Branding

MBA-ITB
Marketing Management
 The Worlds 10 Most Valuable Brands
Rank Brand Value (US$
Billions)
Rank Brand Value (US$
Billions)
1 Apple 98.32
2 Google 93.29
3 Coca Cola 79.21
4 IBM 78.81
5 Microsoft 59.55
6 GE 46.95

7 McDonald 41.99
8 Samsung 39.61
9 Intel 37.26
10 Toyota 35.35
Interbrand Corp 2013
WHAT IS A BRAND?
name?
logo?

association
?
A brand is more than a
name or a logo it is a
promise and a contract with every
customer with whom you are dealing.
And if people feel that the offering
does not live up to what they expect
from the brand, they Richard Branson
will decide to ,
stop buying. founder of Virgin
 A brand for a
company is like a
reputation for a
person. You earn
reputation by
trying to do hard
things well.
Barack Obama is three things you
want in a brand. New, different, and
attractive. That's as good as it gets.
Keith Reinhard, chairman emeritus of DDB
Worldwide, quoted in The Brand Called Obama,
Fast Company, Jan. 18, 2009
A brand is an
emotional
attachment

8
 Brand and Brand Equity
Brand
A name, term, sign, symbol or design or a
combination of these intended to identify
the goods or services of one seller or
group of sellers and to differentiate them
from those of competitors.
Brand Equity
The positive differential effect that
knowing the brand name has on customer
response to the product or service
 Identity --- Who are you
Meaning --- What are you
Response --- What about you
Relationship --- What about
you and me
Brand
Brand
ss
Consistency
Consistency Reputation
ReputationQuality
Quality&&Value
Value

Attributes
Attributes Advantages Identification
Identification&&Connotation
Connotation
Advantages
of
of
Brand
BrandNames
Names
Defense
DefenseAgainst
Against Brand
Brand
Competition Equity Loyalty
Loyalty
Competition Equity

Credibility
Credibility Awareness
Awareness
 Strong Brand Means:
Improved perceptions
Greater loyalty
Larger margin
More inelastic to price increase
More elastic to price decrease
Greater trade cooperation and support
Increase marketing communications
effectiveness
 Brand
Awareness
Starting point to developing strong brand
Two levels of awareness
General knowledge brand exists
Extensive knowledge about the brand
Create through multiple marketing venues

Copyright 2010 SAGE Publications, Inc. 5-13

 Brand Loyalty
Strong attachment to a brand
Repeat purchases
Word-of-mouth endorsements
Brand advocates
Customer service often key ingredient

Copyright 2010 SAGE Publications, Inc. 5-14

 Components of Brand
Equity
Brand Brand
Awareness Associations

Brand Equity

Perceived Brand
Quality Loyalty
Brand Equity

Devoted
Devoted
toBrand
to Brand

Valuesthe
Values theBrand
Brand
(brandas
(brand asfriend)
friend)

Satisfied &&Switching
Satisfied SwitchingCost
Cost

SatisfiedCustomer
Satisfied Customer
(noreason
(no reason to
tochange)
change)
NoBrand
No Brand Loyalty
Loyalty
(customerwill
(customer will change)
change)
Branding Model
#1

The Branded House

17
A healthy brand
connects

18
A healthy brand
provides a
competitive
advantage

19
Healthy brands
guarantee focus
20
Healthy brands
have the
attractor factor

21
Its all about creating an
emotional attachment

22
REPUTATION
REPUTATION
CONNOTATION
REPUTATION
CONNOTATION
CONSISTENCY
RE
PU What people generally

TA think about a product, a

service,
a company.
TI
ON
 Audi produces high-performing cars.
CON
NO The message you or

TA your business is actively

trying
to present to others.
TI
ON
Volvo
Volvo = SAFETY
Apple
Apple = COOL
CONSISTENCY

If you say youre trend-setting

one moment and traditional the next,
what will your customers think?
 CONSISTENCY

liar If youre changing

the face you
present to the
liar world every few
months, what will
people believe
about you?
DIFFERENTIATION

Marketing today is all about creating tribes

 MODERN TRIBES
people join
different tribes
for different
activities
FOCUS, FOCUS, FOCUS
who are
you? what do
you do?

why does it
matter?
FOCUS, FOCUS, FOCUS
focused
Porsche =
sports cars

unfocused
Porsche =
sports cars +
SUVs
Global Brand:
The worldwide use of a name., term, sign, symbol,
design or combination thereof intended to identify goods
or services of one seller and to differentiate them from
those of competitors.
The Advantages for Companies using Global Brands
Demand Spillover
Global Customers
Scale Economies
National Brands
Country of Origin Effect and Global Brands
 Brand
Brand
Strategies
Strategies
Product Category
Existing New
Brand Name

Existing Line Extension Brand Extension

Pepsodent Complete Care Pepsodent Delicio

New Brands
Multibrands
New IBM Think Pad
Seiko Lasalle & Pulsar (by acquisition)
 Brand Strategies
Product Category
Existing New

Line Brand
Brand Name

Existing
Extension Extension

New Multibrands New

Brands

Cobranding
 Brand
Brand
Strategy
Strategy
Line Extension
Existing brand names extended to new forms, sizes,
and flavors of an existing product category.
Brand Extension
Existing brand names extended to new product
categories.
Multibrands
New brand names introduced in the same product
category.
New Brands
New brand names in new product categories.
 The Evoked Set as a Subset of All
Brands in a Product Class
All
Brands

Known Unknow
Brands n
(1)
Brands
Evoked Set Inept Set Inert Set
Acceptabl Unacceptabl Indifferent Overlooked
e Brands e Brands Brands Brands
(2) (3) (4)

Purchase Not
d Brands Purchased
Brands
(5)
 Good Brand Names:

Lack Poor
Foreign
Distinctive
Language
Meanings

Easy to:
Suggest Suggest
Pronounce
Product Product
Recognize
Qualities Benefits
Remember
Six Levels of Meaning

User

Culture Personality

Attributes Benefits Values

Good Brand Names Should
Suggest something about product benefits
Good Brand Names Should
Suggest product qualities such as action or color
Good Brand Names Should
Be easy to pronounce, recognize, and remember
Good Brand Names Should

Be distinctive

Not carry negative images in other languages

(Chevy Nuvo, Honda Fit)
 Brands can become
generic in several ways
Company develops a unique product and does not also
develop a generic description for competitors to use in
identifying their version of the product.
(EX: iPod, personal stereos)

If consumers use the brand name when referring to the

product type.
(EX: Aspirin instead of acetylsalicylic acid)

When a brand achieves such a high market share that the

brand becomes the category.
(EX: trampoline, Aqua )