1.

Identity
Stimulate our senses
enrich our life experiences.
It is a human need to affiliate and
surround ourselves with things we know,
trust and aspire to be.

Brand
Management

1.4

1.5

1.6

1.7

Introduction
It has made a
conscious effort to
manage consumer
perceptions of its
brand.

It escalated its
position to become
the number one
brand in several
markets around the
world.

Samsung has
succeeded by putting
across the human
face technologytaking and
dominating the
emotional high
ground.

Techno
logy

Samsung
manufacturer of
mobile phones, has
been steadily and
consistently working
on its corporate
brand name over the
years.

These efforts of
creating a brand
image in the
customers minds
paid off for Samsung

Samsung has
successfully built a
corporate brand that
associates trust and
technology with
them

Thus, you can see

that a strong brand
leaves an imprint on
the customers
minds. Let us
understand more
about brands and
brand management.

What is a Brand?
Samsung brand promises trust and latest
The popular Starbucks has earned its brand image from the
technology

opinions of its customers.

The brand Starbucks stands for bolder, more
flavorful
Thus, you cancoffee.
see that Brands are what the
consumers buy, while products are what

Brand
is a promise that
the product will perform as per
concern/companies
make.
customers expectations.
It is a name, term, sign, symbol or a

combination of all these

which differentiate the

goods/services of one seller or group of sellers from those of
competitors.
Some examples of well known brands are Wrangler, Audi,
Samsung, Coca Cola, etc.

What is a brand?

For the American Marketing Association (AMA), a

brand is a , or a combination of them, intended to
identify name, term, sign, symbol, or design the
goods and services of one seller or group of sellers
and to differentiate them from those of
competition.

These different components of a brand that identify

and differentiate it are brand elements.

1.10

What is a brand?

Many practicing managers refer to a brand as

more than that as something that has
actually created a certain amount of
awareness, reputation, prominence, and so on
in the marketplace.

We can make a distinction between the AMA

definition of a brand with a small b and the
industrys concept of a Brand with a capital
b.
1.11

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.

1.12

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.
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.
The expected product level is a set of attributes or
characteristics that buyers normally expect and agree to when
they purchase a product.
The augmented product level includes additional product
attributes, benefits, or related services that distinguish the
product from competitors.
The potential product level includes all the augmentations and
1.13undergo in
transformations that a product might ultimately
the future.

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.

1.14

Some brands create competitive

advantages with product performance;
other brands create competitive
advantages through non-productrelated means.

1.15

Why do brands matter?

What functions do brands perform

that make them so valuable to
marketers?

1.16

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
1.17

Reducing the Risks in Product Decisions

Consumers may perceive many different types of

risks in buying and consuming a product:
Functional riskThe product does not perform
up to expectations.
Physical riskThe product poses a threat to the
physical well-being or health of the user or others.
Financial riskThe product is not worth the
price paid.
Social riskThe product results in
embarrassment from others.
Psychological riskThe product affects the
mental well-being of the user.
Time riskThe failure of the product results in
an opportunity cost of finding another satisfactory
product.
1.18

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.

1.19

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
1.20

Levels of Branding

Attribute Branding: Can be

tangible(colour, shape, size)
intangible(after sale service,
gurantee)
Emotional Branding: Deeper into
customers psychology positive or
negative
Benefit Branding: attribute
translating to specific benefit and
value to customer
Value Branding:
1.21

Type of Brands

A) According to Ownership:
i) Manufacturers brand
ii) Middle mans brand
B) According to market area
i) Local brand
ii) Regional brand
iii) National Brand
iv) International brands

C) According to number of products

i) Family brand
ii) Product line brand
iii) Individual brand
D) According to use
i) Fighting brand
ii) Competitive brand

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:

Coffee (Nescafe), bath soap (lux),salt (TATA),

oatmeal (Quaker), Spices (MDH), mineral water
(Bisleri)

1.24

An Example of Branding a
Commodity

De Beers Group added the phrase A

Diamond Is Forever

1.25

Limitation of Brand

Cost
Impersonal
Fixed Image
Timescale

1.26

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
1.27

Top Ten Global Brands

Brand
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Coca-Cola
Microsoft
IBM
GE
Intel
Nokia
Toyota
Disney
McDonalds
MercedesBenz

2006
($Billion)

2005 ($
Billion)

67.00
56.93
56.20
48.91
32.32
30.13
27.94
27.85
27.50
21.80

67.53
59.94
53.38
47.00
35.59
26.45
24.84
26.44
26.01
20.00
1.28