Brand Glossary from A to Z

In advertising agencies, this term refers to a person who is the day-to-day contact between the agency and the client. Over the years, the account executive function has evolved to exert a more strategic influence in managing agency relationships. Newer titles such as account planner and relationship manager are used interchangeably with account executive. Similar terms are used in branding and design consultancies. The fact remains that one individual from the agency or consulting organization must assume responsibility for the satisfaction of the client. 

This is a one-off type of research carried out at a specific time for a specific client. Ad hoc research differs from longer term, ongoing studies such as sales and profitability monitoring, satisfaction tracking, and perception rankings. 

This is a combination of product offerings first marketed in one geography that is then altered to suit local conditions in additional markets. As in a regular marketing mix, the adaptive mix comprises the Four P's of product, price, promotion, and place. Also known as distribution, that is, having the product available for purchase in the target market.

The tangible or intangible benefit provided by a product or service that generally commands a higher price and engenders customer loyalty and/or overall preference. Frequently, tangible added-value components are quickly copied, so companies and brands strive to develop intangible ones that are uniquely ownable and more difficult to replicate.

This is a physiological and/ or psychological dependence on specific products or services. Consumers have been known to be addicted to every possible type of product, but addictive consumption more often refers to drugs, alcohol, gambling, and tobacco. It must be noted, however, that the vast majority of consumerism is not addictive but habitual, and based on individual choice.

This term represents the decision by a consumer to buy a product or use a service. The consumer weighs available information and makes a considered choice, which implies a level of repeat use that may result in brand or service loyalty.

Advertising is the communications that take place between a company and its target audience using any or all of the paid-for mass media. The process usually employs the services of various agencies such as branding and design consultancies, full-service advertising agencies, market research firms, and media-buying groups. Advertising is employed to inform target markets of available goods and services; used to remind consumers that existing brands continue to be available; and designed to create awareness and encourage loyalty. Advertising is also used to reassure consumers that their buying choice was the correct one, known as post-purchase rationalization. The practice of advertising has been classified as informative, persuasive, or manipulative and has led to debate on its effectiveness and efficiency. This debate has created a notable shift from advertising in mass media campaigns to increasingly targeted activities that can more credibly claim results while being less intrusive in consumer's daily lives. The debate has also driven a trend toward integrated marketing, reflecting the broad mix of communication channels currently available.

This is the point when consumers become indifferent to an advertising message because of overexposure; it's when repeated viewings no longer have any effect. Also called consumer wear out, this can often result in a backlash against the offer, which is the complete opposite of the original intent.

This is a form of loyalty development or customer relationship management designed to cement the emotional bond between consumers and brands. It centers on an exchange of information that enables consumers to learn about brands, while companies gain insights into consumers. Unlike loyalty marketing, affinity efforts do not represent an economic exchange, although third parties may benefit, such as consumers rewarding charities based on credit card points. Affinity marketing may also take the form of helplines, membership clubs, newsletters, chat rooms, and so on.

A designation assigned to the primary communications agency responsible for some or all of a company's or brand's media planning, buying, and creative duties. It denotes an ongoing relationship, and implies legal "agency" responsibilities, that is, the ability of the agency to represent the client to providers and sellers of media services.

This is a "hierarchy of effect" model that stands for awareness, interest, desire, and action, the four successive stages a buyer passes through while making a purchase decision. The model itself refers to a working format for charting consumer attitudes and buying behavior.

A line of questioning used in market research that prompts respondents about specific communications, brands, or services. It is designed to determine any or all associated -recall and awareness, and differs from unaided recall, during which respondents are questioned without any specific prompts.

These are variables used in psychographic consumer research to organize individuals into specific segments. The variables used for the segmentation are activities, interests, and opinions, and this research is designed to understand buyer behavior rather than just pure demographics.

Alignment is achieved when employees understand and demonstrate a company's brand and its values through their behaviour and actions. It is an increasingly critical aspect of branding, as it ensures that the brand experience matches and aligns with the promises :made through external communication. Employees are recognized and rewarded based on their adherence to brand objectives so that consistency, a key aspect of branding, is delivered.

The practice of assigning letters and numbers to differentiate brand names between versions of products. These products are often related, and the alphanumeric system communicates a hierarchy of value and/or delineates product relationships. For example, car models often have alphanumeric names, as evidenced by the BMW car naming system.

These are individuals who represent a brand but are not directly linked to marketing communications functions. Every employee is expected to live the values of the brand, but brand ambassadors go a step further and promote the values throughout the organization, even if they work in finance, operations, logistics and so on. 

See Champions→

In business, analytics is a term used to describe sophisticated forms of business data analysis. In marketing and branding, a variety of statistical and non-statistical methods are used. The evaluation of branding and marketing activities is becoming increasingly important. Brand valuation, return on brand and marketing investment and brand scorecards are being introduced as prescriptive tools to improve business performance. These promote better decision making and add scientific support to methods that have largely been based on intuition and past experience.

This is a large retail outlet that serves as the main attraction for shoppers in a shopping centre. There are often two anchor stores, located at either end of the mall, which are designed to attract large numbers of shoppers to the mall and generate traffic for all the stores in the centre. Mall branding can rely on the image of the anchor stores, but there is a risk of over-reliance if these stores leave the location.

This is a yearly record of the financial position of a public company presented to shareholders for approval at the annual general meeting. It usually includes a profit and loss account, a description of the company's business, a balance sheet and a report by the company's auditors and chairman. An annual report is designed to help investors understand a company's current status and future plans. This publication often acts as a corporate brochure, so the content and design reflect the brand.

Brand architecture is how a company structures and names its brands, and how all the brand names relate to each other. Architecture is a critical component in establishing strategic relationships and there are three types: monolithic, where the corporate name is used on all products and services offered by the company; endorsed, where all sub-brands are linked to the corporate brand by either verbal or visual endorsement; and freestanding, where the corporate brand acts merely as a holding company and each product or service is individually branded for its target market. There are many variations on these three primary structures. The key requirement is that any architecture is designed with the customer in mind, rather than internal influences such as accounting, staff organisation or history.

In the world of advertising and branding, an art director is responsible for the look and feel of a print ad, brochure, company logo or interactive campaign, and for the visual style of a TV commercial. Traditionally, an art director's counterpart is a copywriter, who of course writes the words. Either or both may create an original idea for a brand that develops into some form of customer communication.

Digital files of a design or logo ready for print or production. Artwork is created after the design has been approved. The artwork file ensures the correct size, resolution, colours, fonts and optimal layout before it is submitted for printing or production. 

Something that possesses attributable value and earning potential for its owner. There are three asset types: current, fixed, and intangible.

The positive and negative feelings, beliefs or knowledge that consumers have about a brand, whether or not they purchase it. These associations are formed through mass media, word of mouth, trial and/or repeat use. Positive ones are leveraged, while negative ones are often difficult to overcome once they have taken root.

A lasting but general evaluation of an object. Attitudes can relate to brands, products, services, organisations, advertising, innovations, ideas, issues, activities, opinions and individuals, and are formed by what consumers hear and what they actually experience.

Attributes are characteristics of a company, product or service. They can be either positive or negative and can be functional (what a product does) or emotional (how it makes a person feel). Attributes are measurable and can be benchmarked against key competitors. lf attributes are what a brand has, then benefits (what the brand does for a customer) are why certain attributes are important. Much market research focuses on understanding the most important and powerful attributes of a product, service or brand.

This is the measurement of consumers' media habits, including viewing, reading, listening and usage. Audience measurement tracks trends and is conducted over time or at defined intervals. The resulting insights have traditionally been based on behavioural tracking, but now also include consumer satisfaction monitoring. The aim is to identify attitudes and adjust products and services accordingly.

An audit is a comprehensive, systematic, independent and periodic examination of an organisation's performance. A brand audit specifically examines performance, internal and external communications, customer experience, etc. The results identify performance gaps, competitive advantages and market opportunities. An audit is a blend of art and science, using both quantifiable and qualitative data based on business and brand strategies. 

See Qualitative and Quantitative Research 

Awareness is the level of knowledge a consumer has about a particular brand. Both quantitative and qualitative research techniques are used to determine consumers' ability to distinguish a brand from competitors in sufficient detail to make a purchase. Brand awareness is a common measure of the effectiveness of marketing communications. Unaided awareness is spontaneous, while aided or prompted awareness is when a brand is recognised among others that are listed or identified.

See aided recall and brand awareness, and see qualitative and quantitative research.

This is a message that runs across the width of a printed or web page. It can be static or animated and, on web pages, often offers a click-through to further information.

Any defendable factor a company can use to fend off competitors is called a barrier to entry. And they can be legal, natural, sunk investment, tactical, good business practices, or brand. The expression can also refer to the costs for someone new to enter a marketplace.

Benchmarking is a comparison of performance. The most typical form is against competitors or within specific industries. lt originated in manufacturing but has been adopted in other industries, functions and specific measurements. Benchmarks can be misleading if not taken in their proper context or in conjunction with additional variables that provide a more complete picture of the situation being examined.

A method of dividing (segmenting) markets based on what each group wants from a brand. For example, the beer market might include one segment for light beers, another for dark beers, another for pale ales, another for imported brands, and so on.

A largely consistent set of written communications that is reused many times. A boilerplate is often used to produce collateral or for frequent and similar responses to tenders. Considered a time-saving and consistency tool, boilerplate is also dangerous because it can be overly generic or inaccurate for certain audiences and purposes.

This is when senior management requests plans from more junior departments or managers for inclusion in corporate or marketing planning. The process is designed to inspire less senior levels to achieve performance targets as they are actively involved in the planning process. It is the opposite of top-down planning, where goals and objectives are set by senior management and passed down through the ranks to be achieved.

After a problem or opportunity has been presented, stakeholders, subject matter experts and/or completely impartial participants are organised for a 'brainstorming session', a free-form discussion aimed at reaching consensus on a solution and the necessary next steps. Various facilitation methods are used to manage the process and its success often depends on the skill of the facilitator.

A brand is a mix of tangible and intangible attributes, symbolized in a trademark, that, when properly managed, creates value and influence. Value" has different interpretations: from a marketing or consumer perspective, it is the promise and delivery of an experience; from a business perspective, it is the security of future earnings; from a legal perspective, it is a separable piece of intellectual property. A brand is designed to secure relationships that create and secure future revenue by building customer preference and loyalty. Brands simplify decision making, provide a guarantee of quality, and offer a relevant, different, and credible choice among competing offerings.

Brand awareness is commonly used in marketing communications to measure effectiveness. It examines how many target customers have prior knowledge of a brand, as measured by brand awareness and brand recall. Brand awareness (also called aided recall) measures the extent to which a brand is remembered when asked its name, for example, "Are you familiar with the Sony brand?". Brand recall (also called unaided recall) is the ability of a customer to recall a specific brand when presented with a category of products without being asked to name any of the products in the category.

A unique articulation of the brand in both words and images that brings the brand and its story to life. Typically aimed at internal audiences, brand books are now being developed to tell the brand story to all constituencies, fulfilling a pledge to be consistent in execution.

This is the planning document for any brand-building project. It sets out the goals, objectives, competitive landscape, current capabilities and performance, timelines, and budget. It ensures that all stakeholders are aligned to anticipated change and that a sound business case is in place to make any significant changes to the brand.

The degree to which a customer is committed to a given brand in that they are likely to repurchase/reuse in the future. The level of commitment indicates the degree to which a brand's customer franchise is protected from competitors.

The practice and overarching process of ensuring that an organization's employees are the first audience to be exposed to and deeply understand what the brand is trying to accomplish. Incredibly, for many years, internal audiences have been the last to know about the brand, and this has led to performance issues because these are the people who are supposed to deliver on the promise made through external communications. This branding speciality goes much deeper than internal communications and launch events. It involves human resource practices that include rewards and recognition, compensation, and career development. 

These are the profits that can be fairly attributed to a brand alone. They result from the revenues that the brand generates and are allocated by dividing the profits among all the assets or parties that contribute to generating them. This profit split approach is the most widely used and accepted method for determining the economic value of a brand and is used by the majority of accountants and consultants. It is also becoming the standard accounting method for capitalizing goodwill on the balance sheet.

Brand equity is the sum of a brand's distinguishing qualities and is sometimes referred to as reputation. A product or service with a high level of brand equity enjoys a competitive advantage, sometimes allowing premium pricing. There are different definitions of the term in different markets. In the UK, brand equity is mainly used to describe market research-based measurement and tracking models that focus on consumer perceptions. In the US, it is used to describe both research-based and financial valuation models. These models use consumer research to assess the relative performance of brands. They do not provide the financial value of a brand, but they do measure consumer behaviour and attitudes that affect a brand's economic performance. The same models add behavioural measures such as market share and relative price. 

A quantitative assessment of the three components that make up brand equity: knowledge (familiarity, awareness, relevance), distinctiveness (brand personality) and commitment (credibility, loyalty, satisfaction). This proprietary lnterbrand research methodology provides an understanding of the market structure and the factors that drive loyalty and commitment within that structure.

The brand's promise expressed in the simplest, most single-minded term. For example, Volvo = safety; AA = Fourth Emergency Service. The most powerful brand essences are rooted in a fundamental customer need.

It is the means by which a brand is created in the mind of a stakeholder. Some experiences are controlled, such as a retail environment, advertising, products/services, websites, and so on. Some are uncontrolled, such as journalistic commentary and word of mouth. Strong brands emerge from consistent customer interactions that combine to create a clear, differentiated, holistic experience.

This is the use of a well-known brand to launch a new product into a different segment of the overall market. For example, Jello launched Jello Instant Pudding as a brand or product extension. The benefit of this strategy is clear in terms of leveraging existing equity, but if the extension is too far removed from the original category, it can actually damage the reputation and value of the original brand.

In organizations, brand guidelines are used by everyone involved in building and maintaining a successful brand. Designed to inform and motivate, they are critical to establishing and reinforcing a strong internal brand culture. Guidelines can include vision and values, design and writing requirements, strategy and positioning statements, and even a corporate directory of how to contact a brand's key leaders. Guidelines are part enforcement and part motivation to ensure consistent brand execution. They provide comprehensive information and empower employees and suppliers to successfully develop the brand independently. 

This is a brand owner leasing the use of its brand to another company, most often for a fee or royalty. Though an attractive stream of revenue, it is important for the brand owner to ensure that the equities of the brand are protected so that the licensee does no damage to the brand over the term of the agreement. 

The process of managing a company's brands to increase long-term brand equity and financial value. lt was originally invented and championed by Procter & Gamble as a competitive system for managing individual brands within a portfolio. Today, however, it is defined more broadly to include the strategy, design, and deployment of an organization, product, or service. Companies are increasingly investing in branding for competitive advantage, and this is forcing a rethinking of traditional marketing departments, resulting in more responsibility for the chief marketing officer or senior marketing executive. Sophisticated branding organizations use brand values as a guide across all functions to ensure consistent behavior, decision-making and performance.

An individual responsible for the performance of a product, service, or brand. The brand manager may also oversee a portfolio of brands, aligning them for maximum effectiveness, ensuring they aren't compromised by tactical mistakes, and developing crisis management plans. He or she may report to a more senior member of the organization, such as a vice president or chief marketing officer.

A positioning construct that outlines the goals of an organization, product, service, or brand. A brand platform requires a deep understanding of what differentiates a brand and makes it credible and relevant to defined target audiences. lt also requires informed decisions about a brand's ability to transcend its initial category and competition. The platform includes:

• Brand vision: the brand's guiding insight
• Brand mission: how the brand will act on its insights
• Brand values: the code by which the brand lives. The brand values act as a benchmark to measure behaviors and performance
• Brand personality: the brand's recognizable and ownable personality traits
• Brand tone of voice: how the brand communicates to its audiences

Positioning is the unique, strategic location of the brand in the competitive landscape. lt establishes communication to consumers in a way that sets it apart from the competition and ensures that consumers can differentiate it from others. In essence, positioning is the place in the marketplace that a brand's target audience believes it occupies by offering tangible and intangible benefits.

It serves as a company's internal guide to its marketing communications strategy for an individual brand, identifying the benefits and associations that meaningfully differentiate the brand from its competitors. A brand positioning statement includes the words, images, and/or imagery that create a common understanding and align beliefs and actions.

Brand protection refers to the legal steps taken to register the uniqueness of a brand and protect it as an asset. Pepsi-Cola has registered its product formulas, packaging shapes and designs, Web site addresses, advertising slogans, etc., to ensure that it protects all of the distinctiveness associated with Pepsi. 

Brand strategy is a "big picture" plan, a clear vision and articulation of how a brand will deliver distinctive and relevant benefits to target customers. An effective brand strategy answers five key questions. 

1. What are the most profitable customer segments to which the brand must appeal?
2. What is the focused value proposition that will compel these high-priority customers to choose the brand repeatedly?
3. Why should these high-priority targets believe in the brand?
4. What are the facts that support the value proposition?
5. How do we communicate and execute the branding, marketing, and operational plan so that employees and channels buy in?

There is no recipe or template for developing a brand strategy. Many different models exist, but all should be rooted in the brand's vision and driven by the principles of differentiation and sustainable customer appeal. And they must be based on specific industry and competitive variables. 

Part of the brand valuation methodology, this is a detailed assessment to determine if the brand's projected earnings will be realized. A discount rate is determined based on the risk premium for the brand. This results in the net present value of the brand's earnings.

B-rand valuation assesses the financial value of a brand. Although there is a wide range of methods available, the "economic-use" approach is now the most widely recognized and applied. Economic-use assesses the value of a brand by identifying its future earnings and discounting them to a net present value using a discount rate that reflects the risk of realizing those earnings. The methodology integrates structured market and brand assessment with rigorous financial analysis.

These valuations drive management decision making in many areas: optimized business exploration, portfolio management, licensing, tax planning, litigation support, and merger and acquisition transaction support.