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Branding: advantages andBranding: advantages and
disadvantages: Is there andisadvantages: Is there an
optimal solution?optimal solution?
Don DouglasDon Douglas
PDVIPDVI
Branding definedBranding defined
““A brand is an asset of differentiatingA brand is an asset of differentiating
promises that links a product to itspromises that links a product to its
customerscustomers””
StuartStuart AgresAgres, Young & Rubicam, Young & Rubicam
The dilemma of branding drugs andThe dilemma of branding drugs and
vaccines created with public fundsvaccines created with public funds
A brand represents a known, trusted quality forA brand represents a known, trusted quality for
people while generic products are less known,people while generic products are less known,
less trusted. However, brand building isless trusted. However, brand building is
expensive and needs longexpensive and needs long--term support.term support.
The case for branding of socialThe case for branding of social
productsproducts……
Branding differentiates products and makesBranding differentiates products and makes
the product easily identifiable.the product easily identifiable.
Branding allows users to form an opinion and aBranding allows users to form an opinion and a
preference for the product.preference for the product.
A brand creates real value in the eyes ofA brand creates real value in the eyes of
industry partners, and perceived value in theindustry partners, and perceived value in the
eyes of product users.eyes of product users.
Branding creates intellectual propertyBranding creates intellectual property
(trademarks) that can increase the value(trademarks) that can increase the value
of the product to commercial partners, andof the product to commercial partners, and
allow the PDP to retain control of how theallow the PDP to retain control of how the
product isproduct is costedcosted and utilized.and utilized.
The case against branding socialThe case against branding social
productsproducts……
Branding is expensive, and adds costs which mustBranding is expensive, and adds costs which must
be borne by the consumer or by the donor. i.e.be borne by the consumer or by the donor. i.e.
value of Coca Cola is largely the value of the brandvalue of Coca Cola is largely the value of the brand
Branding requires longBranding requires long--term support, and donorsterm support, and donors
will not be willing to sustain support.will not be willing to sustain support.
If social concerns start competing with commercialIf social concerns start competing with commercial
firms in marketing, theyfirms in marketing, they ‘‘unlevelunlevel’’ the playing fieldthe playing field
because they are playing with donor money.because they are playing with donor money.
If social products knock commercial firms out ofIf social products knock commercial firms out of
the market, what happens when the donor supportthe market, what happens when the donor support
ends and revenues are not sufficient to maintainends and revenues are not sufficient to maintain
the product in the marketplace?the product in the marketplace?
Why companies brand in the firstWhy companies brand in the first
place? What the private sector knowsplace? What the private sector knows
Brand Equity contributes to product value:Brand Equity contributes to product value:
AwarenessAwareness –– the strength of a brandthe strength of a brand’’s presences presence
in the targetin the target’’s minds mind
Perceived qualityPerceived quality –– associated with a brand inassociated with a brand in
the mind of the target consumerthe mind of the target consumer
Brand loyaltyBrand loyalty –– repeat behavior determines longrepeat behavior determines long--
term successterm success
Brand associationsBrand associations –– emotional bonds that tieemotional bonds that tie
the brand to the targetthe brand to the target’’s self image.s self image.
Creating Brand IdentityCreating Brand Identity
““Brand as productBrand as product ““–– the functional issues ofthe functional issues of
the brandthe brand’’s attributes, quality and value;s attributes, quality and value;
““Brand as organizationBrand as organization”” –– the credibility ofthe credibility of
the organization behind the brand;the organization behind the brand;
““Brand as personBrand as person”” –– brandbrand--customercustomer
relationshiprelationship –– creating a bond between thecreating a bond between the
person and the brand, andperson and the brand, and
““Brand as symbolBrand as symbol”” –– provides cohesion toprovides cohesion to
brand identity.brand identity.
““Brand as ProductBrand as Product”” helps establishhelps establish
the perception of quality and valuethe perception of quality and value
In the highIn the high--noise environment of productnoise environment of product
advertising, consumers need to know how toadvertising, consumers need to know how to
choose one product over another, and do so bychoose one product over another, and do so by
comparing product attributes. When the cannotcomparing product attributes. When the cannot
do this, or have too little time for comparison,do this, or have too little time for comparison,
they tend to choose products by their perceptionthey tend to choose products by their perception
of the reputation of the brandof the reputation of the brand
““Brand as OrganizationBrand as Organization”” establishes theestablishes the
value (social value) of the productvalue (social value) of the product
Company reputation enhances a productCompany reputation enhances a product’’ss
perceived value, i.e.: Merck was for many yearsperceived value, i.e.: Merck was for many years
one of the most respected companies in the U.S.one of the most respected companies in the U.S.
To the extent that we in the public sector haveTo the extent that we in the public sector have
social credibility, we can transfer that credibility tosocial credibility, we can transfer that credibility to
the products we have helped to create.the products we have helped to create.
i.e.: sociallyi.e.: socially--responsible investments, andresponsible investments, and
environmentallyenvironmentally--responsible purchases,responsible purchases,
consumers should be prepared to accept sociallyconsumers should be prepared to accept socially--
developed drugs and vaccines.developed drugs and vaccines.
““Brand as personBrand as person”” may be mostmay be most
important in social marketingimportant in social marketing
The brandThe brand--customer relationship is importantcustomer relationship is important –– itit
creates a bond between the person and the brandcreates a bond between the person and the brand
““It will be difficult to for us to increase marketIt will be difficult to for us to increase market
share if we cannot establish a strong meaning (inshare if we cannot establish a strong meaning (in
terms of our target consumerterms of our target consumer’’s self image) for ours self image) for our
own brandown brand””
David A. Aker, Building Strong BrandsDavid A. Aker, Building Strong Brands
““Brand as SymbolBrand as Symbol”” links thelinks the
product to the consumerproduct to the consumer
Branded products can serve as symbols of theBranded products can serve as symbols of the
self image of the user.self image of the user.
““A brand that captures your mind gainsA brand that captures your mind gains
behavior. A brand that captures your heart gainsbehavior. A brand that captures your heart gains
commitmentcommitment””
ScottScott TalgoTalgo, brand strategist, brand strategist
Products resulting from ProductProducts resulting from Product
Development PartnershipsDevelopment Partnerships
Product development partnerships are wellProduct development partnerships are well
positioned to take advantage of the strengths ofpositioned to take advantage of the strengths of
their private, commercial partners in producttheir private, commercial partners in product
development and marketing.development and marketing.
Even products sold in bulk into public sectorEven products sold in bulk into public sector
procurement needs to have an identity = brandprocurement needs to have an identity = brand
name of some description, but do notname of some description, but do not
necessarily need to be heavily promoted asnecessarily need to be heavily promoted as
would a purely commercial product.would a purely commercial product.
Vaccines and drugs sold through privateVaccines and drugs sold through private
channels need to be differentiated andchannels need to be differentiated and
identifiableidentifiable –– two characteristics of branding.two characteristics of branding.
Overbranding of generic productsOverbranding of generic products
Increasingly, genericIncreasingly, generic OTC and consumerOTC and consumer
healthcare productshealthcare products are givenare given ““store brandsstore brands””
which carry with them the reputation of thewhich carry with them the reputation of the
vendor.vendor.
PDPPDP--developed products have social value, anddeveloped products have social value, and
this can be conveyed through branding andthis can be conveyed through branding and
identification of the PDP and its social goalsidentification of the PDP and its social goals..
Even for generic prescription drugs, we canEven for generic prescription drugs, we can
sometimes observe modest packaging andsometimes observe modest packaging and
labelinglabeling for something likefor something like flucticasoneflucticasone nosenose
spray (a generic prescription allergy drug).spray (a generic prescription allergy drug).
Generic promotionGeneric promotion
Promote the behavior desiredPromote the behavior desired –– i.e.: protectioni.e.: protection
against disease through vaccinationagainst disease through vaccination……
Promote the product categoryPromote the product category –– i.e.: the routinei.e.: the routine
use of antiuse of anti--parasite drugs.parasite drugs.
Support both the generic and the commercialSupport both the generic and the commercial
forms of products on the marketplace since ourforms of products on the marketplace since our
goal is greater health not greater market share.goal is greater health not greater market share.
Overbranding and GenericOverbranding and Generic
promotion: An optimal solution?promotion: An optimal solution?
Brand to enhance product value to commercialBrand to enhance product value to commercial
partners, and to impart social value to users.partners, and to impart social value to users.
Support modest packaging and labeling forSupport modest packaging and labeling for
vaccines and drugs developed with public funds.vaccines and drugs developed with public funds.
Don't invest in extensive brand marketingDon't invest in extensive brand marketing
campaignscampaigns ---- keep the promotional supportkeep the promotional support
generic, which will also support commercialgeneric, which will also support commercial
brands of our privatebrands of our private--sector partners.sector partners.
Harness the marketing power and expertise ofHarness the marketing power and expertise of
commercial partners to support both commercialcommercial partners to support both commercial
and nonand non--commercial versions of the products.commercial versions of the products.
In SummaryIn Summary
Overbranding and generic promotion makes senseOverbranding and generic promotion makes sense
because branding is expensive and requiresbecause branding is expensive and requires
sustained support:sustained support: ““Limited budgets are lessLimited budgets are less
forgiving and call for bestforgiving and call for best--practice tactics.practice tactics.”” AakerAaker &&
JoachimsthalerJoachimsthaler, 1997., 1997.
The nature of the product will largely determineThe nature of the product will largely determine
how it is packaged and promoted, i.e.: ethicalhow it is packaged and promoted, i.e.: ethical
productsproducts –– vaccines and prescription drugs arevaccines and prescription drugs are
generally marketed to health professionals andgenerally marketed to health professionals and
not directly to consumers.not directly to consumers.
Develop a comprehensive relationship with yourDevelop a comprehensive relationship with your
privateprivate--sector partners, beyond production only.sector partners, beyond production only.
They have extensive experience in productThey have extensive experience in product
marketing and can provide expertise andmarketing and can provide expertise and
solutions.solutions.

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4. douglas branding, advantages and disadvantages

  • 1. Branding: advantages andBranding: advantages and disadvantages: Is there andisadvantages: Is there an optimal solution?optimal solution? Don DouglasDon Douglas PDVIPDVI
  • 2. Branding definedBranding defined ““A brand is an asset of differentiatingA brand is an asset of differentiating promises that links a product to itspromises that links a product to its customerscustomers”” StuartStuart AgresAgres, Young & Rubicam, Young & Rubicam
  • 3. The dilemma of branding drugs andThe dilemma of branding drugs and vaccines created with public fundsvaccines created with public funds A brand represents a known, trusted quality forA brand represents a known, trusted quality for people while generic products are less known,people while generic products are less known, less trusted. However, brand building isless trusted. However, brand building is expensive and needs longexpensive and needs long--term support.term support.
  • 4. The case for branding of socialThe case for branding of social productsproducts…… Branding differentiates products and makesBranding differentiates products and makes the product easily identifiable.the product easily identifiable. Branding allows users to form an opinion and aBranding allows users to form an opinion and a preference for the product.preference for the product. A brand creates real value in the eyes ofA brand creates real value in the eyes of industry partners, and perceived value in theindustry partners, and perceived value in the eyes of product users.eyes of product users. Branding creates intellectual propertyBranding creates intellectual property (trademarks) that can increase the value(trademarks) that can increase the value of the product to commercial partners, andof the product to commercial partners, and allow the PDP to retain control of how theallow the PDP to retain control of how the product isproduct is costedcosted and utilized.and utilized.
  • 5. The case against branding socialThe case against branding social productsproducts…… Branding is expensive, and adds costs which mustBranding is expensive, and adds costs which must be borne by the consumer or by the donor. i.e.be borne by the consumer or by the donor. i.e. value of Coca Cola is largely the value of the brandvalue of Coca Cola is largely the value of the brand Branding requires longBranding requires long--term support, and donorsterm support, and donors will not be willing to sustain support.will not be willing to sustain support. If social concerns start competing with commercialIf social concerns start competing with commercial firms in marketing, theyfirms in marketing, they ‘‘unlevelunlevel’’ the playing fieldthe playing field because they are playing with donor money.because they are playing with donor money. If social products knock commercial firms out ofIf social products knock commercial firms out of the market, what happens when the donor supportthe market, what happens when the donor support ends and revenues are not sufficient to maintainends and revenues are not sufficient to maintain the product in the marketplace?the product in the marketplace?
  • 6. Why companies brand in the firstWhy companies brand in the first place? What the private sector knowsplace? What the private sector knows Brand Equity contributes to product value:Brand Equity contributes to product value: AwarenessAwareness –– the strength of a brandthe strength of a brand’’s presences presence in the targetin the target’’s minds mind Perceived qualityPerceived quality –– associated with a brand inassociated with a brand in the mind of the target consumerthe mind of the target consumer Brand loyaltyBrand loyalty –– repeat behavior determines longrepeat behavior determines long-- term successterm success Brand associationsBrand associations –– emotional bonds that tieemotional bonds that tie the brand to the targetthe brand to the target’’s self image.s self image.
  • 7. Creating Brand IdentityCreating Brand Identity ““Brand as productBrand as product ““–– the functional issues ofthe functional issues of the brandthe brand’’s attributes, quality and value;s attributes, quality and value; ““Brand as organizationBrand as organization”” –– the credibility ofthe credibility of the organization behind the brand;the organization behind the brand; ““Brand as personBrand as person”” –– brandbrand--customercustomer relationshiprelationship –– creating a bond between thecreating a bond between the person and the brand, andperson and the brand, and ““Brand as symbolBrand as symbol”” –– provides cohesion toprovides cohesion to brand identity.brand identity.
  • 8. ““Brand as ProductBrand as Product”” helps establishhelps establish the perception of quality and valuethe perception of quality and value In the highIn the high--noise environment of productnoise environment of product advertising, consumers need to know how toadvertising, consumers need to know how to choose one product over another, and do so bychoose one product over another, and do so by comparing product attributes. When the cannotcomparing product attributes. When the cannot do this, or have too little time for comparison,do this, or have too little time for comparison, they tend to choose products by their perceptionthey tend to choose products by their perception of the reputation of the brandof the reputation of the brand
  • 9. ““Brand as OrganizationBrand as Organization”” establishes theestablishes the value (social value) of the productvalue (social value) of the product Company reputation enhances a productCompany reputation enhances a product’’ss perceived value, i.e.: Merck was for many yearsperceived value, i.e.: Merck was for many years one of the most respected companies in the U.S.one of the most respected companies in the U.S. To the extent that we in the public sector haveTo the extent that we in the public sector have social credibility, we can transfer that credibility tosocial credibility, we can transfer that credibility to the products we have helped to create.the products we have helped to create. i.e.: sociallyi.e.: socially--responsible investments, andresponsible investments, and environmentallyenvironmentally--responsible purchases,responsible purchases, consumers should be prepared to accept sociallyconsumers should be prepared to accept socially-- developed drugs and vaccines.developed drugs and vaccines.
  • 10. ““Brand as personBrand as person”” may be mostmay be most important in social marketingimportant in social marketing The brandThe brand--customer relationship is importantcustomer relationship is important –– itit creates a bond between the person and the brandcreates a bond between the person and the brand ““It will be difficult to for us to increase marketIt will be difficult to for us to increase market share if we cannot establish a strong meaning (inshare if we cannot establish a strong meaning (in terms of our target consumerterms of our target consumer’’s self image) for ours self image) for our own brandown brand”” David A. Aker, Building Strong BrandsDavid A. Aker, Building Strong Brands
  • 11. ““Brand as SymbolBrand as Symbol”” links thelinks the product to the consumerproduct to the consumer Branded products can serve as symbols of theBranded products can serve as symbols of the self image of the user.self image of the user. ““A brand that captures your mind gainsA brand that captures your mind gains behavior. A brand that captures your heart gainsbehavior. A brand that captures your heart gains commitmentcommitment”” ScottScott TalgoTalgo, brand strategist, brand strategist
  • 12. Products resulting from ProductProducts resulting from Product Development PartnershipsDevelopment Partnerships Product development partnerships are wellProduct development partnerships are well positioned to take advantage of the strengths ofpositioned to take advantage of the strengths of their private, commercial partners in producttheir private, commercial partners in product development and marketing.development and marketing. Even products sold in bulk into public sectorEven products sold in bulk into public sector procurement needs to have an identity = brandprocurement needs to have an identity = brand name of some description, but do notname of some description, but do not necessarily need to be heavily promoted asnecessarily need to be heavily promoted as would a purely commercial product.would a purely commercial product. Vaccines and drugs sold through privateVaccines and drugs sold through private channels need to be differentiated andchannels need to be differentiated and identifiableidentifiable –– two characteristics of branding.two characteristics of branding.
  • 13. Overbranding of generic productsOverbranding of generic products Increasingly, genericIncreasingly, generic OTC and consumerOTC and consumer healthcare productshealthcare products are givenare given ““store brandsstore brands”” which carry with them the reputation of thewhich carry with them the reputation of the vendor.vendor. PDPPDP--developed products have social value, anddeveloped products have social value, and this can be conveyed through branding andthis can be conveyed through branding and identification of the PDP and its social goalsidentification of the PDP and its social goals.. Even for generic prescription drugs, we canEven for generic prescription drugs, we can sometimes observe modest packaging andsometimes observe modest packaging and labelinglabeling for something likefor something like flucticasoneflucticasone nosenose spray (a generic prescription allergy drug).spray (a generic prescription allergy drug).
  • 14. Generic promotionGeneric promotion Promote the behavior desiredPromote the behavior desired –– i.e.: protectioni.e.: protection against disease through vaccinationagainst disease through vaccination…… Promote the product categoryPromote the product category –– i.e.: the routinei.e.: the routine use of antiuse of anti--parasite drugs.parasite drugs. Support both the generic and the commercialSupport both the generic and the commercial forms of products on the marketplace since ourforms of products on the marketplace since our goal is greater health not greater market share.goal is greater health not greater market share.
  • 15. Overbranding and GenericOverbranding and Generic promotion: An optimal solution?promotion: An optimal solution? Brand to enhance product value to commercialBrand to enhance product value to commercial partners, and to impart social value to users.partners, and to impart social value to users. Support modest packaging and labeling forSupport modest packaging and labeling for vaccines and drugs developed with public funds.vaccines and drugs developed with public funds. Don't invest in extensive brand marketingDon't invest in extensive brand marketing campaignscampaigns ---- keep the promotional supportkeep the promotional support generic, which will also support commercialgeneric, which will also support commercial brands of our privatebrands of our private--sector partners.sector partners. Harness the marketing power and expertise ofHarness the marketing power and expertise of commercial partners to support both commercialcommercial partners to support both commercial and nonand non--commercial versions of the products.commercial versions of the products.
  • 16. In SummaryIn Summary Overbranding and generic promotion makes senseOverbranding and generic promotion makes sense because branding is expensive and requiresbecause branding is expensive and requires sustained support:sustained support: ““Limited budgets are lessLimited budgets are less forgiving and call for bestforgiving and call for best--practice tactics.practice tactics.”” AakerAaker && JoachimsthalerJoachimsthaler, 1997., 1997. The nature of the product will largely determineThe nature of the product will largely determine how it is packaged and promoted, i.e.: ethicalhow it is packaged and promoted, i.e.: ethical productsproducts –– vaccines and prescription drugs arevaccines and prescription drugs are generally marketed to health professionals andgenerally marketed to health professionals and not directly to consumers.not directly to consumers. Develop a comprehensive relationship with yourDevelop a comprehensive relationship with your privateprivate--sector partners, beyond production only.sector partners, beyond production only. They have extensive experience in productThey have extensive experience in product marketing and can provide expertise andmarketing and can provide expertise and solutions.solutions.