brandmanagement-01

8/6/2019 BrandManagement-01

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Session 01:Session 01:

BRANDS & BRAND MANAGEMENTBRANDS & BRAND MANAGEMENT

Prof. Prriya RajProf. Prriya Raj

AsiaAsia--Pacific Institute of ManagementPacific Institute of ManagementNew DelhiNew Delhi


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What is a brand?What is a brand?

A brand is a name, term, sign, symbol, or design, or aA brand is a name, term, sign, symbol, or design, or acombination of them, intended tocombination of them, intended to identifyidentifythe goods and servicesthe goods and servicesof one seller or group of sellers and toof one seller or group of sellers and to differentiatedifferentiatethem fromthem from

those of competition.those of competition. --American Marketing Association (AMA)American Marketing Association (AMA)

These different components of a brand that identify andThese different components of a brand that identify anddifferentiate it aredifferentiate it are brand elementsbrand elements..


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What is a brand?What is a brand?

Many practicing managers refer to a brand as more than thatMany practicing managers refer to a brand as more than thatas something that has actually created a certain amount ofas something that has actually created a certain amount ofawareness, reputation, prominence,awareness, reputation, prominence, and so on in the marketplace.and so on in the marketplace.

We can make a distinction between the AMA definition of aWe can make a distinction between the AMA definition of abrand with a small b and the industrys concept of a Brandbrand with a small b and the industrys concept of a Brand

with a capital b.with a capital b.


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

TheThe corebenefit levelcorebenefit levelis theis the fundamental need or wantfundamental need or want thatthatconsumers satisfy by consuming the product or service.consumers satisfy by consuming the product or service.

TheThegeneric product levelgeneric product levelis a basic version of the product containingis a basic version of the product containingonly those attributes or characteristicsonly those attributes or characteristics absolutely necessary for itsabsolutely necessary for its

functioning but with no distinguishing featuresfunctioning but with no distinguishing features. This is basically a. This is basically astrippedstripped--down, nodown, no--frills version of the product that adequatelyfrills version of the product that adequatelyperforms the product function.performs the product function.

TheThe expected product levelexpected product levelis a set of attributes or characteristics thatis a set of attributes or characteristics thatbuyersbuyers normally expectnormally expect and agree to when they purchase aand agree to when they purchase aproduct.product.

TheThe augmented product levelaugmented product levelincludesincludes additionaladditional product attributes,product attributes,benefits, or related services thatbenefits, or related services that distinguishdistinguish the product fromthe product fromcompetitors.competitors.

TheThepotential product levelpotential product levelincludesincludes all the augmentationsall the augmentations andandtransformations that a product might ultimately undergo in thetransformations that a product might ultimately undergo in the

futurefuture..


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A brand is thereforeA brand is therefore more than a productmore than a product, as it, as it

can have dimensions that differentiate it in somecan have dimensions that differentiate it in some

way from other products designed to satisfy theway from other products designed to satisfy thesame need.same need.


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Some brands createSome brands create competitive advantagescompetitive advantages withwith

product performance; other brands createproduct performance; other brands create

competitive advantages through noncompetitive advantages through non--productproduct--related means.related means.


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Why do brands matter?Why do brands matter?

What functions do brands perform that makeWhat functions do brands perform that make

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


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Importance of Brands to ConsumersImportance of Brands to Consumers

Identification of the source of the productIdentification of the source of the product

Assignment of responsibility to product makerAssignment of responsibility to product maker

Risk reducerRisk reducer Search cost reducerSearch cost reducer

Promise, bond, or pact with product makerPromise, bond, or pact with product maker

Symbolic deviceSymbolic device Signal of qualitySignal of quality


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Reducing the Risks in Product DecisionsReducing the Risks in Product Decisions

Consumers may perceive many different types of risks in buyingConsumers may perceive many different types of risks in buyingand consuming a product:and consuming a product:

hhFunctional riskFunctional riskThe product does not perform up toThe product does not perform up toexpectations.expectations.

hhPhysical riskPhysical riskThe product poses a threat to the physical wellThe product poses a threat to the physical well--

being or health of the user or others.being or health of the user or others.

hhFinancial riskFinancial riskThe product is not worth the price paid.The product is not worth the price paid.

hhSocial riskSocial riskThe product results in embarrassment from others.The product results in embarrassment from others.

hhPsychological riskPsychological riskThe product affects the mental wellThe product affects the mental well--being ofbeing of

the user.the user.

hhTime riskTime riskThe failure of the product results in an opportunityThe failure of the product results in an opportunitycost of finding another satisfactory product.cost of finding another satisfactory product.


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Importance of Brands to FirmsImportance of Brands to Firms

To firms, brands represent enormously valuableTo firms, brands represent enormously valuable

pieces of legal property, capable of influencingpieces of legal property, capable of influencing

consumer behavior, being bought and sold, andconsumer behavior, being bought and sold, and

providing the security of sustained futureproviding the security of sustained future

revenues.revenues.


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Importance of Brands to FirmsImportance of Brands to Firms

Identification to simplify handling or tracingIdentification to simplify handling or tracing

Legally protecting unique featuresLegally protecting unique features

Signal of quality levelSignal of quality level

Endowing products with unique associationsEndowing products with unique associations

Source of competitive advantageSource of competitive advantage

Source of financial returnsSource of financial returns


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Can everything be branded?Can everything be branded?

Ultimately a brand is something that resides inUltimately a brand is something that resides inthe minds of consumers.the minds of consumers.

The key to branding is that consumers perceiveThe key to branding is that consumers perceivedifferences among brands in a product category.differences among brands in a product category.

Even commodities can be branded:Even commodities can be branded:

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

(Gold Medal), beer (Budweiser), salt (Morton),(Gold Medal), beer (Budweiser), salt (Morton),oatmeal (Quaker), pickles (Vlasic), bananasoatmeal (Quaker), pickles (Vlasic), bananas(Chiquita), chickens (Perdue), pineapples (Dole), and(Chiquita), chickens (Perdue), pineapples (Dole), andeven water (Perrier)even water (Perrier)


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An Example of Branding a CommodityAn Example of Branding a Commodity

De Beers Group added the phrase A DiamondDe Beers Group added the phrase A Diamond

Is ForeverIs Forever


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What is branded?What is branded?

Physical goodsPhysical goods

ServicesServices

Retailers and distributorsRetailers and distributors Online products and servicesOnline products and services

People and organizationsPeople and organizations

Sports, arts, and entertainmentSports, arts, and entertainment Geographic locationsGeographic locations

Ideas and causesIdeas and causes


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Source of Brands StrengthSource of Brands Strength

The real causes of enduring market leadership

are vision and will. Enduring market leaders have a

revolutionary and inspiring vision of the mass

market, and they exhibit an indomitable will to

realize that vision. They persist under adversity,

innovate relentlessly, commit financial resources,

and leverage assets to realize their vision.Gerald J. Tellis and Peter N. Golder, First to Market, First to

Fail? Real Causes of Enduring Market Leadership,MITSloan

Management Review, 1 January 1996


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Importance of Brand ManagementImportance of Brand Management

The bottom line is that any brandThe bottom line is that any brandno matterno matter

how strong at one point in timehow strong at one point in timeis vulnerable,is vulnerable,

and susceptible to poor brand management.and susceptible to poor brand management.


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Whatare the strongest brands?Whatare the strongest brands?


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Top Ten Global BrandsTop Ten Global Brands

BrandBrand 2006 ($Billion)2006 ($Billion) 2005 ($ Billion)2005 ($ Billion)1.1. CocaCoca--ColaCola

2.2. MicrosoftMicrosoft

3.3. IBMIBM

4.4. GEGE

5.5. IntelIntel

6.6. NokiaNokia

7.7. ToyotaToyota

8.8. DisneyDisney

9.9. McDonaldsMcDonalds

10.10. MercedesMercedes--BenzBenz

67.0067.00

56.9356.93

56.2056.20

48.9148.91

32.3232.32

30.1330.13

27.9427.94

27.8527.85

27.5027.50

21.8021.80

67.5367.53

59.9459.94

53.3853.38

47.0047.00

35.5935.59

26.4526.45

24.8424.84

26.4426.44

26.0126.01

20.0020.00


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Branding Challenges and OpportunitiesBranding Challenges and Opportunities

Savvy customersSavvy customers

Brand proliferationBrand proliferation

Media fragmentationMedia fragmentation

Increased competitionIncreased competition

Increased costsIncreased costs

Greater accountabilityGreater accountability


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The Brand Equity ConceptThe Brand Equity Concept

No common viewpoint on how it should beNo common viewpoint on how it should beconceptualized and measuredconceptualized and measured

It stresses the importance of brand role inIt stresses the importance of brand role inmarketing strategies.marketing strategies.

Brand equity is defined in terms of the marketingBrand equity is defined in terms of the marketingeffects uniquely attributable to the brand.effects uniquely attributable to the brand.

Brand equity relates to the fact that different outcomes resultBrand equity relates to the fact that different outcomes result

in the marketing of a product or service because of its brandin the marketing of a product or service because of its brandname, as compared to if the same product or service did notname, as compared to if the same product or service did not

have that name.have that name.


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Strategic Brand ManagementStrategic Brand Management

It involves the design and implementation ofIt involves the design and implementation ofmarketing programs and activities to build,marketing programs and activities to build,

measure, and manage brand equity.measure, and manage brand equity.

TheThe Strategic Brand ManagementProcessStrategic Brand ManagementProcessis defined asis defined asinvolving four main steps:involving four main steps:

1. Identifying and establishing brand positioning and values1. Identifying and establishing brand positioning and values

2. Planning and implementing brand marketing programs2. Planning and implementing brand marketing programs

3. Measuring and interpreting brand performance3. Measuring and interpreting brand performance

4. Growing and sustaining brand equity4. Growing and sustaining brand equity


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Strategic Brand Management ProcessStrategic Brand Management Process

Mental maps

Competitive frame of reference

Points-of-parity and points-of-difference

Core brand values

Brand mantra

Mixing and matching of brand elements

Integrating brand marketing activities

Leveraging of secondary associations

Brand value chain

Brand audits

Brand tracking

Brand equity management system

Brand-product matrix

Brand portfolios and hierarchies

Brand expansion strategies

Brand reinforcement and revitalization

Key ConceptsSteps

Grow and sustain

brand equity

Identify and establish

brand positioning and values

Plan and implement

brand marketing programs

Measure and interpretbrand performance

brandmanagement-01

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