Brand

ManageSession 1

ment
Brands and Brand
Management

January 15th, 2017

 Todays
Agenda
Introduction
Some Housekeeping Rules
Course Outline and Overview
Text Book and Reference Books
Grading Plan
Term Report and Presentation
Overview of Brands and Brand
Management
A Reminder!
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 my
INTRODUCTION
A Business Professional with 23 years
post MBA
Experience

Farooq Profile Summary Updated.doc

 my
EDUCATION
MBA
IBA 199
Karachi 3
Bachelor of Commerce
Govt. National College
Karachi
1991
Text, Reference Books &
Contact Details
Text Books
Strategic Brand Management, Building,
Measuring and Managing Brand Equity
4thEdition - (Global Edition)
by Kevin LaneKeller

Reference Books
1. The 22 Immutable Laws of
Branding by Al Ries and
Laura Ries
2. Building Strong Brands by
David Aaker
 Course
Sessio Topic Outline Learning Outcomes
ns
What is a brand? - Importance of Brands (for Seller &
1 Overview of Brands and Brand Consumers),
Management Attributesof a Strong Brand - What is Brand Management? Brand,
Branding & Brand Management - Purpose of Brand Management
2 Customer Based Brand Equity and BrandOutline the sources and outcomes of Customer based Brand Equity,
Positioning Brand Positioning and its development process, Brand Mantra
and how it is developed?
3 Brand Resonance and Brand Value Understand the Brand Resonance, Steps in Building Brand
Chain Resonance, Brand Value Chain and
contrast Brand and Customer Equity
4 Choosing Brand Elements to Build BrandIdentification of Brand Elements, criteria for choosing brand
Equity elements and understand the
rationale for "Mixing and Matching" brand elements
5 Marketing Programs to Build Brand Identify new Perspectives and Developments in marketing, rationale
Equity for Value Pricing, and Direct
and Indirect channels
6 First Hourly Examination
Understand the changes in the new Media Environment, outline
6 Integrating Marketing Communications the major Marketing Communication Options and development
and Brand Equity of an Integrated Marketing Communication Plan
7 Leveraging Brand Associations Outline the main ways to leverage Secondary Associations and
 Course
Sessi Topic Outline Learning Outcomes
ons
9 Measuring Sources and Outcomes of Understand the effective Qualitative and Quantitative research
Brand Equity techniques for tapping into Consumer Brand Knowledge and
Advocacy Ladder
Outline the guidelines for developing a good Brand Portfolio,
10 Brand Portfolio and Architecture components of the Brand Architecture and understand the assembly
Strategies of a basic brand hierarchy for a brand.
11 Second Hourly Examination
Brand Name - Importance and Characteristics, Selection of Brand
11 Naming New Product and Brand Name and Brand Attributes. Understand the different types of
Extensions brand extensions with main advantages and disadvantages
and
their contribution to the parent Brand Equity
12 Managing Brands over Time Understand the important considerations in brand reinforcement, the
range of brand revitalization options to a company with
strategies to improve brand awareness
13 Managing Brands over Geographies Understand the rationale for developing a global brand, a
and Market Segments standardized global marketing and the
strategic steps in developing a global brand positioning
 Assessm
Quiz
Activity

5
Mark
s ent Duration

Max. minutes
Frequency

2 -3
Selectio Weight
n
Best 1
age
5%
Hourlies 30 One Hour 2 One 30%
Course Term 15 Whole Term 1 One 15%
Project
Report 10 10 -12 Minutes One One 10%
Presentation
Final 40 3 hours One One 40%
 Report /
Presentation
Launching a New Brand
Repositioning of an
existing brand
 Key
Concepts
A Snapshot of Marketing, Brand and
Branding
What is a Brand?
What is Brand and Brand
Management?
Why do Brands Matter?
Brands for Consumers and Sellers
Pros and Cons of Customer based
Brand Equity
What can be Branded?
What makes a Brand Strong?
Strategic Brand Management Process
 What is a
brand?
A brand is a product, service, or concept that is
publicly distinguished from other products, services, or
concepts so that it can be easily communicated and
marketed
A strong brand differentiates your products from the
competitors
It gives a quality image to your business
It includes developing a promise, making that
promise and maintaining it
Brands are different from products in a way that brands
are what the
consumers buy, while products are what
concern/companies make
Brand is an accumulation of emotional and functional
 What is a Brand?
On the other hand a name
becomes a brand when
consumers associate it with a
set of tangible and intangible
benefits that they obtain from
the product or service.
Brands are
not the
same as
Products.
Brand is the sellers promise
to deliver the same bundle of
benefits/services consistently
to buyers.
A product is any offering
by a company to a
market that serves to
satisfy customer needs
and wants. A product can
be an object, service,
idea, etc.
 What is a Brand?
Nokia brand promises trust and strong
technology
The popular Starbucks has earned its brand
image from the
opinions of its customers.
The brand Starbucks stands for bolder, more
flavorful
coffee.

Thus, you can see that Brands are what the

consumers buy, while products are
what concern/companies make.

Brand is a promise that the product will

perform as per customers expectations.
name, term, sign, symbol or a
It is 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?
American Marketing Associations definition

A brand is a name, term, sign, symbol, or design

which is intended to identify the goods or services
of one seller or group of sellers and to
differentiate them from those of competitors.

Attributes that identify the brand are called

Brand Elements (based on people, place,
objects, animals, etc.)

Practicing managers define brands as more

than that. This distinction is important since it

can lead to confusion.

 What is a
Brand?
Brand versus Product
Product is anything that can be offered to a market
for attention, acquisition, use or consumption that
may satisfy a need or a want (goods, services, retail
store, person, organization, idea)
Kotler defines 5 levels of a product
1. Core benefit level fundamental need or want
that is satisfied
2. Generic product level basic version
attributes necessary for
functioning (stripped down level)
3. Expected product level what customers
normally expect
4. Augmented product level additional
attributes, benefits that distinguish it from
 What is a
Brand?
A Brand is therefore a Product that also has
dimensions that differentiates it from other
products designed to satisfy the same need
(competition)
Differences may be
Rational and tangible : related to product
performance (3M, Sony, Gillette)
Symbolic, emotional, intangible:
related to what the brand represents
(Coca Cola, Calvin Kline, Marlboro)

What distinguishes a brand from a

commodity gives it equity - the sum
total of consumer perceptions and feelings
about how it performs (3M, Sony, Gillette)
The name and what it stands for
 What is
Branding?
Branding is assembling of various marketing
mix medium
into a whole so as to give you an identity
It is nothing but capturing your
customers mind with your brand name
Branding makes customers committed
to your business
It is all about capturing the niche market
for your product
/ service and about creating a confidence in
the current and prospective customers
minds that you are the unique solution to
their problem
What is Brand
Management?
Now, that you have
learnt about brands,
let us see what is
brand management.

Brand management is the

process of building,
managing and improving a
brand.

It begins by having a
thorough knowledge of
the term brand.

Hence, brand management

includes developing a
promise, making that
promise and maintaining it.

It means defining the brand,

positioning the brand, and
 What is Brand
Management?
The tangibles for product
Branding is assembling of
brands include the The intangibles are made various marketing mix
product itself, its up of the emotional medium into a whole so as
characteristics, features, connections with the to give the product an
price, packaging, etc. product / service. identity.

The tangible and Whereas, in case of Thus, you can see It is building a
intangible service brands, the that brand brand name
characteristics of customers management is all that captures
brand are managed experience forms the about Branding. the
through Brand tangibles. customers
management. mind.
 What is Brand
Management?
Brand management is nothing but an
art of creating and sustaining the
brand
It means defining the brand,
positioning the brand,
and delivering the brand
Brand management includes managing
the tangible and intangible
characteristics of brand
In case of product brands, the tangibles
include the product itself, price,
packaging, etc. While in case of service
Purpose of Brand
Management
The main aim of branding is to differentiate a
companys products and services from its
competitors.

Branding aims to convey a brand message vividly,

create customer loyalty, persuade the buyer for the
product, and establish an emotional connectivity
with the customers and form customer perceptions
about the product.

Brand management plays a crucial role to form

brands. The brand management strategies also
provide good support to the brand so that it can
sustain itself in long run.

Also, through brand management, brands are

managed and brand equity is built over a period of
time. It helps in building a corporate image. Thus,
only a competent brand management system can
create a successful brand.
 Why do Brands
Matter?
Brand Value created translates to
financial profits
for the firm as:
Creates perceived differences through
branding
Develops a loyal consumer franchise

The brand is an intangible valued asset

that needs to
be handled carefully.
 Why Do Brands
Matter?
It creates a relationship between brand and
consumer
a bond / pact. trust and loyalty and in return .
expect consistent product performance,
appropriate price, distribution and other
actions
Brands take on a special meaning and
change the experience
and perception of a product that leads to
greater satisfaction
Customers with past experience learn more
about the brand
The advantages
Lowers search cost internally and externally
The value may not be only functional in nature
Why Do Brands
Matter? The main
reason
A brand
helps
make a mark
A
strong
and brand Brands
consumers A Brand is a differentiate help
Brands have flock to some makes
a good or of what the
promise customers
become brands and service company
people
that the to
important ignore others from others represents
aware
product will connect to
drivers of is that behind in and about
perform as the
growth for the brand marketplace the
per product or
any stands an . different
customers service on
organization, unspoken offerings of
expectation an
good or promise of the
s. emotional
service. value. company.

N
level.

R S
B A D
Why Do Brands
Matter?

Thus, you can see Customers use

that people brands as a
connect means to show
emotionally with This is what I
brands that stand stand for and
for things that hence, use
are important to brands to express
them. themselves.

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brands and they
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 Why Do Brands
CustomersMatter?
Risk reducer
Search cost reducer
Signal of quality
Symbolic device for self expression
Promise, bond, pact, with maker of the product
Means of identification of source of product for
assignment of responsibility to product maker

Manufacturer
Means of identification for handling, tracing
Signal of quality level to satisfied customers
Competitive advantage
Financial return
Legal protection of unique features
 Brands for Consumers
and Sellers
Source
of
produc
t

Lower risk

The word Brand signifies different

things to consumers and sellers.
Less cost
Consum of
searching
ers for a
choice

Symbol
of
Qualit
y

Symbo
lic
devic
e
 Brands for Consumers
and Sellers
Source Consumers can easily make a purchase
of decision based on brands. Consumers
produc usually find brands which satisfy their
t need.

Lower risk

The word Brand signifies different

things to consumers and sellers.
Less cost
Consum of
ers searching
for a
choice

Symbol
of
Qualit
y

Symbo
lic
devic
e
 Brands for Consumers
and Sellers
Source
of
produc
t

Brands mean lower purchase risk to

Lower consumers as they are dealing with a
risk product or organization that they trust.

Less cost The word Brand signifies different

Consum of
things to consumers and sellers.
ers searching
for a
choice

Symbol
of
Qualit
y

Symbo
lic
devic
e
 Brands for Consumers
and Sellers
Source
of
produc
t

Lower The word Brand signifies different

risk things to consumers and sellers.

If the consumers recognize a particular

Less cost brand and have knowledge about it, they
Consum of make quick purchase decision and save lot
ers searching
of time. Also, they save search costs for
for a
choice product.

Symbol
of
Qualit
y

Symbo
lic
devic
e

The word Brand signifies different things to

 Brands for Consumers
and Sellers
Source
of
produc
t

Lower risk

The word Brand signifies different

things to consumers and sellers.
Less cost
Consum of
ers searching
for a
choice
Consumers see brands as a symbol of quality and
Symbol remain committed and loyal to a brand as long as
of
they believe that the brand will continue meeting
Qualit
y their expectations and perform in the desired
manner consistently.

Symbo
lic
devic
e

The word Brand signifies different things to

 Brands for Consumers
and Sellers
Source
of
produc
t

Lower risk

The word Brand signifies different

things to consumers and sellers.
Less cost
Consum of
ers searching
for a
choice

Symbol
of
Qualit
y

Symbo Brands play a significant role in signifying

lic certain product features to consumers.
devic
e

The word Brand signifies different things to

 Brands for Consumers
and Sellers
Means of
Competiti
ve
Advantag
e

Legal
protection
of
products
features

Seller

Satisfied
customer

Means
of
Profits

The word Brand signifies different things to

 Brands for Consumers
and Sellers
Means of A brand helps the firms to provide
Competiti consistently a unique set of
ve characteristics, advantages, and services
Advantag to the buyers/consumers.
e
Legal
protection The word Brand signifies different
of
products
things to consumers and sellers.
features
Seller

Satisfied
customer

Means
of
Profits
 Brands for Consumers
and Sellers
Means of
Competiti
ve
Advantag
e
Legal
protection Brands help to protect the unique
of features/traits of products by legal
products copyrights.
features
Sell
er The word Brand signifies different
Satisfie things to
d consumers and sellers.
custom
er

Means
of
Profits

The word Brand signifies different things to

 Brands for Consumers
and Sellers
Means of
Competiti
ve
Advantag
e
Legal
protection The word Brand signifies different
of
products
things to consumers and sellers.
features
Sell
er
Satisfie Brand represents values, ideas and even
d personality and hence leads to an
custom assortment of memories in customers
er mind and hence satisfied customers.

Means
of
Profits

The word Brand signifies different things to

 Brands for Consumers
and Sellers
Means of
Competiti
ve
Advantag
e
Legal
protection The word Brand signifies different
of
products
things to consumers and sellers.
features
Seller

Satisfied
customer

Means Brands form the basis of purchase

of decision among consumers and thus are
Profits a means of financial profits.

The word Brand signifies different things to

 Anything Can Be
Branded
Branding is possible
for
B to B products
High-tech products
Services
Retailers and
Distributors
Online products and
services
People and
Organizations
Sports
Arts, Entertainment
 Anything Can Be
Branded
To brand a product what needs to
be done is Consumer has to be
Taught to identify the brand label,
name and other elements
Learn the brand meaning - functional,
emotional and
symbolical
Know the brand difference from other
similar product brands (performance /
image and non-product related
considerations)

Commodities have been branded atta, salt

 The Key to Successful
Branding
For branding strategies to be successful
Consumers must be convinced that
there are
meaningful differences among
brands
Consumer must not think that all
brands in the category are the same
PERCEPTION = VALUE
What makes a Brand
Strong?
It is important that in order to make a strong impact, a brand should be
strong. There are a few characteristics that make a strong brand,
which are as follows:
A strong brand is a major driver of shareholder value.

A strong brand is like an asset. It can be used as collateral for financial loans ,
buying and selling as an asset.

A strong brand has strong attributes, values and personality that the consumers
associate with the brand.

A strong brand is a means of attaining higher customer loyalty.

A strong brand always delivers the benefits that customers truly desire.

A strong brand makes use of and coordinates full range of marketing activities to
build equity.
A strong brand has the right blend of product quality, design, features, costs and
prices.
A strong brand is properly positioned and occupies a particular niche in
consumers' minds.
A strong brand compels consumers to willingly pay a substantial and
consistent premium price for the brand versus a competing product and
service.
Gillette as a
Strong Brand
Gillette is one of the strongest brands in the market of mens
personal care products. It has tied the actual quality of its products
to various intangible factors such as:
User Imagery
The type of person who uses Gillette, the type of situations in
which the brand is used, the type of personality Gillette
portrays etc.
Technology
Its razor blades are as technologically advanced as
possible through continuously spending millions of
dollars in R&D.
Sub-branding
It has developed several sub brands such as Trac II, Altra,
Sensor, Mach3 to remain on top of its competitors.

Enhancements
It makes constant improvements with modifiers like Altra Plus,
Sensor Excel.
Gillette as a Strong
Brand
Gillettes tagline, 'The Best A
Man Can Get, showcased in
its ads through the years has
created a consistent,
intangible sense of product
superiority.

Gillette has created a

strong brand image in
totality - that is, all the
different perceptions,
beliefs, attitudes and
behaviors customers
associate with their brand.

To keep this strong brand

presence, Gillette is very
protective of the name
carried by its razors, blades
and associated toiletries.
Hence, Braun is used for the
company's electric razors and
its oral care products are
marketed under the name,
Oral B.
 Strategic Brand
Management
Strategic Brand Management involves
design and implementation of marketing
programs and activities
to build,
measure,
manage BE
Strategic brand management process involves four
main steps:

1. Identify and establish brand positioning and

values
2) Plan and implement brand marketing
programs
4
3) Measure and interpret brand performance 5
Strategic Brand
Management Process
The Strategic Brand Management Process consists of the
following four steps:

Strategic
Brand
Managem
ent
Process
Strategic Brand
Management Process
STE KEY CONCEPTS
PS Mental maps
Competitive frame of reference
Identify and Establish
Points-of-parity and points-of-difference
Brand Positioning and Values Core brand values
Brand mantra

Mixing and matching of brand

Plan and Implement elements Integrating brand marketing
Brand Marketing Programs activities Leveraging of secondary
associations

Brand Value
Measure and Interpret
Chain Brand
Brand Performance audits Brand
tracking
Brand equity
management
Grow and Sustain system
Brand Equity
Brand-product
matrix
 New Branding
Challenges
Brands are important as ever
Consumer need for simplification
Consumer need for risk reduction
Brand management is as difficult as
ever
Savvy consumers
Increased competition
Decreased effectiveness of traditional
marketing tools and emergence of
new marketing tools
Complex brand and product portfolios

4
8
 The Customer/Brand
Challenge
In this difficult environment,
marketers must
have a keen understanding of:
customers
brands
the relationship between the two

4
9