A Brand is: name, term, sign, symbol, design, or combination of these.

Brand: derived from the old Norse word

Brand
“brandr” which means “to burn.”

Brand Name Brand mark Trademark Copyright

Legal right to
Vocalized part of Symbol, design, Part of the brand
reproduce,
the brand... color, letters given legal
publish and sell the
Tide, Avon, Chevrolet, Pillsbury doughboy, protection to
matter and form of a
Disneyland, MGM Lion, brand name
literary musical or
AMEX K on Kodak box or brand mark
artistic work

The process of branding encompasses all elements of the brand...

Brand Introductions and Growth

The level of marketing effort supporting brand introduction depends on ...

Product
quality
Growth Firm
rate of familiarity
the with the
market market

Size of the Firm’s

market resources

Low market
concentration
Findings on Brand introductions

Managers should expect better results in terms of market share in markets where a
1
limited number of brands hold a large share which renders such market more
attractive to new brands

2 A new brand should be supported with a larger effort when introduce into a fast
growing market than when the market is mature

3 The amount of communication effort used to introduce a brand depends

on only one manufacturer characteristic--the availability of resources
Why does branding become critical ?

Involvement in
High purchase Low

Consumer sees
differences in Variety seeking
Complex buying
brands buying
behaviour
behaviour

Consumer does not Dissonance reducing

see differences in Habitual buying
buying
behaviour
brands behaviour

In which of these quadrants is branding most critical? And why?

Branding and its economic sense

‘‘brands are created because buyers crave information. They see a huge
range of products that look the same and seem to perform similar . . .

. . . brands offer a route through the confusion.’’ Economist,1994

Branding is manufacturer “signaling” which can create a “separating”

equilibrium
Making marketing sense out of branding

Help Process / Retrieve Summarize a set of facts/specifications that are difficult for the
Information customer to process/access, and expensive to communicate

Differentiate
Image differentiation

Generates confidence in the product attributes, customer benefits,

Reason to buy
increases credibility & confidence

Basis for brand Generates more opportunities in other product categories through
extensions brand extensions
Strategic question in branding...

‹ What does the consumer see as Salience / strengths

of the brand
the significance of brand?
The reputation of the firm &
Buyer image
‹ Who should brand and own the brand?

The risk could be high price ,

‹ What risks does the consumer see? product failure, lack of after sales etc.

‹ What information does the consumer Reputation , past sales,

comparative brand price
needs? and service etc
Weber’s law effect on brand awareness and effect of sound brands

JND for brand launch and building consumer acceptance

Weber's Law states that the stimulus change needed to reach the differential threshold
(produce a “just noticeable difference”) is a constant proportion of the starting stimulus
value for any brand to “get noticed”

Assume that through testing we found that;

1 ounce (ABSOLUTE STIMULUS = 1) had to be added
to a 10-ounce container of liquid soap (STARTING Awareness
value ~ 10) level
before consumers detected a change in its weight. Sub-optimal
This would yield a constant of proportionality of stimulus
generation

K = 1/10 = 0.1, allowing us to predict that:

(1) consumers will not detect a change in the weight

of the larger 50-ounce economy bottle of the soap
unless at least 5 ounces are added to or removed from .5 ounce 1 ounce
it or
Stimulus weight
(2) consumers will be able to detect a 3-pound Stimulus gets noticed beyond 10%
addition to a 20-pound portable television
weight of starting value
How does the mechanics of branding work?

A typical communication build up

High

Action

Involvement Desire
in the
decision Interest

Awareness is an Advertising based

activity ...
Awareness
Low
however, branding focuses on
High
building Interest and Desire to try the
Low Transactional
completeness
product
Strong brands v/s Weak brands

The level of memory recall

Memory
Top of the
mind

Unaided recall for the

brand

Aided recall for the brand

Memory of the brand drives purchase

How culture values influence purchase decisions

Product
class choice
criteria
(critical
product
Beliefs and
attributes)
attitudes about
product class
Product class
Terminal values selection

Brand class
selection
Instrumental
values Brand Beliefs and
choice attitudes about
criteria brand class

(critical
brand
attributes)
Levels of brand exposure

– Power
Power Brands
Brands
Brand power

– Brands
Brands

– Names
Names

Local / Regional National Global

Market presence

Sustained effort will create not just names . . . but brands

Branding concepts - Identity and Image

Identity Image

- Image is on the receiver’s side.

- Identity is on the sender’s side.

- The image refers to the manner in

- The sender’s duty is to specify the
which the public decodes all the
meaning, intention and vocation of the
signals emitted by the brand
brand.
through its products, services and
communication program
- In brand management terms identity
precedes image.
- It is a reception concept.
BRANDS - Identity and Image

Sending Media Receiving

Signals
Brand Identity Brand Image
Transmitted

Competition
and
Noise
Brand Types

item characterized by plain label, with no

Generic
clear differentiation
product
e.g. Xerox, Bisleri

brand name owned by a manufacturer or other

Manufacturers’
producer
brand
e.g. Coca Cola

brand name placed on products marketed by

Private
wholesalers & retailers
brand
e.g. Stop garments from Shoppers Stop

brand name that identifies several related products

Family
e.g. Kissan Anapurna atta , jams , biscuits etc..
brand
(Food category)

unique brand name that identifies a specific offering

Individual within a firm’s product line and that is not grouped
brand under a family brand
e.g. Dove soap from HLL
Brand power in degree

Brand insistence Ö stage of brand

where the customer refuses to
accept any other brand except
the preferred brand

Brand preference Ö stage of brand Market

acceptance at which the consumer universe
(All potential buyers
selects one brand over competing offerings of the product
Target
based on previous experiences with buyers
(Buyers
(Buyers who
who
that brand start
start preferring
preferring Brand
aa brand)
brand)
Brand recognition champions

Brand recognition Ö stage of brand acceptance Brand preference

at which the consumer knows of a brand but does Brand insistence

not prefer it to competing brands

Decreasing size of
the market
Creating Loyalty for the brand Varying degrees of
brand loyalty

Non-consumers

Price switchers

Fence sitters/ neutrals

Enhancing Loyalty
Passively loyal
Frequent-Buyer Programs,
Customer Club, Database
Committed
marketing etc
The Hierarchy of effects model of advertising

Brand loyalty

Belief Attitude
reinforcement reinforcement

Beliefs Attitudes

Trials

Expectations

Awareness

Unawareness
Branding realities on loyalty

Managerial Implications Journal of Marketing, Volume 49, Winter 1985

A Brand seeking to improve market position needs to rely heavily on

customer retention efforts while increasing share of users.

If only a smaller fraction of customers attracted are retained as loyal

customers, allocation efforts are likely to be more even between
attraction and retention efforts
Branding realities

Managerial Implications Journal of Marketing, Volume 49, Winter 1985

For Brands with smaller user shares the retained fraction of new customers
has to be higher, which necessitates more marketing effort in retention

Research show that large market share business have lower advertising
to sales ratio.

It also implies that as number of brands increases, loyalty levels decline

sharply at first and then begin to level off
Brand equity affects buyer behavior

Recommends the brand to other

buyers
No Yes

Brand Brand
Buys the
brand deserter champion

Target
buyer
Does not buy Brand
the brand Non Trier
apostle

Strongest branding effects are seen in the “brand apostle” stage

Brand Equity

Brand
Brand Equity
Equity is
is aa set
set of
of assets
assets (&
(& liabilities)
liabilities) linked
linked to
to the
the brand
brand name
name &
& symbol
symbol that
that adds
adds to
to
(or
(or subtracts
subtracts from)
from) thethe value
value provided
provided by by aa product
product

Brand
Brand Equity
Equity is
is aa set
set of
of assets,
assets, Brand
Brand Equity
Equity adds
adds value
value to
to the
the
thus
thus management
management of of consumer
consumer and
and the
the firm
firm
brand
brand equity
equity involves
involves investment
investment
to
to create
create and
and enlarge
enlarge these
these assets
assets
Consumer-Based Brand Equity Pyramid

Consumer Acceptance Cycle

Consumer- 4 Intense, Active Loyalty
Brand
Resonance

Consumer Consumer 3 Positive Accessible Reactions

Judgement Feelings

Brand Brand
Imagery 2 Points of Difference
Performance

Brand Salience 1 Deep Broad Brand Awareness

Consumer-Based Brand Equity Pyramid

Loyalty
Resonance Attachment
4 Brand Relationships (WHAT
Community About You AND ME?)
Engagement

Warmth, Fun Feelings

Quality
Excitement,
Judgement Credibility 3 Brand Response (WHAT About
Consideration Security, Social
Approval, You?)
Superiority
Self-Respect
Brand Characteristics User Profiles Imagery
Performance & Secondary Features Purchase and Usage
Product Reliability,
Durability & Serviceability
Situations 2 Brand Meaning (WHAT Are You?)
Service Effectiveness, Personality & Values
Efficiency & Empathy History, Heritage, &
Style and Design; Price Experiences

Category Identification
Needs Satisfied
1 Brand Identity (WHO Are You?)

Salience
How does the brand relate to the customer?

Differentiation How distinctive is the brand is in the market place?

Relevance Is it meaningful to him or her ? Is it personally appropriate ?

Esteem Is the brand held in high regard and considered the best in
its class?

Knowledge Does the customer understand as to what a brand stands for?

Brand Power = Differentiation x Relevance X Esteem X Knowledge

Brand Equity elements : Luxury car - McKinsey & Co.
Origin
Internal “European / Japanese”
“makes me feel pampered”

External Reputation

In
ta
“tells others that I am “Design and performance”

its

ng
successful”

ef

ib
Evolution

en

le
B
Perceived value

A
“Will become the leader in high-

ss
na
performance machines””
”very expensive, but worth it”

o
io

ci
ot

at
Em

io
ns
What the Brand Brand Who the
brand offers brand is
benefits identity
Functional
R
at

Activities
io

“easy in driving”

e
na

nc
“Sponsors premier racing
l

Process

e
events”
be

es
n

Pr
“Dealer network that knows my
ef

profile wherever I go”(Toyota) Presentation

it s

“has distinct logo incorporated into

Relationship select design elements
“Has related affinity (e.g.Wheels of the car)
programs I like” (Mercedes
Clubs)
The three variables in the brand anatomy (Young and Rubicam model)
Differentiation X Relevance
= Brand Strength.
>> If there is no point of
difference, a brand’s value will
be low.
>> Relevance comes next.
Unless a brand is relevant to a
significant segment, it will not
attract a large customer base.
Esteem X Knowledge
= Brand Stature.
>> Esteem combines perceived
quality with perceptions of a
growth or decline in popularity.
>> Knowledge indicates that
the customer not only is aware
of the brand but also
understands what the brand
stands for.
Comparing Esteem & Knowledge:
>> Some brands rank higher in
esteem than in knowledge. This
means relatively few people
understand what the brand stands for,
but those who do hold it in
high regard.
>> Conversely a brand may have high
knowledge but low esteem.This means
that more people know what the brand
stands for, but relatively few hold it in
high regard.
The Y&R grid

Brand Stature (Knowledge and

Esteem)

Low High

Disney
High Swatch watches
Sony
Brand
Differentiation
and relevance
Low Bayer
Starbucks coffee
Oldsmobile
Inter brand (UK) valuation of brands

500 brands were evaluated under these criteria and rated for maximum value under
these criteria . . .

Leadership: A brand that leads its market sector is more stable and powerful than the
second, third, & the fourth place brands

Stability: Long lived brands with identities that have become part of fabric of the market and
even the culture are particularly powerful and valuable

Market : Brands are more valuable when they are in markets with growing or stable sales levels
and a price structure in which successful firms can be profitable

International : Brands that are international are more valuable than national or regional brands,
in part because of economies of scale
Inter brand (UK) valuation of brands

Trend : The overall long-term trend of the brand in terms of sales can be expected to reflect
future prospects

Support : Brands that have received consistent investment and focused support are regarded as
stronger than those who have not

Protection : The strength and breadth of a brands legal trademark protection is critical to the
brand’s strength.
Aaker’s Brand equity is based on understanding of the following critical areas ...
Price Premium
The amount a customer will
pay for the brand in
comparison with another
brand offering similar
or fewer benefits.
>> The price premium can
be determined by simply
asking customers how
much more they would
be willing to pay for the
brand
(This is called Dollar Metric)
Customer Satisfaction
Perceived Quality
/ Loyalty
Perceived Quality
directly affects both
Satisfaction (or liking) ROI and Stock Return.
is a direct measure >> Perceived Quality
of how willing can be measured with
customers are to scales such as
stick to a brand. following.
a ) High quality v/s Shoddy quality.
b ) Best in category v/s Worst in category.
c ) Consistent quality v/s Inconsistent Quality
Aaker’s Brand equity is based on understanding of the following critical areas ...

Leadership / Popularity

Brand Leadership has three key dimensions ...

People want to be
apart of the
bandwagon and
are uneasy
against the flow

A brand can
move head
It reflects in part technologically
the
“number one LG leader in
Plasma TV
syndrome”.
Aaker’s Brand equity is based on understanding of the following critical areas ...

Perceived value
Perceived value is mentioned along the following
dimensions ...

Whether the brand proves good value for the money

No Yes

Comparatively
Yes Winner brands
superior brands
Whether there is a
reason to buy this
brand over others
No Non differentiated
Loser brands
brands
Aaker’s Brand equity is based on understanding of the following critical areas ...
Brand Personality
Brand Personality provides
links to the brand’s emotional
and self expressive benefits
as well as a basis for
brand-customer relationship
and differentiation
Organizational Associations
This brand is made by an
organization I would trust
I admire the brand “X”
organization
I would be proud (or pleased) to
do business with the brand
TATA’s as an organization
Aaker’s Brand equity is based on understanding of the following critical areas ...

Brand Awareness

Awareness reflects the presence of the brand in the mind of Customers

• Recognition: “Have you heard of the Buick Roadmaster”.

• Recall: “ What brands of car can you recall ? ”

• Graveyard statistics: “recall level of those who recognize the brand”.

“How much do you recall?” Fully or Partially.

• Top-of-Mind : “the first named brand in a recall task”.

• Brand dominance : “ the only brand recalled ”.

• Brand Familiarity : “ the brand is familiar ”.

• Brand knowledge or salience: “ you have an opinion about the brand ”.

Aaker’s Brand equity is based on understanding of the following critical areas ...

Market Share Market share = ƒ (Brand equity)

Market
share

Major brands in the category

who have large equities
usually tend to have large
market shares

Brand Equity

Market Price And Distribution Coverage:

• Market share can be a particularly deceptive brand equity measure when it increases as a
result of reduced prices or price promotions.
• Thus it is important to measure the relative market price at which the brand is being sold.
Brand Extensions and growth of the portfolio
Brand Extensions

Products
Existing New

Existing Product Line Brand

extensions Extensions

Brands

New Multi brands Single brands

The portfolio can leverage itself if it can extend the brand to

other categories
Brand extensions are in the following categories...

Knorr is staple product

from HLL
Related category It is a mother brand in the
(Brand line extensions) category that covers
Atta, Soup etc..

Brand
Extensions

Tata’s leveraging their

Pure Brand corporate brand equity
Extensions in Chemicals, Salt, Cars
etc..

Brand extensions represent an opportunity for firms to use the equity built up in the
names of existing brands in order to enhance marketing productivity
Impact of extensions on equity?

Brand extensions can affect the brand and its equity in one of the three different ways:

• Certain brands exploit the brand capital. The product sells thanks to the brand’s
contribution. This is the case when the concerned product scarcely differs from
existing market competition.

• Certain extensions destroy the brand’s equity. If the new product introduced under
an existing brand has no relationship with the core values of parent brand then the
brand equity can get eroded.

• Certain extensions have a neutral effect. Here the brand simply falls in line with
what is expected of the brand.
How does the brand extension logic work ?

Category
Category Based
Based Affect
Affect Transfer
Transfer

•• The
The affect
affect associated
associated with
with the
the parent
parent brand
brand is
is transferred
transferred to
to the
the brand
brand extension
extension only
only when
when

there
there is
is aa fit
fit between
between the
the parent
parent and
and the
the extension
extension categories.
categories.

•• Fit
Fit serves
serves as
as aa signal
signal or
or cue
cue that
that the
the consumers
consumers use
use to
to make
make inferences
inferences about
about aa new
new product.
product.

•• Attitude
Attitude (Consumer
(Consumer opinion)towards
opinion)towards the
the extension
extension was
was higher
higher when
when there
there was
was aa fit
fit between
between the
the

extension
extension and
and the
the parent
parent product
product classes
classes along
along one
one of
of the
the dimensions
dimensions

•• Transfer
Transfer // Complementary
Complementary products.
products.
How does the brand extension logic work . . .

Brand
Brand has
has aa positive
positive impact
impact on
on the
the success
success of
of an
an extension
extension ifif the
the extension
extension is
is in
in aa similar
similar
product
product category.
category.

Extension evaluation was enhanced only when there was brand

concept consistency and product feature similarity between extension

and parent categories.

Effective
brand
extensions
The prestige brand concept also seemed to have greater extendibility

to dissimilar product classes than functional brand concepts, when it

offered extensions consistent with its brand concept.

Good to be early or better to be late ?

There are several factors that can affect the brand extension’s timing of entry decision.

Two reasons for brand extensions to enter late are

4the high-product failure rates in young markets will subject an extension’s parent
brand to risk,
and
4extensions may have positioning difficulties in young markets.

Two reasons for brand extensions to extend early are

4the possibility of gaining early mover advantages, and

4the extension’s known brand name may reduce the new product’s chance of failing.

The results indicate that early-entering brand extensions do not perform as well on average as
either early-entering new-name products or late-entering brand extensions.
Good to be early or better to be late ?

This conclusion is based on four findings.

1) the brand extensions were introduced later on average than the new-name products.

2) the early brand extensions had a lower probability of surviving than either the early-entering

new-name products or late-entering brand extensions.

3) the brand extensions earned higher market shares on average than the new-name products,

4) the extensions obtained smaller market share from entering early than did new-name

products.
The extensions of brands
Market based possibilities

Upward
Extensions are extension
successful Esteem
brand Downward
and unsuccessful in extension
all categories
Related
(High Fit)

Upward
Average extension
Brand brand
Downward
extension
extensions

Upward
extension
Esteem
brand Downward
extension
Unrelated
(Low Fit)
Upward
Average extension
brand
Downward
extension
The Effects of Sequential Introduction of Brand Extensions

The use of established brand names to enter new product categories or classes can substantially reduce
introductory marketing expenses and enhance the prospects of success by helping gain retailer and
customer acceptance.
Dr Aaker & Dr. Keller on sequential entry
Study aimed at finding out : how is the knowledge about the core brand, and any previous extensions and the perceptions
about the fit between those products and the proposed extensions affect the evaluation of the extensions

Findings:
Findings:

•• High
High quality
quality brands
brands stretch
stretch farther
farther than
than average
average quality
quality brands.
brands.

•• Successful
Successful intervening
intervening extensions
extensions improved
improved evaluations
evaluations of
of aa proposed
proposed extension
extension for
for an
an average
average quality
quality
core
core brand:
brand:

•• Unsuccessful
Unsuccessful intervening
intervening extensions
extensions decreased
decreased evaluations
evaluations of
of aa proposed
proposed extension
extension for
for aa high
high quality
quality
core
core brand.
brand.

•• A
A successful
successful intervening
intervening extension
extension increased
increased evaluations
evaluations ofof an
an average
average quality
quality core
core brand,
brand, but
but an
an
unsuccessful
unsuccessful intervening
intervening extension
extension did
did not
not affect
affect evaluation
evaluation of
of the
the core
core brand.
brand.
The Effects of Sequential Introduction of Brand Extensions

Dr Aaker & Dr. Keller on sequential entry . ..

Findings
Findings

•• Perceived
Perceived company
company credibility
credibility and
and fit
fit appear
appear to
to mediate
mediate the
the effects
effects of
of intervening
intervening extensions
extensions on
on
evaluations
evaluations of
of aa proposed
proposed extension.
extension.

•• The
The relative
relative similarity
similarity of
of intervening
intervening extensions
extensions had
had little
little differential
differential impact
impact on
on evaluations
evaluations of
of aa
proposed
proposed extension.
extension.

•• Multiple
Multiple intervening
intervening extensions
extensions can
can have
have different
different effects
effects than
than aa single
single intervening
intervening extension.
extension.

•• Intervening
Intervening extensions
extensions of of mixed
mixed success
success have
have effects
effects more
more like
like those
those of
of aa single
single failed
failed intervening
intervening
extension
extension than
than those
those of
of aa single
single successful
successful intervening
intervening extension.
extension.

•• An
An unsuccessful
unsuccessful extension
extension does
does not
not prevent
prevent the
the firm
firm from
from backtracking.
backtracking.
Brand positioning and advertising thrust for share maintenance
BRANDS - Brand Positioning

Brand Positioning applies to a process of emphasizing the brands distinctive

and motivating attributes in the light of competition.
It refers to what product segment does the brand belong and what is its specific
difference.
It is based on an analysis of response to the following 4 questions

Why? For Whom?

When? Against Whom?

BRANDS - Brand Positioning

1) Why or for what? What is the specific consumer benefit or exclusive

motivating attribute justifying the brand. e.g. Sony - Innovation

2) For Whom? This indicates a target. e.g.- 7 Up- Teenagers, Canada Dry-
Adults

3)When? Indicates the occasion on which to use the product. e.g. Titan as
gift.

4) Opposed to Whom? Points to the main competition, those brands from

one whom the one aspires to capture the clientele.

e.g.- Pepsi Challenge and the Uncola campaign- 7Up

SOV / SOM effect on branding strategy

High
Find a defensible niche Increase advertising and
and decrease defend position for brand
advertising for the brand

Competitors share
of Voice
Maintain modest
Attack with large SOV
advertising premium to
premium to generate
maintain brand salience
brand effects
Low

Low Your share of High

market
End of Current Deck