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Transcript of Brand Concept TAF.pdf
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7/30/2019 Brand Concept TAF.pdf
1/17
Brandsaredifferentfromproductsinawaythatbrandsarewhattheconsumersbuy,whileproductsarewhatconcern/companiesmake.Brand isanaccumulationofemotionaland functional
associations.Brandisapromisethattheproductwillperformaspercustomersexpectations.Itshapes
customersexpectationsabouttheproduct.Brandsusuallyhaveatrademarkwhichprotectsthemfrom
useby
others.
A
brand
gives
particular
information
about
the
organization,
good
or
service,
differentiating itfromothers inmarketplace.Brandcarriesanassuranceaboutthecharacteristicsthat
make theproductor serviceunique.A strongbrand isameansofmakingpeopleawareofwhat the
companyrepresentsandwhatitsofferingsare.
Toaconsumer,brandmeansandsignifies:
Sourceofproduct Delegatingresponsibilitytothemanufacturerofproduct Lowerrisk Lesssearchcost Qualitysymbol Dealorpactwiththeproductmanufacturer Symbolicdevice
Brands simplify consumerspurchasedecision.Over aperiodof time, consumersdiscover thebrands
whichsatisfy theirneed. If theconsumers recognizeaparticularbrandandhaveknowledgeabout it,
theymakequickpurchasedecisionandsavelotoftime.Inaddition,theysavesearchcostsforproduct.
Consumers remain committed and loyal to a brand as long as they believe and have an implicit
understanding that the brand will continuemeeting their expectations and perform in the desired
mannerconsistently.As longas theconsumersgetbenefitsandsatisfaction fromconsumptionofthe
product, theywillmore likelycontinue tobuy thatbrand.Brandsalsoplayacrucial role in signifying
certainproductfeaturestoconsumers.
Toaseller,brandmeansandsignifies:
Basisofcompetitiveadvantage Wayofbestowingproductswithuniqueassociations Wayofidentificationtoeasyhandling Wayoflegalprotectionofproductsuniquetraits/features Signofqualitytosatisfiedcustomer Meansoffinancialreturns
A brand, in short, can be defined as a sellers promise to provide consistently a unique set of
characteristics,advantages,andservicestothebuyers/consumers.Itisaname,term,sign,symbolora
combinationofall theseplanned todifferentiate thegoods/servicesofone sellerorgroupof sellers
from thoseof competitors. Some examplesofwellknownbrands areMcDonalds,MercedesBenz,
Sony,CocaCola,Kingfisher,etc.
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Abrandconnectsthefourcrucialelementsofanenterprise
Customers, Employees, Managementand Shareholders.
Brandisnothingbutanassortmentofmemoriesincustomersmind.Brandrepresentsvalues,ideasand
evenpersonality. It isasetoffunctional,emotionalandrationalassociationsandbenefitswhichhave
occupied targetmarketsmind.Associationsarenothingbut the imagesand symbolsassociatedwith
thebrandorbrandbenefits,suchas,TheNikeSwoosh,TheNokiasound,etc.Benefitsarethebasisfor
purchasedecision.
Brand Attributes portray a companys brand characteristics. They signify the basic nature of brand.
Brand attributes are a bundle of features that highlight the physical and personality aspects of the
brand. Attributes are developed through images, actions, or presumptions. Brand attributes help in
creatingbrandidentity.
Astrongbrandmusthavefollowingattributes:
Relevancy
Astrongbrandmustberelevant.Itmustmeetpeoplesexpectationsandshouldperformthewaythey
want
it
to.
A
good
job
must
be
done
to
persuade
consumers
to
buy
the
product;
else
in
spite
of
your
productbeingunique,peoplewillnotbuyit.
Consistency
Aconsistentbrandsignifieswhatthebrandstandsforandbuildscustomerstrustinbrand.Aconsistent
brandiswherethecompanycommunicatesmessageinawaythatdoesnotdeviatefromthecorebrand
proposition.
Properpositioning
Astrongbrandshouldbepositionedsothatitmakesaplaceintargetaudiencemindandtheypreferit
overotherbrands.
Sustainable
A strong brandmakes a business competitive. A sustainable brand drives an organization towards
innovationandsuccess.ExampleofsustainablebrandisMarksandSpencers.
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Credibility
A strongbrand shoulddowhat itpromises.Theway you communicateyourbrand to theaudience/
customers should be realistic. It should not fail to deliver what it promises. Do not exaggerate as
customerswanttobelieveinthepromisesyoumaketothem.
Inspirational
Astrongbrandshouldtranscend/inspirethecategoryitisfamousfor.Forexample Niketranscendent
Jersey,PoloShirt.
Uniqueness
A strong brand should be different and unique. It should set you apart from other competitors in
market.
Appealing
Astrongbrandshouldbeattractive.Customersshouldbeattractedbythepromiseyoumakeandbythe
valuesyoudeliver.
Brandpositioningreferstotargetconsumersreasontobuyyourbrand inpreferencetoothers.It is
ensures that all brand activity has a common aim; is guided, directed and delivered by the brands
benefits/reasonstobuy;anditfocusesatallpointsofcontactwiththeconsumer.
Brandpositioningmustmakesurethat:
Isitunique/distinctivevs.competitors?
Isitsignificantandencouragingtothenichemarket?
Isitappropriatetoallmajorgeographicmarketsandbusinesses?
Isthepropositionvalidatedwithunique,appropriateandoriginalproducts?
Isitsustainable canitbedeliveredconstantlyacrossallpointsofcontactwiththeconsumer?
Isithelpfulfororganizationtoachieveitsfinancialgoals?
Isitabletosupportandboostuptheorganization?
Inorder to createadistinctiveplace in themarket,anichemarkethas tobe carefully chosenanda
differentialadvantagemustbecreated intheirmind.Brandpositioning isamediumthroughwhichan
organizationcanportrayitscustomerswhatitwantstoachieveforthemandwhatitwantstomeanto
them.Brandpositioningformscustomersviewsandopinions.
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Brand Positioning can be defined as an activity of creating a brand offer in such amanner that it
occupies a distinctive place and value in the target customersmind. For instanceKotakMahindra
positionsitself inthecustomersmindasoneentity Kotak whichcanprovidecustomizedandone
stopsolutionforalltheirfinancialservicesneeds.Ithasanunaidedtopofmindrecall.Itintendstostay
withthepropositionofThinkInvestments,ThinkKotak.Thepositioningyouchooseforyourbrandwill
beinfluenced
by
the
competitive
stance
you
want
to
adopt.
BrandPositioning involves identifyinganddeterminingpointsof similarityanddifference toascertain
therightbrand identityandtocreateaproperbrand image.BrandPositioning isthekeyofmarketing
strategy. A strong brand positioning directsmarketing strategy by explaining the brand details, the
uniquenessofbrandand itssimilaritywith thecompetitivebrands,aswellas the reasons forbuying
and using that specific brand. Positioning is the base for developing and increasing the required
knowledgeandperceptionsofthecustomers. It isthesinglefeaturethatsetsyourserviceapart from
yourcompetitors.For instance Kingfisherstands foryouthandexcitement. Itrepresentsbrand in full
flight.
Therearevariouspositioningerrors,suchas
Underpositioning This isa scenario inwhich the customershaveablurredandunclear ideaof the
brand.
Overpositioning Thisisascenarioinwhichthecustomershavetoolimitedaawarenessofthebrand.
ConfusedpositioningThisisascenarioinwhichthecustomershaveaconfusedopinionofthebrand.
DoublePositioning
This
is
ascenario
in
which
customers
do
not
accept
the
claims
of
abrand.
Brand identity stems from an organization, i.e., an organization is responsible for creating a
distinguishedproductwithunique characteristics. It ishowanorganization seeks to identify itself. It
representshowanorganizationwantstobeperceivedinthemarket.Anorganizationcommunicatesits
identity totheconsumers through itsbrandingandmarketingstrategies.Abrand isuniquedueto its
identity. Brand identity includes following elements Brand vision, brand culture, positioning,
personality,relationships,andpresentations.
Brand identity isabundleofmentaland functionalassociationswith thebrand.Associationsarenot
reasonstobuy but provide familiarity and differentiation thats not replicable getting it. These
associationscan
include
signature
tune(for
example
Britannia
ting
ting
ta
ding),
trademark
colours
(forexample BluecolourwithPepsi),logo(forexample Nike),tagline(forexample Applestaglineis
Thinkdifferent),etc.
Brandidentityisthetotalproposal/promisethatanorganizationmakestoconsumers.Thebrandcanbe
perceivedasaproduct,apersonality,asetofvalues,andaposition itoccupies inconsumersminds.
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Brandidentityisallthatanorganizationwantsthebrandtobeconsideredas.Itisafeaturelinkedwitha
specificcompany,product,serviceorindividual.Itisawayofexternallyexpressingabrandtotheworld.
Brand identity is the noticeable elements of a brand (for instance Trademark colour, logo, name,
symbol)that identifyanddifferentiatesabrand in targetaudiencemind. It isacrucialmeanstogrow
yourcompanys
brand.
Brandidentityistheaggregationofwhatallyou(i.e.anorganization)do.Itisanorganizationsmission,
personality,promisetotheconsumersandcompetitiveadvantages.Itincludesthethinking,feelingsand
expectations of the target market/consumers. It is a means of identifying and distinguishing an
organization from another. An organization having unique brand identity have improved brand
awareness,motivatedteamofemployeeswhofeelproudworkinginawellbrandedorganization,active
buyers, and corporate style.Brand identity leads tobrand loyalty,brandpreference,high credibility,
goodpricesandgood financial returns. Ithelps theorganization toexpress to thecustomersand the
targetmarketthekindoforganizationitis.Itassuresthecustomersagainthatyouarewhoyousayyou
are. Itestablishesan immediateconnectionbetween theorganizationandconsumers.Brand identity
shouldbesustainable.Itiscrucialsothattheconsumersinstantlycorrelatewithyourproduct/service.
Brandidentityshouldbefuturistic,i.e, itshouldrevealtheassociationsaspiredforthebrand.Itshould
reflect thedurablequalitiesofabrand.Brand identity isabasicmeansof consumer recognitionand
representsthebrandsdistinctionfromitscompetitors.
SYMBOLS
Symbolshelpcustomersmemorizeorganizationsproductsandservices.Theyhelpuscorrelatepositive
attributesthatbringuscloserandmake itconvenientforustopurchasethoseproductsandservices.
Symbols
emphasize
our
brand
expectations
and
shape
corporate
images.
Symbols
become
a
key
componentofbrandequityandhelp indifferentiatingthebrandcharacteristics.Symbolsareeasierto
memorizethanthebrandnamesastheyarevisual images.Thesecan includelogos,people,geometric
shapes, cartoon images, anything. For instance,Marlboro has its famous cowboy, Pillsbury has its
PoppinFreshdoughboy,Duracellhasitsbunnyrabbit,McDonaldhasRonald,FedExhasanarrow,and
Nikesswoosh.Allthesesymbolshelpusrememberthebrandsassociatedwiththem.
Brand symbols are strong means to attract attention and enhance brand personalities by making
customers likethem. It isfeasibleto learntherelationshipbetweensymbolandbrand ifthesymbol is
reflective/representative of the brand. For instance, the symbol of LG symbolize theworld, future,
youth,humanity,andtechnology.Also, itrepresentsLGseffortstokeepcloserelationshipswiththeir
customers.
LOGOS
A logo isaunique graphicor symbol that representsa company,product, service,orotherentity. It
representsanorganizationverywellandmakethecustomerswellacquaintedwith thecompany. It is
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duetologothatcustomersformanimagefortheproduct/serviceinmind.AdidassThreeStripesisa
famousbrandidentifiedbyitscorporatelogo.
Featuresofagoodlogoare,
Itshouldbesimple. Itshouldbedistinguished/unique.Itshoulddifferentiateitself. Itshouldbefunctionalsothatitcanbeusedwidely. Itshouldbeeffective,i.e.,itmusthaveanimpactontheintendedaudience. Itshouldbememorable. Itshouldbeeasilyidentifiableinfullcolours,limitedcolourpalettes,orinblackandwhite. Itshouldbeaperfectreflection/representationoftheorganization. It should be easy to correlate by the customers and should develop customers trust in theorganization.
Itshouldnotlooseitsintegritywhentransferredonfabricoranyothermaterial. Itshouldportraycompanysvalues,missionandobjectives.
Theelementsofalogoare:
Logotype Itcanbeasimpleorexpandedname.ExamplesoflogotypesincludingonlythenameareKelloggs,Hyatt,etc.
Icon It is a name or visual symbol that communicates amarket position. For exampleLIChands,UTIkalash.
Slogan It isbestwayofconveyingcompanysmessagetotheconsumers.For instance NikessloganJustDoIt.
TRADEMARKS Trademark isaunique symbol,design,orany formof identification thathelpspeoplerecognizeabrand.Arenownedbrandhasapopulartrademarkandthathelpsconsumers
purchasequalityproducts.Thegoodwillof thedealer/makerof theproductalsoenhancesby
use of trademark. Trademark totally indicates the commercial source of product/service.
Trademarkcontributeinbrandequityformationofabrand.Trademarknameshouldbeoriginal.
Atrademarkischosenbythefollowingsymbols:
(denotesunregisteredtrademark,thatis,amarkusedtopromoteorbrandgoods);
SM(denotesunregisteredservicemark)
(denotesregisteredtrademark).
Registrationoftrademarkisessentialinsomecountriestogiveexclusiverightstoit.Withoutadequate
trademark protection, brand names can become legally declared generic. Generic names are never
protectableaswasthecasewithVaseline,escalatorandthermos.
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Someguidelinesfortrademarkprotectionareasfollows:
Goforformaltrademarkregistration. Neverusetrademarkasanounorverb.Alwaysuseitasanadjective. Usecorrecttrademarkspelling. Challengeeachmisuseoftrademark,specificallybycompetitorsinmarket. Capitalize first letterof trademark. If a trademark appears inpoint,ensure that it standsoutfromsurroundingtext.
Brandimageisthecurrentviewofthecustomersaboutabrand.Itcanbedefinedasauniquebundleof
associationswithinthemindsoftargetcustomers.Itsignifieswhatthebrandpresentlystandsfor.Itisa
setofbeliefsheldaboutaspecificbrand.Inshort,itisnothingbuttheconsumersperceptionaboutthe
product. It is themanner inwhicha specificbrand ispositioned in themarket.Brand image conveys
emotionalvalueandnotjustamentalimage.Brandimageisnothingbutanorganizationscharacter.It
isanaccumulationofcontactandobservationbypeopleexternaltoanorganization.Itshouldhighlight
anorganizationsmissionandvisiontoall.Themainelementsofpositivebrandimageare uniquelogo
reflectingorganizations image, slogandescribingorganizationsbusiness inbriefandbrand identifier
supportingthekeyvalues.Brandimageistheoverallimpressioninconsumersmindthatisformedfrom
allsources.Consumersdevelopvariousassociationswiththebrand.Basedontheseassociations,they
form brand image. An image is formed about the brand on the basis of subjective perceptions of
associationsbundlethattheconsumershaveaboutthebrand.Volvoisassociatedwithsafety.Toyotais
associatedwithreliability.
The ideabehindbrand image isthattheconsumer isnotpurchasingjusttheproduct/servicebutalso
theimage
associated
with
that
product/service.
Brand
images
should
be
positive,
unique
and
instant.
Brand images can be strengthened usingbrand communications like advertising,packaging,wordof
mouthpublicity,otherpromotionaltools,etc.
Brand image develops and conveys the products character in a uniquemanner different from its
competitors image.Thebrand imageconsistsofvariousassociations inconsumersmind attributes,
benefitsandattributes.Brandattributesarethefunctionalandmentalconnectionswiththebrandthat
the customers have. They canbe specificor conceptual.Benefits are the rationale for thepurchase
decision.Thereare three typesofbenefits:Functionalbenefits whatdoyoudobetter (thanothers
),emotionalbenefits howdoyoumakeme feelbetter (thanothers),and rationalbenefits/support
whydo
Ibelieve
you(more
than
others).
Brand
attributes
are
consumers
overall
assessment
of
abrand.
Brand imagehasnot tobe created,but isautomatically formed.Thebrand image includesproducts'
appeal,easeofuse,functionality,fame,andoverallvalue.Brandimageisactuallybrandcontent.When
theconsumerspurchasetheproduct,theyarealsopurchasing its image.Brand image istheobjective
and mental feedback of the consumers when they purchase a product. Positive brand image is
exceedingthecustomersexpectations.Positivebrandimageenhancesthegoodwillandbrandvalueof
anorganization. Tosumup,Brandimageisthecustomersnetextractfromthebrand.
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Brand awareness is theprobability that consumers are familiar about the life and availabilityof the
product.Itisthedegreetowhichconsumerspreciselyassociatethebrandwiththespecificproduct.Itis
measuredasratioofnichemarketthathasformerknowledgeofbrand.Brandawarenessincludesboth
brandrecognitionaswellasbrandrecall.Brandrecognitionistheabilityofconsumertorecognizeprior
knowledgeofbrandwhen they are askedquestions about thatbrandorwhen they are shown that
specificbrand,
i.e.,
the
consumers
can
clearly
differentiate
the
brand
as
having
being
earlier
noticed
or
heard.Whilebrandrecallisthepotentialofcustomertorecoverabrandfromhismemorywhengiven
the product class/category, needs satisfied by that category or buying scenario as a signal. In other
words, itrefersthatconsumersshouldcorrectlyrecoverbrandfromthememorywhengivenaclueor
he can recall the specific brand when the product category ismentioned. It is generally easier to
recognizeabrandratherthanrecallitfromthememory.
Brandawarenessisimprovedtotheextenttowhichbrandnamesareselectedthatissimpleandeasyto
pronounceorspell;knownandexpressive;anduniqueaswellasdistinct.For instance CocaColahas
cometobeknownasCoke.
Therearetwotypesofbrandawareness:
Aided awareness This means that on mentioning the product category, the customersrecognizeyourbrandfromthelistsofbrandsshown.
Topofmindawareness (Immediatebrandrecall) Thismeansthatonmentioningtheproductcategory,thefirstbrandthatcustomerrecallsfromhismindisyourbrand.
The relative importanceofbrand recall and recognitionwill relyon thedegree towhich consumers
make productrelated decisions with the brand present or not. For instance In a store, brand
recognition ismorecrucialasthebrandwillbephysicallypresent. Inascenariowherebrandsarenot
physicallypresent,
brand
recall
is
more
significant
(as
in
case
of
services
and
online
brands).
Buildingbrand awareness isessential forbuildingbrand equity. It includesuseof various renowned
channels of promotion such as advertising, word of mouth publicity, social media like blogs,
sponsorships,launchingevents,etc.Tocreatebrandawareness,itisimportanttocreatereliablebrand
image,slogansandtaglines.Thebrandmessagetobecommunicatedshouldalsobeconsistent.Strong
brand awareness leads tohigh sales and highmarket share. Brand awareness canbe regarded as a
means throughwhich consumers become acquainted and familiarwith a brand and recognize that
brand.
BrandLoyaltyisascenariowheretheconsumerfearspurchasingandconsumingproductfromanother
brandwhichhedoesnottrust.Itismeasuredthroughmethodslikewordofmouthpublicity,repetitive
buying,pricesensitivity,commitment,brandtrust,customersatisfaction,etc.Brandloyaltyistheextent
towhichaconsumerconstantlybuysthesamebrandwithinaproductcategory.Theconsumersremain
loyal to a specific brand as long as it is available. They do not buy from other supplierswithin the
productcategory.Brandloyaltyexistswhentheconsumerfeelsthatthebrandconsistsofrightproduct
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characteristics and quality at right price. Even if the other brands are available at cheaper price or
superiorquality,thebrandloyalconsumerwillsticktohisbrand.
Brand loyal consumers are the foundation of an organization. Greater loyalty levels lead to less
marketingexpenditurebecausethebrandloyalcustomerspromotethebrandpositively.Also,itactsas
ameans
of
launching
and
introducing
more
products
that
are
targeted
at
same
customers
at
less
expenditure.Italsorestrainsnewcompetitorsinthemarket.Brandloyaltyisakeycomponentofbrand
equity.
Brand loyalty can be developed through various measures such as quick service, ensuring quality
products, continuous improvement,widedistributionnetwork,etc.When consumers arebrand loyal
they love you for being you, and they willminutely consider any other alternative brand as a
replacement.ExamplesofbrandloyaltycanbeseeninUSwheretrueApplecustomershavethebrand's
logotattooedontotheirbodies.Similarly inFinland,Nokiacustomersremained loyaltoNokiabecause
they admired the design of the handsets or because of user friendlymenu system used byNokia
phones.
Brandloyaltycanbedefinedasrelativepossibilityofcustomershiftingtoanotherbrandincasethereis
achange inproductsfeatures,priceorquality.Asbrand loyalty increases,customerswillrespond less
tocompetitivemovesandactions.Brandloyalcustomersremaincommittedtothebrand,arewillingto
payhigherprice for thatbrand, andwillpromote theirbrandalways.A companyhavingbrand loyal
customerswillhavegreatersales,lessmarketingandadvertisingcosts,andbestpricing.Thisisbecause
thebrandloyalcustomersarelessreluctanttoshifttootherbrands,respondlesstopricechangesand
self promotethebrandastheyperceivethattheirbrandhaveuniquevaluewhich isnotprovidedby
othercompetitivebrands.
Brandloyalty
is
always
developed
post
purchase.
To
develop
brand
loyalty,
an
organization
should
know
theirnichemarket, target them, support theirproduct, ensureeasy accessof theirproduct,provide
customersatisfaction,bringconstantinnovationintheirproductandofferschemesontheirproductso
astoensurethatcustomersrepeatedlypurchasetheproduct.
BrandAssociationsarenotbenefits,butare imagesandsymbolsassociatedwithabrandorabrand
benefit.Forexample TheNikeSwoosh,Nokiasound,FilmStarsaswithLux,signaturetuneTingting
tadingwithBritannia,Blue colourwithPepsi,etc.Associationsarenot reasonstobuybutprovide
acquaintanceanddifferentiation thatsnotreplicable. It is relatingperceivedqualitiesofabrandtoa
knownentity.For instance HyattHotelisassociatedwith luxuryandcomfort;BMWisassociatedwith
sophistication, fun driving, and superior engineering.Most popular brand associations arewith the
ownersofbrand,suchas BillGatesandMicrosoft,RelianceandDhirubhaiAmbani.
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Brandassociationisanythingwhichisdeepseatedincustomersmindaboutthebrand.Brandshouldbe
associatedwith somethingpositive so that the customers relate yourbrand tobeingpositive.Brand
associations are the attributesofbrandwhich come into consumersmindwhen thebrand is talked
about. It isrelatedwiththe implicitandexplicitmeaningswhichaconsumerrelates/associateswitha
specific brand name. Brand association can also be defined as the degree to which a specific
product/serviceis
recognized
within
its
product/service
class/category.
While
choosing
abrand
name,
it
isessential that thename chosen should reinforcean importantattributeorbenefitassociation that
formsitsproductpositioning.Forinstance Powerbook.
Brandassociationsareformedonthefollowingbasis:
Customerscontactwiththeorganizationanditsemployees; Advertisements; Wordofmouthpublicity; Priceatwhichthebrandissold; Celebrity/bigentityassociation; Qualityoftheproduct; Productsandschemesofferedbycompetitors; Productclass/categorytowhichthebrandbelongs; POP(Pointofpurchase)displays;etc
Positivebrandassociationsaredevelopediftheproductwhichthebranddepictsisdurable,marketable
anddesirable.The customersmustbepersuaded that thebrandpossess the featuresand attributes
satisfying their needs. Thiswill lead to customers having a positive impression about the product.
Positivebrandassociationhelpsanorganizationtogaingoodwill,andobstructsthecompetitorsentry
into
the
market.
Brandevokes the responses.Therearemanypeoplewho love theirApple iPodor love theircaretc.
Therearecertainfeelingsthatcometoyourmindwhenyouthinkaboutyour favoritebrands.People
expect that these brands should demonstrate brand promises every time whenever they are,
encountered. Inconsistencies in theperformanceof services can lead todamage in further relations.
Thiscancauseacustomertoselectsomeotherbrand.
Brandpromiseiswhatyousaytothecustomerandwhatistobedelivered.Ifyouarenotabletomeet
the
expectations
of
the
customer,
your
business
will
either
flounder
or
die.
If
you
are
not
able
to
deliver
the brand promise you will not be able to meet the expectations that have been created in the
customersmind.
Therearethreemajormistakes that thebusiness leadersmakewhileexecutinganddevelopingthe
brandpromise:
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The firstmajormistake iswhen you refuse to recognize the customerexpectations that arecreatedincustomersmindbeforeitcomesincontactwiththatparticularbrand.Thecustomers
are very easily able to realize yourbrandpromiseby thebusiness you aredealingwith. For
example, ifyouhaveagourmetrestaurantthenthecustomerswillhavea image intheirmind
thatitwilldifferentfromthelocalrestaurant.This isoneofthemajorreason,whyoneshould
workfor
every
smallest
detail.
For
example,
the
image
of
agourmet
restaurant
does
not
include
plasticmenusorpaperplacemats.
Thesecondmajormistake isto implementasystemwhichgivesanegativeexperiencetothecustomer.Businessleadersworkoncreatingefficientresultsforsavingtimeandmoney.Human
beingsareselfcenteredcreatureswithathoughtintheirmindtosavemoneyandtimeforus.
Forexample,acustomersasksdoyouacceptcreditcard?Doyouacceptallcreditcardsoronly
mastercardandvisa?Ifyoudontacceptthesecards,doesitmakeanydifference inthecost?
Itsjustthatyouarelosingsales.Thenwhataretheotherservicesyouaregivingtothecustomer
inplacewhichistheattractionforthecustomers.Anysmallinconveniencewhichwillforcethe
customertosaythatyouarenotcompletelyserviceorientedandencouragesthecustomerto
someother
brand.
Thethirdmajormistakeisthatwhenyouarenotabletohirethebestcandidate.Youeasilyhireanyone who applies and dont even put some efforts to train them gives a really terrible
experiencetothecustomers.Brandpromisesaredeliveredbythestaff. Ifyourgoal istobea
business leaderyouwill investtimetotrainthestaff. Ifyouselectapersonwho isverypolite
anddoesnotevenknowhowtodressupforan interviewthenyoucompetitionshouldsenda
thankyoucardforallthebusinessyouwillsendhisway.
Peoplewhowanttobecomethebusinessleaderunderstandtheyareagreatproductbrands.Theyare
authentic,dependableandreliable.Their icon istheirname.Deliveringthebestofthemselves istheir
brandpromise.
Do
you
want
to
become
winner
at
working?
Then,
deliver
the
brand
promise.
Attimes,organizationsareofteninspiredbyavarietyofideastocreateproductsandserviceswhichcan
beofferedlocallyorglobally.Generally,suchproductsorservicesrequiretheestablishmentofabrand
or company name. Often these brands include both logo and lettering and can do a long way in
advertisingsuchproductsorservices.Therefore,oneofthemostimportantstepsinbuildingaBrandis
decideuponabrandnamefortheproductorserviceonewishestosell.
Branding isaprocessthatallowsan individualoragroupof individuals theabilitytoprovideabrand
imageand
lettering
to
an
idea.
Upon
doing
so,
one
has
abetter
chance
of
selling
such
items
to
abroader
audiencewhether thatbeona localorglobal level.Therefore,whiletheoldadagenothinghappens
until somebody sells something, still stands true to some extent, at times almost seems as if the
processofadvertisingandbrandinghasovertakenthedesiretosell.
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Although branding generally identifies the company and philosophies behind same, it can also be
representativeofthoseworkingforsuchacompany.Thisisagoodthingasitgeneratestherighttypeof
audience to theproductorservicebeingsoldbasedonpersonal relationshipswith those running the
company.Therefore,benefitingboththeorganizationssellingthebrandedproductorserviceand the
dealersbuyingsame.
Oneofthemost importantsteps insellinganyproductorservice isthebeliefoneholds inrelationto
the item. Therefore, only those who strongly believe in the products and services offered by the
companyaregoingtobegoodatsellingsame.Otherwise,onemaywanttoworkfromanadvertisingor
graphicartistperspective inrelationtoadvertisingratherthansaleswhen itcomestotimetomarket
same.
Anotherstep
is
to
build
abrand
that
maintains
loyalty
with
its
customer
base
and
has
astrong
customer
servicedepartment.For,havingsuchadepartmentintoday'sworldwhereoneisbothexperiencedand
knowledgeablewhenitcomestohelpingotherscanbeararefind.So,companieswhorepresentoneself
has having a strong customer base and even stronger customer service department areoftenmore
successfulthanthosewhodonot.
Avery importantstep inmarketingabrand isto identifythetargetaudiencebeforecreatingthe logo
andletteringinrelationtomarketing.Thisisbecausedifferentagegroupsreactdifferentlytoavariety
oflogoandletteringespeciallyassomuchismisrepresentedbyavarietyofgangsandothersusingsuch
materialinappropriately.
Therefore,
ifone
can
define
the
brand
name,
logo
and
lettering
and
present
sametoamarketingresearchreviewpanelorthelike,onemaybeabletogainabetterunderstanding
ofwhichaudienceoneneedstodirecttheirproductorservicetoinordertocreatethemostsales.Still,
ifonecan
Communicatetheuseoftheirproductorserviceclearly, Establishtrustwithinthecommunity,bethatlocallyorglobally, Aimmarketingattherightaudience, Buildabaseofbuyersandcustomerloyaltyandoffergreatcustomerservice,
Then
one
is
on
their
way
to
not
only
creating
and
advertising
an
excellent
brand
but
selling
one
as
well.
Therefore,whenlookingforstepsinbuildingabrand,therearemanystepswhichonecancompleteto
helpmake the creationof suchbrandaneasier task.These include,knowingyouraudience,building
yourbrand,findingagreatlogoandletteringtorepresentsame,targetingtheappropriateaudienceand
placinganumberofadsinasmanyonlineandofflineadvertisingvenuesonecanfind.For,afterdoing
so,onemayjustfindthattheyaresellingevenmoreproductsandservicesthanonehadeverdreamed
possible.
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BrandEquityisthevalueandstrengthoftheBrandthatdecidesitsworth.Itcanalsobedefinedasthe
differential impactofbrandknowledgeonconsumers response to theBrandMarketing.BrandEquity
existsasa functionofconsumerchoice in themarketplace.TheconceptofBrandEquitycomes into
existencewhen consumermakes a choiceof aproductor a service. Itoccurswhen the consumer is
familiarwith thebrandandholdssome favorablepositivestronganddistinctivebrandassociations in
thememory.
BrandEquitycanbedeterminedbymeasuring:
ReturnstotheShareHolders. EvaluatingtheBrandImageforvariousparametersthatareconsideredsignificant. EvaluatingtheBrandsearningpotentialinlongrun. Byevaluatingtheincreasedvolumeofsalescreatedbythebrandcomparedtootherbrandsinthesameclass.
Thepricepremiumchargedbythebrandovernonbrandedproducts Fromthepricesofthesharesthatanorganizationcommands inthemarket(specifically ifthebrand name is identical to the corporate name or the consumers can easily corelate the
performanceof all the individualbrandsof theorganizationwith theorganizational financial
performance.
OR,Anamalgamationofalltheabovemethods.
FactorscontributingtoBrandEquity
9 BrandAwareness9 BrandAssociations9
Brand
Loyalty
Perceived Quality: refers to the customers perception about the total quality of the brand.While
evaluating quality the customer takes into account the brands performance on factors that are
significanttohimandmakesarelativeanalysisaboutthebrandsqualitybyevaluatingthecompetitors
brandsalso.Thusquality isaperceptualfactorandtheconsumeranalysisaboutqualityvaries.Higher
perceivedqualitymightbeusedforbrandpositioning.Perceivedqualityaffectthepricingdecisionsof
theorganizations.Superiorqualityproductscanbechargedapricepremium.Perceivedqualitygivesthe
customersareasontobuytheproduct. Italsocapturesthechannelmembers interest.For instance
AmericanExpress.
OtherProprietaryBrandAssets:Patents,TrademarksandChannelInterrelationsareproprietaryassets.
Theseassetsprevent competitorsattackon theorganization.Theyalsohelp inmaintaining customer
loyaltyaswellasorganizationscompetitiveadvantage.
BrandEquityisdefinedasvalueandstrengthoftheBrandthatdecidesitsworthwhereasCustomer
Equityisdefinedintermsoflifetimevaluesofallcustomers.
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BrandEquityandCustomerEquityhavetwothingsincommon
Bothstressonsignificanceofcustomerloyaltytothebrand Both stress upon the face that value is created by having asmany customers as possible
payingashighpriceaspossible.
However,conceptuallybothbrandequityandcustomerequitydiffer.
While customer equityputs toomuchemphasison lower line financial value got from thecustomers, brand equity attempts to put more emphasis on strategic issues in managing
brands.
CustomerEquity islessnarrowalternative.Itcanoverlookabrandsoptionalvalueandtheircapacityeffectrevenuesandcostbeyondthepresentmarketingenvironment.
Justascustomerequitycanpersistwithoutbrandequity,brandequitymayalsoexistwithoutcustomerequity.For instance Imayhavepositiveattitude towardsbrands McDonaldand
BurgerKing,butImayonlypurchasefromMcDonaldsbrandconsistently.
To conclude,we can say brands do not existwithout consumer and consumerdo not existwithout
brands. Brands serve as a temptation that utilizes other intermediaries to lure the customers from
whomvalue isextracted.Customersserveasaprofitmediumforbrandstoencashtheirbrandvalue.
Boththeconceptsarehighlycorelated.
BrandExtensionistheuseofanestablishedbrandnameinnewproductcategories.Thisnewcategory
to which the brand is extended can be related or unrelated to the existing product categories. A
renowned/successfulbrandhelpsanorganizationtolaunchproductsinnewcategoriesmoreeasily.For
instance,Nikes
brand
core
product
is
shoes.
But
it
is
now
extended
to
sunglasses,
soccer
balls,
basketballs,andgolfequipments.Anexistingbrandthatgivesrisetoabrandextensionisreferredtoas
parentbrand.Ifthecustomersofthenewbusinesshavevaluesandaspirationssynchronizing/matching
thoseofthecorebusiness,andifthesevaluesandaspirationsareembodiedinthebrand,itislikelyto
beacceptedbycustomersinthenewbusiness.
Extendingabrandoutsideitscoreproductcategorycanbebeneficialinasensethatithelpsevaluating
product category opportunities, identifies resource requirements, lowers risk, andmeasures brands
relevanceandappeal.
Brandextension
may
be
successful
or
unsuccessful.
Instanceswherebrandextensionhasbeenasuccessare
Wiprowhichwasoriginallyintocomputershasextendedintoshampoo,powder,andsoap.
Marsisnolongerafamousbaronly,butanicecream,chocolatedrinkandaslabofchocolate.
Instanceswherebrandextensionhasbeenafailureare
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IncaseofnewCoke,CocaColahasforgottenwhatthecorebrandwasmeanttostandfor. Itthought
thattastewastheonlyfactorthatconsumercaredabout.Itwaswrong.Thetimeandmoneyspenton
researchonnewCocaCola couldnot evaluate thedeepemotional attachment to theoriginalCoca
Cola.
RasnaLtd. IsamongthefamoussoftdrinkcompaniesinIndia.Butwhenittriedtomoveawayfromits
niche, ithasnthadmuch success.When it experimentedwith fizzy fruitdrink Oranjolt, thebrand
bombed even before it could take off.Oranjoltwas a fruit drink inwhich carbonateswere used as
preservative.Itdidntworkoutbecauseitwasoutofsynchronizationwithretailpractices.Oranjoltneed
toberefrigeratedanditalsofacedqualityproblems.Ithasashelflifeofthreefourweeks,whileother
soft drinksassuredlifeoffivemonths.
AdvantagesofBrandExtension
Itmakesacceptanceofnewproducteasy. Itincreasesbrandimage. Theriskperceivedbythecustomersreduces. Thelikelihoodofgainingdistributionandtrialincreases.Anestablishedbrandnameincreases
consumerinterestandwillingnesstotrynewproducthavingtheestablishedbrandname.
The efficiency of promotional expenditure increases. Advertising, selling and promotionalcostsarereduced.Thereareeconomiesofscaleasadvertisingforcorebrandanditsextension
reinforceseachother.
Costofdevelopingnewbrandissaved. Consumerscannowseekforavariety. Therearepackagingandlabelingefficiencies. Theexpenseofintroductoryandfollowupmarketingprogramsisreduced. Therearefeedbackbenefitstotheparentbrandandtheorganization. Theimageofparentbrandisenhanced. Itrevivesthebrand. Itallowssubsequentextension. Brandmeaningisclarified. Itincreasesmarketcoverageasitbringsnewcustomersintobrandfranchise. Customers associate original/core brand to new product, hence they also have quality
associations.
DisadvantagesofBrandExtension
Brand extension in unrelated markets may lead to loss of reliability if a brand name isextended too far. An organization must research the product categories in which the
establishedbrandnamewillwork.
Thereisariskthatthenewproductmaygenerateimplicationsthatdamagetheimageofthecore/originalbrand.
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There are chances of less awareness and trial because themanagementmay not provideenough investment for the introduction of new product assuming that the spinoff effects
fromtheoriginalbrandnamewillcompensate.
Ifthebrandextensionshavenoadvantageovercompetitivebrandsinthenewcategory,thenitwillfail.
Cobranding
Cobrandingistheutilizationoftwoormorebrandstonameanewproduct.Theingredientbrandshelp
each other to achieve their aims. The overall synchronization between the brand pair and the new
producthastobekeptinmind.Exampleofcobranding CitibankcobrandedwithMTVtolaunchaco
brandeddebitcard.Thiscardisbeneficialtocustomerswhocanavailbenefitsatspecificoutletscalled
MTVCitibankclub.
Typesof
Co
branding
Cobrandingisoftwotypes:IngredientcobrandingandCompositecobranding.
Ingredient cobranding implies using a renowned brand as an element in the production ofanotherrenownedbrand.Thisdealswithcreationofbrandequityformaterialsandpartsthat
are containedwithinother products. The ingredient/constituentbrand is subordinate to the
primarybrand.Forinstance DellcomputershascobrandingstrategywithIntelprocessors.The
brandswhichareingredientsareusuallythecompanysbiggestbuyersorpresentsuppliers.The
ingredientbrand
should
be
unique.
It
should
either
be
amajor
brand
or
should
be
protected
by
apatent. Ingredient cobranding leads tobetterqualityproducts, superiorpromotions,more
access todistribution channelandgreaterprofits.The sellerof ingredientbrandenjoys long
termcustomerrelations.Thebrandmanufacturecanbenefitbyhavingacompetitiveadvantage
andtheretailercanbenefitbyenjoyingapromotionalhelpfromingredientbrand.
Composite cobranding refers touseof two renownedbrandnames in away that they cancollectivelyofferadistinctproduct/servicethatcouldnotbepossibleindividually.Thesuccess
ofcompositebrandingdependsuponthefavourabilityofthe ingredientbrandsandalsoupon
theextentoncomplementaritiesbetweenthem.
AdvantagesandDisadvantagesofCobranding
Cobrandinghas various advantages, such as risksharing, generationof royalty income,more sales
income, greater customer trust on the product, wide scope due tojoint advertising, technological
benefits,betterproductimagebyassociationwithanotherrenownedbrand,andgreateraccesstonew
sourcesof finance.But cobranding isnot free from limitations.Cobrandingmay failwhen the two
productshavedifferentmarketandareentirelydifferent.Ifthereisdifferenceinvisionsandmissionsof
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the twocompanies, thenalsocompositebrandingmay fail.Cobrandingmayaffectpartnerbrands in
adversemanner. If thecustomersassociateanyadverseexperiencewithaconstituentbrand, then it
maydamagethetotalbrandequity.
Brand personality is the way a brand speaks and behaves. It means assigning human personality
traits/characteristics to a brand so as to achieve differentiation. These characteristics signify brand
behaviour through both individuals representing the brand (i.e. its employees) as well as through
advertising,packaging,etc.Whenbrandimageorbrandidentityisexpressedintermsofhumantraits,it
is called brand personality. For instance Allen Solley brand speaks the personality andmakes the
individual who wears it stand apart from the crowd. Infosys represents uniqueness, value, and
intellectualism.
Brandpersonality isnothingbutpersonificationofbrand.Abrand isexpressedeitherasapersonality
who embodies these personality traits (For instance Shahrukh Khan andAirtel, JohnAbraham and
Castrol)or
distinct
personality
traits
(For
instance
Dove
as
honest,
feminist
and
optimist;
Hewlett
Packardbrandrepresentsaccomplishment,competencyand influence).Brandpersonality istheresult
ofalltheconsumersexperienceswiththebrand.Itisuniqueandlonglasting.
Brandpersonalitymustbedifferentiatedfrombrandimage,insensethat,whilebrandimagedenotethe
tangible (physical and functional) benefits and attributes of a brand, brand personality indicates
emotionalassociationsof thebrand. Ifbrand image iscomprehensivebrandaccording toconsumers
opinion, brand personality is that aspect of comprehensive brand which generates its emotional
characterandassociationsinconsumersmind.
Brand
personality
develops
brand
equity.
It
sets
the
brand
attitude.
It
is
a
key
input
into
the
look
and
feelofanycommunicationormarketingactivitybythebrand.Ithelpsingainingthoroughknowledgeof
customers feelings about thebrand.Brandpersonalitydifferentiates amongbrands specificallywhen
they are alike inmany attributes. For instance Sony versusPanasonic.Brandpersonality isused to
makethebrandstrategylively,i.e,toimplementbrandstrategy.Brandpersonalityindicatesthekindof
relationshipacustomerhaswiththebrand. It isameansbywhichacustomercommunicateshisown
identity.
Brand personality and celebrity should supplement each other. Trustworthy celebrity ensures
immediate awareness, acceptability and optimism towards thebrand. Thiswill influence consumers
purchasedecisionand also createbrand loyalty.For instance Bollywood actressPriyankaChopra is
brandambassadorforJ.Hampstead,internationallineofpremiumshirts.
Brandpersonalitynotonly includes thepersonality features/characteristics,butalsothedemographic
features like age, gender or class and psychographic features. Personality traits arewhat the brand
existsfor.
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