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CHAPTERCHAPTER--11

BRANDS AND BRAND MANAGEMENTBRANDS AND BRAND MANAGEMENT

Prof. Md. Prof. Md. MizanurMizanur RahmanRahmanMBA (Canada), PhD (Dhaka)MBA (Canada), PhD (Dhaka)

Department of MarketingDepartment of Marketing

University of DhakaUniversity of Dhaka

Learning Objectives Learning Objectives

Define ―brand,‖ state how brand differs from a Define ―brand,‖ state how brand differs from a product, and explain what brand equity isproduct, and explain what brand equity is

Summarize why brands are importantSummarize why brands are important

Explain how branding applies to virtually everythingExplain how branding applies to virtually everything

Describe the main branding challenges and Describe the main branding challenges and opportunitiesopportunities

Identify the steps in the strategic brand Identify the steps in the strategic brand management processmanagement process

1.2

1.3

What Is A Brand?What Is A Brand?

―A ―A brandbrand is a name, term, sign, is a name, term, sign,

symbol, or design or a symbol, or design or a

combination of them, intended combination of them, intended

to to identifyidentify the goods or services the goods or services

of one seller or group of sellers of one seller or group of sellers

and to and to differentiatedifferentiate them from them from

those of competition.‖ those of competition.‖ ------AMA ???AMA ???

What Is A Brand?What Is A Brand?

Simply, ―a brand is someone‘s gut Simply, ―a brand is someone‘s gut

feeling about a product, service or feeling about a product, service or

organizations.‖organizations.‖

―A brand is the ―A brand is the summationsummation of all of all

perceptions, experiences and perceptions, experiences and

beliefs associated with a product, beliefs associated with a product,

service, or entity that make it service, or entity that make it distinct.‖ distinct.‖ ------Modern DefinitionModern Definition

1.4

Are You A Brand?Are You A Brand?

Yes!! or No!!Yes!! or No!!

You all are a brand by all of your individual You all are a brand by all of your individual rights and identitiesrights and identities

1.5

Brand ElementsBrand Elements

Different components that identify and Different components that identify and differentiate a branddifferentiate a brand

Can be based on Can be based on people, places, things, and people, places, things, and abstract imagesabstract images

NameName

LogoLogo

SymbolSymbol

Package designPackage design

SloganSlogan

Other Characteristic Other Characteristic

1.6

Brand ElementsBrand Elements

Brand name Brand name is that part of a brand is that part of a brand

which can be vocalized or which can be vocalized or utterableutterable. .

Brand mark Brand mark is that part of a brand is that part of a brand

which can be recognized but is not which can be recognized but is not

utterableutterable, such as symbol, design, or , such as symbol, design, or

distinctive coloring or lettering. distinctive coloring or lettering.

TrademarkTrademark is that part of brand which is that part of brand which

is registered & protected by law and is registered & protected by law and

which gives the seller exclusive rights to which gives the seller exclusive rights to

use it in perpetuityuse it in perpetuity

1.7

Brand Elements Brand Elements

Brand Name =Brand Name = Mercedes Benz Mercedes Benz

Brand MarkBrand Mark = =

Trade Mark Trade Mark = =

Brand Name Brand Name ++

Brand Mark Brand Mark ++

Trade MarkTrade Mark

= Brand= Brand

1.8

Brand Vs. ProductBrand Vs. Product

ProductProduct BrandBrand

Anything available in the Anything available in the marketplace for use or marketplace for use or consumption that may satisfy a consumption that may satisfy a need or wantneed or want

Has dimensions that differentiate it Has dimensions that differentiate it in some way from other products in some way from other products designed to satisfy the same needdesigned to satisfy the same need

1.9

Product Vs. Brand Product Vs. Brand

ProductProduct BrandBrand

AA physical physical entity that entity that lives in the real worldlives in the real world

AA perceptual perceptual entity that lives in entity that lives in the minds of consumersthe minds of consumers

PProvides functional rovides functional valuevalue

PProvides functional as well as rovides functional as well as social, emotional, situational,social, emotional, situational, and and epistemic valuesepistemic values

IImplies physical mplies physical attributes and benefitsattributes and benefits

IImplies physical attributes and mplies physical attributes and benefits as well as psychic aspects benefits as well as psychic aspects surrounding a productsurrounding a product

CComes and goes with omes and goes with timetime

IIs timeless???s timeless???

1.10

1.11

Five Levels of Meaning for a Product Five Levels of Meaning for a Product

Core BenefitCore Benefit

Generic ProductGeneric Product

Expected ProductExpected Product

Augmented Product LevelAugmented Product Level

Potential Product LevelPotential Product Level

1.12

Brands Conveying Six Meanings Brands Conveying Six Meanings

AttributesAttributes–– characteristics and featurescharacteristics and features

BenefitsBenefits–– functional and emotionalfunctional and emotional

ValuesValues–– performance, safety & prestigeperformance, safety & prestige

CultureCulture–– MercedesMercedes--organized, efficient, high qualityorganized, efficient, high quality

PersonalityPersonality–– FantaFanta/Virginia Slim: female personality/Virginia Slim: female personality

UsersUsers–– the kind of consumer using itthe kind of consumer using it

BrandBrand

Organizational Organizational AssociationsAssociations

Country Of OriginCountry Of Origin

User ImageryUser Imagery

Emotional Emotional BenefitsBenefits

SelfSelf--expressive expressive Benefits Benefits

Brand Brand --Customer Customer Relationships Relationships

Symbols Symbols

Brand PersonalityBrand Personality

Weight/ColorWeight/Color

Price/QualityPrice/Quality

Design/FeaturesDesign/Features

Uses/ ValueUses/ Value

Functional BenefitsFunctional Benefits

ProductProduct

A Brand Is More Than A Product A Brand Is More Than A Product

SophisticationSophistication

LifeLife--stylesstyles

Experimental Experimental benefitsbenefits

1.1.1313

Every Brand Has A PersonalityEvery Brand Has A Personality

NikeNike AddidasAddidas BataBata

BeautifulBeautiful GreekGreek OldOld

FeminineFeminine MasculineMasculine OrthodoxOrthodox

StrongStrong StrongStrong BoreBore

SmartSmart StylishStylish FormalFormal

AmbitiousAmbitious AuthoritativeAuthoritative IntrovertIntrovert

CoolCool PowerfulPowerful UnsportyUnsporty

SexySexy DominatingDominating WeakWeak

ExtrovertExtrovert StableStable SimpleSimple

EnergeticEnergetic CommandingCommanding ConservativeConservative

YoungYoung ModernModern TrustworthyTrustworthy

LivelyLively BoldBold CaringCaring 1.14

1.15

What Is Branding?What Is Branding?

TThe he act of transforming act of transforming a product into a product into

customer satisfying valuecustomer satisfying value--added added

propositions to create preferences in one‘s propositions to create preferences in one‘s

favor and against rivalsfavor and against rivals

Everything a marketer does to its offer so that Everything a marketer does to its offer so that

customers can favorably discriminate a brandcustomers can favorably discriminate a brand

FromFrom

Brands as Brands as

identifiersidentifiers

NamesNames, logos, , logos,

slogans slogans whichwhich

buildbuild awarenessawareness

and imageand image

TOTO

Brands as Brands as experienceexperience

providersproviders

NamesNames, logos, slogans, , logos, slogans,

eventsevents, , customercustomer contacts contacts

and and experiencesexperiences whichwhich buildbuild

sensorysensory, affective, , affective, creativecreative

relations and relations and waysways of of beingbeing

withwith the brandsthe brands

1.16

From Traditional To Experiential BrandingFrom Traditional To Experiential Branding

USP = Unique USP = Unique SellingSelling PropositionProposition ((5050‘s)‘s)

ESP = ESP = EmotionalEmotional SellingSelling PropositionProposition ((6060‘s)‘s)

OSP = OSP = OrganizationalOrganizational SellingSelling PropositionProposition ((8080‘s)‘s)

BSP = Brand BSP = Brand SellingSelling PropositionProposition ((9090‘s)‘s)

MSP= Me MSP= Me SellingSelling PropositionProposition ((20002000‘s)‘s)

HSP =HSP =HolisticHolistic SellingSelling Proposition (Proposition (AfterAfter 20002000‘s)‘s)

1.17

Evolution From USP to HSPEvolution From USP to HSP

http://www.slideshare.net/paulsjr/briefhttp://www.slideshare.net/paulsjr/brief--historyhistory--ofof--brandingbranding

Physical productPhysical product

Emotional attachmentEmotional attachment

Corporate brandingCorporate branding

More than physical More than physical dimensionsdimensions

Personalization; Personalization; ownership by ownership by consumersconsumers

Multisensory brand; Multisensory brand; synergysynergy

Easy for the seller to track down problems and Easy for the seller to track down problems and

process ordersprocess orders

Legal protection of unique product featuresLegal protection of unique product features

Opportunity to attract loyal and profitable set of Opportunity to attract loyal and profitable set of

customerscustomers

Helping to give a product category at different Helping to give a product category at different

segments, having separate bundle of benefitssegments, having separate bundle of benefits

Building corporate imageBuilding corporate image

Minimizing harm to company reputation if the brand Minimizing harm to company reputation if the brand

failsfails

1.18

Advantages of BrandingAdvantages of Branding

Beware of Branding PitfallsBeware of Branding Pitfalls

Pitfall No. 1: Pitfall No. 1: A brand is A brand is

something a firm ownssomething a firm owns

Pitfall No. 2: Pitfall No. 2: Brands Brands take care of themselvestake care of themselves

Pitfall No. 3: Pitfall No. 3: Focus on Focus on

brand awareness instead brand awareness instead

of brand relevanceof brand relevance

Pitfall No. 4: Pitfall No. 4: Don‘t base Don‘t base

on internal image of on internal image of

brandbrand

Pitfall No. 5: Pitfall No. 5: Don‘t let Don‘t let

outsiders do firm‘s joboutsiders do firm‘s job1.19

A brand is defined only by A brand is defined only by

customerscustomers

Proactive brand management Proactive brand management is requiredis required

Manage touch points; target Manage touch points; target

right customers and right customers and

stakeholdersstakeholders

Gain customer input and Gain customer input and

determine current brand image determine current brand image

and take needful measuresand take needful measures

Company should determine its Company should determine its

own brand imageown brand image

AAss perceptions of all tangible and intangible perceptions of all tangible and intangible

elements, brands have…elements, brands have…

……the power the power that can transcend the attributes that can transcend the attributes

and characteristics of productsand characteristics of products

……the ability the ability to capture attention and loyalty far to capture attention and loyalty far

above othersabove others

1.20

Why Is Brand So Important?Why Is Brand So Important?

Brands can have POWER…Brands can have POWER…

CocaCoca--ColaCola Is it more than cola beans, corn Is it more than cola beans, corn sweetener, sweetener, spices and food coloring mixed together?spices and food coloring mixed together?Is it more than a beverage?Is it more than a beverage?

Coors LightCoors Light Is it more than hops, malted barley, Is it more than hops, malted barley, mushroom and water?mushroom and water?

StarbucksStarbucks Is it more than coffee?Is it more than coffee?

USAUSA Is it more than 50 states united?Is it more than 50 states united?

1.21

Why Is Brand So Important?Why Is Brand So Important?

No awareness of the brandNo awareness of the brand

Heard of it, but don‘t know anything about itHeard of it, but don‘t know anything about it

Heard of it and know what it isHeard of it and know what it is

Know that and how it‘s differentKnow that and how it‘s different

Know that and how it has meaningKnow that and how it has meaning

Relate the brand to a feeling, attitude, event, Relate the brand to a feeling, attitude, event, perception of myself that is important and perception of myself that is important and relevant to merelevant to me

1.22

To build To build brand brand

power, we power, we need to need to know know

where we where we are and are and

determine determine how to get how to get to higher to higher

levelslevels

Brand Power HierarchyBrand Power Hierarchy

No awareness of the brand

Heard of it, but don‘t know anything about it

Heard of it and know what it is

Know that & how it‘s differentKnow that & how it‘s different

Know that & how it has meaningKnow that & how it has meaning


Brand Initiation

(where brands become

products)

1.23





Know that & how it‘s different



Brand with Differentiation

1.24






Know that & how it has meaning


Brand with Relevance

1.25







Relate the brand to a feeling, attitude, event, perception of myself that is important and relevant to me

Brand with Equity

1.26


Brand Brand DifferentiationDifferentiation

Brand Brand RelevanceRelevance

++

Brand PowerBrand Poweris a function of Differentiation, Relevance, and Equityis a function of Differentiation, Relevance, and Equity

BP=f(D,R,BE)BP=f(D,R,BE)

==Brand Brand EquityEquity

++

1.27

Achieving Brand PowerAchieving Brand Power

Brand Differentiation:Brand Differentiation:

The characteristics and perceptions that are The characteristics and perceptions that are perceived to be different against alternativesperceived to be different against alternatives

Differentiation buys trialDifferentiation buys trial


1.28

Brand Relevance:Brand Relevance:

The degree to which the brand is applicable to, or The degree to which the brand is applicable to, or makes a connection with makes a connection with people‘s lifestyles, people‘s lifestyles, issues, needs, issues, needs, desires, etc.desires, etc.

Relevance gains repeat considerationRelevance gains repeat consideration


1.29

Brand Equity:Brand Equity:

Derived from Derived from experienceexperience--based associations based associations with the with the brand, and the emotional connections that grow from brand, and the emotional connections that grow from themthem

Brand Equity provides insulationBrand Equity provides insulation


1.30

Customer will not change brands for price reasonsCustomer will not change brands for price reasons

Customer is satisfied; no reason to changeCustomer is satisfied; no reason to change

Customer is satisfied and would take pains to get Customer is satisfied and would take pains to get the brandthe brand

Customer values the brand and sees it as a friendCustomer values the brand and sees it as a friend

Customer is devoted to the brandCustomer is devoted to the brand

When Is Brand Power Achieved?When Is Brand Power Achieved?

1.31

Brand LoyaltyBrand Loyalty

Brand loyalty Brand loyalty is the bias, behavioral response, is the bias, behavioral response,

expressed over time, by some decisionexpressed over time, by some decision--making making

unit, with respect to one or more alternatives, unit, with respect to one or more alternatives,

and is a function of psychological process and is a function of psychological process

‗Loyal customer base‘ is the essence of brand ‗Loyal customer base‘ is the essence of brand buildingbuilding

1.32


LLoyal customer base depends on:oyal customer base depends on:

1.33

TrustTrust

ConsistencyConsistency

AccessibilityAccessibility

ResponsivenessResponsiveness

CommitmentCommitment

AffinityAffinity

Social bondsSocial bonds

Psychological bondsPsychological bonds

Financial bondsFinancial bonds

Structural bondsStructural bonds


Trust: willing to rely on brandTrust: willing to rely on brand

Consistency: no variation in qualityConsistency: no variation in quality

Accessibility: accessible to customersAccessibility: accessible to customers

Responsiveness: quick response to customersResponsiveness: quick response to customers

Commitment: dedicated to customersCommitment: dedicated to customers

Affinity: identify with brandAffinity: identify with brand

Social bonds: customerSocial bonds: customer--seller relationseller relation

Psychological bonds: influencing personality, lifestylesPsychological bonds: influencing personality, lifestyles

Financial bonds: discounts offeringFinancial bonds: discounts offering

Structural bonds: physical connection between buyer‘s and Structural bonds: physical connection between buyer‘s and

seller‘s systemsseller‘s systems1.34

Brand is Brand is possessedpossessed by customers but by customers but ownedowned by by firms because it is…firms because it is…

…an intangible and a perceptual entity− difficult to copy…an intangible and a perceptual entity− difficult to copy

…like knowledge structure which lives in customer‘s …like knowledge structure which lives in customer‘s

mind in form of a universe of associations which…mind in form of a universe of associations which…

…stores variety of information …stores variety of information

…creates brand awareness, and brand associations (brand image)…creates brand awareness, and brand associations (brand image)

…elicits customer response…elicits customer response

Brands Are Customer PossessedBrands Are Customer Possessed

1.35

PepsiPepsi

Urban RefreshingThirst

Young

Good Times

Fun

S. KhanRebel

Sweet

US

Cola

Coke Fanta

Orange

Mirinda

Black

Brands Are Customer PossessedBrands Are Customer Possessed

1.36Fig: Associative Network for PepsiFig: Associative Network for Pepsi

To Sum Up ....To Sum Up ....

Through branding, organizations:Through branding, organizations:

Create perceived differences amongst productsCreate perceived differences amongst products

Develop loyal customer franchiseDevelop loyal customer franchise

Create value that can translate to financial profitsCreate value that can translate to financial profits

1.37

1.38

Why Is Branding So Hot?Why Is Branding So Hot?

We have too We have too many choices many choices and and too little timetoo little time

Most offerings have Most offerings have similar quality similar quality and and featuresfeatures

We make our buying choices on We make our buying choices on trusttrust

Why Do Brands Matter?Why Do Brands Matter?

What What functionsfunctions do brands perform that make do brands perform that make

them so valuable to marketers?them so valuable to marketers?

What brands do to CONSUMERS and FIRMS?What brands do to CONSUMERS and FIRMS?

1.40

Roles to Consumers (Individual and Roles to Consumers (Individual and OrganizationsOrganizations

Functions provided by brands to consumersFunctions provided by brands to consumers

Identify the Identify the maker maker of the product and allow of the product and allow

consumers to consumers to assign responsibility assign responsibility to a producerto a producer

Simplify product decisionsSimplify product decisions

Lower the search costs for products internally and Lower the search costs for products internally and

externallyexternally

Help set reasonable expectations about what Help set reasonable expectations about what

consumers may not know about the brandconsumers may not know about the brand

ContinuedContinued

1.41

Roles to ConsumersRoles to Consumers

Do promise and establish relationship between a Do promise and establish relationship between a consumer and a brandconsumer and a brand

Serve as symbolic devices allowing consumers to Serve as symbolic devices allowing consumers to project their selfproject their self--imageimage

Signal product characteristics and attributesSignal product characteristics and attributes

On the basis of attributes, products are classified as On the basis of attributes, products are classified as search goods, experience goods and credence goodssearch goods, experience goods and credence goods

Reduce Reduce risks risks in product decisionin product decision

ContinuedContinued

1.42

Reducing the risks in product decisionsReducing the risks in product decisions

RRisks consumers perceive in buying and consuming isks consumers perceive in buying and consuming a product:a product:

Functional riskFunctional risk——The product does not perform up to The product does not perform up to

expectationsexpectations

Physical riskPhysical risk——The product poses a threat to user‘s health The product poses a threat to user‘s health

Financial riskFinancial risk——The product is not worth the price paidThe product is not worth the price paid

Social riskSocial risk——The product results in embarrassmentThe product results in embarrassment

Psychological riskPsychological risk——The product affects the mental wellThe product affects the mental well--

beingbeing

Time riskTime risk——The failure of the product results in an The failure of the product results in an

opportunity cost of finding another satisfactory productopportunity cost of finding another satisfactory product

1.43

Roles to FirmsRoles to Firms

Brands provide valuable functionsBrands provide valuable functions

Simplify product handling and tracingSimplify product handling and tracing

Help organize inventory and accounting recordsHelp organize inventory and accounting records

Offer the firm legal protection for unique features or Offer the firm legal protection for unique features or

aspects of the productaspects of the product

Provide Provide predictability and security of demand for the firm predictability and security of demand for the firm

and creates barriers of entry for competitorsand creates barriers of entry for competitors

Provide a powerful means to secure competitive Provide a powerful means to secure competitive

advantageadvantage

Provide source of financial returnsProvide source of financial returns

Figure 1.3 Figure 1.3 -- Roles that Brands PlayRoles that Brands Play

1.45

Can Everything Be Branded?Can Everything Be Branded?

YES!!!YES!!!

How are brands created? How are brands created?

How do you brand a product?How do you brand a product?

Firms create brand through Firms create brand through marketing programsmarketing programs, , although it resides in the mindsalthough it resides in the minds

1.46

How Are Brands Created?How Are Brands Created?

To brand a product it is necessary to teach To brand a product it is necessary to teach consumers:consumers:

Who the product is Who the product is

What the product does What the product does

Why consumers should care itWhy consumers should care it

BBranding provides firms with value through randing provides firms with value through

creating creating mental structures mental structures that help consumers that help consumers

organizeorganize their knowledge about product to make their knowledge about product to make

decision decision

1.47

Can Everything Be Branded?Can Everything Be Branded?

EEverything even commodities can be verything even commodities can be

brandedbranded

Coffee (Maxwell House), bath soap (Ivory), flour Coffee (Maxwell House), bath soap (Ivory), flour

(Gold Medal), beer (Budweiser), salt (Morton), (Gold Medal), beer (Budweiser), salt (Morton),

oatmeal (Quaker), pickles (Vlasic), bananas oatmeal (Quaker), pickles (Vlasic), bananas

(Chiquita), chickens (Perdue), pineapples (Dole), (Chiquita), chickens (Perdue), pineapples (Dole),

and even water (Perrier) and even water (Perrier)

1.48

An Example of Branding a CommodityAn Example of Branding a Commodity

De Beers Group added the phrase De Beers Group added the phrase

―A Diamond Is Forever‖ ―A Diamond Is Forever‖

1.49

What Can Be Branded?What Can Be Branded?

Physical goods (BMW, Sony)Physical goods (BMW, Sony)

Services (British Airways, FedEx, Hilton Hotel)Services (British Airways, FedEx, Hilton Hotel)

Retailers and distributors (Sears, WalRetailers and distributors (Sears, Wal--Mart, M&S)Mart, M&S)

Online products and services (Amazon.com, Google) Online products and services (Amazon.com, Google)

People and organizations (People and organizations (MaradonaMaradona, Red Cross), Red Cross)

Sports, arts, and entertainment (Real Madrid)Sports, arts, and entertainment (Real Madrid)

Geographic locations (Geographic locations (SunderbonSunderbon))

Ideas and causes (AIDS Ribbons)Ideas and causes (AIDS Ribbons)

Physical Goods: B2B ProductsPhysical Goods: B2B Products

Know branding from corporate perspectiveKnow branding from corporate perspective

Create a Create a positive brand image and reputation positive brand image and reputation for the for the

company as a whole which will create…company as a whole which will create…

…greater selling opportunity and more profitable …greater selling opportunity and more profitable relationshipsrelationships

Some B2B firms believe that buyers are so informed Some B2B firms believe that buyers are so informed

and professional that brands don‘t matterand professional that brands don‘t matter

DeDe--commoditize B2B brands to create difference, commoditize B2B brands to create difference,

although it is difficultalthough it is difficult

1.50

Physical Goods: HighPhysical Goods: High--Tech ProductsTech Products

Challenging due to the speed and brevity of Challenging due to the speed and brevity of

technology PLCstechnology PLCs

Don‘t brand Don‘t brand only by naming only by naming (technologists‘ view)(technologists‘ view)

Financial success depends not only on innovation but Financial success depends not only on innovation but

also on marketing skillsalso on marketing skills

CEOs are the dominant factors (Bill Gates: Microsoft)CEOs are the dominant factors (Bill Gates: Microsoft)

Adoption of Adoption of classic consumer marketing techniques classic consumer marketing techniques has has

increased expenditures on marketing communicationsincreased expenditures on marketing communications

1.51

Challenging as services are less tangible and Challenging as services are less tangible and

more variable in qualitymore variable in quality

Address intangibility and variability problemsAddress intangibility and variability problems

Tanagibilize Tanagibilize the servicethe service

Brand symbols Brand symbols may be important because they make the may be important because they make the abstract nature of services more concreteabstract nature of services more concrete

BrandsBrands help identify and provide meaning to different help identify and provide meaning to different servicesservices

Branding is an effective Branding is an effective way to signal way to signal to consumers that to consumers that service is special and deserving of its nameservice is special and deserving of its name

1.52

Role of Branding with ServicesRole of Branding with Services

Corporate credibility Corporate credibility is key in terms of expertise, is key in terms of expertise,

trustworthiness, and likeabilitytrustworthiness, and likeability

Variability Variability is more of an issue with professional is more of an issue with professional

servicesservices

Individual employees Individual employees have a lot more of their own have a lot more of their own

equity in the firmequity in the firm

Referrals and testimonials Referrals and testimonials can be powerful when the can be powerful when the

services are intangible and subjectiveservices are intangible and subjective

EmotionsEmotions can play a big role in terms of sense of can play a big role in terms of sense of

security and social approvalsecurity and social approval

1.53

Professional ServicesProfessional Services

Brands can help createBrands can help create... ...

…consumer interest, patronage, and loyalty in stores…consumer interest, patronage, and loyalty in stores

…the retailer‘s image and establish positioning…the retailer‘s image and establish positioning

Retailers can create their own brand image by…Retailers can create their own brand image by…

…attaching unique associations to service quality, product …attaching unique associations to service quality, product

assortment, pricing, and credit policy to their storesassortment, pricing, and credit policy to their stores

…introducing their own brands through using store names, …introducing their own brands through using store names,

creating new names, or some combination of bothcreating new names, or some combination of both

1.54

Retailers and DistributorsRetailers and Distributors

3 strongest online brands are Google, 3 strongest online brands are Google, FacebookFacebook, ,

and Twitterand Twitter

Flashy or unusual ads fail to create awarenessFlashy or unusual ads fail to create awareness

Create Create unique aspects of the brand unique aspects of the brand on some dimensions like on some dimensions like

convenience, price, varietyconvenience, price, variety

Ensure that brands Ensure that brands perform satisfactorily in other areas perform satisfactorily in other areas like like

customer service, credibility and personalitycustomer service, credibility and personality

Offer Offer unique features and services unique features and services to consumers and avoid to consumers and avoid

extensive ads extensive ads

Rely more on Rely more on WOM and publicityWOM and publicity

1.55

Online products and servicesOnline products and services

Branding is simple if the product category is Branding is simple if the product category is people or organizationpeople or organization

Build up a name and reputationBuild up a name and reputation

Right awareness and image determine the way people treat Right awareness and image determine the way people treat

you, interpret your words, and actionsyou, interpret your words, and actions

Check Check whowho the person is and the person is and whatwhat kind of person he is in kind of person he is in

terms of skills, talents, attitude, and so forthterms of skills, talents, attitude, and so forth

Organizations take on meanings through their Organizations take on meanings through their programs, activities, and productsprograms, activities, and products

1.56

People and OrganizationsPeople and Organizations

People and organizations are used as brandsPeople and organizations are used as brands

Some apply traditional packagedSome apply traditional packaged--goods techniquesgoods techniques

Apply creative combination of ad, promotions, Apply creative combination of ad, promotions,

sponsorship, direct mail, digital, and other forms of sponsorship, direct mail, digital, and other forms of

communicationcommunication

Building brand awareness, image, and loyalty, some are able Building brand awareness, image, and loyalty, some are able

to meet ticket sales targetto meet ticket sales target

Brand symbols and logos work as a financial contributorBrand symbols and logos work as a financial contributor

In arts and entertainment, buyers judge quality In arts and entertainment, buyers judge quality not by inspection, but use cuesnot by inspection, but use cues

1.57

Sports, Arts, and EntertainmentSports, Arts, and Entertainment

Place marketing is on the rise Place marketing is on the rise

Use IMC to promote cities, states, regions, and Use IMC to promote cities, states, regions, and

countriescountries

IMC creates awareness and a favorable image of a IMC creates awareness and a favorable image of a location that will entice visitorslocation that will entice visitors

1.58

Geographic LocationsGeographic Locations

Ideas and causes are branded by mostly nonIdeas and causes are branded by mostly non--profit organizations profit organizations

Use phrase or slogan or symbols for branding Use phrase or slogan or symbols for branding (AIDS Ribbons)(AIDS Ribbons)

Make them more visible and concreteMake them more visible and concrete

1.59

Ideas and CausesIdeas and Causes

To Sum up....To Sum up....

Branding is universal and pervasive in different Branding is universal and pervasive in different

product categories product categories

Applicable to both tangible and intangible offerings Applicable to both tangible and intangible offerings

of an organizationof an organization

Technological developments have impacted the way Technological developments have impacted the way

firms market their offeringsfirms market their offerings

Organizations reap financial benefits from positive Organizations reap financial benefits from positive

brand imagesbrand images

Revolutionary and inspiring vision of mass Revolutionary and inspiring vision of mass

marketmarket

An indomitable will to realize that visionAn indomitable will to realize that vision

Managerial persistence under adversityManagerial persistence under adversity

Financial commitmentFinancial commitment

Relentless innovationRelentless innovation

Asset Leverage to realize vision Asset Leverage to realize vision

Keys to Enduring Brand LeadershipKeys to Enduring Brand Leadership

1.61

Essentials to Success of a BrandEssentials to Success of a Brand

Successful brands achieve discriminatory Successful brands achieve discriminatory

response from consumersresponse from consumers

Two basic strategies can be used:Two basic strategies can be used:

Better Brand StrategyBetter Brand Strategy

Superior Band StrategySuperior Band Strategy

1.62

1.63

Better Brand StrategyBetter Brand Strategy Superior Brand StrategySuperior Brand Strategy

BBeats competition of building eats competition of building more value on attributes/benefits more value on attributes/benefits sought by customerssought by customers

OOffers competitive as well as ffers competitive as well as some unique attributes/benefits some unique attributes/benefits not offered by competitionnot offered by competition

CConfined to existing attributes/ onfined to existing attributes/ benefits benefits

GGoes beyond existing oes beyond existing attributes/benefitsattributes/benefits

IIncreases CV incrementallyncreases CV incrementally IIncreases CV exponentiallyncreases CV exponentially

TToothpaste offers germ oothpaste offers germ protection round the clock protection round the clock instead of 12 hoursinstead of 12 hours

TToothpaste offers mintingoothpaste offers mintingattributeattribute

Essentials to Success of a BrandEssentials to Success of a Brand

How to Build Superior Brands?How to Build Superior Brands?

SSuperior brands must achieve valued uperior brands must achieve valued

discriminationdiscrimination

Not sufficient just to achieve valued discrimination Not sufficient just to achieve valued discrimination

or deliver what target market wantsor deliver what target market wants

Rather deliver what others fail to and what Rather deliver what others fail to and what

customers look forward to customers look forward to

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TTo achieve valued discrimination, marketers o achieve valued discrimination, marketers

must know:must know:

For whom is the brand meant? (target market)For whom is the brand meant? (target market)

What do competitive brands offer? (similarity)What do competitive brands offer? (similarity)

What do customers desire or value but do not What do customers desire or value but do not

get? (discriminating value)get? (discriminating value)


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Five steps for achieving valued discriminationFive steps for achieving valued discrimination

1.1. Identify SegmentsIdentify Segments

Study existing segments‘ characteristics and Study existing segments‘ characteristics and

competitioncompetition

2.2. Understand the Key Drivers of BuyingUnderstand the Key Drivers of Buying

List down the attributes/benefits/values sought List down the attributes/benefits/values sought

Do extensive marketing research to figure outDo extensive marketing research to figure out


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3.3. Determine Relative ImportanceDetermine Relative Importance

Rate these in order of importanceRate these in order of importance

4.4. Analyze CompetitionAnalyze Competition

Make competitive analysis and customer analysisMake competitive analysis and customer analysis

5.5. Find Sources of Discriminative ValueFind Sources of Discriminative Value

Find attributes which are the sources of valued Find attributes which are the sources of valued

discriminationdiscrimination


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Strong BrandsStrong Brands

Brands Brands that have that have been market leaders in their been market leaders in their

categories for decadescategories for decades

Any brand is vulnerable and susceptible to Any brand is vulnerable and susceptible to

poor brand managementpoor brand management

The appeal of brand is not timeless, if it is not The appeal of brand is not timeless, if it is not

properly managed properly managed

What Are the Strongest Brands?What Are the Strongest Brands?

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Top Ten Global Brands (Top Ten Global Brands (InterbrandInterbrand))

Rank in 2015Rank in 2015 2015 ($Billion)2015 ($Billion)

1.1. AppleApple

2.2. GoogleGoogle

3.3. CocaCoca--ColaCola

4.4. MicrosoftMicrosoft

5.5. IBMIBM

6.6. ToyotaToyota

7.7. SamsungSamsung

8.8. GEGE

9.9. MacDonald'sMacDonald's

10.10. AmazonAmazon

170.28170.28

120.31120.31

78.4278.42

67.6767.67

65.0965.09

49.0549.05

45.3045.30

42.2742.27

39.8139.81

37.8537.85

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Factors Responsible for Branding Factors Responsible for Branding ChallengesChallenges

Savvy Savvy customerscustomers

Economic Economic downturnsdownturns

Brand Brand proliferationproliferation

Media Media transformationtransformation

Increased Increased competitioncompetition

Increased Increased costcost

Increased Increased accountabilityaccountability

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Factors Responsible for Branding Factors Responsible for Branding ChallengesChallenges

Types of Failure of BrandsTypes of Failure of Brands

Parity BrandsParity Brands–– offer only similar valuesoffer only similar values

Inferior BrandsInferior Brands–– offer lesser value or suffering offer lesser value or suffering

competitive disadvantagecompetitive disadvantage

Mismatch BrandsMismatch Brands–– offer value not in the line offer value not in the line

with customer needswith customer needs

OverOver--priced Brandspriced Brands–– offer superior value but at offer superior value but at

a higher sacrifice a higher sacrifice

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Brand EquityBrand Equity

The added value endowed to products reflected The added value endowed to products reflected

in how consumers think, feel, and act with in how consumers think, feel, and act with

respect to brandrespect to brand

The premium a brand can command in the The premium a brand can command in the

marketmarket

The difference between the perceived value The difference between the perceived value

and the intrinsic value of a brandand the intrinsic value of a brand

No common viewpoint on how BE should be conceptualized and measured.No common viewpoint on how BE should be conceptualized and measured.

Brand Equity Brand Equity

Principles of branding and brand equityPrinciples of branding and brand equity

Differences in outcomes Differences in outcomes arise from arise from the ―added value‖ the ―added value‖

endowed to a productendowed to a product

The added value The added value can be created can be created for a brand in many for a brand in many

different waysdifferent ways

Brand equity provides Brand equity provides a common denominator a common denominator for for

interpreting marketing strategies and interpreting marketing strategies and assessing assessing the the

value of a brandvalue of a brand

There are There are many different ways many different ways in which the value of a in which the value of a

brand can be exploited to benefit the brand can be exploited to benefit the firmfirm

Brand EquityBrand Equity–– Competitive AdvantagesCompetitive Advantages

RReduced marketing costseduced marketing costs

TTrade leveragerade leverage

CCan charge a higher pricean charge a higher price

CCan easily launch brand extensionsan easily launch brand extensions

CCan take some price competitionan take some price competition

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Strategic Brand ManagementStrategic Brand Management

The design and The design and implementation of implementation of

marketing programs marketing programs to build, measure, to build, measure, and manage brand and manage brand

equity. equity.

The four main steps of the The four main steps of the process:process:

•• Identifying and Developing Brand Identifying and Developing Brand PlansPlans

•• Designing and Implementing Brand Designing and Implementing Brand Marketing ProgramsMarketing Programs

•• Measuring and Interpreting Brand Measuring and Interpreting Brand PerformancePerformance

•• Growing and Sustaining Brand Growing and Sustaining Brand EquityEquity

Identifying and Developing Brand Identifying and Developing Brand PlansPlans

Brand Positioning ModelBrand Positioning Model

How to How to createcreate a position in the minds of customers and a position in the minds of customers and guide guide integrated marketing to maximize CAintegrated marketing to maximize CA

Brand Resonance ModelBrand Resonance Model

How to How to create create intense, active loyalty relationshipsintense, active loyalty relationships

Brand Value ChainBrand Value Chain

Traces Traces the value creation process to better understand the value creation process to better understand the the financial impact financial impact of brand marketing expenditures and of brand marketing expenditures and investments. investments.

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Designing and implementing Brand Designing and implementing Brand Marketing Program Marketing Program

Choosing brand elements (mixing and Choosing brand elements (mixing and

matching)matching)

Integrating the brand into marketing activities Integrating the brand into marketing activities

and the supporting marketing programand the supporting marketing program

Leveraging secondary associationsLeveraging secondary associations

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Measuring and Measuring and Interpreting Brand Interpreting Brand PerformancePerformance

Marketers must develop and implement a Marketers must develop and implement a BEMS BEMS to to manage brands profitablymanage brands profitably

BEMS is a set of BEMS is a set of research procedures research procedures designed to designed to provideprovide

timely, accurate, and actionable information for marketers so timely, accurate, and actionable information for marketers so

that they can make the best possible that they can make the best possible tactical decisions tactical decisions in the in the

short run and the best short run and the best strategic decisions strategic decisions in in the long runthe long run

BE BE measurement system involves:measurement system involves:

Brand auditsBrand audits

Brand tracking studiesBrand tracking studies

Brand equity management systemBrand equity management system

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Measuring and Measuring and Interpreting Brand Interpreting Brand PerformancePerformance

Brand Brand auditsaudits: : A comprehensive A comprehensive examinationexamination of a brand to, of a brand to, assessassessits health, its health, uncoveruncover its sources of equity, and its sources of equity, and suggestsuggest ways to ways to improve and leverage that equityimprove and leverage that equity

Brand tracking studies: Brand tracking studies: Collecting informationCollecting information from consumers, from consumers, on a routine basis over time on key dimensions identified in the on a routine basis over time on key dimensions identified in the brand audit or other means to know how brands and marketing brand audit or other means to know how brands and marketing programs are performingprograms are performing

BE management systemBE management system: A : A set of set of organizational processes organizational processes designed to designed to understand understand and and useuse of the BE concept within a firm of the BE concept within a firm

Three steps help implement a BEMS: creating BE charters, assembling Three steps help implement a BEMS: creating BE charters, assembling

BE reports, and defining BE responsibilitiesBE reports, and defining BE responsibilities

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Growing and Sustaining Brand EquityGrowing and Sustaining Brand Equity

Defining brand architectureDefining brand architecture

Managing over time Managing over time

Managing BE over geographic boundaries, Managing BE over geographic boundaries,

cultures, and market segmentscultures, and market segments

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Defining Brand ArchitectureDefining Brand Architecture

Provides general Provides general guidelinesguidelines about branding strategy about branding strategy

and the brand elements to be applied across all the and the brand elements to be applied across all the

different products sold by the firmdifferent products sold by the firm

Two key concepts in defining BA:Two key concepts in defining BA:

Brand portfolio: Brand portfolio: A set of different brands that a particular A set of different brands that a particular firm offers for sale to buyers in a particular categoryfirm offers for sale to buyers in a particular category

Brand hierarchy: Brand hierarchy: Displays the Displays the numbernumber and and naturenature of of common and distinctive brand components across the firm‘s common and distinctive brand components across the firm‘s set of different brandsset of different brands.

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Managing Brand Equity Over Time Managing Brand Equity Over Time

A longA long--term perspective of brand management term perspective of brand management

recognizes that:recognizes that:

Any Any changeschanges in the supporting marketing program may in the supporting marketing program may

affect the success of future marketing programsaffect the success of future marketing programs

A longA long--term view produces term view produces proactive strategies proactive strategies to to

enhance CBBE and enhance CBBE and reactive strategies reactive strategies to revitalize to revitalize

a brand that encounters problemsa brand that encounters problems

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Managing Brand Equity over Geographic Managing Brand Equity over Geographic

Boundaries, Cultures, and Market Boundaries, Cultures, and Market

SegmentsSegments

In expanding a brand overseasIn expanding a brand overseas,… ,…

…managers …managers need to build BE by relying on specific need to build BE by relying on specific knowledge about knowledge about

…the …the experience and behaviors of those market experience and behaviors of those market

segmentssegments

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Global branding decisionsGlobal branding decisions

Decide which markets to enterDecide which markets to enter

Decide how to enter the marketDecide how to enter the market

Decide on the marketing programDecide on the marketing program

Decide on marketing organizationDecide on marketing organization



SegmentsSegments

BBuilding Global CBBEuilding Global CBBE

Understand similarities and differences in the global Understand similarities and differences in the global branding landscapesbranding landscapes

No shortcutsNo shortcuts

Establish marketing infrastructureEstablish marketing infrastructure

Integrated marketing communicationIntegrated marketing communication

Brand partnershipBrand partnership

Balance standardization & customizationBalance standardization & customization

Local and global controlLocal and global control

Establish operable guidelinesEstablish operable guidelines

Global BEMSGlobal BEMS

Brand elementsBrand elements



SegmentsSegments

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