years of  2K, variations of the commercial appeared and went viral.

the Quebec version of  "I am not Canadian"

there is also "I am a muslim" (very funny)

Canadians are too polite

I Am Canadian Anthem

2010 Olympics Coke ad 
Canada Wins 
includes original version and final version
- interesting, an icon of American culture producing a commercial which captures the essence of Canadian culture

moon landing



At the I AM website, people used to be able to get an email address such as or or 

The questionnaire which you fill out to get the free email includes the statement
"we are always trying to learn more about you and your interests in order to provide the best and relevant community for Canadian beer drinkers..."

Such customer profiling techniques were done by the American cigarette companies in the 1980's in order to develop long-term brand insistence - however it was expensive to do that then due to the amount of free merchandize you had to give away - "kewl" web sites allow this customer profiling to be less costly and you can create communities of customers that in turn create a dynamic that can be very exciting. 

Examples of companies trying to develop "product evangelism" by creating a community around the brand and other "especially innovative and exciting" situations
UTM student Vicky L. in CCT322 in January 2006 found this article about branding and offered her useful comments below.

Vicky emailed Prof. Richardson and she said
"I picked this piece of news up from the "Bulletin" today:

It is about a new research study that suggests that sometimes consumers unconsciously tend to treat brands as if they are their close friends and family members (communal relationship) instead of just a product for gain (exchange relationship).   Although I don't think the idea is totally innovative, they do suggest a deeper underlying consciousness that consumers sometimes buy a product just because it seems like the "right" thing to do in his/her social circle than for any real economic value. 
Vicky added
"This immediately reminded me of the situation with Wahoo' s Fish Taco restaurant chain situation ( A huge reason why people really enjoy dining at the restaurant (other than relatively good food and fast service) is the "surfer tribe" concept they constantly promote to diners.  They package the experience of going to the restaurant as equal to being a member of this "cool" club and it's the ultimate "cool" thing to do.  With its main target audience of the teenagers who practically eat out everyday seeks everything that indicates "coolness", the strategy proves to be extremely successful. Interestingly enough though, since I had a chance to watch a news report which features why the start-up company is so successful, no one from the show (the diners and the show host) has mentioned anything about that aspect.   Whether they are too shy to admit it or it is actually an unconscious working process, these cues are all important symptoms of social conformity that got exploited successfully by marketing people. "

The story found by Vicky on the UofT news site at
and referred to research that had been done by Professor Pankaj Aggarwal and Professor Sharmistha Law of the Division of Management at the University of Toronto at Scarborough

Chapter 10

Brand Extension
(AKA Product Diversification)
A consequence of trying to extend the product lifecycle through Product Modification of Market Modification Brand Extension helps to keep the PLC going for some products for which the producer has achieved a good ROI on their Economy of Scale


Branding - by using celebrities, or allowing wealthy people to be named as a "giver" is risky business
In the 3rd week of September, 2005, Queen's University was embarrased in the national news.

Millionaire businessman David Radler (part of Conrad Black's inner circle), pleaded guilty to fraud in the Hollinger International newspaper scandal.

Some time ago, Radler (Queen's MBA '67) had donated a million dollars to Queen's so the university named one of the wings in its business school the Radler Wing. 

As a result of the negative publicity about Radler and his crimes, Queen's announced in the 4th week of September that they were giving Radler his money back and taking his name off the plaque and taking his name off the building.

There used to be a practice at Queen's of only naming campus buildings after people who had died - this way you could make sure it was impossible for them to do anything stupid in the future and embarass the school !

2010 - two words about using celebrities - first word "Tiger".......


Chapter 10

This paragraph below comes from an article reprinted from Visual Arts Trends.
The original author was By Craig J.J. Snyder and the original article was at

"A trademark is a word, combination of words, design, logo, or symbol that identifies to  consumers the source of goods. That is, tangible goods or things that you can touch. 

 A service mark is essentially the same thing as a trademark, but it identifies non-tangible services, for example, legal, accounting, and design. 

A trade name is the actual name of the provider of the goods and/or services. 

A mark is the word we lawyers use, mostly because we usually do not need to distinguish between trademarks and service marks. 

 (R) is the symbol for a registered trademark or service mark. Under US  and Canadian law, you may  only use this symbol if you have a  registration for the mark. 

TM is a symbol that is frequently used with marks to indicate that the owner believes  the word, symbol, or phrase is a trademark. There is really no legal import to this  symbol, but it is a useful deterrent. 

SM is same as TM, but it is used with service marks. Few mark owners make this distinction because relatively few people know what these terms mean. "