Dr.S.Yogananthan

Introduction

to

brand management

Introduction to brand

Functions

Characteristics

Relationships

Brand Identity & Image

Difference & Parity

Contents

What is a brand?

A name, a term

A symbol, a sign

“A name, term, sign, symbol or any other feature that identifies one seller’s product or service as distinct from those of other sellers” -The American Marketing Association

Brand can be

Logo – shortcut to remind

Colours

Shape

Letter

Images

Tunes

Phrases

Celebraties

Functions of Branding

Helps in Identification and gives distinctiveness to the product

Indirectly denotes quality and standard

Eliminates Imitation

Ensures legal right to the product (Trademark, patents, copyrights…)

Helps in advertising and packaging

Helps in price differentiation of the product

Characteristics of a Strong Brand

Brand name should describe its nature

Easy to remember and pronounce

Act as a stimulating trigger to customers

Brand portfolio and hierarchy should make sense

Brand should properly positioned

Brand should be consistent

Brand should be given continuous support and monitoring

Scope of Branding

To teach the customers the following:-

1. “Who the product”- name, other elements

2. “What the product does”

3. “Why the consumers should buy”

Brand relationships

Brand identity

framed by marketers

Brand image

in the mind of customers

Brand

the actual image of the

firm in customers’ minds

Brand relationships

Branding process

FIRM CUSTOMERS INTERACTIONS

A new definition based on Brand relationships: Brand is created in continuously developing brand relationships where the customer forms a differentiating image of a product or service based on all kinds of brand contacts that the customer is exposed to.

Brand Identity is what the owner wants to communicate to its potential costumers.

A unique set of associations in the minds of customers concerning what a brand stands for and

the implied promises the brand makes.

Image communicates expectations

Image is a filter influencing perceptions of the performance of the firm

Image is a function of expectations and experiences

Image has an internal impact on employees

The importance of image

Image and Identity

Brand identity Signals transmitted

Brand image

Sending Media Receiving

Competition And Noise

Contd..

BRAND IMAGE is a unique set of associations in the minds of customers concerning what a brand stands for and the implied promises the brand makes.

BRAND IDENTITY is the strategic goal for the unique set of associations that a brand should stand for. These associations also imply a potential promise to customers.

PERCEPTION GAP.

Brand Hierarchy

Brand Hierarchy is how an organization organizes the various named entities within its portfolio, and how they relate to each other.

The four general types of Hierarchy are:

1. Master brand : Maruti Suzuki

2. Brand/sub brand : Maruti

3. Endorsed brand : Maruti Esteem

4. Separate (stand-alone or independent) brands: LXi/ SXi

* http://www.interbrand.com/best_global_brands.aspx

Brand Positioning

Brand Positioning

“Positioning is how a product appears in relation to other products in the market” Brand positioning is all about identifying the optimal

location in our customers’ minds for our Brand vis-à-vis with our competitors

Proper positioning makes it easier to facilitate understanding of our Brand

Developing a Positioning Strategy

Positioning is not what you do with a product but what you do in the mind of the prospects.

Positioning requires determining the frame of reference by identifying

Target market

Competition

POP’s and POD’S

Category membership

Starting point in brand positioning is to determine Category Membership.

Category membership is product or set of products with a brand competes and which functions as close substitutes

Three main ways to determine category membership:-

Announcing category benefit Comparing to exemplars Relying on the product descriptors

Target Market

Consumer Aggregates

Current users

Potential users

Competitive users

Consumer Segments

Behavioral

Dem/psych/geo

Points of Difference & Parity

Difference

Strong, favorable, unique

Attribute or benefit

Parity

• Shared with other brands

• Important for brand extensions

POP’S

Point of Parity (POP)

Two Types

Category : attributes that are required to include your product as a member of that category.

Competitive: POP’s that negate your competitor's POD’s

POP’s should be “good enough” but POD’s should be superior

Choosing the differentiating strategy

Product differentiation

Personal differentiation

Channel differentiation

Image differentiation

Choosing the pop’s and pod’s

Relevance

Distinctiveness

Believability

Feasibility

Communicability

Sustainability

Proper Positioning

Clarifies what the Brand is all about

How it is both unique and similar to competitive brands

Why customers should purchase and use the Brand

5 Factors of Brand Positioning 1. Brand Attributes : What the brand delivers through features and

benefits to consumers. 2. Consumer Expectations : What consumers expect to receive from the

brand. 3. Competitor attributes: What the other brands in the market offer

through features and benefits to consumers. 4. Price : An easily quantifiable factor – Your prices vs. your competitors’

prices. 5. Consumer perceptions: The perceived quality and value of your brand

in consumer’s minds (i.e., does your brand offer the cheap solution, the good value for the money solution, the high-end, high-price tag solution, etc.?).

The Process of Positioning

Generally, the product positioning process involves:

Defining the market in which the product or brand will compete (who the relevant buyers are)

Identifying the attributes (also called dimensions) that define the product 'space'

Collecting information from a sample of customers about their perceptions of each product on the relevant attributes

Positioning- Toothpaste Four main segments:

Flavor and product appearance

Brightness of teeth

Decay Prevention

Low Price

Price Positioning

Flavor, Brightness

Decay Prevention

Brand Equity

What is a brand and how does branding work?

What is brand equity?

How is brand equity built, measured, and managed?

What are the important decisions in developing a branding strategy?

Chapter Questions

Identifying and establishing brand positioning

Planning and implementing brand marketing

Measuring and interpreting brand performance

Growing and sustaining brand value

Steps in Strategic Brand Management

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Google - 2002 Brand of the Year

Brand

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A name, term, sign, symbol or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.

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Attributes of Strong Brands

Excels at delivering desired benefits

Stays relevant

Priced to meet perceptions of value

Positioned properly

Communicates consistent brand messages

Uses multiple marketing activities

Understands consumer-brand relationship

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The Role of Brands

Identify the maker

Simplify product handling

Organize accounting

Offer legal protection

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The Role of Brands

Signify quality

Create barriers to entry

Serve as a competitive advantage

Secure price premium

Branding

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Endowing products and Services with the power of a brand.

Brand Equity

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The differential effect that Brand knowledge has on Consumer response to the marketing of that brand.

Advantages of Strong Brands

Improved perceptions of product performance

Greater loyalty

Less vulnerability to competitive marketing actions

Less vulnerability to crises

Larger margins

More inelastic consumer response

Greater trade cooperation

Increased marketing communications effectiveness

Possible licensing opportunities

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Brand Promise

The marketer’s vision of what the brand must be and do for Consumers.

Brand Asset Valuator

Aaker Model

BRANDZ

Brand Resonance

Brand Equity Models

Differentiation—degree to which a brand as different from others

Service (Nordstrom);

Price (Costco);

Selection (Toys ‘R’ Us);

Performance (Nike);

Contemporary home fashion (IKEA);

Great Price (Payless Shoes).

BAV Key Components

Energy—sense of momentum

Frito Lay dug in and found that the bulk of their consumers had more money on the first of the month than they did at the end of the month. Armed with that information, they decided to sell bigger packs during that time and scale back to smaller packs during the middle days of the month.

BAV Key Components

Relevance—breadth of a brand’s appeal

The role brand plays in comparison to other decision criteria (such as price, availability)

The importance of a brand in the decision criterion

The importance of buying branded products

The likelihood customers will buy a branded product even if they incur extra costs or efforts

The importance of a branded product in the purchase decision

BAV Key Components

Esteem—how well the brand is regarded and respected

Perceived quality and related perceptions of brands (e.g., Starbucks has higher brand esteem than a convenience store coffee stand)

BAV Key Components

Knowledge—how familiar and intimate consumers are with the brand

For example, brand knowledge has a direct and positive effect on intention to adopt an online retailer.

BAV Key Components

Brand Knowledge

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Knowledge

Thoughts

Experiences

Beliefs Images

Feelings

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Secondary Sources of Brand Knowledge

Brand identity—unique set of brand associations that represent what the brand stands for and promises to customers (e.g., Ajax—industrial service company)

Aaker Model

Core identity elements—product scope, attributes,

quality/value, uses, users, country of origin, organizational attributes, brand personality, and symbols (e.g., Ajax has a spirit of excellence)

Aaker Model

Extended identity elements—add textual and guidance (e.g., Ajax is worldly but informal, confident and competent)

Aaker Model

Brand essence—communicate the brand identity in a compact and inspiring way (e.g., Ajax has a commitment to excellence)

Aaker Model

Aaker Model – Brand Identity

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Brand-as-product Zerox

Brand-as-person Lee Iacocca (Chrysler)

Brand-as-symbol Mr. Clean

Brand-as-organization Saturn

Aaker Model – Brand Assets

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Brand loyalty

Brand associations

Perceived quality

Brand awareness

Proprietary assets

Luxurious Car = success, wealth, only the best

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The BRANDZ Model

Presence—Do I know about it?

Relevance—does something for me

Performance—can it deliver?

Advantage—better

than others

Bonding nothing better

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Brand Resonance Pyramid

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Drivers of Brand Equity

Brand Elements

Marketing Activities

Meaning Transference

Brand Elements

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Elements Slogans

Brand names URLs

Logos

Symbols Characters

Brand Elements

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Brand Element Choice Criteria

Memorable--recall and recognized

Meaningful--credible

Likeability--aesthetically appealing

Transferable--introduce new product

Adaptable--updatable

Protectable-- legality

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Slogans

Like a good neighbor, State Farm is there

Just do it

Nothing runs like a Deere

We try harder We’ll pick you

up Nextel – Done Zoom Zoom This Bud’s for

you

Personalization—brand and its marketing are as

relevant as possible to as many customers as possible

Designing Holistic Marketing Activities

Integration—mixing and matching marketing activities to maximize their individual and collective effects (e.g., Olive Garden).

Designing Holistic Marketing Activities

Internalization—activities and processes that help

inform and inspire employees.

Designing Holistic Marketing Activities

Choose the right moment—turning points and ideal opportunities (e.g., British Petroleum repositioning to “Beyond Petroleum)

BP: Forget Your Brand Image and Concentrate on Your Brand's Soul Thu May 6, 2010

Internal Branding

Link internal and external marketing —

messages must match internal and external campaigns (e.g., IBM to become a leader in the used of internet technology)

Internal Branding

Bring the brand alive for employees —informative

and energizing (e.g., Miller Brewing tapped into heritage to generate pride and passion)

Internal Branding

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Measuring Brand Equity

Brand Audits—assess health of brand, uncover sources of brand equity, ways to improve

Brand Tracking—baseline information about brands and marketing information

Brand Valuation—estimation of total financial value of the brand

Brand 2006 Brand Value (Billions)

Coca-Cola $67.00

Microsoft $56.93

IBM $56.20

GE $48.91

Intel $38.32

Nokia $30.13

Toyota $27.94

Disney $27.85

McDonald’s $27.50

Mercedes-Benz $22.13

The 10 Most Valuable Brands

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Managing Brand Equity

Brand Reinforcement—meaning of the brand

Brand Revitalization—retain same or create new positioning

Brand Crises

Market segmentation—divide into mutually exclusive

segments

Financial analysis—earnings attributed to the intangible assets of the business

Role of branding—degree that the brand directly influences drivers of demand

Brand strength—likelihood that the brand will realize forecast earnings

Brand value calculation—net present value of the forecast brand earnings; discounted by the brand discount rate

Interbrand’s Steps in Calculating Brand Equity

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Devising a Branding Strategy

Develop new brand elements

Apply existing brand elements

Use a combination of old and new

Brand line—all products Brand mix—set of all brand lines made available to

buyers

Branding Terms

Brand extension—established brand used to introduce a new brand (Hershey Kisses)

Sub-brand—combine a new brand with an existing brand (American Express Blue Cards)

Parent brand—existing brand that give birth to a brand extension or sub-brand

Family brand—parent brand that is associated with multiple products through extensions (Kraft)

Line extension—parent brand covers a new product within a product categories it currently serves (Dannon yogurt introduced new favors)

Honda automobiles, motorcycles, snow- blowers)

Branded variants—specific brand lines supplied to specific retailers or distribution channels (low and high end cameras)

Licensed product—brand names that had been licensed to other manufacturers to make the product (franchises)

Brand dilution—occurs when consumers no longer associate a brand with a specific product or highly similar products and

start thinking less of the brand

Brand portfolio—set of all brands and brand lines a particular firm offers for sale in a particular category or market segment

Apple

iPod

iMac MacBook Apple TV

iPhone

iPod Touch

iPod nano

iPod Classic

iPod shuffle

MacBook

MacBook Pro

eMac

iMac

Mac mini

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Brand Naming Individual names (e.g., General Mills—Bisquick, Gold Meal Flour)

Blanket family names (e.g., Heinz, General Electric)

Separate family names (e.g., Sears uses Kenmore, Craftsman)

Corporate name combined with individual product names (e.g., Kellogg’s Rice Krispies, Raisin Brain)

Increasing shelf presence and retailer dependence in

the store

Attracting consumers seeking variety

Increasing internal competition within the firm

Yielding economies of scale in advertising, sales, merchandising, and distribution

Reasons for Brand Portfolios

Flankers—fighter brand (e.g., Protector and Gamble markets Luvs diapers in a way that flanks Pampers (flagship)

Brand Roles in a Brand Portfolio

Cash cows—capitalizing on existing brand

equity (e.g., Gillette still sells older Trac II, even though market newer Mach III and Fusion brands of razors)

Brand Roles in a Brand Portfolio

Low-end, entry-level—traffic builders (e.g., BMW 3-series automobiles to bring in new customers to the franchise)

Brand Roles in a Brand Portfolio

High-end prestige—add prestige and credibility to the entire portfolio (e.g., Corvette sport cars help improve the image of other Chevrolet cars)

Brand Roles in a Brand Portfolio

The American Marketing Association defines a

________ as “a name, term, sign, symbol, or design, or

a combination of them, intended to identify the goods or

services of one seller or group of sellers and to

differentiate them from those of competitors.”

A. holistic product concept

B. product concept

C. service concept

D. Brand

E. brand image

Study Question 1

Consumers learn about brands through

________ and product marketing

programs.

A. the mass media

B. past experiences with the product

C. the sales force

D. shopping bots

E. independent information sources

Study Question 2

The premise of ________ models is that the

power of a brand lies in what customers have

seen, read, learned, thought, and felt about the

brand over time.

A. product-based brand equity

B. service-based brand equity

C. functional-based brand equity

D. mission-driven brand equity

E. customer-based brand equity

Study Question 3

________ can be defined as the differential

effect that brand knowledge has on consumer

response to the marketing of that brand.

A. Mission-driven brand equity

B. Customer-based brand equity

C. Product-driven brand equity

D. Service-driven brand equity

E. Function-based brand equity

Study Question 4

When a consumer expresses thoughts,

feelings, images, experiences, beliefs, and

so on that become associated with the

brand, the consumer is expressing brand

________.

A. Knowledge

B. Loyalty

C. Behavior

D. Preference

E. equity

Study Question 5

Philip Kotler & Kevin Keller, Brand Management, 9th

chapter, 13th edition.

Reference