Chapter 5

Brands and Brand Management

What is a Brand

Think about the following statement and see

what extent you agree or disagree with them:

What is a Brand
Is it the personification of an organization, product or
service?
Is it a source of a promise to the customer?
is it a trust mark?
Is it a set of associations that enhance product or service?
Is it the main source of emotional connection with
customers?
Is it something that should drives the design of the total
customer service?
Is it the single ideal or concept that is imbedded in the
mind of the customer?

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

Brands VS Products
What is a Product: a product is anything that can be
offered to a market for attention, acquisition, use or
consumption that might satisfy a need or want.
Levels of product:
1.
2.
3.
4.
5.

The core benefit level

The generic product level
The expected product level
The augmented product level
The potential product level

Example (levels of products)

Air Conditioner
1.

Core Benefit: Cooling and Comfort.

2.

Generic Product: Sufficient cooling capacity, an acceptable energy

efficient rating etc.

3.

Expected Product: Consumer report states that for a typical large

air conditioner it should have removable filters, power chord at
least 60 inches long and warranty etc.

4.

Augmented Product: Optional features might include electric

touch pad, display for outdoor and indoor temperatures etc.

5.

Potential product: This is up to the marketer and the technology

innovation.

Why do brands matter

What functions do brand perform that make

them so valuable to consumers and
marketers?

Importance of Brands to Consumers

Identification of the source of the product

Assignment of responsibility to product maker
Risk reducer
Search cost reducer
Promise, bond, or pact with product maker
Symbolic device
Signal of quality

Importance of Brands to Firms

Identification to simplify handling or tracing

Legally protecting unique features
Signal of quality level
Endowing products with unique associations
Source of competitive advantage
Source of financial returns

Can Anything Be Branded

To brand a product consumers need to know who the
product is (by giving it a name and other brand elements)
as well as what product does.
Need to provide label to the product (heres how you can
identify the product)
Provide meaning for the brand to consumers (heres what
this particular product can do for you and why it is different
and special from other brand name products)
Ultimately a brand is something that resides in the minds of
consumers.

Can Anything Be Branded

The key to branding is that consumers
perceive differences among brands in a
product category.

What is branded?

Physical goods
Services
Retailers and distributors
Online products and services
People and organizations
Sports, arts, and entertainment
Geographic locations

Top 10 Brands for 2011

Customer Based Brand Equity

CBBE is formally defined as the differential

effect that the brand knowledge has on
consumer responses to the marketing of that
brand.

Four Questions Customers ask of

Brands
1.

Who are you? (brand identity)

2.

What are you? (brand meaning)

3.

What about you? What do I think or feel about you?

(brand responses)

4.

What about you and me? What kind of association

and how much of a connection would I like to have
with you? (brand relationships)

Customer-Based Brand Equity Pyramid

4. RELATIONSHIPS =
What about you and me?

RESONANCE

3. RESPONSE =
FEELINGS

JUDGMENTS

What about you?

2. MEANING =
PERFORMANCE

IMAGERY

SALIENCE

What are you?

1. IDENTITY =
Who are you?

Brand Salience
Brand Salience relates to aspects of the
awareness of the brand, for example, how
often and easily the brand is evoked under
various situations.
To what extent brand has top of the mind
recall?
How pervasive is the brand awareness?

Breadth and Depth of Awareness

The depth of brand awareness concerns the
likelihood that the brand will come to mind
and the ease with which it does so.
The breadth of brand awareness concerns the
range of purchase and usage situation in
which the brand comes to mind.

Product Category Structure

Brand Performance
Brand performance relates to the ways in
which product or service attempts to meet
customers more functional needs.
Brand Performance Dimensions can serve as a
means by which the brand is differentiated.
Five important dimensions or attributes that
underlie brand performance are:

Brand Performance Dimensions

Primary
ingredients/characteristics
supplementary features

and

Product
reliability,
serviceability

and

durability,

Service effectiveness, efficiency and empathy

Style and design
Price

Brand Imagery
Brand imagery deals with the extrinsic
properties of the product or service.
Brand imagery is how people think about the
brand abstractly, rather then what the brand
actually does.
Imagery is related to more intangible aspects
of the brand.

Imagery Dimensions/Categories
User profiles

Demographic and psychographic characteristics

Actual or aspirational

Purchase and usage situations

Type of channel, specific stores, ease of purchase

Time (day, week, month, year, etc.), location, and context of usage

Personality and values

Sincerity, excitement, competence, sophistication, and ruggedness

History, heritage, and experiences

Nostalgia
Memories

Brand Judgment

Brand judgment focus customer personal

opinions and evaluations with regard to the
brand.

Brand Judgment Dimension

Value

Brand Quality

Satisfaction
Brand Credibility
Expertise (Competent, innovative and market leader)
Trustworthiness (dependable and keeping customer
interest in mind)
Likeability (Fun, interesting and worth spending time
with)

Brand Judgment Dimension

Brand Consideration
Brand consideration is more
awareness.

then

mere

Brand consideration depends on how appropriate

and meaningful customer find the brand.
Brand consideration largely depends on how
brand association is created.

Brand Judgment Dimension

Brand Superiority
Superiority relates to the extent to which
customer view the brand as unique and better
then others. (Differentiation)

Feelings Dimensions
Warmth : Consumer may feel sentimental,
warmhearted or affectionate about the brand.
Fun: Brand makes consumer feel amused, lighthearted,
playful and cheerful etc.
Excitement: Brand make consumer feel energized or
feeling of something special.
Security: Brand produces the feeling of safety, control
and self-assurance.

Feelings Dimensions
Social Approval: Brand results in having
positive response from others.
Self-respect: Brand makes consumer feel
better about themselves.

Brand Resonance
Brand resonance is the ultimate relationship
and level of identification the consumer has
with the brand.
Resonance is the depth of psychological bond
the consumer has with the brand.

Brand Resonance
Dimensions/Categories
Behavioral Loyalty
The first dimension of brand resonance is behavioral loyalty
in terms of repeat purchases
Attitudinal Attachment
Consumer should go beyond having positive attitude to
viewing the brand as something special.
Example: Consumer may state that they love their brand,
describe it as their favorite possessions view the brand as
little pleasures that they look forward to.

Brand Resonance
Dimensions/Categories
Sense of Community
Brand community describes consumers as a part
of certain community.
Identification with a brand community may
reflect an important social phenomena.
Consumer feel kinship or affiliation with other
people associated with the brand.

Brand Resonance
Dimensions/Categories
Active Engagement
Strongest affiliation of brand loyalty is when
consumer are willing to invest time, energy,
money and other resources.

Product Systems and Mixes

Product and Service Decisions

Product Line Decisions

Product line is a group of products that are closely

related because they function in a similar manner,
are sold to the same customer groups, are
marketed through the same types of outlets, or fall
within given price ranges

Product and Service Decisions

Product Line Decisions
Product line length is the number of items in the
product line
Line stretching (Stretching the line upward or
downward)
Line filling (adding more items to the line)

Product and Service Decisions

Product Mix Decisions
Product mix consists of all the products and items that a
particular seller offers for sale.
Width (Number of different product line/categories
that company carries)
Length (Total number of items company carries in
the product line)
Depth (Total number of versions offer of each
product in the line)
Consistency (How closely related the product various
product line are)