Introduction to brand management

Dr.S.Yogananthan

Contents
Introduction to brand Functions Characteristics Relationships Brand Identity & Image Difference & Parity

What is a brand?

A name, a term

A symbol, a sign

A name, term, sign, symbol or any other feature that identifies one sellers 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. 2. 3.

Who the product- name, other elements What the product does Why the consumers should buy

Brand relationships
FIRM
Brand identity framed by marketers

INTERACTIONS
Brand relationships

CUSTOMERS
Brand image in the mind of customers

Branding process Brand the actual image of the firm in customers minds 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.

The importance of image

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 employees

an

internal

impact

on

Sending

Image and Identity

Media Signals transmitted

Receiving

Brand identity

Brand image

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-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 POPs and PODS

 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

Category membership

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

POPS
Point of Parity (POP) Two Types Category : attributes that are required to include your product as a member of that category. Competitive: POPs that negate your competitor's PODs POPs should be good enough but PODs should be superior

Choosing the differentiating strategy

Product differentiation Personal differentiation Channel differentiation Image differentiation

Choosing the pops and pods

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

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 consumers 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.?).

5 Factors of Brand Positioning

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
Flavor, Brightness

Brightness of teeth
Decay Prevention
Decay Prevention

Price Positioning

Low Price

Brand Equity

Chapter Questions
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?

Steps in Strategic Brand Identifying Management and establishing brand positioning

Planning and implementing brand marketing Measuring and interpreting brand performance Growing and sustaining brand value

Google - 2002 Brand of the Year

9-31

Brand
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.

9-32

Attributes of Strong Brands Excels at delivering Uses multiple marketing

desired benefits Stays relevant Priced to meet perceptions of value Positioned properly Communicates consistent brand messages

activities

Understands consumerbrand relationship

9-33

The Role of Brands

Identify the maker

Simplify product handling Organize accounting

Offer legal protection

9-34

The Role of Brands

Signify quality

Create barriers to entry

Serve as a competitive advantage Secure price premium

9-35

Branding
Endowing products and Services with the power of a brand.

9-36

Brand Equity
The differential effect that Brand knowledge has on Consumer response to the marketing of that brand.
9-37

 Improved perceptions of product performance Greater loyalty Less vulnerability to competitive marketing actions Less vulnerability to crises

Advantages of Strong Brands

Larger margins

More inelastic consumer response Greater trade cooperation Increased marketing communications effectiveness Possible licensing opportunities

Brand Promise
The marketers vision of what the brand must be and do for Consumers.

9-39

Brand Equity Models

Brand Asset Valuator Aaker Model BRANDZ Brand Resonance

BAV Key Components

Differentiationdegree 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

Energysense 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

Relevancebreadth of a brands 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

Esteemhow 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

Knowledgehow 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.

Brand Knowledge
Thoughts
Knowledge

Feelings

Beliefs
Experiences

Images

9-46

Secondary Sources of Brand Knowledge

9-47

Aaker Model
Brand identityunique set of brand associations that represent what the brand stands for and promises to customers (e.g., Ajaxindustrial service company)

Aaker Model
Core identity elementsproduct 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 elementsadd textual and guidance (e.g., Ajax is worldly but informal, confident and competent)

Aaker Model
Brand essencecommunicate the brand identity in a compact and inspiring way (e.g., Ajax has a commitment to excellence)

Aaker Model Brand Identity

Brand-as-product Zerox

Brand-as-organization Saturn

Brand-as-person Lee Iacocca (Chrysler)

Brand-as-symbol Mr. Clean

9-52

Aaker Model Brand Assets Brand loyalty

Brand associations
Luxurious Car = success, wealth, only the best

Brand awareness

Proprietary assets

Perceived quality
9-53

The BRANDZ Model

Bonding nothing better Advantagebetter than others Performancecan it deliver?

Relevancedoes something for me

PresenceDo I know about it?

9-54

Brand Resonance Pyramid

9-55

Drivers of Brand Equity

Brand Elements

Marketing Activitie

Meaning Transference

9-56

Brand Elements Brand

names
URLs Slogans
Elements

Logos

Characters

Symbols
9-57

Brand Elements

9-58

Brand Element Choice Criteria

Memorable--recall and recognized Meaningful--credible Likeability--aesthetically appealing Transferable--introduce new product Adaptable--updatable Protectable-- legality

Slogans
Like a good neighbor, State Farm is there Just do it Nothing runs like a Deere

We try harder Well pick you up Nextel Done Zoom Zoom This Buds for you
9-60

 Personalizationbrand and its marketing are as relevant as possible to as many customers as possible

Designing Holistic Marketing Activities

Designing Holistic Marketing Activities

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

 Internalizationactivities and processes that help inform and inspire employees.

Designing Holistic Marketing Activities

Internal Branding Choose the right momentturning 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

 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

Internal Branding Bring the brand alive for employees informative Brewing tapped into and energizing (e.g., Miller
heritage to generate pride and passion)

Measuring Brand Equity

Brand Auditsassess health of brand, uncover sources of brand equity, ways to improve Brand Trackingbaseline information about brands and marketing information Brand Valuationestimation of total financial value of the brand

9-67

The 10 Most Valuable Brands

Brand

Coca-Cola Microsoft IBM GE Intel Nokia Toyota Disney McDonalds Mercedes-Benz

$67.00
$56.93 $56.20 $48.91 $38.32 $30.13 $27.94

2006 Brand Value (Billions)

$27.85 $27.50 $22.13

Managing Brand Equity

Brand Reinforcement meaning of the brand
Brand Revitalizationretain same or create new positioning

Brand Crises

9-69

Interbrands Steps in Calculating Brand Equity

Market segmentationdivide into mutually exclusive segments Financial analysisearnings attributed to the intangible assets of the business Role of brandingdegree that the brand directly influences drivers of demand Brand strengthlikelihood that the brand will realize forecast earnings Brand value calculationnet present value of the forecast brand earnings; discounted by the brand discount rate

Devising a Branding Strategy

Develop new brand elements
Apply existing brand elements Use a combination of old and new

9-71

 Brand lineall products Brand mixset of all brand lines made available to buyers

Branding Terms

Brand extensionestablished brand used to introduce a new brand (Hershey Kisses)

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

Parent brandexisting brand that give birth to a brand extension or sub-brand

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

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

Honda automobiles, motorcycles, snow- blowers)

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

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

Brand dilutionoccurs when consumers no longer associate a brand with a specific product or highly similar products and start thinking less of the brand

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

Apple
iMac
eMac iMac Mac mini

MacBook
MacBook MacBook Pro

iPod

Apple TV iPhone iPod Touch

iPod nano
iPod Classic iPod shuffle

Brand Naming
Individual names (e.g., General MillsBisquick, 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., Kelloggs Rice Krispies, Raisin Brain)

9-83

Reasons for Brand Portfolios

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

Brand Roles in a Brand Portfolio Flankersfighter brand (e.g., Protector and Gamble markets Luvs diapers in a way that flanks Pampers (flagship)

Brand Roles in a Brand Portfolio Cash cowscapitalizing 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-leveltraffic builders (e.g., BMW 3-series automobiles to bring in new customers to the franchise)

Brand Roles in a Brand Portfolio High-end prestigeadd prestige and credibility to the entire portfolio (e.g., Corvette sport cars help improve the image of
other Chevrolet cars)

Study Question 1 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. B. C. D. E. holistic product concept product concept service concept Brand brand image

Study Question 2
Consumers learn about brands through ________ and product marketing programs.

A. B. C. D. E.

the mass media past experiences with the product the sales force shopping bots independent information sources

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.

Study Question 3

A. B. C. D. E.

product-based brand equity service-based brand equity functional-based brand equity mission-driven brand equity customer-based brand equity

Study Question 4
________ can be defined as the differential effect that brand knowledge has on consumer response to the marketing of that brand.

A. B. C. D. E.

Mission-driven brand equity Customer-based brand equity Product-driven brand equity Service-driven brand equity Function-based brand equity

When a consumer expresses thoughts, feelings, images, experiences, beliefs, and so on that become associated with the brand, the consumer is expressing brand ________.

Study Question 5

A. B. C. D. E.

Knowledge Loyalty Behavior Preference equity

Reference
Philip Kotler & Kevin Keller, Brand Management, 9th chapter, 13th edition.