1. Brand Management

8/12/2019 1. Brand Management

1/25


2/25

What is a Brand?Branding has been around for centuries

The word Brand is derived from the old Norse word brandr which means to burnOwners of livestock mark their animals to identify them

AMA definition: A brand is a name, term, sign, symbol, or design whichis intended to identify the goods or services of oneseller or group of sellers and to differentiate them from

those of competitors.


3/25

What is a Brand? Whenever a marketer creates a new name logoor symbol for a new product he/she has createda brand

Practicing managers, refer to brand as morethan that defining a brand in terms of having

actually created a certain amount of AwarenessReputationProminence and so on in the marketplace.


4/25

What is a Brand? AMA Brand that identifies and distinguishes it fromothers

The different components of a brand that identify anddifferentiate it can be called as brand elements .

Like : name, logo, sign, symbol, term, design etc.

Marketers have many choices over the number andnature of the brand elements


5/25

Brand Vs ProductProduct (Kotler): Anything that can be offered to amarket for attention, acquisition, use, or consumption thatmight satisfy a need or want.

Five levels of a product

Core product level fundamental need/wantGeneric Product level basic version of the productExpected Product level attributes/ characteristics customers

normally expect. Augmented product level additional attributes, benefits related

service that distinguishes from competitors.Potential Product level transformations that a product mightultimately undergo in the future.


6/25

Brand Vs ProductHarvard Ted Levitt the new competition is not between what companies producein their factories but between what they add to their factoryoutput in the form of packaging, services, advertising,customer advice, financing, delivery arrangements,warehousing & other things that people value

BRAND IS A PRODUCT BUT ONE THAT ADDS OTHERDIMENSIONS THAT DIFFERENTIATE IT IN SOME WAYFORM OTHER PRODUCTS DESIGNED TO SATISFY THESAME NEED


7/25

Why do Brands matter?- Why are brands important?- What functions/roles they perform/play that make them so

valuable to marketers?- Value to two parties : Consumers and Firms

For ConsumersIdentification of source of product Assignment of responsibility to product makerRisk reducer- functional, physical, Financial, Social,Psychological, TimeSearch cost reducerPromise, bond or pact with maker of productSymbolic device consumers project their self-image.

Signal of quality search goods, experience goods, credence goods


8/25

Why do Brands matter?For Manufacturer

Meaning of Identification to simplify handling ortracingMeans of legally protecting unique featuresSignal of quality level to satisfied customersMeans of endowing products with uniqueassociationsSource of competitive advantageSource of financial return


9/25

Can anything be Branded?-How are brands created?-How do you brand a product?

Firms create brand through their marketing programsand other activities.But ultimately, a brand is something that resides inthe minds of consumers .

A brand is perceptual entity that is rooted in reality ,but it is more than that, reflecting the perceptions andperhaps even the idiosyncrasies of consumers.


10/25

Can anything be Branded?To brand a product it is necessary to teach consumers:

Who the product is ? name / label

To provide the meaning what this product can do for you and why it is special?

Branding involves creating mental structures and

helping consumers organize their knowledge aboutproducts and services in a way that clarifies theirdecision making and in the process provides value tothe firm.


11/25

Can anything be Branded? Whenever and wherever consumers are decidingbetween alternatives, brands can play an importantrole.

Accordingly, marketers can benefit from branding whenever consumers are in a choice situation.


12/25

Can anything be Branded?Physical goodsServices

Retailers and distributorsOnline products and servicesPeople and organization

Media channelsSports and EntertainmentGeographic Locations etc.

Virtually anything can be and has been branded.


13/25

Challenges to Brand buildersSavvy customersMore complex brand families and portfoliosMaturing marketsDifficulty in differentiating

Decreasing brand loyalty in many categoriesGrowth of private labelsIncreasing trade powerFragmenting media coverageEroding traditional media effectivenessEmerging new communication optionsIncreasing promotional expendituresDecreasing advertising expendituresShort term performance orientation

Increasing job turnover


14/25

The Brand Equity ConceptOne of the most popular and potentially importantmarketing concepts to arise in the 1980s was theconcept of brand equity.

Good or bad newsNo common viewpoint how brand equity should beconceptualized and measured.Resulting in confusion and frustration.

Fundamentally, branding is about endowing productsand services with the power of brand equity.

Branding is about creating differences.


15/25

The Brand Equity ConceptSome basic principles of branding & brand equity:Differences in outcomes arise from the added valueendowed to a product as result of past marketing activityfor the brand.This value can be created for a brand in many different waysBrand equity provides a common denominator forinterpreting marketing strategies and assessing the value of a brand.There are many different ways in which the value of abrand can be manifested or exploited to benefit thefirm .


16/25

Strategic Brand ManagementStrategic brand management involves the design andimplementation of marketing programs and activities tobuild, measure, and manage brand equity.

The strategic brand management process is defined asinvolving four main steps:1) Identifying and establishing brand positioning and values

2) Planning and implementing brand marketing programs

3) Measuring and interpreting brand performance

4) Growing and sustaining brand equity


17/25

Strategic Brand Management Process

STEPS KEY CONCEPTS

1. Identify and establish brand positioning

2. Plan and Implement brand marketing programs

3. Measure and Interpret

Brand performance4. Grow and SustainBrand Equity

Mental maps, competitive frame of reference,core brand values, brand mantra

Mixing and matching of brand elements likenames, logos, symbols, characters, Integrating

brand activities, leverage of secondaryassociations

Brand Value chain, brand audits-comprehensive examination of a brand-

health, sources of equity, brand equitymanagement system

Brand product matrix, brand portfolio andhierarchies, brand expansion strategies,brand reinforcement and revitalization


18/25

Identifying and Establishing Brand Positioning& Values

What the brand is to represent andHow it should be positioned with respect to competitors?

Brand Positioning (Kotler ) : Act of designing the companysoffer and image so that it occupies a distinct and valuedplace in the target customers mind.

Competitive Brand Positioning is all about creating brand

superiority in the minds of consumers.

Positioning often involves a specification of the appropriatecore brand values and brand mantra.


19/25

Core brand values are those set of abstractassociations (attributes & benefits) that characterize abrand.

Brand Mantra also known as a brand essence or corebrand promise

A brand mantra is a short three- to five-wordexpression of the most important aspects of a brandand its core brand values.

Core brand values and Brand mantra are thus an

articulation of the heart and soul of the brand.

Identifying and Establishing Brand Positioning

& Values


20/25

A brand audit also helps in determining andevaluating a brands positioning.

A brand audit is a comprehensive examination of abrand, involving activities to assess the health of thebrand, uncover its sources of equity and suggestways to improve and leverage the equity.

Identifying and Establishing Brand Positioning

& Values


21/25

2. Planning and Implementing BrandMarketing Programs

Building brand requires creating a brand that consumers aresufficiently aware of and with which they have strong,favourable and unique brand associations.

In general, this knowledge-building process will depend onthree factors:

1. Initial choices for the brand elements or identitiesmaking up the brand

2. The marketing activities and supporting marketingprogram and the manner by which the brand isintegrated into them

3. Other associations indirectly transferred to the brand bylinking it to some other entity (e.g. the company, countryof origin, channel of distribution, or another brand)


22/25

Leveraging and Interpreting Brand Performance

Brand associations may themselves be linked to otherentities that have their own associations, creatingsecondary brand association.

Ex. Source factor like company, countries, channelsof distribution, other brands (co-branding),characters, spokespeople (endorsements), sporting& cultural events, some other third party sources(awards, reviews)

2. Planning and Implementing BrandMarketing Programs


23/25

3.Measuring and Interpreting BrandPerformance

To understand the effects of brand marketingprograms, it is important to measure and interpretbrand performance.

A useful tool in this regard is the Brand Value Chain

The brand value chain is a means to trace the

value creation process for brands to betterunderstand the financial impact of brandmarketing expenditures and investments.


24/25

A brand equity measurement system is a setof research procedures that is designed to providetimely, accurate, and actionable information for

marketers so that they can make the best possibletactical decisions in the short run and strategicdecisions in the long-run.Implementing such a system involves two key

steps:Conducting tracking studiesImplementing a brand equity management system

Measuring and Interpreting BrandPerformance


25/25

Growing and Sustaining Brand Equity

Maintaining and expanding brand equity is quitechallenging.

Concerns with those activities that take broader andmore diverse perspective of the brands equity understanding how branding strategies should reflectcorporate concerns and be adjusted, if at all, overtime and over geographic boundaries or marketsegments.

Managing brand equity involves managing brandswithin the context of other brands, as well asmanaging brands over multiple categories, over time

and across multiple market segments

Documents

1. Brand Management