PART-FOUR

BRAND MANAGEMENT: AN
OVER VIEW

24/10/2013

Prepared by Temesgen B. (PhD)

Outline

Evolution of Brands
What is a Brand?
Brand Equity
Strategic Brand
Management

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Evolution of Brands
The term brand comes from
the word Brandr (to burn),
practiced by ancient farmers
to put marks on their animal
by burning their body to
identify them
The nucleus of branding seems
to be uniformity
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Continued
People needed to put seal on
their items because their
properties were similar to
others properties and
differentiation becomes
difficult
Therefore, Branding is
imperative when identity is lost
due to homogeneity.
Initial brands were the name of
the owner or producers e.g.
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Continued
Major classifications of brand
names
Personal/Given name of
investor or inventor
Name of places
Scientific names
Appealing words
Descriptive words
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Continued
Afterwards, brands started to take
names of places, famous people
and animals in attempt to
strengthen association
between product and brand
In the middle of 20th century,
Industrialization brought mass
production of homogeneous
items
Central objective of brands being

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What is a brand?
A brand is perceptual entity
that lives in the consumers
mind.
A successful brand is a name,
term, sign, symbol, design or
combination of this which
identifies a product of a given
firm as having sustainable
differential advantage.
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Contd....
The American Marketing Association
defines a brand 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."
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Prepared by Temesgen B. (PhD)

Contd...
A brand is thus a product or service
whose dimensions differentiate it in
some way from other products or
services designed to satisfy the same
need. These differences may be
functional, rational, or tangible
related to product performance of
the brand. They may also be more
symbolic,
emotional,
intangiblerelated to what the brand represents.
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Prepared by Temesgen B. (PhD)

Continued
A brand is valuable asset of
a firm that is legally protected
Therefore, branding makes
customers to discriminate
among marketers offers in a
way it creates value to the
product
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Continued
Elements that identify and
differentiate a brand includes:
Symbol- It symbolizes or stands
for something (carries a meaning
behind) e.g. packaging design,
logo etc.
Word- facilitates communication &
identification
Object- relates with a given
product category (e.g. Kodak, BMW
etc.)

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Continued
Idea or Concept- It shall be related more
with the product concept not a single product
because brands endure but products would
not (e.g. Coke with the concept of
refreshment, Sheraton with luxury etc.)

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Continued
Product vs. Brand
A product is anything that can be
offered to market to satisfy
customers needs.
Mostly, a physical entity

A brand is the perception customers

have as a result of marketers
positioning effort about a
distinguishable offer
A perceptual entity
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Continued
Product Levels

Core benefit- fundamental need

customers satisfy by the product
Generic product- basic attributes
which must exist
Expected product- attributes that
buyers normally expect to exist
Augmented product- additional
offers which distinguish the product
from competitors
Potential product- augmentations
which might be basic products in
future

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Contd...

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Or...Contd...

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Continued
Brand Perspectives
1) Visual/Verbal perspective
Brands are distinguishable name,
logo, trade mark, packaging
design, that identify or
differentiate a given
companys product from
competitors
Easily identified by
symbol/color
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Continued
2) Positioning perspective
Creating favorable position in
customers mind.
unique and relevant
position which associate with
a particular product category
e.g. IBM computers or Kodak
photography
Differentiation is offered with
value e.g. Dove moisturizing
cream or Dettol antiseptic

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Continued
3) Value perspective (brand adds value to
the product)
Functional value- offered by any
marketer without differentiation &
refers just the performance (e.g.
Caterpillar- earth moving)
Expressive value- psychological
aspect/expression of the customer
(e.g. Rolex- achievement)
Central value- enduring and reflects
religious, national, or political
persuasion (e.g. Habesha Cement)
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Continued
4) Brand image perspective

Brands are what perceived by

the customers. This emphasizes
on symbolism/imagery aspect
of a brand
Customers would be buying
the product for not only what
it is but also for what it
symbolizes e.g.
Sceneries/cloths with
messages

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Continued
5) Added value perspective
Brands add value for a product
(by distinguishing the brand
and commodity)
Blind comparison tests
revealed that brands increase
customers preference
It brings reliability, assurance,
consistency in quality &
confidence

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Continued
6) Perceptual appeal perspective
There are three different appeals to the
Sense (e.g. McDonald)
Reason (e.g. Caterpillar)
Emotion (e.g. Gillette, Lux etc.)

7) Personality perspective
The brand personality describes the
nature and quality of the customers
brand response
Brand like a person possess certain
traits e.g. masculine/feminine, young,
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B. (PhD) of
sexy etc., therefore,
usage

Brand equity
A set of brand assets and
liabilities linked with a particular
brand name and/or symbol that
adds or subtracts value is
called as Brand Equity.
Therefore, it appears to be
Positive Brand Equity (Brand asset
adds value)

Negative Brand Equity (Liability

subtracts value)

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Continued
Positive Brand Equity contains the
following benefits:

Brand loyalty- the extent to which

customers stick to a particular brand
Brand awareness- includes
brand/name recall and brand/ name
recognition
Perceived quality- the brand is
taken as an attribute of quality
Brand association- with perceived
quality
Other proprietary brand assets
like patent, trade mark etc.

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Strategic Brand Management

The process consists of following steps:
1) Identifying and positioning brand
and values
Mental mapping (positioning the brand
favorably in customers mind)
Competitive frame of reference
(creating brand superiority)
Core brand values (attributes and
benefits linked with the brand)
Brand mantra (nucleus or DNA, heart
and soul of a brand)
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Continued
2) Planning and implementing brand
marketing programs
Mixing and matching brand elements
(brand name, logo, symbol, character , packaging
and slogan) with (memorable, meaningfulness,
likeability, transferability, adaptability and protect
able)

Integrating brand marketing activities

Product- tangible and intangible benefits

Price- value perceptions
Distribution- integrate push and pull
IMC-mix and match options

Leveraging secondary associations

Company, COO,
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by Temesgen
B. (PhD) etc.
Other
brands

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Continued
3) Measuring and Interpreting brand
performance
Brand value chain
tracing value creation process to examine
the financial impact of brand marketing
expenditures.
includes tracing brand equity source and
outcomes.

Brand audits
Brand inventory- comprehensive profile
(catalogue) of products and brands
Brand exploratory- what customers think of
the brand?27Prepared by Temesgen B. (PhD)
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Continued
Brand tracking (studying)
brand awareness & usage

brand
brand
brand
brand
brand

judgment
performance
image
feelings
resonance/character/quality

Brand equity management

system
Set of research procedures designed
to provide timely, accurate, and
actionable
information
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Continued
4) Grow and Sustain Brand Equity
Brand hierarchy
Principle of simplicity (use as few levels as
possible)
Principle of relevance (create abstract
associations relevant to as many products as
possible)
Principle of differentiation (differentiate
individual products and brands)
Principle of prominence (adjust reputation to
affect perceptions of product distance)
Principle of communality (link common
products through
shared brand elements)
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Continued
Brand-Product mix
Brand extension (establish new equity and
enhance existing equity)
Brand portfolio (maximize coverage and
minimize overlap)

Enhance brand equity overtime

Brand reinforcement (innovation in
product design, manufacturing and
merchandising)
Relevance in user and usage imagery

Brand revitalization (back to basic

strategy)
Renovation strategy
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Continued
Establish brand equity over
market segments

Identify differences in consumer

behavior
How do they purchase and use
products?
What they know and feel about
different brands?

Adjust branding program

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Choice of brand elements

Nature of supporting marketing
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programs