Module 11.*

BRANDS & BRAND MANAGEMENT

and Y1.*

What is a brand?1.*For the American Marketing Association (AMA), a brand is a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition. These different components of a brand that identify and differentiate it are brand elements.

What is a brand?1.*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. We can make a distinction between the AMA definition of a brand with a small b and the industrys concept of a Brand with a capital b.

Brands vs. Products1.*A product is anything we can offer to a market for attention, acquisition, use, or consumption that might satisfy a need or want. A product may be a physical good, a service, a retail outlet, a person, an organization, a place, or even an idea.

Five Levels of Meaning for a Product 1.*The core benefit level is the fundamental need or want that consumers satisfy by consuming the product or service. The generic product level is a basic version of the product containing only those attributes or characteristics absolutely necessary for its functioning but with no distinguishing features. This is basically a stripped-down, no-frills version of the product that adequately performs the product function.The expected product level is a set of attributes or characteristics that buyers normally expect and agree to when they purchase a product. The augmented product level includes additional product attributes, benefits, or related services that distinguish the product from competitors. The potential product level includes all the augmentations and transformations that a product might ultimately undergo in the future.

Air Conditioners Cooling & ComfortSufficient cooling capacity, acceptable energy efficiency, adequate air intakes and exhaustsCooling speeds , removable air filters, power cord with say at least 60 inches length Electric touch pad controlsSilently running, completely balanced throughout the room and energy sell sufficient.

1.*

Product MixProduct Mix:The total assortment of products and services marketed by a firm.

Product Line:A group of individual products that are closely related in some way.

Individual Product:Any brand or variant of a brand in a product line.

Product Mix Characteristics/Dimensions Product Mix Width:The number of product lines in the product mix.Product Line Length:The number of products in a product line.Product Mix Depth :Number of version offered of each product in the line.Product Mix Consistency:The relatedness of the different product lines in a product mix.

Unilever products

FOOD & DRINKS

Soap Shampoo CreamToothpaste

PERSONAL CARE

LuxDoveLifebuoy

ClearDoveLifebuoy

Close upPepsodent

CornettoMagnum

LiptonSupreme

PondsDoveFair & Lovely

Product and Service Strategies

Individual Product StrategiesProduct Life Cycle (PLC):Describes the advancement of products through identifiable stages of their existence.

IntroductoryStage

GrowthStage

MaturityStage

Decline Stage

TotalMarketSales

Time

The Product Life Cycle

IntroductoryStage

GrowthStage

MaturityStage

Decline Stage

TotalMarketSales

Time

The Product Life Cycle Concept is Based on Four PremisesProducts have a limited life.Product sales pass throughdistinct stages, each withdifferent marketingimplications.Profits from a product vary at different stagesin the life cycle.Products require different strategies at differentlife cycle stages.

The Diffusion ProcessInnovators(2.5%)Early Adopters(13.5%)Early Majority(34%)Late Majority(34%)Laggards(16%)

Laggards

Late Majority

Early Majority

Early Adopters

Innovators

"The Chasm"

Technology Adoption Process

The Diffusion Process

Laggards

Late Majority

Early Majority

Early Adopters

Innovators

"The Chasm"

Technology Adoption Process

PLC Stages and Characteristics

PLC Length and ShapeSalesSalesSalesTimeTimeTimeStyleFashionFad

PLC Marketing StrategiesStageObjectiveMarketing StrategyIntroductionAwareness & trialCommunicate benefits

GrowthUsage of firms brandSpecific brand communication, lower prices, expand distribution

MaturityMaintain market shareSales promotion, drop price,Extend life cycleexpand distribution, new uses & new versions of product

DeclineDecide what to doMaintain, harvest, or divestwith product

Limitations of the PLCThe life cycle concept applies best to product forms rather than to classes of products or specific brands.

The life cycle concept may lead marketers to think that a product has a predetermined life, which may produce problems in interpreting sales and profits.

It is only a descriptive way of looking at the behavior of a product and the life cycle can not predict the behavior of a product.

Product-Line StrategiesStrategic Alternatives:To increase the length of a product line.

To decrease the length of a product line.

Increasing the Product LineDownward-stretch StrategyUpward-stretch StrategyTwo-way-stretch StrategyLine-filling Strategy

Cannibalization occurs when a new Product takes sales away from existing products.

Decreasing the Product LineProduct Line Contraction:Firms must consider deleting products when:They are not successful.

They reach the decline stage of PLC.

Long product line marketing costs are too high.

Product-Mix Strategies

The Product Mix consists of all product lines and individual products marketed by the firm.

Strategic AlternativesAdd New Product Lines?Delete Existing Product Lines?

Branding StrategiesProduct MixBranding StrategiesFamily Brand Name StrategyIndividual BrandName StrategyCompanyNameFamily Brands orProduct TypesFamily & IndividualBrand Name

1.*A brand is therefore more than a product, as it can have dimensions that differentiate it in some way from other products designed to satisfy the same need.

1.*Some brands create competitive advantages with product performance; other brands create competitive advantages through non-product-related means.

Why do brands matter?1.*What functions do brands perform that make them so valuable to marketers?

Importance of Brands to Consumers1.*

Reducing the Risks in Product Decisions1.*

Importance of Brands to Firms1.*To firms, brands represent enormously valuable pieces of legal property, capable of influencing consumer behavior, being bought and sold, and providing the security of sustained future revenues.

Importance of Brands to Firms1.*

Can everything be branded?1.*Ultimately a brand is something that resides in the minds of consumers. The key to branding is that consumers perceive differences among brands in a product category. Even commodities can be branded:Coffee (Nestle ), bath soap (Lux), flour (Pillsbury), beer (Budweiser), salt (Tata), oatmeal (Quaker), pickles (Mothers Recipie), chicken (Sugna), and even water (Aquafine)

An Example of Branding a Commodity1.*De Beers Group added the phrase A Diamond Is Forever

What is branded?1.*Physical goodsServicesRetailers and distributorsOnline products and servicesPeople and organizationsSports, arts, and entertainmentGeographic locationsIdeas and causes

Source of Brands Strength1.*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, MIT Sloan Management Review, 1 January 1996

Importance of Brand Management1.*The bottom line is that any brandno matter how strong at one point in timeis vulnerable, and susceptible to poor brand management.

What are the strongest brands?

Best Global Brands1.*http://www.bestglobalbrands.com/2014/ranking/

Branding Challenges and Opportunities1.*Savvy customersBrand proliferationMedia fragmentationIncreased competitionIncreased costsGreater accountability

The Brand Equity Concept1.*No common viewpoint on how it should be conceptualized and measuredIt 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 Management1.*

1.*Strategic Brand Management ProcessMental 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 systemBrand-product matrixBrand portfolios and hierarchiesBrand expansion strategiesBrand reinforcement and revitalizationKey ConceptsSteps

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