BRAND

MANAGEMENT

SESSION 9 & 11 PBM

What is a Brand?

Term Brand is derived from the old Norse (Norwegian) word brandr means to burn.

Brands were used as a means by which owners of livestock mark their animals to identify and differentiate them.

What is a Brand?
Brand is a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller/ group of sellers and to differentiate them from those of competitors
American Marketing Association (AMA)

What is BRAND EQUITY?

Brand's power derived from the goodwill and name recognition that it has earned over time, which translates into higher sales volume and higher profit margins against competing brands. A measure of the strength of consumers attachment to a brand Feldwick (1996)

The purpose of brand equity metrics is to measure the value of a brand. When consumers trust a brand and find it relevant, they

may select the offerings associated with that brand over

those of competitors, even at a premium price.

Customer based Brand Equity Model

(CBBE)

How brand equity can be :

(built measured managed) effectively
Premise of CBBE Model:

Understanding the needs & wants of the consumer. Devising the products/services & programs to satisfy the same better than others

Premise of CBBE Model

cont

Power of the brand lies in what resides in the minds

CBBE occurs when the consumer has

of customers i.e. they have

learned, felt, seen, heard and experienced.

high level of
awareness and familiarity with the brand and holds some strong, favourable, and unique brand associations in the consumers memory

Customer based Brand Equity

Strong brand ensures

Right kind of experience with products/services Effective accompanying marketing programs

desired thoughts/feelings/images/ beliefs/perceptions/opinions are favourably linked with the brand

Customer-based Brand Equity

differential effect that brand knowledge has on consumer response to the marketing of that brand.
(definition of CBBE Model)

Positive customer-based brand equity: consumer react favourably i.e. accepting new brand extension, less sensitive to price increases and more willing to get the brand through any distribution channel. Negative customer-based brand equity: customer react less favourably to the marketing of the brand.

Examples of Negative CBBE

Examples of Negative CBBE

Examples of Negative CBBE

Examples of Negative CBBE

Examples of Negative CBBE

Customer-based Brand Equity

BRAND EQUITY arises from

differential effect Arises from

brand knowledge These differences results in consumers brand knowledge i.e. what resides in

consumer response to marketing Differential response by consumers is reflected in their

differences in the
value proposition offered Favourable consumer response

the mind of the

consumer due to the marketing activity

perceptions,
preferences and behaviour towards the pdt./service

Brand knowledge
Characterized in terms of:

Brand awareness Brand image Brand awareness - strength of the brand node/ trace in the memory reflected by consumers ability to identify the brand under different conditions. Brand image perceptions about the brand reflected by brand associations in the consumers memory.

Dimensions of Brand Knowledge

Brand Associations

Associations can be develop for a brand in any form in the consumer mind.

Example: Apple computers as a brand had some consumer associationssimilarly other major brands etc. i.e. consumer insights about the brand

Brand Associations
User friendly Innovative Apple logo Cool Creative Excellent graphics Educational Fun

APPLE

Desktop publishing

Brand Associations
Quality

Service

Ambience

McDonalds
Cleanliness Value

Strong Brand Associations

Coca-Cola: refreshment, taste,

availability, affordability
and accessibility.

Mercedes-Benz: performance and status.

Volvo:

safety

Levis Brand Attributes & benefit associations

ATTRIBUTES User Imagery Usage Imagery Western, American, Appropriate for blue collar, hardoutdoor work & working, casual social traditional, strong, situations rugged and masculine
Brand Personality Honest, classic, contemporary, approachable, independent and universal

Product related attributes Blue denim, shrink-to-fit, cotton fabric, button-fly, two-horse patch, & small red pocket tag

Levis 501
Feelings of self-confidence and self-assurance Comfortable fitting and relaxing to wear Experiential Benefits BENEFITS Symbolic Benefits

High quality, long-lasting, and durable

Functional Benefits

Building Strong Brands: Steps

Ensure identification of the brand with customers & an association in the mind Firmly establish the totality of brand meaning in the customers mind by linking both tangible & intangible brand associations with certain properties. Explore consumer response to brand identification & meaning. Convert the brand response/experience into an intense and strong relationship b/w customers and the brand.

Customer-based Brand Equity Pyramid

Resonance
(Loyalty)

4. Brand Relationships What about you & me? 3. Brand Response What about you? 2. Brand Meaning What are you?
1. Brand Identity Who are you?

Judgments Feelings
(Credibility) (attributes)

Performance
(Primary & Secondary characteristics)

Imagery
(Personality & Experiences)

Salience
(awareness depth & breadth - about the product Category & specified needs) e.g. Tropicana (orange juice)

Customer-based Brand Equity Pyramid

cont

Customer-based Brand Equity Pyramid

cont

Resonance Pyramid: Tropicana v/s Minute Maid

Brand Resonance Pyramid: Moov

Brand Positioning
act of designing the companys offer and image so that

it occupies a distinct and valued place in the target

customers mind (Kotler)

Deciding on a positioning requires determining points-of-parity & points-ofdifference brand associations. (1) Who are the target consumers ? (2) Who are the main competitors ? (3) How the brand is similar to these competitors ? (4) How the brand is different from these competitors ?

Brand Positioning

act of designing the companys offer and image

so that it occupies a distinct

and valued place in the target customers minds.
Philip Kotler

Optimal Brand Positioning

Identifying the optimal location of a brand vs. its competitors in the mind of consumer/market segment to maximize potential benefit for the firm.

Deciding a positioning requires:

Identifying the target segment(s)

Nature of competition
How the brand is similar to competitors? How the brand is different from competitors?

TARGET MARKET

Identifying the target consumer based on similar perceptions/preferences in the market. Dividing the market into distinct groups of homogeneous consumers with similar needs, likes/dislikes, opinions requiring similar marketing mix customised marketing programs standardization/cost effectiveness better profits in future

Basis of Segmentation

Behavioural

Nature of Product Kind of product

User Status, Usage Rate, Usage Occasion, Brand Loyalty, Benefits Seeked.

CONSUMER
SEGMENTATIO N

Where to be used? Type of buy Buying Conditions Purchase location Who buys Demographic Sales volume

Demographic

Income level, Age, Gender, Family size etc.

INDUSTRIAL Values, Opinions, lifestyle and (B2B) SEGMENTATIO Attitude. N

Psychographic

Organization size
Production capacity

Geographic

International, regional, national and local.

Criteria for Segmentation

Identifiability
Can segment(s) identified are easily determined?

Size
Is there adequate sales potential in the segment?

Accessibility
Are distribution networks & communication mediums available to reach the segment?

Responsiveness
How favourable will be segment to the tailored marketing program?

Guidelines for Brand Positioning

Defining & communicating the competitive frame of reference:

Determining Category membership: Set of products with which brand competes. Determining Point-of-parity (POPs) and Point-ofDifference (PODs).

Choosing Point-of-Parity & Point-of-Difference:

Desirability criteria Deliverability criteria

Establishing POPs and PODs:

Low price vs. high quality; Taste vs. low calories; Nutritious vs. good taste; strong vs. refined; range vs. exclusive etc.

Updating the Positioning over time.

Point-of-Parity (POPs)

Category:
associations that consumers perceive necessary to be a offering within a product/ service category generic product level. May change over time due to techn. advancements, legal formats and consumer trends etc.
e.g. Nivea become leader in Skin cream category by

creating strong POD on the benefit gentle, protective

and caring. They leveraged brand equity into other categories like deodorants, shampoos and cosmetics.

Point-of-Parity (POPs)

cont

Competitive:
associations designed to negate the competitors
point-of-difference (POD).

To achieve POP on a particular attribute/ benefit

sufficient number of consumers must believe that the brand is a suitable substitute on that dimension.

Point-of-Difference (PODs)

Strong favourable unique brand associations. Concept of POD is similar to the Unique Selling Proposition (USP) proposed by Rosser Reeves & Ted
Bates in 1950s.

Reason to buy a product/ service that a competitor could not achieve. Communicating a distinct unique product attribute/benefit. (ad message) e.g. Anacins fast, fast, fast relief ad message got effectively in consumers mind brand gained considerable market share.