CHAPTER 1:
BRANDS & BRAND MANAGEMENT
What is a brand?
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.
Brands vs. Products
A product is anything we can offer to a market for
attention, acquisition, use, or consumption that might
satisfy a need or want.
Five Levels of Meaning for a Product
The core benefit level
is the fundamental need or want
The generic product level
is a basic version of the product containing only those attributes or
characteristics absolutely necessary for its functioning
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
The potential product level
includes all the augmentations and transformations that a product might
ultimately undergo in the future.
Why do brands matter?
Importance of Brands to Consumers
Identification of the source of the product
Assignment of responsibility to product maker
Risk reducer
Search cost reducer
Promise, bond, or pact with product maker
Symbolic device
Signal of quality
Reducing the Risks in Product Decisions
Functional riskThe product does not perform up to
expectations.
Physical riskThe product poses a threat to the physical wellbeing or health of the user or others.
Financial riskThe product is not worth the price paid.
Social riskThe product results in embarrassment from others.
Psychological riskThe product affects the mental well-being of
the user.
Time riskThe failure of the product results in an opportunity
cost of finding another satisfactory product.
Importance of Brands to Firms
Identification to simplify handling or tracing
Legally protecting unique features
Signal of quality level
Endowing products with unique associations
Source of competitive advantage
Source of financial returns
Can everything be branded?
Physical goods
Services
Retailers and distributors
Online products and services
People and organizations
Sports, arts, and entertainment
Geographic locations
Ideas and causes
What are the strongest brands?
Top Ten Global Brands
Brand
2006 ($Billion)
2005 ($ Billion)
Coca-Cola
67.00
67.53
2. Microsoft
56.93
59.94
3. IBM
56.20
53.38
4. GE
48.91
47.00
5. Intel
32.32
35.59
6. Nokia
30.13
26.45
7. Toyota
27.94
24.84
8. Disney
27.85
26.44
9. McDonalds
27.50
26.01
10. Mercedes-Benz
21.80
20.00
1.
Branding Challenges & opportunities
Savvy customers
Brand proliferation
Media fragmentation
Increased competition
Increased costs
Greater accountability
The Brand Equity Concept
Differential effect
Brand knowledge
Consumer response to marketing
Strategic Brand Management Process
Steps
Identify and establish
brand positioning and values
Plan and implement
brand marketing programs
Measure and interpret
brand performance
Grow and sustain
brand equity
Key Concepts
Mental maps
Competitive frame of reference
Points-of-parity and points-of-difference
Core brand values
Brand mantra
Mixing and matching of brand elements
Integrating brand marketing activities
Leveraging of secondary associations
Brand
Brand
Brand
Brand
value chain
audits
tracking
equity management system
Brand-product matrix
Brand portfolios and hierarchies
Brand expansion strategies
Brand reinforcement and revitalization
1. Identify and establish brand positioning and values
Mental maps: Visual depiction of different type of
associations linked to the brand in the mind of
customer
Competitive frame of reference: Creating brand
superiority in the mind of customer.
Points-of-parity and points-of-difference: POD ..is
not available in other brand, POP.is similar to other
brand
Core brand values: Attributes and benefits of brand.
Brand mantra: Core brand promise.
2.Plan and implement brand marketing programs
Mixing and matching of brand elements:
Name.logos symbols characters,packaging and slogans.
Integrating brand marketing activities: Marketing
programs can create strong,favorable and unique brand
association.
Leveraging of secondary associations: Brand may be
linked to
*Company *Character *Spokepeople
*Country
*Sonsorship
*Awards
3.Measure & interpret brand performance
Brand value chain: Value creation Process
Brand Audit: A comprehensive examination of a brand
to discover its sources of brand equity.
Brand Tracking: Collecting continuous information from
customer.
Brand equity management system:
*Brand equity charter *Brand equity report *Brand
equity responsibility
4.Grow and sustain brand equity
Defining the Branding Strategy
Managing Brand Equity Over Time
Managing Brand Equity Over Geographic Boundaries,
Cultures, and Market Segments.
