Module III Introduction to Brand and Brand Management

Brand as a Generic Programme

The Product and the Brand
Strategic Brand Management Process
Concept of Brand Equity
Brand Identity & Positioning

Brand
It is a sellers promise to deliver
consistently a specific set of
features, benefits and services to
buyers.
Though
brand
is
to
create
differentiation but brand name
itself cannot act as a differentiator.
The strength of brand is directly
proportional to the expectations of
the customers about it.

Branding Now
A brand is an intangible asset that
resides in peoples minds, which is
defined by the expectations people have
about the benefits they will receive.
These expectations of benefits are
developed over time by communications
and - more importantly - by actions.
Branding is Experiential and not only
the brand manager but Everyone is
Responsible For it.

A brand delivers four levels of

meaning:

1. Attributes: A brand first brings to mind certain

attributes which the marketer can use for
advertising.
2. Benefits: customer do not buy attributes, they
buy benefits. for example:
Attribute: Moov is not black
Benefit: it will not leave any stain on clothing
(unlike Iodex).
3. Values : a brand conveys about the buyers
value. so, while targeting, a brand manager
must identify the segment, whose values
coincide with delivered benefits.
4. personality: A brand also projects a personality.
if the brand is assumed to take shape of a
person, what kind of person would it be ?

Product vs. brand

A brand is a product, but with added dimensions,
which differentiates it in some way from other
products designed to satisfy the same need.
These differences can be rational and tangible I.e.,
related to product performance. e.g. consumer
durables
These differences can be more symbolic,
emotional and intangible like customers
perception about the brand. e.g. cold drink
By creating perceived differences among products
through branding, marketers create value and
loyalty which provides financial benefits to them.

Advantages of branding for

consumer

Identification of source of product

Risk reducer
Search cost reducer
Promise, bond or pact with the
maker
Symbolic device
Signal of quality
Acceptance in society

Advantages of branding
for mktr

Easy for the seller to track down problems and

process orders
Provide legal protection of unique product
features
Branding gives an opportunity to attract loyal
and profitable set of customers
It helps to give a product category at different
segments, having separate bundle of benefits
It helps build corporate image
It minimizes harm to company reputation if
the brand fails. e.g. Dhara mustard oil

Strategic Brand Management

Process
STEP 1 Identifying & Establishing Brand Positioning &
Values

Act of designing companys offer & image so that it

occupies a distinct and valued place in the customers mind

It also takes into consideration:

Competitive Frame of Reference
Points of Parity & Points of Differences
Brand Values attributes & benefits that characterize a brand
Brand Mantras the brand DNA

STEP 2 PLANNING & IMPLEMENTING BRAND MARKETING PROGRAMS

1. Choosing Brand Elements

Visual & verbal information that serve to identify & differentiate a
product
Brand names, logos, symbols, characters, packaging & slogans
Chosen to enhance brand awareness & facilitate strong,
favorable & unique brand associations

2. Integrating the Brand into Marketing Activities &

Supporting Marketing Programs
All the marketing programs are included in this

3. Leveraging Secondary Associations

Brand may be linked to other entities that have their own
associations
Such as company, county of origin, channel of distribution,
other brands, characters, spokesperson, or events

Strategic Brand Management

Process
STEP 3 MEASURING & INTERPRETING BRAND
PERFORMANCE
A set of research procedures are designed to
provide timely, accurate & actual information for
marketers
This information facilitates the decision making
process

Strategic Brand management

Process
STEP 4 GROWING & SUSTAINING BRAND
EQUITY
Defining the branding strategy
Managing brand equity over time
Managing brand equity over geographic
boundaries, cultures, and market segments

What is Brand Equity?

General Definition:
The difference between the direct
economical value of the brand and
the price a customer is willing to
pay for the product.

What is Brand Equity?

Brand Equity is the sum total of all the
different values that people attach to
a brand name
Reflected in how consumers think, feel
& act W.R.T. the brand.
Reflected as prices, market share &
profitability the brand commands for
the firm.
It is a common denominator to
interpret and assess the psychological
& financial value of a brand

Customer Based Brand Equity

(CBBE)

One of the latest perspectives to

define brand equity.
Concept given by Kevin lane Keller.
It takes customers perspective.
Assumes brand power = what
customers has learnt, felt, seen and
heard about a brand as a result of
past experience.
According to this model ,consumer
knowledge drives the differences
that manifest themselves in terms of

Customer-Based Brand
Equity
Customer is aware of and familiar with the
brand
Customer holds some strong, favorable, and
unique brand associations in memory
The
differential
effect
of
brand
knowledge on consumer response to the
marketing of the brand is known as
customer based brand equity.

Sources of Brand Equity

Brand knowledge is the key of
brand equity.
How to create brand knowledge?
Brand
knowledge
= brand equity

Brand
awareness

Brand
recognition

Brand image

Brand recall

Benefits of Brand Equity

Greater loyalty, lesser vulnerability

Higher prices, Larger margins
Additional brand extension opportunities
Channel power - greater trade support
Additional retail shelf space
Reduces customer switching behavior
Prevents erosion of market share
Legal protection of the brand
Licensing opportunities

Building a strong brand

For it u need to answer following four questions
asked by customers:
1. Who are u? (brand identity)
2. What are u? (brand meaning)
3. What about u? what do I feel or think about
u? (brand responses)
4. What about u and me? what kind of
association and how much of a connection
would I like to have with u? (brand
relationships)

Consumer-Based Brand Equity

Emotional route

4. Brand
relationships

3. Brand
responses.

2.Brand meaning

1. Brand identity

Consumer Acceptance Cycle

Rational route

INTENSE,ACTIVE
INTENSE,ACTIVE
LOYALTY
LOYALTY
RATIONAL&
RATIONAL&
EMOTIONAL
EMOTIONAL
REACTIONS
REACTIONS
POINTSOF
POINTSOF
PARITY&
PARITY&
POINTSOF
POINTSOF
DIFFERENCE
DIFFERENCE

DEEP,BROAD
DEEP,BROAD
BRAND
BRAND
AWARENESS
AWARENESS

Consumer
Brand
Resonanc
e
Consumer Consumer
Judgments Feelings

Brand
Performa
nce

Brand
Imagery

Brand Salience

Consumer Acceptance Cycle

Consumer-Based Brand Equity

Pyramid
4. Brand
relationships

3. Brand
responses.

2.Brand meaning

1. Brand identity

BRAND SALIENCE

Measures awareness of the

brand
Brand at top of mind or not?
What type of cues &
reminders are required?
Customer has to be clear
about Category Identification
Needs Satisfied & Secondary
Features

2. BRAND PERFORMANCE
It describes how well the product meet
customers functional demands.
Parameters used for evaluation:
ingredients of the product
Product Reliability,
Durability & Serviceability
Service Effectiveness, Efficiency,&
Empathy
Style and Design;
Price

3. BRAND IMAGERY

It includes the ways in which brand attempts to

meet customers psychological or social needs.
It is the way people think about a brand abstractly
and not actually.
Imagery associations can be made directly or
indirectly.
Four intangibles can be linked to the brand:
User Profiles
Purchase and Usage Situations
Personality & Values
History, Heritage, & Experiences

4. BRAND JUDGEMENT

It is customers personal opinion or evaluation of

the brand.
It is combination of brand performance & brand
imagery.
Four types of judgments are particularly important:

1. Brand quality

Value
Satisfaction

2. Brand credibility

Expertise
Trustworthiness
Likeability

3. Brand consideration

Relevance

4. Brand superiority

Differentiation

5. BRAND FEELINGS

These are customers emotional responses &

reactions to the brand.
It also includes the feelings evoked by marketing
program for the brand or by other means.
Few important brand feelings are:
Warmth, (Hallmark)
Fun (Disney)
Excitement,(MTV)
Security, (LIC)
Social Approval, (Mercedes)
Self-Respect (Mountain dew)

6. BRAND RESONANCE
It describes the nature of relationship between the brand &
customer.
It is characterized in terms of intensity, or the depth of
psychological connect in form of:

Behavioral loyalty
Frequency and amount of repeat purchases
Attitudinal attachment
Love brand (favourite possessions; a little pleasure)
Proud of brand
Sense of community
Kinship
Affiliation
Active engagement
Seek information
Join club
Visit website, chat rooms

Cult brands
Cult stands for culture; a system of
serious devotion towards a particular
figure or object
It is a fan following of customers and
their loyalty towards their
aspirational brands
A cult is the result of peoples opinion
of your brand
Therefore you have to find a way
how you can attract customers
representing your brand image and
give them a sense of belonging.

Kapferers brand identity prism

In 1986, J.N.Kapferer proposed that brand is
having gift of speech.
It speaks of the product it creates & can be
analyzed as any other form of
communication.
This model is having sender (brand
marketer) & receiver (prospect).
It includes a vertical division.
Left side externalization social facetsoutward expression-visible facets of brand
Right side- internalization-internal to brandnot visible- stays in spirit of brand.

The Kapferer Brand Identity

Prism
PICTURE OF SENDER
Physique

Personality

EXTERNALISATION

INTERNALISATION

Relationship

Culture

Reflection

Self-Image

PICTURE OF RECIPIENT

Kapferers brand identity prism

Physique :
what the product is,
what does it do,
how does it add value to customers.
Personality
What are the features of brand if it was a
person?
Brand characters like fido-dido,
maharaja, ronald are the shortcuts for
creating it.

Kapferers brand identity prism

Culture:
The values feeding the brands inspiration.
Brands are driven by a culture.
Brands also convey this culture.
Mercedes German values - order prevails
Even @ 260 km/h- it remain stable
Symmetry governs this brand.
The brand symbol at nose tip enforces
same.

Kapferers brand identity prism

Relationships:
How does the brand want to be seen
by
customers
in
marketing
communication?
Nike encourages us to let loose (just
do it!)
IBM orderliness, Apple friendliness
The Laughing Cow- mother child
relation
Diors
symbolizes
grandiose
&
ostentatious relation, flaunting the
desire to shine like gold.

Kapferers brand identity

prism
Reflection:

A brand tends to build an image of the

buyer which it seems to be addressing .
Reflection Vs. Target?
Brand should reflect customer as he or she
wishes to be seen as a result of using the
brand.
It provides a model with which to identify.
Brand must project a flattering image of
their clients.
Pepsi make you feel young and Thums up
drives you toward adventure.

Kapferers brand identity

Self Image: prism

Reflection is targets outward mirror (they

are..) while self image is targets own
internal mirror (I feel, I am )
All of us tend to develop a certain type of
inner relationship with ourselves.
What would the users imagine while using
the product?
Many Porsche owners want to prove to
themselves that they have the ability to
buy such a car