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BRAND AND BRAND MANAGEMENT Lecturer – Md Shahedur Rahman

BRAND AND BRAND MANAGEMENT Lecturer – Md Shahedur Rahman

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BRAND AND BRAND MANAGEMENT

Lecturer – Md Shahedur Rahman

What is brand?

American Marketing Association(AMA), a brand is a name, term, sign, symbol, or design, or a combination of them.

These different components of a brand that identify and differentiate it are brand elements.

What is Brand?

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

Brands vs. Products

A product is anything

We can offer to a market for attention, acquisition.

Use, or consumption that might satisfy a need or want.

Five Levels of Meaning for a Product

Core benefit level: Fundamental need or want that

consumers satisfy by consuming the product or service.

(Musical entertainment on the move)

Generic product levelBasic attributes or characteristics

absolutely necessary for its functioning but with no distinguishing features.

(Ability to play music downloaded from the WEB or ripped from CD collections)

Five Levels of Meaning for a Product

Expected product levelSet of attributes or characteristics that buyers

normally expect and agree to when they purchase a product.

(Consumer expect a solid device with no moving parts and a certain amount of memory, option to add more memory in future)

Augmented product levelAdditional product attributes, benefits, or related

services that distinguish the product from competitors.

(Color LCD screen, equalizer, including different types of files, including text image and video files)

Five Levels of Meaning for a Product

Potential product levelTransformations that a

product might ultimately undergo in the future.

( Voice controlled programming, infinite batteries life)

Some brands create competitive advantages with product performance;

Other brands create competitive advantages through non-product-related means.

Why do brands matter?

What functions do brands perform that make them so valuable to marketers?

Yes, it is matter to both Manufacturer and Consumers

Importance of Brands to Consumers

Identification of the source of the product

Assignment of responsibility to product maker

Risk Reducer Search cost reducer Promise, bond, or pact

with product maker Symbolic device Signal of quality

Reducing the Risks in Product Decisions

Functional risk The product does not

perform up to expectations. Physical risk

The product poses a threat to the physical well-being or health of the user or others.

Financial risk The product is not worth

the price paid.

Reducing the Risks in Product Decisions

Social risk The product results in

embarrassment from others. Psychological risk

The product affects the mental well-being of the user.

Time risk You have to spend time again

to search another one.

Importance of brands to Firms Identification Simplify product handling

and tracing Organize Inventory Legal procedures Creates credibility which

can act as a barrier to entry for other firms

It’s a valuable intangible asset

Source of financial return

An Example of Branding a commodity

De beers group added the phrase

“ A Diamond Is Forever”

Three stone rings Right Hand rings

with multiple diamonds

Ad promoting We vs Me

What is branded?

Physical goods Services Retailers and distributors (Walmart) Online products and services ( Google, Walmart ) People and organizations ( Richard Bronson,

National Geographic ) Sports, arts, and entertainment ( Manchester

united, Star Wars ) Geographic locations ( Malaysia – Truly Asia ) Ideas and causes

Importance of brand management The bottom line is that any brand- no

matter how strong at one point in time-is vulnerable, and susceptible to poor brand management.

What are the strongest brands?

Top Ten Global Brands

Brand 2006 ($Billion)

2005 ($ Billion)

1. Coca-Cola2. Microsoft3. IBM4. GE5. Intel6. Nokia7. Toyota8. Disney9. McDonald’s10. Mercedes-

Benz

67.0056.9356.2048.9132.3230.1327.9427.8527.5021.80

67.5359.9453.3847.0035.5926.4524.8426.4426.0120.00

Branding Challenges and opportunities

Savvy customers ( knowledge and demanding )

Brand proliferation ( Nivea ) Media fragmentation Increased competition Increased costs Greater accountability ( Short term profit

)

The Brand Equity concept

No common viewpoint on how it should be conceptualized and measured

It stresses the importance of brand role in marketing strategies

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

Brand equity relates to the fact that different outcomes result in the marketing of a product or service because of its brand name, as compared to if the same product or service did not have that name

Strategic Brand management It is important that you Build Measure, and Manage brand equity

Strategic brand management The strategic brand management process

is defined as involving four main steps:1. Identifying and establishing brand

positioning and values 2. Planning and implementing brand

marketing programs3. Measuring and interpreting brand

performance4. Growing and sustaining brand equity

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Strategic Brand Management Process

Mental mapsCompetitive frame of referencePoints-of-parity and points-of-differenceCore brand valuesBrand mantra

Mixing and matching of brand elementsIntegrating brand marketing activitiesLeveraging of secondary associations

Brand value chainBrand auditsBrand trackingBrand equity management system

Brand-product matrixBrand portfolios and hierarchiesBrand expansion strategiesBrand reinforcement and revitalization

Key ConceptsSteps

Grow and sustainbrand equity

Identify and establishbrand positioning and values

Plan and implement brand marketing programs

Measure and interpretbrand performance

Can everything be branded? Ultimately a brand is something that

resides in the minds of consumers.