Dr.

Satya Prakash Pandey

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.

 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

 In

this difficult environment, marketers must have a keen understanding of:

customers brands the relationship between the two

The brand equity concept stresses the importance of the brand in marketing strategies. 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.

 Customer-based

brand equity

Differential effect Customer brand knowledge Customer response to brand marketing

 Customer is aware of and familiar with the brand Customer holds some strong, favorable, and

unique brand associations in memory

 Brand

knowledge structures depend on . . .

The initial choices for the brand elements The supporting marketing program and the

manner by which the brand is integrated into it

Other associations indirectly transferred to the

brand by linking it to some other entities

greater brand loyalty, usage, and affinity Command larger price premiums Receive greater trade cooperation & support Increase marketing communication effectiveness Yield licensing opportunities Support brand extensions.
Enjoy
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 Customer-based

brand equity represents the added value endowed to a product as a result of past investments in the marketing of a brand. Customer-based brand equity provides direction and focus to future marketing activities

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branding strategies to be successful, consumers must be convinced that there are meaningful differences among brands in the product or service category. Consumer must not think that all brands in the category are the same. PERCEPTION = VALUE
For

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Strategic brand management 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) 2) 3) 4) Identifying and establishing brand positioning and values Planning and implementing brand marketing programs Measuring and interpreting brand performance Growing and sustaining brand equity

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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

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 Marketers

know strong brands are important but arent always sure how to build one. CBBE model was designed to be
comprehensive cohesive well-grounded up-to-date actionable
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premise: Power of a brand resides in the minds of customers Challenge is to ensure customers have the right types of experiences with products & services and their marketing programs to create the right brand knowledge structures:
Basic

Thoughts Feelings Images Perceptions Attitudes

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a strong brand involves a series of steps as part of a branding ladder A strong brand is also characterized by a logically constructed set of brand building blocks.
Building

Identifies areas of strength and weakness Provides guidance to marketing activities

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CUSTOMER-BASED BRAND EQUITY PYRAMID

4. RELATIONSHIPS = RESONANCE What about you & me?

3. RESPONSE = JUDGMENTS FEELINGS What about you?

2. MEANING = PERFORMANCE IMAGERY What are you?

1. IDENTITY =

SALIENCE

Who are you?

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 Depth

of brand awareness

Ease of recognition & recall Strength & clarity of category membership

Breadth

of brand awareness

Purchase consideration Consumption consideration

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 Primary

characteristics & supplementary

features
Product

reliability, durability, and serviceability

Service

effectiveness, efficiency, and empathy and design

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Style Price

User profiles
Demographic & psychographic characteristics Actual or aspirational Group perceptions -- popularity

Purchase & usage situations

Type of channel, specific stores, ease of purchase Time (day, week, month, year, etc.), location, and context of

usage

Personality & values

Sincerity, excitement, competence, sophistication, & ruggedness

History, heritage, & experiences

Nostalgia Memories
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Brand quality
Value Satisfaction

Brand credibility
Expertise Trustworthiness Likability

Brand consideration
Relevance

Brand superiority
Differentiation

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 Warmth Fun Excitement Security Social

approval Self-respect

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Behavioral loyalty
Frequency and amount of repeat purchases

Attitudinal attachment
Love brand (favorite possessions; a little pleasure) Proud of brand

Sense of community
Kinship Affiliation

Active engagement
Seek information Join club Visit web site, chat rooms
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Customer-Based Brand Equity Model

ConsumerBrand Resonance

INTENSE, ACTIVE LOYALTY

Consumer Judgments

Consumer Feelings

RATIONAL & EMOTIONAL REACTIONS

Brand Performance

Brand Imagery

POINTS-OFPARITY & POINTS-OFDIFFERENCE

Brand Salience

DEEP, BROAD BRAND AWARENESS

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 Define

competitive frame of reference

Target market Nature of competition

Define

desired brand knowledge structures

Points-of-parity x necessary x competitive Points-of-difference x strong, favorable, and unique brand associations

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Category Membership Identifying & Choosing POPs & PODs Communicating & Establishing POPs & PODs Sustaining & Evolving PODs & POPs
Establishing

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 Product

descriptor Exemplar comparisons

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 Desirability

criteria (consumer

perspective)
Personally relevant Distinctive & superior Believable & credible
Deliverability

criteria (firm

perspective)
Feasible Profitable Pre-emptive, defensible & difficult to attack

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 Find

compelling & impactful points-ofdifference (MacMillan & McGrath, HBR, 97)

How do people become aware of their need for your

product and service? How do consumers find your offering? How do consumers make their final selection? How do consumers order and purchase your product or service? What happens when your product or service is delivered? How is your product installed? How is your product or service paid for?

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 Find

compelling & impactful pointsof-difference (cont.)

How is your product stored? How is your product moved around? What is the consumer really using your product for? What do consumers need help with when they use your product? What about returns or exchanges? How is your product repaired or serviced? What happens when your product is disposed of or no longer used?
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 Create

POPs and PODs in the face of attribute & benefit trade-offs

Price & quality Convenience & quality Taste & low calories Efficacy & mildness Power & safety Ubiquity & prestige Comprehensiveness (variety) & simplicity Strength & refinement

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separate marketing programs Leverage secondary association (e.g., cobrand) Re-define the relationship from negative to positive
Establish

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 Core

Brand Values & Core Brand Proposition

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 Set

of abstract concepts or phrases that characterize the 5-10 most important dimensions of the mental map of a brand.

Relate

to points-of-parity and points-ofdifference

Map Core Brand Values Brand Mantra

Mental

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brand mantra is an articulation of the heart and soul of the brand.

Brand mantras are short three to five word

phrases that capture the irrefutable essence or spirit of the brand positioning and brand values.
Nike

Authentic Athletic Performance

Disney

Fun Family Entertainment

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Outline The mandate for effectiveness What makes an ad effective? The world of advertising The five players of advertising The evolution of advertising

advertising is in a bind Advertisers expect specific results that lead to sales Advertising must be effective
Today

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Effective

ads work on two levels: with consumers and with advertisers Characteristics of effective ads:
Strategy Execution Advertising must be goal directed
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Defining advertising A paid form of communication A sponsor is identified Tries to persuade or influence the consumer to do something Conveyed through mass media Reaches a large audience Is nonpersonal
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 Brand

advertising Retail/local advertising Political advertising Directory advertising Direct-response advertising

Business-to-business

advertising Institutional advertising Public service advertising (PSA) Interactive advertising

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Marketing

role Communication role Economic role Societal role

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Provide

product and brand information Provide incentives to take action Provide reminders and reinforcement

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Advertiser Advertising

agency

The advertising department The in-house agency

Media Vendors Target

audience

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Age

of print Industrial revolution and emergence of consumer society Modern advertising: Agencies, science and creativity Accountability era

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 Interactive

advertising Globalization Niche marketing Integrated marketing communications (IMC) Consumer Power

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personalities Branding Trust Brand image Brand relationships Brand equity

Brand
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MARKETING PLANNING PROCESS

Complex, Varied Marketing Activity

Detailed, Rich Marketing Models

Comprehensive, Robust Marketing Measures

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 Marketing

communications

are the voice of the brand and are a means by

which it can establish a dialogue and build relationships with consumers. allow marketers to inform, persuade, incent, and remind consumers directly or indirectly can contribute to brand equity by establishing the brand in memory and linking strong, favorable, and unique associations to it.

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 Consumers can be told or shown how and why a

product is used, by what kind of person, and where and when; Consumers can learn about who makes the product and what the company and brand stand for Consumers be given an incentive or reward for trial or usage Brands can be linked to other
x x x x x x x People Places Events Brands Experiences Feelings Things
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1. 3. Current Brand Knowledge

2. Desired Brand Knowledge

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 One

implications of the CBBE framework is that the manner in which brand associations are formed does not matter -only the resulting strength, favorability, and uniqueness

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the perspective of customer-based brand equity, marketers should evaluate all possible communication options available to create knowledge structures according to effectiveness criteria as well as cost considerations. Different communication options have different strengths and can accomplish different objectives.
From

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Media Advertising (TV, radio, newspapers, magazines) Direct Response Advertising Interactive (on-line) Advertising & Web Sites Outdoor Advertising (billboards, posters, cinema) Point-of-Purchase Advertising Trade Promotions Consumer Promotions Sponsorship of Event Marketing Publicity or Public Relations

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Media Advertising (TV, radio, newspaper, magazines) Trade Journal Advertising Interactive (on-line) Advertising & Web Sites Directories Direct Mail Brochures & Sales Literature Audio-Visual Presentation Tapes Giveaways Sponsorship or Event Marketing Exhibitions, Trade Shows, Conventions Publicity or Public Relations

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the message clear at a glance? Is the benefit in the headline? Does the illustration support the headline? Does the first line of the copy support or explain the headline and illustration? Is the ad easy to read and follow? Is the product easily identified? Is the brand or sponsor clearly identified?
Is

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 Campaigns

make brands -- not single ads Be creative and develop creative themes
Avoid slavishly sticking to executional formulas
Brand

communications should sing like a choir

Multiple voices Multiple notes

fresh consumer insights & compelling brand truths Productively conduct ad research
Find

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 Smart

strategy creative

Relative deprivation
Imaginative Clever Timely Right

Funny but relevant

hook secondary media

Got milk? slogan In store

partners

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to distinguish ad positioning (what you say) from ad creative (how you say it) Mistaken assumptions about consumer knowledge Improperly positioned Failure to break through the clutter Distracting, overpowering creative in ads
Failure

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 Under-branded

ads Failure to use supporting media Changing campaigns too frequently Substituting ad frequency for ad quality

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Audience Communication Option Overlap

Communication Option A Communication Option B

Communication Option C
Note: Circles represent the market segments reached by various communication options. Shaded portions represent areas of overlap in communication options. 62

 Coverage

- what proportion of the target audience is reached by each communication option employed, as well as how much overlap exists among options - what is the per capita expense

Cost

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 Contribution

- the collective effect on brand equity in terms of

enhancing depth & breadth of awareness improving strength, favorability, & uniqueness of

brand associations
Commonality

- the extent to which information conveyed by different communication options share meaning
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- the extent to which different associations and linkages are emphasized across communication options Versatility - the extent to which information contained in a communication option works with different types of consumers
Complementarity

x Different communications history x Different market segments

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Be analytical: Use frameworks of consumer behavior and managerial decision-making to develop wellreasoned communication programs Be curious: Fully understand consumers by using all forms of research and always be thinking of how you can create added value for consumers Be single-minded: Focus message on well-defined target markets (less can be more) Be integrative: reinforce your message through consistency and cuing across all communications

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creative: State your message in a unique fashion; use alternative promotions and media to create favorable, strong, and unique brand associations Be observant: Monitor competition, customers, channel members, and employees through tracking studies Be realistic: Understand the complexities involved in marketing communications Be patient: Take a long-term view of communication effectiveness to build and manage brand equity
Be
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