8/6/2019 Day_2(2)

1/18

ROLES THAT BRANDS PLAY

Advantages forConsumers

Identification of source

of product

Risk reducer

Search cost reducer

Promise, bond or pact

with maker of product Symbolic device

Signal of quality (based

on type of goods)

8/6/2019 Day_2(2)

2/18

ROLES THAT

BRANDS PLAY

Advantages for Firms

Means of identification Legal protection for the invention

Signal of quality level to satisfied customers

Means of endowing products with uniqueassociations

Source of competitive advantage

Source of financial returns

8/6/2019 Day_2(2)

3/18

8/6/2019 Day_2(2)

4/18

Savvy customers

Brand proliferation

Increased costs

Greater accountability

8/6/2019 Day_2(2)

5/18

Types of Brands

Manufacturer Brand:They are created by producers and bear their chosen

brand name. The responsibility for marketing the

brand lies with the producer, most manufacturerbrands are supported by massive advertising budget.

They also maintain a long distribution network to

reach the consumers.

8/6/2019 Day_2(2)

6/18

Own label, Private label ,Store Brand

.

They are the retailer brand

8/6/2019 Day_2(2)

7/18

Family brand

8/6/2019 Day_2(2)

8/18

Ingredient brand

8/6/2019 Day_2(2)

9/18

Individual brand name

8/6/2019 Day_2(2)

10/18

Brand development process

Differentiation/positioning

Brand essence

Brand elements

Promotion

8/6/2019 Day_2(2)

11/18

Brand Characteristics

Factors to consider when selecting a brand

name Legally protectable

Avoid negative connotations

Short, distinctive, easy to pronounce

Suggestive of product benefits

Should reflect desired product image

8/6/2019 Day_2(2)

12/18

Brand conveys

Attributes

Benefits

Values Culture

Personality

User

8/6/2019 Day_2(2)

13/18

If it recognizes all the

six dimensions then

the brand is deep orit is shallow

8/6/2019 Day_2(2)

14/18

Worlds Most Valuable Brands

2003 Rank Brand2003 Value

($billions)

Country of

Origin

1 Coca-Cola 70.45 USA

2 Microsoft 65.17 USA3 IBM 51.77 USA

4 GE 42.34 USA

5 Intel 31.11 USA

6 Nokia 29.44 Finland

7 Disney 28.04 USA8 McDonald's 24.7 USA

9 Marlboro 22.18 USA

10 Mercedes 21.37 Germand

Source: Interbrand; based on expected profit stream of products carrying the brand name

8/6/2019 Day_2(2)

15/18

Branding decision or

strategies Br r t t r ?

Br sp s r cisi

Br cisi

Br str t g cisi

Br r p siti i g cisi

8/6/2019 Day_2(2)

16/18

8/6/2019 Day_2(2)

17/18

Brand equity

Marketplace value of a brand based on

reputation and goodwill

8/6/2019 Day_2(2)

18/18

Customer Based Brand Equity Pyramid

Resonance

Judgments Feelings

Performance Imagery

Salience1. Identity

(Who are you?)

2. Meaning(What are you?)

3.Response(What about you?)

4. Relationships(What about you & me?)