PBM Session 3

7/31/2019 PBM Session 3

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Product and brand

managementSession 3

Joel Cyclo Xavier


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Why do brands matter?

To whom do brands matter? Consumers Manufacturers


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To whom do brands matter? Consumers

Identification of source of product Assignment of responsibility to product maker Search cost reducer Promise bond or pact with maker of product

Symbolic device Signal of quality


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To whom do brands matter? Consumers as a risk reducer

Functional risk Physical risk Financial risk Social risk

Psychological risk Time risk


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To whom do brands matter? Manufacturers

Identification to simplify handling or tracing Legally protecting unique features Signal of quality level to satisfied customers Endowing products with unique associations

Competitive advantage Source of financial returns


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Strategic brand managementprocess

Identify and establish brand positioningand values

Plan and implement brand marketingprograms

Measure and interpret brand performance

Grow and sustain brand equity


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CBBE

Consumer based brand equity Differential effect that brand knowledge has

on consumer response to the marketing of

that brand. Positive Brand equity Negative Brand equity

Three key elements Differential effect Brand knowledge Marketing of that brand


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Brand knowledge Memory: a network of nodes and connecting

links Nodes represent stored information Links represent strength of associations

[Associative network memory model]


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Brand Knowledge Brand node in memory

Brand awareness Brand image

Brand strength? Customers ability to identify the brand under

different circumstances


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Brand image

Perceptions about a brand as reflected bythe brand associations held in consumer memory Number of nodes in memory linked to brand

node So what is the source of CBBE?

It occurs when the consumer has a high levelof awareness and familiarity with the brandand holds some strong, favourable andunique brand associations in memory.


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"An image is not simply a trademark, a design, a slogan or an easily remembered picture. It is a studiously crafted personality profile of an individual,institution, corporation, product or service." Daniel J. Boorstin


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Brand awareness

Brand awareness Brand recognition

Consumers ability to confirm prior exposure to the

brand when the brand is given as a cue. Brand recall performance

Brand recall Consumers ability to retrieve the brand from

memory given the product category Needs fulfilled by category Purchase or usage decision


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Key to successful branding? The consumers differentiate between brands

All the attribute nodes must not link to all the brandnodes


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Consequences of brand awareness

Learning advantages Already established brand node

It is easier to simply link new attributes to an

existing node Compared to creating a new node

Consideration advantages Making the brand a member of the

consideration set Recall of one piece of information inhibits

recall of other.


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Consequences of brand awareness

Choice advantages Consumers tend to buy more familiar well

established brands in some cases Purchase motivation [petrol purchase] Purchase ability [not enough knowledge to

make a choice]

I have heard about this brand


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Establishing brand awareness

Brand awareness Increasing familiarity repeated exposure

More effective for? Recall or Recognition?

Brand recognition Making a customer experience the brand

Need something that actively pairs the brandwith the appropriate category or purchase or

consumption cues? Slogan Jingle, and others


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Establishing brand awareness

Brand awareness Strong linking of brand and category

important over time Shock advertising

Example? Bingo

Why do they fail? Failure to create strong associations with product


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Brand image

Brand equity does not care about the source of brand association Manner in which they are formed

What matters is? Resulting Favourability Strength Uniqueness of brand associations

Hence the importance of? Other sources of customer information

Like other customers word of mouth


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Strength of brand associations

Factors facilitating strength of associations Personal relevance Consistency of information

Brand attributes Descriptive features

Brand benefits Personal value and meaning that consumers

attach to the attributes


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Factors affecting associations

Environmental performance Rating in consumer reports

Well known/advertised Personal recommendations Quality

Price Past experience


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Favourability of associations

Desirability of brand depends on? How relevant How distinctive How believable the brand association


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Uniqueness of brand associations

Shared associations critical for establishing category membership

Unique are not possible unless you haveno competition

Noncomparable alternatives and abstractshared associations Duronto competing with airlines


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Building a strong brand

Who are you? [brand identity]

What are you? [brand meaning]

What about you? What do I think or feelabout you?

[brand response] What about you and me?

[brand relationship]


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Master brand builders have a deeprespect for the way their products fit into the lives of consumers. This was the core of their brands success" Nancy F Koehn


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end


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Brand architecture

Purpose Number of separately named entities Criteria to be separate

Levels of relationships beween separatelynamed entities

Naming and other brand identity conventionsfor each level

Nature of relatinships between named entitiesat various levels


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Trade dress

Packaging? Identity of the brand in the market

Legal protection trade marks


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Brand portfolio

Mix of brands owned by a company


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Corporate brand :Brand bearing company name Always the highest in the hierarchy

Master brand:

Dominant highest level brand in a brand hierarchy Parent brand:

Brand that is extended into more than one productcategory


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Sub brand: a brand with its own name that uses the name of its

parent brand in some capacity to bolster equity

Endorsers Bajaj pulsar Co-drivers

Kawasaki bajaj caliber

Descriptors LG sampoorna Hair n care silk n- shine


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Brand extension: Existing brand in new product category

Documents

PBM Session 3