Chapter 1 Brands and Brand Management

Difference between Marketing and Sales

Marketing Sales determine future needs and has a Approach strategy in place to meet those needs makes customer demand match the for the long term relationship. products the company currently offers. Process One to many Usually one to one fulfill customer's wants and needs Focus thru products and/or services the company can offer. fulfill sales volume objectives Horizon Longer term Short term Identifying customer needs Once a product has been created for a (research), creating products to meet customer need, persuade the customer Scope those needs, promotions to advertise to purchase the product to fulfill her said products. needs Strategy pull push Concept Marketing is a wider concept Sales is a narrower concept Marketing shows how to reach to Priority the Customers and build long lasting Selling is the ultimate result of relationship marketing.

Who is common

The status dilemma

Neha is a working woman, and she needs a lunch box to carry to office. She remembers her father leaving for work every morning clutching his colourless stainless steel lunch box. But Neha shudders to even visualize the look on her colleagues faces if she walks into office with such a lunch box. Neha has a number of options available in the market to choose from, but she needs bright trendy containers, which can keep the food fresh for longer periods of time.

What is a brand?
A brand is a name, term, sign, symbol, design or a combination of the above to identify the goods or service of a seller and differentiate it from the rest of the competitors by American Marketing Association (AMA) Practicing managers refer to a brand as more than that- Brand is

something that has created a certain amount of awareness, reputation, prominence, and so on in the marketplace. Brand Elements: name, logo, package, design, etc

Brands vs. Products

A product is anything we can offer to a market for attention, acquisition, use, or consumption that might satisfy a need or want. A product may be a physical good, a service, a retail outlet, a person, an organization, a place, or even an idea.

Difference between a Product and a Brand

BRAND
Symbols
Country of origin Organizational associations Brand customer relationship Scope Functional benefits Quality/ value Attribute Product uses Emotional benefits
PRODUCT

Brand personality User imagery

Selfexpressive benefits

Concept of branding
For the consumers, a brand is a product. But for the maker or the seller, a brand is an identifier of its goods and services and a promise of consistently delivering the features/benefits that the consumers desire from the brand.

Five Levels of Meaning for a Product

The core benefit level is the fundamental need or want that consumers satisfy by consuming the product or service. (e.g.: Air-conditioner - cooling and comfort) The generic product level is a basic version of the product containing only those attributes or characteristics absolutely necessary for its functioning but with no distinguishing features. This is basically a stripped-down, no-frills version of the product that adequately performs the product function. (sufficient cooling capacity, energy efficient) The expected product level is a set of attributes or characteristics that buyers normally expect and agree to when they purchase a product. (cooling speed, adjustable louvers, warranty)

Five Levels
The augmented product level includes additional product attributes, benefits, or related services that distinguish the product from competitors. (display to show indoor and outdoor temperature, automatic mode to adjust fan speed, toll free number, customer service, etc.)

The potential product level includes all the augmentations and transformations that a product might ultimately undergo in the future. (silently running, energy self-sufficient)
A brand is therefore more than a product, as it can have dimensions that differentiate it in some way from other products designed to satisfy the same need.

Types of Brands
Generic product: item characterized by plain label, with no advertising and no brand name (Atta Wheat Flour) Manufacturers brand (national brand): brand name owned by a manufacturer or other producer (Pilsbury Atta General Mills)

Private brands (store brand): brand name placed on products marketed by wholesalers and retailers (Big Bazaar Atta)
Family brand: brand name that identifies several related products (AMUL Butter, Lite, Kool Milk, Kool, Kool Caf, Masti, ) Individual brand: unique brand name that identifies a specific offering within a firms product line and that is not grouped under a family brand (HUL Active Wheel, Cif, Rin, Surf Excel, Vim, Domex)

Brand Names Based On

Peoples name: Bajaj, Ben & Jerry's Ben Cohen and Jerry Greenfield, Philips (Gerard Philips) Place: British airways Animals or birds: Dove soap, Beetle (Volkswagen)

Others: Apple, Shell, etc Inherent product meaning: EasyPro (camera), LifeLong (luggage), PowerStroke (Tennis Racquets) Use of Prefix or Suffix that sounds scientific, natural or prestigious

Product Identification
Brand name: part of a brand consisting of words or letters that form a name that identifies and distinguishes a firms offering from those of its competitors Brand mark: symbol or pictorial design that identifies a product Generic name: branded name that has become a generically descriptive term for a class of products (e.g., Colgate, Xerox & Band-Aid)

Product Identification
Trademark: legal protection which confers the exclusive right to user brand name, trade mark, and any slogan or product name abbreviation Trade Dress: visual cues used in branding to create an overall look

When Product Identification is not possible

the product is a commodity

Why do brands matter?

What functions do brands perform that make them so valuable to 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

Reducing the Risks in Product Decisions

Consumers may perceive many different types of risks in buying and consuming a product: Functional risk: The product does not perform up to expectations. Physical risk: The product poses a threat to the physical wellbeing or health of the user or others. Financial risk: The product is not worth the price paid. Social risk: The product results in embarrassment from others. Psychological risk: The product affects the mental well-being of the user. Time risk: The failure of the product results in an opportunity cost of finding another satisfactory product.

Importance of Brands to Firms

To firms, brands represent enormously valuable pieces of legal property, capable of influencing consumer behavior, being bought and sold, and providing the security of sustained future revenues. 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 everything be branded?

Ultimately a brand is something that resides in the minds of consumers. The key to branding is that consumers perceive differences among brands in a product category. Even commodities can be branded:
De Beers Group added the phrase A Diamond Is Forever Rice Petrol

What is branded?
Physical goods Services Retailers and distributors Online products and services People and organizations Sports, arts, and entertainment Geographic locations Ideas and causes

Best Global Brands 2013 rankings

Rank Previous Rank Brand Brand Value ($m)

1 2 3 4 5

2 4 1 3 5

98,316 93,291 79,213 78,808 59,546

Best Global Brands 2013 rankings

Rank Previous Rank Brand Brand Value ($m)

6
7 8 9 10

6
7 9 8 10

46,947
41,992 39,610 37,257 35,346

Importance of Brand Management

The bottom line is that any brandno matter how strong at one point in timeis vulnerable, and susceptible to poor brand management.

Branding Challenges and Opportunities (Fig 1.10)

Savvy customers

Brand proliferation (new brands & products)

Media fragmentation (erosion of traditional advertising media Cost, Clutter, Fragmentation & Technology and emergence of interactive and nontraditional media, promotion and other communication alternatives) Increased competition (globalization, Low price competitors, deregulation..)

Increased costs
Greater accountability

The Brand Equity Concept

No common viewpoint on how it should be conceptualized and measured Increased importance of brand in marketing strategy Concept has been defined different ways for different purposes Brand equity is defined in terms of the marketing effects uniquely attributable to the brand. Brand equity relates to the fact that different outcomes result in the marketing of a product or service because of its brand name, as compared to if the same product or service did not have that name.

Strategic Brand Management

It involves the design and implementation of marketing programs and activities to build, measure, and manage brand equity.
The Strategic Brand Management Process is defined as involving four main steps:

1. Identifying and establishing brand positioning and values

2. Planning and implementing brand marketing programs 3. Measuring and interpreting brand performance 4. Growing and sustaining brand equity

Strategic Brand Management Process

Steps Identify and establish brand positioning and values Key Concepts Mental maps Competitive frame of reference Points-of-parity and points-of-difference Core brand values Brand mantra Mixing and matching of brand elements Integrating brand marketing activities Leveraging of secondary associations Brand value chain Brand audits Brand tracking Brand equity management system Brand-product matrix Brand portfolios and hierarchies Brand expansion strategies Brand reinforcement and revitalization

Plan and implement brand marketing programs

Measure and interpret brand performance

Grow and sustain brand equity