Brand Management Chapter 1

CHAPTER 1: BRANDS & BRAND MANAGEMENT 

What is a brand? For the American Marketing Association (AMA), …..a

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

Brands vs. Products

A product   product is is anything we can offer to a market for attention, acquisition, use, or consumption that might satisfy a need or want.

Five Levels of Meaning for a Product The core benefit level is the fundamental need or want 

The generic product level is a basic version of the product containing only those attributes  or characteristics absolutely necessary necessary for its functioning 

The expected product level is a set of attributes or characteristics that buyers normally  normally  expect and agree to when they purchase a product.

The augmented product level includes additional product attributes, benefits, or related  services 

The potential product level includes all the augmentations and transformations that a 

Why do brands matter?

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

Reducing the Risks in Product Decisions Functional

risk—The product does not perform up to expectations. Physical risk—The product poses a threat to the physical well-being or health of the user or others. Financial risk—The product is not worth the price paid. Social risk—The product results in embarrassment from others. Psychological

risk—The product affects the mental well-being of the user.

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

Can everything be branded? Physical goods Services Retailers and distributors Online products and services People and organizations Sports, arts, and entertainment Geographic locations

What are the strongest brands?

Top Ten Global Brands

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

Coca-Cola Microsoft IBM GE Intel Nokia Toyota Disney McDonald’s Merc Me rced edes es--Be Benz nz

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

Branding Challenges & opportunities Savvy customers Brand proliferation Media fragmentation Increased competition Increased costs Greater accountability

The Brand Equity Concept

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Differential effect

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Brand knowledge

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Consumer response to marketing

Strategic Brand Management Process Steps Identify and establish brand positioning and values

Plan and implement brand marketing programs

Measure and interpret brand performance

Grow and sustain brand equity

Key Concepts Mental maps Competitive frame of reference Points-of-parity and points-of-differenc points-of-differencee Core brand values Brand mantra

Mixing and matching of brand elements Integrating brand marketing activities Leveraging of secondary associations

Brand Brand Brand Brand

value chain audits tracking equity management system

Brand-product matrix Brand portfolios and hierarchies Brand expansion strategies Brand reinforcement and revitalization

1. Identify and establish brand positioning and values 

Mental maps: Visual depiction of different type of associations linked to the brand in the mind of customer

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Competitive frame of reference: Creating brand superiority in the mind of customer.

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Points-of-parity and points-of-difference: POD …..is not available in other brand, POP….is similar to other brand

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Core brand values: Attributes and benefits of brand.

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Brand mantra: Core brand promise.

2.Plan and implement brand marketing programs 

Mixing and matching of brand elements: Name.logos symbols characters,packaging and slogans.

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Integrating brand marketing activities: Marketing programs can create strong,favorable and unique brand association.

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Leveraging of secondary associations: Brand may be linked to *Company *Character *Spokepeople *Country *Sonsorship *Awards

3.Measure & interpret brand performance 

Brand value chain: Value creation Process

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Brand Audit: A comprehensive examination of a brand to discover its sources of brand equity.

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Brand Tracking: Collecting continuous information from customer.

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Brand equity management system: *Brand equity charter *Brand equity report *Brand equity responsibility

4.Grow and sustain brand equity

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Defining the Branding Strategy

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Managing Brand Equity Over Time

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Managing Brand Equity Over Geographic Boundaries, Cultures, and Market Segments.