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BRAND

MANAGEMENT

SESSION9 & 11PBM

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What is a Brand?

Term Brand is derived from the old

Norse (Norwegian) word brandr

means to burn.

Brands were used as a means by

which owners of livestock mark their

animals to identify and differentiate

them.

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What is a Brand?

Brand is a name, term, sign, symbol, or

design, or a combination of them,

intended to identify the goods andservices of one seller/ group of sellers

and to differentiate them from those of

competitorsAmerican Marketing Association (AMA)

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What is BRAND EQUITY? Brand's power derived from the goodwill and name

recognition that it has earned over time, which translates into

higher sales volume and higher profit margins against

competing brands.

A measure of the strength of consumers attachment to a

brandFeldwick (1996)

The purpose of brand equity metrics is to measure the

value of a brand.

When consumers trust a brand and find it relevant, they

may select the offerings associated with that brand over

those of competitors, even at a premium price.

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Customer based Brand Equity Model

(CBBE)

How brand equitycan be :

(built measured managed) effectively

Premise of CBBE Model:

Understanding the needs & wants of the consumer.

Devising the products/services & programs to satisfy

the same better than others

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Powerof the brand lies in what

resides in the minds

of customers i.e. they have

learned, felt, seen, heard and

experienced.

Premise of CBBE Model cont

CBBEoccurs when

the consumer has

high level of

awareness and

familiarity with the

brand and holds some

strong, favourable,

and unique brand

associations in the

consumers memory

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Customer based Brand Equity

Strong brand ensures

Right kind of experience with products/services

Effective accompanying marketing programs

desiredthoughts/feelings/images/

beliefs/perceptions/opinions

are favourably linked with the brand

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Customer-based Brand Equity

differential effect that brand

knowledge has on consumer response

to the marketing of that brand.

(definition of CBBE Model)

Positive customer-based brand equity:consumer react

favourably i.e. accepting new brand extension, less sensitive to

price increases and more willing to get the brand through anydistribution channel.

Negative customer-based brand equity:customer react less

favourably to the marketing of the brand.

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Examples of Negative CBBE

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Customer-based BrandEquity

BRAND EQUITY arises from

differential effect

Arises from

differences in the

value proposition

offered

Favourable

consumer response

brand knowledge

These differences

results in consumers

brand knowledge

i.e. what resides inthe mind of the

consumer due to the

marketing activity

consumer

response to

marketing

Differential

response by

consumers is

reflected in theirperceptions,

preferences and

behaviourtowards

the pdt./service

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Brand knowledgeCharacterized in terms of:

Brand awareness Brand image

Brand awareness- strength of the brand node/

trace in the memoryreflected byconsumersability to identify the brand under different conditions.

Brand imageperceptions about the brand

reflected bybrand associations in the consumers

memory.

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Dimensions of Brand Knowledge

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Brand Associations

Associations can be develop for a

brand in any formin the consumer mind.

Example: Apple computers as a brand had

some consumer associationssimilarly

other major brands etc.

i.e. consumer insights about the brand

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Brand Associations

User friendly

Innovative Educational

Apple logo Fun

Cool Desktop

publishing

Creative

Excellent graphics

APPLE

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Brand Associations

Quality

Service Ambience

Cleanliness Value

McDonalds

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Strong Brand Associations

Coca-Cola: refreshment, taste,

availability, affordability

and accessibility.

Mercedes-Benz: performance and

status.

Volvo: safety

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Levis Brand Attributes & benefit associations

Levis 501

Blue denim, shrink-to-fit,cotton fabric, button-fly,two-horse patch, & smallred pocket tag

Product relatedattributes

Western, American,blue collar, hard-working,traditional, strong,rugged andmasculine

UserImagery

Appropriate for

outdoor work &casual socialsituations

UsageImagery

Honest, classic,contemporary,approachable,independent anduniversal

BrandPersonality

High quality, long-lasting,

and durable

Functional BenefitsComfortable fitting and

relaxing to wear

Experiential Benefits

Feelings of self-confidence

and self-assurance

Symbolic Benefits

ATTRIBUTES

BENEFITS

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Building Strong Brands: Steps

Ensure identification of the brand with customers

& an association in the mind Firmly establish the totality of brand meaning in

the customers mind by linking both tangible &

intangible brand associations with certainproperties.

Explore consumer response to brand identification

& meaning.

Convert the brand response/experience into an

intense and strong relationship b/w customers and

the brand.

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Customer-based Brand Equity Pyramid

Resonance(Loyalty)

Judgments Feelings

(Credibility) (attributes)

Performance Imagery(Primary & Secondary (Personality &

characteristics) Experiences)

Salience(awareness depth & breadth - about the product Category &

specified needs) e.g. Tropicana (orange juice)

4. Brand Relationships

What about you & me?

3. Brand Response

What about you?

2. Brand Meaning

What are you?

1. Brand Identity

Who are you?

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Customer-based Brand Equity Pyramid cont

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Customer-based Brand Equity Pyramidcont

Resonance Pyramid: Tropicana v/s Minute

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Resonance Pyramid: Tropicana v/s MinuteMaid
http://2.bp.blogspot.com/-OlsWYavvVbY/UME5QNoApmI/AAAAAAAAAPo/yRWl6etIMUo/s1600/resonance+pyramid+tropi.pnghttp://3.bp.blogspot.com/-3t9-u1rd6ys/UME5L8YsOoI/AAAAAAAAAPg/lAubitbWOyg/s1600/resonance+pyra+minu.png

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Moov

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Brand Positioning

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Brand Positioning

act of designing the companys offer and image so that

it occupies a distinct and valued place in the target

customers mind (Kotler)

Deciding on a positioning requires determining points-of-parity & points-of-

difference brand associations.

(1) Who are the target consumers ?

(2) Who are the main competi tors ?

(3) How the brand is similar to these competitors ?

(4) How the brand is different from these competitors ?

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Brand Positioning

act of designing the

companys offer and image

so that it occupies a distinct

and valued place in the targetcustomers minds. Philip Kotler

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Optimal Brand PositioningIdentifying the optimal location of a brand vs. its

competitorsin the mind of consumer/market

segmentto maximize potential benefitfor the

firm. Deciding a positioning requires:

Identifying the target segment(s)

Nature of competition

How the brand is similar to competitors?

How the brand is different from competitors?

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TARGET MARKET Ident i fy ing the target consumerbased

on sim i lar percept ions /preferencesin

the market.

Dividing the market into dist inct groups ofhomogeneous consumerswith similar

needs, likes/dislikes, opinionsrequiring

similar marketing mixcustomisedmarketing programsstandardization/cost

effectivenessbetter profits in future

Basis of Segmentation

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Basis of Segmentation Behavioural

User Status, Usage Rate,

Usage

Occasion, Brand Loyalty,

Benefits Seeked.

Demographic

Income level, Age, Gender,

Family size etc.

Psychographic

Values, Opinions, lifestyle and

Attitude.

Geographic

International, regional,

national and local.

Nature of Product

Kind of product

Where to be

used?

Type of buy

Buying Conditions

Purchase location

Who buys

Demographic

Sales volumeOrganization size

Production

capacity

CONSUMER

SEGMENTATIO

N

INDUSTRIAL(B2B)

SEGMENTATION

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Criteria for Segmentation Identif iabi l i ty

Can segment(s) identified are easily determined?

Size

Is there adequate sales potential in the segment?

Accessib i l i ty

Are distribution networks & communication

mediums available to reach the segment?

ResponsivenessHow favourable will be segment to the tailored

marketing program?

Guidelines for Brand Positioning

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Guidelines for Brand Positioning

Def in ing & communicat ingthe competitive

frame of reference:

Determining Category membership: Set of productswith which brand competes.

Determining Point-of-parity(POPs) and Point-of-Difference(PODs).

ChoosingPoint-of-Parity &Point-of-Difference:

Desirabilitycriteria

Deliverabilitycriteria

Establ ishingPOPs and PODs:Low price vs.high quality; Taste vs.low calories; Nutritious

vs.good taste; strong vs.refined; range vs.exclusive etc.

Updat ingthe Positioningover time.

P i t f P it (POP )

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Point-of-Parity (POPs) Category:

associations that consumers perceive

necessaryto be a offering within a product/

service categorygeneric product level. May

change over time due to techn. advancements,

legal formats and consumer trendsetc.

e.g. Niveabecome leader in Skin cream categoryby

creating strong POD on the benefit gentle, protective

and caring. They leveraged brand equity into other

categories like deodorants, shampoos and cosmetics.

P i t f P it (POP )

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Point-of-Parity (POPs) cont

Competitive:

associations designed to negatethe competitors

point-of-difference (POD).

To achieve POP on a particular attribute/ benefit

sufficient number of consumers must believe that

the brandis a su i tab le subst i tu te on that

d imens ion.

P i t f Diff (POD )

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Point-of-Difference (PODs)

Strongfavourableuniquebrand associations.

Concept of POD is similar to the Unique Selling

Proposition (USP)proposed by Rosser Reeves & TedBates in 1950s.

Reason to buy a product/ service that acompetitor could not achieve.

Communicating a distinctunique product

attribute/benefit. (ad message)

e.g. Anacins fast, fast, fast relief ad message got

effectively in consumers mind brand gained

considerable market share.

Documents

Session 9 PBM 2013