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CHAPTER--1

CHAPTER

BRANDS AND BRAND MANAGEMENT

Prof. Md. Mizanur Rahman


MBA (Canada), PhD (Dhaka)

Department of Marketing
University of Dhaka

Learning Objectives

Define brand, state how brand differs from a


product, and explain what brand equity is

Summarize why brands are important

Explain how branding applies to virtually everything

Describe the main branding challenges and


opportunities
Identify the steps in the strategic brand
management process

1.2

What Is A Brand?
A brand is 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 competition. -----AMA
AMA ???

1.3

What Is A Brand?

Simply, a brand is someones gut


feeling about a product, service or
organizations.
A brand is the summation of all
perceptions, experiences and
beliefs associated with a product,
service, or entity that make it
distinct. -----Modern
Modern Definition
1.4

Are You A Brand?

Yes!! or No!!
You all are a brand by all of your individual
rights and identities

1.5

Brand Elements

Different components that identify and


differentiate a brand

Can be based on people, places, things, and


abstract images

Name

Logo

Symbol

Package design

Slogan

Other Characteristic
1.6

Brand Elements

Brand name is that part of a brand


which can be vocalized or utterable
utterable..
Brand mark is that part of a brand
which can be recognized but is not
utterable,, such as symbol, design, or
utterable
distinctive coloring or lettering.
Trademark is that part of brand which
is registered & protected by law and
which gives the seller exclusive rights to
use it in perpetuity
1.7

Brand Elements
Brand Name =

Mercedes Benz

Brand Mark =

Trade Mark =
Brand Name
+
Brand Mark
+
Trade Mark

= Brand

1.8

Brand Vs. Product


Product

Brand

Anything available in the


marketplace for use or
consumption that may satisfy a
need or want

Has dimensions that differentiate it


in some way from other products
designed to satisfy the same need

1.9

Product Vs. Brand


Product

Brand

A physical entity that


lives in the real world

A perceptual entity that lives in


the minds of consumers

Provides functional
value

Provides functional as well as


social, emotional, situational, and
epistemic values

Implies physical
attributes and benefits

Implies physical attributes and


benefits as well as psychic aspects
surrounding a product

Comes and goes with


time

Is timeless???
1.10

Five Levels of Meaning for a Product

Core Benefit

Generic Product

Expected Product

Augmented Product Level

Potential Product Level

1.11

Brands Conveying Six Meanings

Attributes
Attributes
characteristics and features

Benefits
Benefits
functional and emotional

Values
Values
performance, safety & prestige

Culture
Culture
Mercedes
Mercedes--organized, efficient, high quality

Personality
Personality
Fanta
Fanta/Virginia
/Virginia Slim: female personality

Users
Users
the kind of consumer using it

1.12

A Brand Is More Than A Product


Brand

Sophistication

Product

Organizational
Associations
Country Of Origin

User Imagery

Emotional
Benefits

Weight/Color
Price/Quality
Design/Features
Uses/ Value
Functional Benefits

Brand Personality

Symbols

Brand -Customer
Relationships
Self-expressive
SelfBenefits

Experimental
benefits
Life--styles
Life

1.13
1.
13

Every Brand Has A Personality


Nike

Addidas

Bata

Beautiful

Greek

Old

Feminine

Masculine

Orthodox

Strong

Strong

Bore

Smart

Stylish

Formal

Ambitious

Authoritative

Introvert

Cool

Powerful

Unsporty

Sexy

Dominating

Weak

Extrovert

Stable

Simple

Energetic

Commanding

Conservative

Young

Modern

Trustworthy

Lively

Bold

Caring

1.14

What Is Branding?

The act of transforming a product into


customer satisfying valuevalue-added
propositions to create preferences in ones
favor and against rivals

Everything a marketer does to its offer so that


customers can favorably discriminate a brand

1.15

From Traditional To Experiential Branding


From

Brands as
identifiers
Names, logos,
Names,
slogans which
build awareness
and image

TO

Brands as experience
providers
Names, logos, slogans,
Names,
events,, customer contacts
events
and experiences which build
sensory,, affective, creative
sensory
relations and ways of being
with the brands

1.16

Evolution From USP to HSP


Physical product

USP = Unique Selling Proposition (50


50s)
s)

Emotional attachment

ESP = Emotional Selling Proposition (60


60s)
s)

Corporate branding

OSP = Organizational Selling Proposition (80


80s)
s)

More than physical


dimensions

BSP = Brand Selling Proposition (90


90s)
s)

Personalization;
ownership by
consumers

MSP= Me Selling Proposition (2000


2000s)
s)

Multisensory brand;
synergy

HSP =Holistic
=Holistic Selling Proposition (After
(After 2000
2000s)
s)

http://www.slideshare.net/paulsjr/brief--history
http://www.slideshare.net/paulsjr/brief
history--of
of--branding
1.17

Advantages of Branding

Easy for the seller to track down problems and


process orders
Legal protection of unique product features
Opportunity to attract loyal and profitable set of
customers
Helping to give a product category at different
segments, having separate bundle of benefits
Building corporate image

Minimizing harm to company reputation if the brand


fails
1.18

Beware of Branding Pitfalls

Pitfall No. 1: A brand is


something a firm owns

Pitfall No. 2: Brands


take care of themselves
Pitfall No. 3: Focus on
brand awareness instead
of brand relevance
Pitfall No. 4: Dont base
on internal image of
brand
Pitfall No. 5: Dont let
outsiders do firms job

A brand is defined only by


customers

Proactive brand management


is required
Manage touch points; target
right customers and
stakeholders
Gain customer input and
determine current brand image
and take needful measures
Company should determine its
own brand image

1.19

Why Is Brand So Important?

As perceptions of all tangible and intangible


elements, brands have

the power that can transcend the attributes


and characteristics of products
the ability to capture attention and loyalty far
above others

1.20

Why Is Brand So Important?


Brands can have POWER
Coca--Cola
Coca

Is it more than cola beans, corn sweetener,


spices and food coloring mixed together?
Is it more than a beverage?

Coors Light Is it more than hops, malted barley,


mushroom and water?

Starbucks

Is it more than coffee?

USA

Is it more than 50 states united?

1.21

Brand Power Hierarchy


Relate the brand to a feeling, attitude, event,
perception of myself that is important and
relevant to me
Know that and how it has meaning
Know that and how its different
Heard of it and know what it is
Heard of it, but dont know anything about it

To build
brand
power, we
need to
know
where we
are and
determine
how to get
to higher
levels

No awareness of the brand


1.22

Brand Power Hierarchy


Relate the brand to a feeling, attitude, event,
perception of myself that is important and
relevant to me
Know that & how it has meaning
Know that & how its different
Heard of it and know what it is

Brand
Initiation

Heard of it, but dont know anything about it

(where brands
become
products)

No awareness of the brand


1.23

Brand Power Hierarchy


Relate the brand to a feeling, attitude, event,
perception of myself that is important and
relevant to me
Know that & how it has meaning
Know that & how its different

Brand with
Differentiation

Heard of it and know what it is


Heard of it, but dont know anything about it
No awareness of the brand
1.24

Brand Power Hierarchy


Relate the brand to a feeling, attitude, event,
perception of myself that is important and
relevant to me
Brand with
Relevance

Know that & how it has meaning


Know that & how its different
Heard of it and know what it is
Heard of it, but dont know anything about it
No awareness of the brand

1.25

Brand Power Hierarchy


Relate the brand to a feeling, attitude, event,
perception of myself that is important and
relevant to me

Brand with
Equity

Know that & how it has meaning


Know that & how its different
Heard of it and know what it is

Heard of it, but dont know anything about it


No awareness of the brand
1.26

Achieving Brand Power


Brand
+
Differentiation

Brand
Relevance

Brand
Equity

Brand Power
is a function of Differentiation, Relevance, and Equity
BP=f(D,R,BE)
1.27

Achieving Brand Power


Brand Differentiation:
The characteristics and perceptions that are
perceived to be different against alternatives

Differentiation buys trial

1.28

Achieving Brand Power


Brand Relevance:
The degree to which the brand is applicable to, or
makes a connection with peoples lifestyles,
issues, needs, desires, etc.

Relevance gains repeat consideration

1.29

Achieving Brand Power

Brand Equity:
Derived from experience
experience--based associations with the
brand, and the emotional connections that grow from
them

Brand Equity provides insulation

1.30

When Is Brand Power Achieved?

Customer will not change brands for price reasons

Customer is satisfied; no reason to change

Customer is satisfied and would take pains to get


the brand

Customer values the brand and sees it as a friend

Customer is devoted to the brand

1.31

Brand Loyalty

Brand loyalty is the bias, behavioral response,


expressed over time, by some decisiondecision-making
unit, with respect to one or more alternatives,
and is a function of psychological process

Loyal customer base is the essence of brand


building

1.32

Brand Loyalty
Loyal customer base depends on:

Trust

Affinity

Consistency

Social bonds

Accessibility

Psychological bonds

Responsiveness

Financial bonds

Commitment

Structural bonds

1.33

Brand Loyalty
Trust: willing to rely on brand
Consistency: no variation in quality
Accessibility: accessible to customers
Responsiveness: quick response to customers
Commitment: dedicated to customers
Affinity: identify with brand
Social bonds: customercustomer-seller relation
Psychological bonds: influencing personality, lifestyles
Financial bonds: discounts offering
Structural bonds: physical connection between buyers and
sellers systems

1.34

Brands Are Customer Possessed


Brand is possessed by customers but owned by
firms because it is

an intangible and a perceptual entity difficult to copy


like knowledge structure which lives in customers
mind in form of a universe of associations which
stores variety of information
creates brand awareness, and brand associations (brand image)
elicits customer response

1.35

Brands Are Customer Possessed


Thirst

Urban

Refreshing
Black

Cola

Fun

Coke

Pepsi
Good
Times

US

Young
S. Khan

Orange
Fanta
Mirinda

Sweet
Rebel

Fig: Associative Network for Pepsi

1.36

To Sum Up ....
Through branding, organizations:

Create perceived differences amongst products

Develop loyal customer franchise

Create value that can translate to financial profits

1.37

Why Is Branding So Hot?

We have too many choices and too little time

Most offerings have similar quality and features

We make our buying choices on trust

1.38

Why Do Brands Matter?

What functions do brands perform that make


them so valuable to marketers?
What brands do to CONSUMERS and FIRMS?

Roles to Consumers (Individual and


Organizations

Functions provided by brands to consumers

Identify the maker of the product and allow


consumers to assign responsibility to a producer
Simplify product decisions
Lower the search costs for products internally and
externally
Help set reasonable expectations about what
consumers may not know about the brand

Continued
1.40

Roles to Consumers

Do promise and establish relationship between a


consumer and a brand

Serve as symbolic devices allowing consumers to


project their selfself-image

Signal product characteristics and attributes

On the basis of attributes, products are classified as


search goods, experience goods and credence goods

Reduce risks in product decision

Continued
1.41

Reducing the risks in product decisions


Risks

consumers perceive in buying and consuming


a product:

Functional risk
riskThe product does not perform up to
expectations

Physical risk
riskThe product poses a threat to users health

Financial risk
riskThe product is not worth the price paid

Social risk
riskThe product results in embarrassment

Psychological risk
riskThe product affects the mental wellwellbeing
Time risk
riskThe failure of the product results in an
opportunity cost of finding another satisfactory product
1.42

Roles to Firms

Brands provide valuable functions

Simplify product handling and tracing

Help organize inventory and accounting records

Offer the firm legal protection for unique features or


aspects of the product
Provide predictability and security of demand for the firm
and creates barriers of entry for competitors
Provide a powerful means to secure competitive
advantage
Provide source of financial returns
1.43

Figure 1.3 - Roles that Brands Play

Can Everything Be Branded?


YES!!!

How are brands created?

How do you brand a product?

Firms create brand through marketing programs,


programs,
although it resides in the minds

1.45

How Are Brands Created?

To brand a product it is necessary to teach


consumers:

Who the product is

What the product does

Why consumers should care it

Branding provides firms with value through


creating mental structures that help consumers
organize their knowledge about product to make
decision
1.46

Can Everything Be Branded?

Everything even commodities can be


branded

Coffee (Maxwell House), bath soap (Ivory), flour


(Gold Medal), beer (Budweiser), salt (Morton),
oatmeal (Quaker), pickles (Vlasic), bananas
(Chiquita), chickens (Perdue), pineapples (Dole),
and even water (Perrier)

1.47

An Example of Branding a Commodity

De Beers Group added the phrase

A Diamond Is Forever

1.48

What Can Be Branded?

Physical goods (BMW, Sony)

Services (British Airways, FedEx, Hilton Hotel)

Retailers and distributors (Sears, WalWal-Mart, M&S)

Online products and services (Amazon.com, Google)

People and organizations (Maradona


(Maradona,, Red Cross)

Sports, arts, and entertainment (Real Madrid)

Geographic locations (Sunderbon


(Sunderbon))

Ideas and causes (AIDS Ribbons)


1.49

Physical Goods: B2B Products

Know branding from corporate perspective

Create a positive brand image and reputation for the


company as a whole which will create

greater selling opportunity and more profitable


relationships

Some B2B firms believe that buyers are so informed


and professional that brands dont matter
De-commoditize B2B brands to create difference,
Dealthough it is difficult
1.50

Physical Goods: HighHigh-Tech Products

Challenging due to the speed and brevity of


technology PLCs

Dont brand only by naming (technologists view)


Financial success depends not only on innovation but
also on marketing skills
CEOs are the dominant factors (Bill Gates: Microsoft)
Adoption of classic consumer marketing techniques has
increased expenditures on marketing communications
1.51

Role of Branding with Services

Challenging as services are less tangible and


more variable in quality

Address intangibility and variability problems

Tanagibilize the service


Brand symbols may be important because they make the
abstract nature of services more concrete
Brands help identify and provide meaning to different
services

Branding is an effective way to signal to consumers that


service is special and deserving of its name
1.52

Professional Services

Corporate credibility is key in terms of expertise,


trustworthiness, and likeability

Variability is more of an issue with professional


services
Individual employees have a lot more of their own
equity in the firm

Referrals and testimonials can be powerful when the


services are intangible and subjective
Emotions can play a big role in terms of sense of
security and social approval
1.53

Retailers and Distributors

Brands can help create...


create...
consumer interest, patronage, and loyalty in stores
the retailers image and establish positioning

Retailers can create their own brand image by


attaching unique associations to service quality, product
assortment, pricing, and credit policy to their stores
introducing their own brands through using store names,
creating new names, or some combination of both
1.54

Online products and services

3 strongest online brands are Google, Facebook


Facebook,,
and Twitter

Flashy or unusual ads fail to create awareness

Create unique aspects of the brand on some dimensions like


convenience, price, variety
Ensure that brands perform satisfactorily in other areas like
customer service, credibility and personality
Offer unique features and services to consumers and avoid
extensive ads
Rely more on WOM and publicity
1.55

People and Organizations

Branding is simple if the product category is


people or organization

Build up a name and reputation

Right awareness and image determine the way people treat


you, interpret your words, and actions
Check who the person is and what kind of person he is in
terms of skills, talents, attitude, and so forth

Organizations take on meanings through their


programs, activities, and products
1.56

Sports, Arts, and Entertainment

People and organizations are used as brands

Some apply traditional packagedpackaged-goods techniques


Apply creative combination of ad, promotions,
sponsorship, direct mail, digital, and other forms of
communication

Building brand awareness, image, and loyalty, some are able


to meet ticket sales target
Brand symbols and logos work as a financial contributor

In arts and entertainment, buyers judge quality


not by inspection, but use cues
1.57

Geographic Locations

Place marketing is on the rise

Use IMC to promote cities, states, regions, and


countries
IMC creates awareness and a favorable image of a
location that will entice visitors

1.58

Ideas and Causes

Ideas and causes are branded by mostly nonnonprofit organizations

Use phrase or slogan or symbols for branding


(AIDS Ribbons)

Make them more visible and concrete

1.59

To Sum up....

Branding is universal and pervasive in different


product categories
Applicable to both tangible and intangible offerings
of an organization
Technological developments have impacted the way
firms market their offerings
Organizations reap financial benefits from positive
brand images

Keys to Enduring Brand Leadership

Revolutionary and inspiring vision of mass


market

An indomitable will to realize that vision

Managerial persistence under adversity

Financial commitment

Relentless innovation

Asset Leverage to realize vision


1.61

Essentials to Success of a Brand

Successful brands achieve discriminatory


response from consumers

Two basic strategies can be used:

Better Brand Strategy

Superior Band Strategy

1.62

Essentials to Success of a Brand


Better Brand Strategy

Superior Brand Strategy

Beats competition of building


Offers competitive as well as
more value on attributes/benefits some unique attributes/benefits
sought by customers
not offered by competition
Confined to existing attributes/
benefits

Goes beyond existing


attributes/benefits

Increases CV incrementally

Increases CV exponentially

Toothpaste offers germ


protection round the clock
instead of 12 hours

Toothpaste offers minting


attribute

1.63

How to Build Superior Brands?

Superior brands must achieve valued


discrimination

Not sufficient just to achieve valued discrimination


or deliver what target market wants
Rather deliver what others fail to and what
customers look forward to

1.64

How to Build Superior Brands?

To achieve valued discrimination, marketers


must know:

For whom is the brand meant? (target market)

What do competitive brands offer? (similarity)

What do customers desire or value but do not


get? (discriminating value)

1.65

How to Build Superior Brands?


Five steps for achieving valued discrimination
1. Identify Segments

Study existing segments characteristics and


competition

2. Understand the Key Drivers of Buying

List down the attributes/benefits/values sought

Do extensive marketing research to figure out

1.66

How to Build Superior Brands?


3. Determine Relative Importance

Rate these in order of importance

4. Analyze Competition

Make competitive analysis and customer analysis

5. Find Sources of Discriminative Value

Find attributes which are the sources of valued


discrimination

1.67

Strong Brands

Brands that have been market leaders in their


categories for decades
Any brand is vulnerable and susceptible to
poor brand management

The appeal of brand is not timeless, if it is not


properly managed

What Are the Strongest Brands?

1.69

Top Ten Global Brands (Interbrand


(Interbrand))
Rank in 2015
1.
2.
3.
4.

5.
6.
7.
8.

9.
10.

Apple
Google
Coca--Cola
Coca
Microsoft
IBM
Toyota
Samsung
GE
MacDonald's
Amazon

2015 ($Billion)
170.28
120.31
78.42
67.67
65.09
49.05
45.30
42.27
39.81
37.85
1.70

Factors Responsible for Branding


Challenges
Savvy
customers
Increased
accountability
Increased
cost
Increased
competition

Economic
downturns
Brand
proliferation
Media
transformation
1.71

Factors Responsible for Branding


Challenges

1.72

Types of Failure of Brands

Parity Brands
Brands offer only similar values

Inferior Brands
Brands offer lesser value or suffering
competitive disadvantage
Mismatch Brands
Brands offer value not in the line
with customer needs
Over-priced Brands
OverBrands offer superior value but at
a higher sacrifice

Brand Equity

The added value endowed to products reflected


in how consumers think, feel, and act with
respect to brand
The premium a brand can command in the
market
The difference between the perceived value
and the intrinsic value of a brand
No common viewpoint on how BE should be conceptualized and measured.
1.74

Brand Equity

Principles of branding and brand equity

Differences in outcomes arise from the added value


endowed to a product
The added value can be created for a brand in many
different ways
Brand equity provides a common denominator for
interpreting marketing strategies and assessing the
value of a brand
There are many different ways in which the value of a
brand can be exploited to benefit the firm

Brand Equity
Equity Competitive Advantages

Reduced marketing costs

Trade leverage

Can charge a higher price

Can easily launch brand extensions

Can take some price competition

1.76

Strategic Brand Management


The four main steps of the
process:
The design and
implementation of
marketing programs
to build, measure,
and manage brand
equity.

Identifying and Developing Brand


Plans
Designing and Implementing Brand
Marketing Programs
Measuring and Interpreting Brand
Performance

Growing and Sustaining Brand


Equity

1.77

Identifying and Developing Brand


Plans

Brand Positioning Model

Brand Resonance Model

How to create a position in the minds of customers and


guide integrated marketing to maximize CA

How to create intense, active loyalty relationships

Brand Value Chain

Traces the value creation process to better understand


the financial impact of brand marketing expenditures and
investments.

1.78

Designing and implementing Brand


Marketing Program

Choosing brand elements (mixing and


matching)
Integrating the brand into marketing activities
and the supporting marketing program
Leveraging secondary associations

1.79

Measuring and Interpreting Brand


Performance

Marketers must develop and implement a BEMS to


manage brands profitably

BEMS is a set of research procedures designed to provide


timely, accurate, and actionable information for marketers so
that they can make the best possible tactical decisions in the
short run and the best strategic decisions in the long run

BE measurement system involves:

Brand audits

Brand tracking studies

Brand equity management system


1.80

Measuring and Interpreting Brand


Performance

Brand audits
audits:: A comprehensive examination of a brand to, assess
its health, uncover its sources of equity, and suggest ways to
improve and leverage that equity

Brand tracking studies: Collecting information from consumers,


on a routine basis over time on key dimensions identified in the
brand audit or other means to know how brands and marketing
programs are performing

BE management system:
system: A set of organizational processes
designed to understand and use of the BE concept within a firm

Three steps help implement a BEMS: creating BE charters, assembling


BE reports, and defining BE responsibilities

1.81

Growing and Sustaining Brand Equity

Defining brand architecture

Managing over time

Managing BE over geographic boundaries,


cultures, and market segments

1.82

Defining Brand Architecture

Provides general guidelines about branding strategy


and the brand elements to be applied across all the
different products sold by the firm

Two key concepts in defining BA:

Brand portfolio: A set of different brands that a particular


firm offers for sale to buyers in a particular category
Brand hierarchy: Displays the number and nature of
common and distinctive brand components across the firms
set of different brands.
brands

1.83

Managing Brand Equity Over Time

A longlong-term perspective of brand management


recognizes that:

Any changes in the supporting marketing program may


affect the success of future marketing programs

A longlong-term view produces proactive strategies to


enhance CBBE and reactive strategies to revitalize
a brand that encounters problems

1.84

Managing Brand Equity over Geographic


Boundaries, Cultures, and Market
Segments

In expanding a brand overseas,


overseas,
managers need to build BE by relying on specific
knowledge about
the experience and behaviors of those market
segments

1.85

Managing Brand Equity over Geographic


Boundaries, Cultures, and Market
Segments

Global branding decisions

Decide which markets to enter

Decide how to enter the market

Decide on the marketing program

Decide on marketing organization

1.86

Managing Brand Equity over Geographic


Boundaries, Cultures, and Market
Segments
Building Global CBBE

Understand similarities and differences in the global


branding landscapes
No shortcuts
Establish marketing infrastructure
Integrated marketing communication
Brand partnership
Balance standardization & customization
Local and global control
Establish operable guidelines
Global BEMS
Brand elements
1.87

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