Chapter 1

Brands & Brand Management

sign. These components are also called brand elements . intended to identify the goods and services of one seller or a group of sellers and to differentiate them from those of competition. symbol or design. or a combination of them.What is a Brand?   A brand is a name. term.

Brand Names    Corporate brands Brand Families People’s Names .

financing. delivery and other things that people value” . services. Products    Core Product Generic Product Augmented Product “New competition is not between what companies produce in their factories but between what they add to their factory output in terms of packaging.Brands vs. advertising.

The image of a brand is a subjective thing. 3. No two people. That highest of all ambitions for many CEOs. is therefore a contradiction in terms and an impossibility. 2. . are made and owned by people … by the public …by consumers. a global brand.Brand Dimensions  1. Products are made and owned by companies. A brand image belongs not to a brand – but to those who have knowledge of that brand. on the other hand. 4. Brands. however similar. hold precisely the same view of the same brand.

Brands – unlike products – are living. however imperceptibly. The only way to begin to understand the nature of brands is to strive to acquire a facility which only the greatest of novelists possess and which is so rare that it has no name. 6. 7. . People come to conclusions about brands as a result of an uncountable number of different stimuli: many of which are way outside the control or even influence of the product’s owner. Much of what influences the value of a brand lies in the hands of its competitors. 8. 5. every single day. organic entities: they change.

the author says this: “Above all. intuitive … and frequently impossible to explain other than with the benefit of hindsight”. 10. It is universally accepted that brands are a company’s most valuable asset. I found I had to accept that effective brand communication …involves processes which are uncontrolled. 11. disordered. abstract. in one of the most important works about brands published this year. The study of brands – in itself a relatively recent discipline – has generated a level of jargon that not only prompts deserved derision amongst financial directors but also provides some of the most entertaining submissions in Pseuds’ Corner. 9. yet there is no universally accepted method of measuring that value. 12. And as if all this were not enough. . The only time you can be sure of the value of your brand is just after you’ve sold it.

Why do brands matter  Consumers    Search Goods Experience Goods Credence Goods Functional risk Physical risk Financial risk Social risk Time risk  Consumer Risks      .

Why do brands matter  Firms       Identification Simplify product handling and tracing Organize Inventory Legal procedures Creates credibility which can act as a barrier to entry for other firms It’s a valuable intangible asset .

What can be branded        Physical goods Services Retailers and Distributors Online Products and Services People and Organizations Sports Arts & Entertainment Geographic Locations .

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Branding Challenges   Savvy Customers Brand Proliferation     Globalization Low-priced competitors Brand extensions Deregulations   Media Fragmentation Greater Accountability .

Brand Equity .

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