1.ii.brand management 1--over--over

8/7/2019 1.ii.Brand Management 1--OVER--over

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Brand ManagementBrand Management


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Top 10 brands (Worldwide)Top 10 brands (Worldwide)

Source: Interbrand 2007


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No.1($m 65,324)

No.1($m 65,324)


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No. 2 ($m 58,709)

No. 2 ($m 58,709)


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No. 3 ($m 57,091)

No. 3 ($m 57,091)


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No. 4 ($m 51,569)

No. 4 ($m 51,569)


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No.5 ($m 33,696)

No.5 ($m 33,696)


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No.6 ($m 32,070)

No.6 ($m 32,070)


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No.7 ($m 30,954)

No.7 ($m 30,954)


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No.8 ($m 29,398)

No.8 ($m 29,398)


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No.9 ($m 29,210)

No.9 ($m 29,210)


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No.10 ($m 23,568)

No.10 ($m 23,568)


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Top 10 Trusted Brands: IndiaTop 10 Trusted Brands: India

Source: Economic Times Brand Equity 2008


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No. 1

No. 1


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No. 2

No. 2


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No. 3

No. 3


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No. 4

No. 4


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No. 5

No. 5


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No. 7

No. 7


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No. 8

No. 8


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No. 9

No. 9


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No. 10

No. 10


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What is a Brand?What is a Brand? Keller: A brand is a set ofmental

associations, held by the consumer, which

add to the perceived value of a product orservice


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Mental associationsMental associations

What is the brand territory (perceived

competence; typical products or services;

specific know-how)?

- Gillette

- Nokia

- Dettol

- Karims?


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Mental associationsMental associations

What is its level of quality (low; medium;

premium; luxury)?

What are its properties/merits?

What is its most discriminating quality or

benefit (also called perceived positioning)?

- Dove is not a soap. It is 1/4 moisturizing

cream

- Marlboro is about fierce independence

- Hummer: Like nothing else


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Mental associationsMental associationsWhat typical buyer does the brand evoke?

- Raymonds

- Subhiksha

- Rolex

What is the brand personality and brand

imagery?


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The Product and the brandThe Product and the brand


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ProductProduct Kotler: A product is anything that can be

offered to a market to satisfy a want or

need


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What is a Product?What is a Product?

Kotlers

Five

levels to a

product:

Generic Product

CORE BENEFIT

Expected Product

Augmented Product

Potential Product

The Fundamental Need or Want

that consumers satisfy by

consuming the product or service

Generic ProductBasic Version of the product

containing only those elementsabsolutely necessary to function.

No distinguishing features.

Expected ProductAttributes and Characteristics that

buyers normally expectand agree

to when they purchase a product

Augmented ProductAdditional product attributes,

benefits, or related services that

distinguish the product fromcompetitors

Potential Product

All the augmentations and

transformations that a product

might ultimately undergo in the

future


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Product and brandProduct and brandProduct = Commodity

A product is a produced item always

possessing these characteristics: Tangibility

Attributes and Features

Brand = Mind Set

The sum of all communications and experiences receivedby the consumer and customer resulting in a distinctive

image in their mind set based on perceived emotional

and functional benefits


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Produ

ct and brandPr

odu

ct and brand

Products come to life, live and disappear,

but brands endure e.g. Zen, Honda City,

Bajaj

A brand is the memory of the products

A brand is less elastic than its product. Once

created, like fast-setting concrete it is hardto change


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Whatcan be branded?What

can be branded?

Physical goods

Services

Retailers & Distributors

Online products and services

People and Organizations


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Whatcan be branded?What

can be branded?

Sports, Arts, and Entertainment (ManU,

movies)

Geographic locations (India, Kerala)

Ideas and causes (AIDS ribbons, WWF)


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How do brands provide value?How do brands provide value?


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Providing value to the firmProviding value to the firm

Enhance the effectiveness and efficiency of

marketing programs - one of the rewards for

risk- taking

Decrease brand switching


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Providing value to the firmProviding value to the firm

Higher prices and margins (Brand-involved

consumers bargain less)

Trade leverage

Competitive advantage - create entry

barriers


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Providing value tocustomersProviding value tocustomers

Short cut for interpreting, processing and

storing information

Gives confidence in the purchasing decision

- reduces risk

Enhances use satisfaction

Invaluable - stable anchors in an otherwise

changing world


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BrandingBranding

Branding is about endowing products and

services with the power of brand equity


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Brand EquityBrand Equity

Brand Equity is the added value endowed

to products and services. This value may be

reflected in how consumers think, feel, andact with respect to the brand, as well as the

prices, market share, and profitability that

the brand commands for the firm.


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Brand EquityBrand Equity

. Brand equity is an important intangible

asset that has psychological and financial

value to the firm

Marketing Management: A South Asian Perspective, 12th edition - Kotler et al


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Brand KnowledgeBrand Knowledge

Key to creating brand equity

Creates the differential effect that drives

brand equity

What marketers need is an insightful way to

represent how brand knowledge exists in

consumer memory


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The Associative Network MemoryThe Associative Network Memory

ModelModel


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Brand KnowledgeBrand Knowledge

Consistent with the associative network

model, brand knowledge can be

conceptualized as consisting of a brandnode in memory with a variety of

associations linked to it


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Brand Knowledge componentsBrand Knowledge components

Brand Awareness

Brand Image

Brand awareness is a necessary first step but

not sufficient in building brand equity


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Brand AwarenessBrand Awareness

Related to the strength of the brand node (in

memory) as reflected by consumers ability

to identify the brand under differentconditions e.g. in a retail store display


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Brand ImageBrand Image

Perceptions about a brand as reflected by

the brand associations held in consumer

memory

Brand associations are the other

informational nodes linked to the brand

node in memory and contain the meaning ofthe brand for consumers


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The McDonalds Brand is

The Big Mac Happy Meals

French Fries Red,White & Yellow

Restaurants

Fun For Children Ronald McDonald

Golden Arches Value for Money

BrandBrand


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Sources of Brand EquitySources of Brand Equity

Brand equity occurs when the consumer has

a high level of awareness and familiarity

with the brand and holds some strong,favourable, and unique brand associations

in memory

Knowledge structures are thus produced


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Brand Awareness comprisesBrand Awareness comprises

Brand Recognition confirms prior

exposure to the brand when given the brand

as a cue

Brand Recall recalling the brand when

given the product category e.g. Nokia,

Kelloggs


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Brand Awareness role inBrand Awareness role in

consumer decision makingconsumer decision making

To create brand equity the name must be

first registered in the consumers mind Puts the brand in the considered set

Consumers buy familiar, well-established

brands in some cases low involvementproducts


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Establishing Brand AwarenessEstablishing Brand Awareness

Marketing communication channels

repeated exposure

Brand elements slogans, jingles, music,

characters

Brand positioning

Strong associations with product categorywhen the brand is new


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Direct experience

Communication

Word-of-mouth

Assumptions or inferences from the brand

itself (Name, Logo)

Identification with company, country,

channel of distribution, person or place


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The entire marketing mix affects brand

image

Positioning including POP and POD


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ReadingReading

Strategic Brand Management by Kevil Lane

Keller 2nd edition. Chapter: 1 & 2

Please study from the above book only

those topics covered in the class

1.ii.brand management 1--over--over

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