Key Principles of

Competitive Branding
MKTG 6190 - Brand Management
Masters in Marketing Programme Cohort 15
Lecture #1 (06/05/14)
What is a Brand?
one of the hottest points of
disagreement among experts is the
definition of a brand
A brand is a name, term, symbol or design, or a
combination of them, which is intended to signify
the goods or services of one seller or group of
sellers and to differentiate them from their
competitors.

American Marketing Association
(Philip Kotler)
While a name, term or symbol are
important, they are only tactical tools
meant to communicate the brand and do
not constitute the brand itself.

The brand is what stands behind the
name, term or symbol.

A brand is an intangibleIt implies trust,
consistency and a defined set of expectations
about the company and its products, from a
customers perspective.

David Aaker
A brand is a set of image (mental)
associations, held by the consumer,
which add to the perceived value of a
product or service

Kevin Keller


Attributes of a Brand
Functional
Attributes
Product/Service
Personnel
User Benefits
Mental Associations
Emotional Connection
Mental Associations
1. Saliency
The brand should strongly suggesting a combination
of value elements that are relevant to satisfying the
needs and wants of that consumer
2. Exclusivity
The brand should suggest something unique about
the product/service that differentiates it from its
competitors
3. Desirable
The brand should elicit a positive response from the
consumer by conveying trustworthiness, likeability
and confidence
Emotional Connection
Branding success is no longer predominantly measured
by how many consumers recognize or are aware of
brands and their logos or slogans, but by how strongly
consumers feel connected to brands.

The brand should form an endearing emotional link with
the consumer

It should evoke feelings of attachment, belonging,
advocacy and even fanaticism
Emotional Connection
When someone is emotionally linked to another person,
or to a company, its products and services, then it is
hard for them to let go. This translates into customer
loyalty.

Therefore the objective of every brand manager
or marketer should be to make their customers
emotionally linked to their brand.
Putting It All Together
A brand is what customers think and feel about
your product, service, company or country.
It defines who you are and what you stand for
People
Processes
Values
Business culture

It is the consistent delivery of a unique promise
of value!
Evaluate These Brands
What has been your
experience with these
brands?
Do you feel connected to
these brands?
Have these brands delivered
on their promise?
What is the brand essence
of each?
Evaluate These Brands
What has been your
experience with these
brands?
Do you feel connected to
these brands?
Have these brands delivered
on their promise?
What is the brand essence
of each?
In-Class Exercise #1
In a focus group study held to determine consumer
attitudes towards certain energy drink brands, it was
found that the brand Red Bull was the preferred choice by
focus group subjects; yet in a blind taste test, they all
consistently chose the brand Monster as the better tasting
drink.
Suggest possible causes for this paradox.
Recommend strategies Monster can implement to make
their drink the preferred choice.

In-Class Exercise #2
In a recent focus group study held to determine consumer
attitudes towards certain chocolate bar brands, it was
found that the brand Charles evoked strong feeling of
nostalgia that the brand Cadbury could not match.
Further, at more than one point in the exercise, Charles
elicited more positive reactions from the focus group
subjects than Cadbury. Yet, the focus group subjects all
indicated that Cadbury was their preferred brand.
Suggest possible causes for this
Recommend strategies Charles can implement to make
their chocolate bar the preferred choice.

Importance of
Branding to the Company
A successful, well-known brand:
Reduces the perceived risk of investing in capital
equipment, facilities, marketing and
communications, new market entry etc.
Assures stability and growth of sales and future
cash flows (brand loyalty)
Generate higher profits through premium pricing
and higher margins
Builds corporate reputation
Importance of
Branding to the Customer
Function Customer Benefit
Identification To be clearly seen, to quickly identify the sought-after
products
Practicality To allow savings of time and energy through re-purchase and
loyalty
Guarantee Be sure to find consistent quality no matter when and where
the product or service is purchased (risk reducer)
Optimization To be sure of buying best-in-class product performance
Badge To have confirmation of self-image
Continuity To have satisfaction created by familiarity and intimacy
Hedonistic To have a sense of enchantment that is linked to the brand,
its logo or communications
Ethical To have a sense of satisfaction linked to responsible behavior
in relations to society, environment etc.)
What is brand equity?
The set of associations and behavior on the part of a
brands customers, channel members and parent
corporation that permits the brand to earn greater volume
or greater margins than it could without the brand name
Official Marketing Science Definition - Leuthesser
Brand
Awareness

Product/service
Category
(form & function,
Consumer value &
relevance)`````````````` `

Perceived
Quality

Product/Service
Experience
(reliability,
durability,
Serviceability, etc.)

Brand
Associations

Imagery
(User profile,
usage situations,
brand personality,
heritage)
Brand
Loyalty

Emotional
Attachment,
(Likeability,
confidence,
community, etc.)

Phases of Brand
Equity
Source: Brand Leadership - David Aaker (2000)
Understanding Brand
Equity David Aaker
Customer Based Brand Equity
(CBBE) Model
Salience
Identifying & matching product/service category to customer needs
Imagery
Tell a good the story. Who
should use. When to use.
Brand personality. Brand
heritage etc.
Performance
Form & Function
(Innovation in design,
style, reliability, durability,
serviceability, etc.
Judgments
Quality,
Credibility,
consideration,
superiority
Feelings
Warmth, Fun,
Excitement,
Security, Social
approval, Self-
respect
Resonance
Loyalty,
Attachment,
etc.
1. Identity
Who are you?
2. Meaning
What are you?
3. Response
What about you?
4. Relationship
What about you
& me?
Deep broad
Brand awareness
Points of parity &
difference

+ve accessible
reactions
Intense active
loyalty
Stages of Brand
Development
Brand Objective
at each stage
Using the CBBE Model to Uncover
Sources of Brand Equity
Salience
Identifying & matching product/service category to customer needs
Imagery
Tell a good the story. Who
should use. When to use.
Brand personality. Brand
heritage etc.
Performance
Form & Function
(Innovation in design,
style, reliability, durability,
serviceability, etc.
Judgments
Quality,
Credibility,
consideration,
superiority
Feelings
Warmth, Fun,
Excitement,
Security, Social
approval, Self-
respect
Resonance
Loyalty,
Attachment,
etc.
The Rolex Brand: Sources
of brand equity using the
CBBE Model
Most commonly recalled luxury watch globally: Conclusion: High awareness
Associated with
prestigious sports &
cultural events
Conclusion: Classic
luxury & Success
oriented
Feelings of success
& social approval
Conclusion:
Exclusive & self-
rewarding
Handcrafted,
premium materials,
exceptional
customer service
Conclusion: Luxury
Product
Quality, Innovation
& design
Conclusion:
Extremely High
Quality
Part of elite society
Conclusion:
Ultimate Status
Symbol
The Strategic Brand Management
Process
Brand
Positioning

Points of Parity,
Points of Difference
Brand Identity (metal
maps) & Essence
(Mantra)

Brand
Monitoring

Brand Metrics
Measuring
Performance

Brand
Implementation

Brand Building
(internal, external)
Brand Resourcing
IMC

Brand
Growth

Portfolio,
Extensions,
Reinforcement
Revitalization
Etc.
Study Questions
In order to market a brand effectively, an understanding of its
sources of brand equity is required. Using a suitable brand
equity model, identify the sources of brand equity for a brand of
your choice.

A young brand manager is of the opinion that a marketing
campaign that is mass media based will be sufficient to forge
brand loyalty, provided that the campaign is consistently
maintained over a long period of time. Critically assess this
view, using a suitable brand equity model to illustrate your
arguments.
Required Reading
Strategic Brand Management - Kevin L. Keller
3
rd
Edition or Later
Chapters 1 & 2