Brand Eqiuty-DeEPTI MS 03- 07 4rm College
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Transcript of Brand Eqiuty-DeEPTI MS 03- 07 4rm College
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MARKETING MANAGEMENT
MARKET
Regular gathering for buying and selling of goods.
Area of trade and business
A place where we put up our goods, services, products by Advertising and
Promotion
Its a physical place where buyers and sellers gather to buy and sell
goods.
MARKETER-
Two parties seeking to sell something to each other, both are calledmarketers.
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MARKETING MANAGEMENT
Art and Science of choosing target markets and getting, keeping
and growing customers, through creating, offering and freely
exchanging products & services with others.
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Whatthingsare Marketed?
Goods-
Physical goods like- Cars, Televisions, machine tools, industrial chemicals,
watches, shoes, clothing, SoapsServices-
Work of airlines, hotels, barbers, beauticians, maintenance & repair,bankers, lawyers, doctors, consultants.
Events- Time Based
Trade shows, Exhibitions, sports events like Olympics, commonwealthgames.
These are promoted to both companies and fans.
Experiences-
Amusement parks, water parks, theme-based experiences like-restaurants theme with villages of Gujarat or Rajasthan.
Persons-Celebrity Mktg- artists, singers, sportsmen, they market themselves.
Eg. David Beckham, Oprah Winfrey, AB, SRK
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Places-Cities, states, cultures attract tourist round the world.
Bangalore called as Silicon Valley in IT Sector.Kerela called Gods own country
India called Incredible Land
Properties-Real estate agents work for property owners and earn a name in
the market and become a BRAND.
Organizations-Universities, museums, NGOs, all do the campaigning to make
Public ImageEg. UNICEF
Note- All theabove,if workkeenly upon, will becomea BRAND
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UnitI
Creating Brand Equity
-Whatisa product?- A bundle of benefits or satisfaction offered to a
customer.
Eg.- HLLs Lux soap are selling- good beautiful complexion, lovely skin,
PHILIPS selling bulbs, are selling- good illumination, long hours of light and
durability.
Creating Brand Equity
-Building strong brands require a keen undstng of competitors, and with the
competition growing more intense every year.
- Global competitors into new markets.
-On-line competitors expanding distribution by cost-efficient ways.
-Private-label brands by providing low-priced alternatives.
-Also brand extensions- Major brands moving into new categories.
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Whatis BRAND?
-A type of product made by the company under a particular name.
Brand Name- a name given by the maker to a product.
BRAND-A name,term,sign,symbol,design,slogan,intended to identify
the goods or services of one seller or group of sellers & to differentiate
them from those of competitors.
-This dfrnc may be related to product performance i:e FUNCTIONAL
OR
- may be related to what brand represents, i:e symbolic,emotional
Eg.- NAME- Goodknight, Hit, Complan, Boost,Fairn Lovely
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Logo- Kelvinators Penguin, Onidas Devil, Amul Butter
Girl
Slogan- is an extremely efficient means to build brand
equity.
They help consumers understand what brand is all about and
what special it offers.
Eg.- Complete Man- Raymonds
Joy Of Flying Jet Airways
Lifes Good, Mint withthehole, I am lovingit, Purefor
sure
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BRAND EQUITY
It is the value or worth of the brand
Or
Its an added value, quality or strength to a product or service.Its is the net result of all the investments and efforts that a marketer
puts into building a brand.
Differential effect, that brand knowledge has on customer response tothe mktg of that brand.
It could be POSITIVE CONSUMER-BASED BRAND EQUITY
Or
NEGATIVE CONSUMER-BASED BRAND EQUITY
Basically, Brand Equity isthe made of-
-User-ship of the brand
-Consumer loyalty
-Perceived quality
-Positive symbols & favorable associations around the brand
Highly paid premium brand equity brands are- HLL, ITC, IT Majors.
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Roles or Essentials of Brands
1. Identify the Maker- or source of products and allow the consumersto relate its performance with the manufacturer.
- Consumers find out, which brand satisfy their needs & which do not.Eg.- Lijjat Papad, Vicovajradanti
2. Simply producthandling- As in todays time, lives of consumersare getting more busy, rushed, complicated, so brand helps indecision- making with reduced risk.
-Name should be short, simple, easy to pronounce and remember
Eg.- Ponds, Rin, Lux
3. Organize Accounting- Brand helps in performing differentfunctions for the firm like-
- Product-handling, Tracing
- Organizing Inventory
- Organizing accounting records
4. Offer Legal Protection- Brand gives legal protection with differentfeatures and aspects of a product.
Eg.- Brand Name can be protected through its TRADEMARKS,
Manufacturing Processes through its PATENTS,
Packaging through its COPYRIGHTS
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5. Signify Quality- It should be unique, attractive, distinctive.
-Level of quality makes the satisfied buyers to choose easily the product.
Eg.- Sunlight, Goldflake, Dalda, Amul
6. Creates Barriersto entry- Brand Loyalty by the customers secure
the demand for the firm and its products.
- Hence creates barriers for other firms to enter the markets.
7. Servesas Competitive Advantage- Other firms might duplicate the
manufacturing processes but still cannot match the lasting
impressions of yrs of product experience from consumers mind.
8.- Secure Price Premium- Firms pay tremendously in making a brand
by mergers & acquisitions and thus, extract extra profits from the
brands.
Eg.- P&G-Procter & Gamble- Pringle potato chips, Tide, Old-Spice, Oral-B
Toothbrush, Pampers.
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BRANDING
Endowing products & services with the power of a brand.
Provide with qualityGiving name to a product to make it identify by the consumer.
Branding means- Giving Specified, distinctive name to a product- Specified name creates individuality in the product and hence, it can be
easily distinguished in the market from the rival products.
SCOPE OF BRANDING
It creates a mental structure that helps consumers in getting knowledgeabout products & services & thus, helps in DECISION-MAKING.
EQUITYQuality of being fair and impartial
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Brand Knowledge
Consists of all thoughts, feelings, images, experiences, beliefsassociated with brands.
Eg.- VOLVO- for safetyHALLMARK- for care of emotions
PONDS- for skin sensitivity
Brands must associate
strongly, uniquely,favorably
with the customers
BRAND PROMISE
Its the marketers vision, what the brand must be & do for theconsumers.
Eg. AMUL from Gujarathas come up with many varieties in Non-carbonated milk-based drinks like- Amul Kool Lassi, Butter milk, kool
kafe, kool koko ,
keeping in mind the Health of people.
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Brand Variants
Specific brand lines supplied to specific retailers or distribution channels.
Eg.- A camera company may supply low-end cameras to a merchandiser,while high-end cameras to the specialty stores.
Licensed Product
Is One whose brand name has been licensed to manufacturer thatactually makes the product.
BRAND NAMING DECISIONS
For products & services, which brand name to choose
1.Individual names- each product of the company is given anindependent brand name.
Eg.- HLL has bathing soap categories- Lux, Liril, Dove, Pears
In Detergents- Surf, Rin, Wheel
In Toothpastes- Close-up, Pepsodent
Eg.- Nestle- As In coffee brand
In noodles- MaggiIn chocolate- Kitkat
Baby food-Cerelac
Advantage- If product fails, company name is not hurt
Disadvantage- Promotion is expensive
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2. BlanketFamily Names- When group of products are given thesame brand name. It is limited to one line of product.
Eg.- AMUL(Family name)- amul lassi, butter milk, kool kafe
Dhara- mustard oil, groundnut oil, sunflower oil
Eg- Amul for Milk products, Ponds for cosmetics.
Advantage- Promotion becomes easier, less expensive
Disadvantage- if one product becomes a low-quality product, otherrange might get affected
3. SeparateFamily nameforall products-all products of one company or manufacturer under one umbrella.Eg- all products like- soaps, chemicals, textiles, engineering goods,
under TATAs name
Eg.- Aditya Birla Group-
Hindalco for Aluminium
Ultratech for Cement
Grasim for Suitings
4. Corporatenamecombined withindividual productnames-
Company name is itself used as a brand name under which variedproducts are marketed
E.g.- Kellogg's Cornflakes, Bajaj Bulbs, Cadburys chocolate, VideoconWashing Machine
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BRAND PORTFOLIO
IS A SET OF ALL BRANDS AND BRAND-LINES FOR A PARTICULARCATEGORY OR MKT SEGMENTATION.
Marketers carefully monitor the brand portfolis, identify the weak brandsand prune the un-profitable ones.
the firm decides to cut-short the product-line, by eliminating somebrands .
Eg.- P&G focuses more on Pantene, Head & shoulders, Ariel, Vicks
Dabur now concentrating on 3 product lines- food, personal care, health
care
Vatika, Hajmola, Pudin hara, Chyawanprash, Real juices.
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Different Models of Brand Equity
1. Brand Asset Valuator
2. Akar Model
3. BRANDZ Model4. Brand Resonance
BRANDZ Model of measurement-
5. Presence- Weak relation with Brand- Do I know about the product?
4. Relevance- Does it offer me something?
3. Performance- Can it deliver?2. Advantage- Does it offer something better than others?
1. Bonding- Strong relation with Brand- Nothing else beat it?
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Building Brand Equity Marketers build brand equity by creating right knowledge with right
customers.
This is done by-
I- Brand Elements
II- Marketing activities
III- Meaning Transference
I- Brand Elements- comprise of brand names, Logo's, slogans,characters, symbols
Brand element choosing criteria6 types-
1. Memorable- How easily brand name can be recalled
- It should be short, simple, easy to pronounce and remember
Eg. Lux, L.G, Taj
2. Meaningful- Brand name should suggest something about the product.
Eg.- Fair & Lovely Fairness Cream3. Likeable- Brand name should be liked visually,verbally
Eg. Scorpio, Lancer, Splendor, Scooty Pep
4. Transferable- Brands should used to introduce new products in sameor difrnt categories
Amul-into milk products with more categories as dahi, butter milk
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5. Adaptable- Brand should change itself with time.
Eg. LIFEBOUY underwent changes with its colour,
fragrance,packaging,looks
6. Protectible- Brand should be legally protectable.Products shouldnt become generic with the common names.
II- Marketingactivities- Difrnt activities are required to make thebrand heard by the customers like- Personal Observation, word of
mouth, online or telephonic experiences.
Brand contact- information based experience, +ive or ive, a customerhas with the brand.
- Marketers are building brand equity by Clubs, Consumer communities,trade shows, events, factory visits, press releases, PR
III. Meaning Transference- Transferring the meaning of the brand inan appropriate manner
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Managing Brand Equity
Brand Reinforcement-
Eg.- Godrej reinforced its global identity with the Miss World Contest
Kinetic Honda- Auto StartLipton Taza Tea- Freshness
Brand Revitalization-
- Giving new life to the brands with new ideas
- Rejuvenation of the brand by adding value to the existing brand by
improving product attributes.Advantage- Helps in overcoming consumers boredom by changing tastes,
needs, preferences
- Brands appear in new packaging, shapes, sizes, colours, fragrances,flavours, features, qualities
Eg.- Cadburys 5-Star chocolate became new with creamier and
smoother tasteOnida Television came with newer features
Objective- give new life to the declining brand, occasional revival to thesuccessful brands, brands alive and in focus
Eg.- HLL keep updating brands- Surf, Lux, Close-Up
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Devisinga Brand EquityHow to make a new product into a Brand?
3 ways-
1. Can develop new brand elements for new products.
(slogans, logos, symbols)
2. Can apply some of its existing brand elements.
3. Can use combination of new and existing brand elements.
Thisisbeingdoneinfurther ways-
BRAND EXTENSION- When a firm uses an established brand to introduce a new product
Eg.- P&G introduces Pantene shampoo
Sub-Brand
when a marketer combines a new brand with the existing brand
Eg.-Amul Masti Dahi, Maruti Swift, ICICI prudential life insurance Advantages of Brand- extension
-Helps new item to get instant brand recognition
-Saves the cost of launching a new brand
-Helps in gaining strength due to the existing brand
-Also leads in making a SUPER-BRAND, among consumers.
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TYPES OF BRAND EXTENSION-a. Line-extension- A parent brand covers a new product within same
product line/ category, with new colors, forms, flavors, packagesizes.
Eg.-Lifebouys line extension into- Lifebuoy PlusHLL launched- Surf Excel, Surf Excelmatic
Colgate launched- Colgate Gel, Colgate Total, Colgate Calciguardb. Category Extension- Extending a Brand name to products in a
related line but related in some way.Eg.- Dettol is known for antiseptic lotions
Launched- Dettol soap, Dettol plaster, dettol handwashMaggi launched- ketchup, soupsBRAND LINES
Consists of all the products, original as well as LINE & CATEGORYextensions.
Eg.- Ponds dreamflower talcPonds dreamflower talc magic
Ponds facewashPonds cold-cream
Ponds moisturizing lotionPonds moisturizing body lotion
Ponds moisturizing cleansing BarBrand Mix- is a set of all brand lines that a particular seller makes
available to the buyers.
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1.Flankers- or fighters
- These brands are positioned wrt to competitors brand, so that moreprofitable brands retains their position.
- Fighter brands neither have to take away the sales of high-pricebrands, nor should reflect poorly in regards of other brands.
2. Cash Cows- milkingcows
- Some brands are kept as such inspite of dwindling sales coz theymanage to hold enough customers inspite of new brands.
- Thus companies can anytime milk these cash cows by capitalizing on
the reservoirs of existing brands.Eg.- Newer Mach III, Gillete still markets older versions of razors
3. Low-End Entry level- Traffic Builders- They build the customer traffic to brand franchise.
Eg.- BMW introduced certain models into its 3-series automobiles, withthe means of bringing up new customers into brand franchise, to later
upgrade it into high-priced models4. High- End Prestige-
This brand adds prestige and credibility to entire brand portfolio.
Eg.- Many T.V brands are now offering high-priced plasma T.V
- Promoting such products help in pushing up the entire product line ofthe company.