CHAPTERCHAPTER--11
BRANDS AND BRAND MANAGEMENTBRANDS AND BRAND MANAGEMENT
Prof. Md. Prof. Md. MizanurMizanur RahmanRahmanMBA (Canada), PhD (Dhaka)MBA (Canada), PhD (Dhaka)
Department of MarketingDepartment of Marketing
University of DhakaUniversity of Dhaka
Learning Objectives Learning Objectives
Define ―brand,‖ state how brand differs from a Define ―brand,‖ state how brand differs from a product, and explain what brand equity isproduct, and explain what brand equity is
Summarize why brands are importantSummarize why brands are important
Explain how branding applies to virtually everythingExplain how branding applies to virtually everything
Describe the main branding challenges and Describe the main branding challenges and opportunitiesopportunities
Identify the steps in the strategic brand Identify the steps in the strategic brand management processmanagement process
1.2
1.3
What Is A Brand?What Is A Brand?
―A ―A brandbrand is a name, term, sign, is a name, term, sign,
symbol, or design or a symbol, or design or a
combination of them, intended combination of them, intended
to to identifyidentify the goods or services the goods or services
of one seller or group of sellers of one seller or group of sellers
and to and to differentiatedifferentiate them from them from
those of competition.‖ those of competition.‖ ------AMA ???AMA ???
What Is A Brand?What Is A Brand?
Simply, ―a brand is someone‘s gut Simply, ―a brand is someone‘s gut
feeling about a product, service or feeling about a product, service or
organizations.‖organizations.‖
―A brand is the ―A brand is the summationsummation of all of all
perceptions, experiences and perceptions, experiences and
beliefs associated with a product, beliefs associated with a product,
service, or entity that make it service, or entity that make it distinct.‖ distinct.‖ ------Modern DefinitionModern Definition
1.4
Are You A Brand?Are You A Brand?
Yes!! or No!!Yes!! or No!!
You all are a brand by all of your individual You all are a brand by all of your individual rights and identitiesrights and identities
1.5
Brand ElementsBrand Elements
Different components that identify and Different components that identify and differentiate a branddifferentiate a brand
Can be based on Can be based on people, places, things, and people, places, things, and abstract imagesabstract images
NameName
LogoLogo
SymbolSymbol
Package designPackage design
SloganSlogan
Other Characteristic Other Characteristic
1.6
Brand ElementsBrand Elements
Brand name Brand name is that part of a brand is that part of a brand
which can be vocalized or which can be vocalized or utterableutterable. .
Brand mark Brand mark is that part of a brand is that part of a brand
which can be recognized but is not which can be recognized but is not
utterableutterable, such as symbol, design, or , such as symbol, design, or
distinctive coloring or lettering. distinctive coloring or lettering.
TrademarkTrademark is that part of brand which is that part of brand which
is registered & protected by law and is registered & protected by law and
which gives the seller exclusive rights to which gives the seller exclusive rights to
use it in perpetuityuse it in perpetuity
1.7
Brand Elements Brand Elements
Brand Name =Brand Name = Mercedes Benz Mercedes Benz
Brand MarkBrand Mark = =
Trade Mark Trade Mark = =
Brand Name Brand Name ++
Brand Mark Brand Mark ++
Trade MarkTrade Mark
= Brand= Brand
1.8
Brand Vs. ProductBrand Vs. Product
ProductProduct BrandBrand
Anything available in the Anything available in the marketplace for use or marketplace for use or consumption that may satisfy a consumption that may satisfy a need or wantneed or want
Has dimensions that differentiate it Has dimensions that differentiate it in some way from other products in some way from other products designed to satisfy the same needdesigned to satisfy the same need
1.9
Product Vs. Brand Product Vs. Brand
ProductProduct BrandBrand
AA physical physical entity that entity that lives in the real worldlives in the real world
AA perceptual perceptual entity that lives in entity that lives in the minds of consumersthe minds of consumers
PProvides functional rovides functional valuevalue
PProvides functional as well as rovides functional as well as social, emotional, situational,social, emotional, situational, and and epistemic valuesepistemic values
IImplies physical mplies physical attributes and benefitsattributes and benefits
IImplies physical attributes and mplies physical attributes and benefits as well as psychic aspects benefits as well as psychic aspects surrounding a productsurrounding a product
CComes and goes with omes and goes with timetime
IIs timeless???s timeless???
1.10
1.11
Five Levels of Meaning for a Product Five Levels of Meaning for a Product
Core BenefitCore Benefit
Generic ProductGeneric Product
Expected ProductExpected Product
Augmented Product LevelAugmented Product Level
Potential Product LevelPotential Product Level
1.12
Brands Conveying Six Meanings Brands Conveying Six Meanings
AttributesAttributes–– characteristics and featurescharacteristics and features
BenefitsBenefits–– functional and emotionalfunctional and emotional
ValuesValues–– performance, safety & prestigeperformance, safety & prestige
CultureCulture–– MercedesMercedes--organized, efficient, high qualityorganized, efficient, high quality
PersonalityPersonality–– FantaFanta/Virginia Slim: female personality/Virginia Slim: female personality
UsersUsers–– the kind of consumer using itthe kind of consumer using it
BrandBrand
Organizational Organizational AssociationsAssociations
Country Of OriginCountry Of Origin
User ImageryUser Imagery
Emotional Emotional BenefitsBenefits
SelfSelf--expressive expressive Benefits Benefits
Brand Brand --Customer Customer Relationships Relationships
Symbols Symbols
Brand PersonalityBrand Personality
Weight/ColorWeight/Color
Price/QualityPrice/Quality
Design/FeaturesDesign/Features
Uses/ ValueUses/ Value
Functional BenefitsFunctional Benefits
ProductProduct
A Brand Is More Than A Product A Brand Is More Than A Product
SophisticationSophistication
LifeLife--stylesstyles
Experimental Experimental benefitsbenefits
1.1.1313
Every Brand Has A PersonalityEvery Brand Has A Personality
NikeNike AddidasAddidas BataBata
BeautifulBeautiful GreekGreek OldOld
FeminineFeminine MasculineMasculine OrthodoxOrthodox
StrongStrong StrongStrong BoreBore
SmartSmart StylishStylish FormalFormal
AmbitiousAmbitious AuthoritativeAuthoritative IntrovertIntrovert
CoolCool PowerfulPowerful UnsportyUnsporty
SexySexy DominatingDominating WeakWeak
ExtrovertExtrovert StableStable SimpleSimple
EnergeticEnergetic CommandingCommanding ConservativeConservative
YoungYoung ModernModern TrustworthyTrustworthy
LivelyLively BoldBold CaringCaring 1.14
1.15
What Is Branding?What Is Branding?
TThe he act of transforming act of transforming a product into a product into
customer satisfying valuecustomer satisfying value--added added
propositions to create preferences in one‘s propositions to create preferences in one‘s
favor and against rivalsfavor and against rivals
Everything a marketer does to its offer so that Everything a marketer does to its offer so that
customers can favorably discriminate a brandcustomers can favorably discriminate a brand
FromFrom
Brands as Brands as
identifiersidentifiers
NamesNames, logos, , logos,
slogans slogans whichwhich
buildbuild awarenessawareness
and imageand image
TOTO
Brands as Brands as experienceexperience
providersproviders
NamesNames, logos, slogans, , logos, slogans,
eventsevents, , customercustomer contacts contacts
and and experiencesexperiences whichwhich buildbuild
sensorysensory, affective, , affective, creativecreative
relations and relations and waysways of of beingbeing
withwith the brandsthe brands
1.16
From Traditional To Experiential BrandingFrom Traditional To Experiential Branding
USP = Unique USP = Unique SellingSelling PropositionProposition ((5050‘s)‘s)
ESP = ESP = EmotionalEmotional SellingSelling PropositionProposition ((6060‘s)‘s)
OSP = OSP = OrganizationalOrganizational SellingSelling PropositionProposition ((8080‘s)‘s)
BSP = Brand BSP = Brand SellingSelling PropositionProposition ((9090‘s)‘s)
MSP= Me MSP= Me SellingSelling PropositionProposition ((20002000‘s)‘s)
HSP =HSP =HolisticHolistic SellingSelling Proposition (Proposition (AfterAfter 20002000‘s)‘s)
1.17
Evolution From USP to HSPEvolution From USP to HSP
http://www.slideshare.net/paulsjr/briefhttp://www.slideshare.net/paulsjr/brief--historyhistory--ofof--brandingbranding
Physical productPhysical product
Emotional attachmentEmotional attachment
Corporate brandingCorporate branding
More than physical More than physical dimensionsdimensions
Personalization; Personalization; ownership by ownership by consumersconsumers
Multisensory brand; Multisensory brand; synergysynergy
Easy for the seller to track down problems and Easy for the seller to track down problems and
process ordersprocess orders
Legal protection of unique product featuresLegal protection of unique product features
Opportunity to attract loyal and profitable set of Opportunity to attract loyal and profitable set of
customerscustomers
Helping to give a product category at different Helping to give a product category at different
segments, having separate bundle of benefitssegments, having separate bundle of benefits
Building corporate imageBuilding corporate image
Minimizing harm to company reputation if the brand Minimizing harm to company reputation if the brand
failsfails
1.18
Advantages of BrandingAdvantages of Branding
Beware of Branding PitfallsBeware of Branding Pitfalls
Pitfall No. 1: Pitfall No. 1: A brand is A brand is
something a firm ownssomething a firm owns
Pitfall No. 2: Pitfall No. 2: Brands Brands take care of themselvestake care of themselves
Pitfall No. 3: Pitfall No. 3: Focus on Focus on
brand awareness instead brand awareness instead
of brand relevanceof brand relevance
Pitfall No. 4: Pitfall No. 4: Don‘t base Don‘t base
on internal image of on internal image of
brandbrand
Pitfall No. 5: Pitfall No. 5: Don‘t let Don‘t let
outsiders do firm‘s joboutsiders do firm‘s job1.19
A brand is defined only by A brand is defined only by
customerscustomers
Proactive brand management Proactive brand management is requiredis required
Manage touch points; target Manage touch points; target
right customers and right customers and
stakeholdersstakeholders
Gain customer input and Gain customer input and
determine current brand image determine current brand image
and take needful measuresand take needful measures
Company should determine its Company should determine its
own brand imageown brand image
AAss perceptions of all tangible and intangible perceptions of all tangible and intangible
elements, brands have…elements, brands have…
……the power the power that can transcend the attributes that can transcend the attributes
and characteristics of productsand characteristics of products
……the ability the ability to capture attention and loyalty far to capture attention and loyalty far
above othersabove others
1.20
Why Is Brand So Important?Why Is Brand So Important?
Brands can have POWER…Brands can have POWER…
CocaCoca--ColaCola Is it more than cola beans, corn Is it more than cola beans, corn sweetener, sweetener, spices and food coloring mixed together?spices and food coloring mixed together?Is it more than a beverage?Is it more than a beverage?
Coors LightCoors Light Is it more than hops, malted barley, Is it more than hops, malted barley, mushroom and water?mushroom and water?
StarbucksStarbucks Is it more than coffee?Is it more than coffee?
USAUSA Is it more than 50 states united?Is it more than 50 states united?
1.21
Why Is Brand So Important?Why Is Brand So Important?
No awareness of the brandNo awareness of the brand
Heard of it, but don‘t know anything about itHeard of it, but don‘t know anything about it
Heard of it and know what it isHeard of it and know what it is
Know that and how it‘s differentKnow that and how it‘s different
Know that and how it has meaningKnow that and how it has meaning
Relate the brand to a feeling, attitude, event, Relate the brand to a feeling, attitude, event, perception of myself that is important and perception of myself that is important and relevant to merelevant to me
1.22
To build To build brand brand
power, we power, we need to need to know know
where we where we are and are and
determine determine how to get how to get to higher to higher
levelslevels
Brand Power HierarchyBrand Power Hierarchy
No awareness of the brand
Heard of it, but don‘t know anything about it
Heard of it and know what it is
Know that & how it‘s differentKnow that & how it‘s different
Know that & how it has meaningKnow that & how it has meaning
Relate the brand to a feeling, attitude, event, Relate the brand to a feeling, attitude, event, perception of myself that is important and perception of myself that is important and relevant to merelevant to me
Brand Initiation
(where brands become
products)
1.23
Brand Power HierarchyBrand Power Hierarchy
No awareness of the brandNo awareness of the brand
Heard of it, but don‘t know anything about itHeard of it, but don‘t know anything about it
Heard of it and know what it isHeard of it and know what it is
Know that & how it‘s different
Know that & how it has meaningKnow that & how it has meaning
Relate the brand to a feeling, attitude, event, Relate the brand to a feeling, attitude, event, perception of myself that is important and perception of myself that is important and relevant to merelevant to me
Brand with Differentiation
1.24
Brand Power HierarchyBrand Power Hierarchy
No awareness of the brandNo awareness of the brand
Heard of it, but don‘t know anything about itHeard of it, but don‘t know anything about it
Heard of it and know what it isHeard of it and know what it is
Know that & how it‘s differentKnow that & how it‘s different
Know that & how it has meaning
Relate the brand to a feeling, attitude, event, Relate the brand to a feeling, attitude, event, perception of myself that is important and perception of myself that is important and relevant to merelevant to me
Brand with Relevance
1.25
Brand Power HierarchyBrand Power Hierarchy
No awareness of the brandNo awareness of the brand
Heard of it, but don‘t know anything about itHeard of it, but don‘t know anything about it
Heard of it and know what it isHeard of it and know what it is
Know that & how it‘s differentKnow that & how it‘s different
Know that & how it has meaningKnow that & how it has meaning
Relate the brand to a feeling, attitude, event, perception of myself that is important and relevant to me
Brand with Equity
1.26
Brand Power HierarchyBrand Power Hierarchy
Brand Brand DifferentiationDifferentiation
Brand Brand RelevanceRelevance
++
Brand PowerBrand Poweris a function of Differentiation, Relevance, and Equityis a function of Differentiation, Relevance, and Equity
BP=f(D,R,BE)BP=f(D,R,BE)
==Brand Brand EquityEquity
++
1.27
Achieving Brand PowerAchieving Brand Power
Brand Differentiation:Brand Differentiation:
The characteristics and perceptions that are The characteristics and perceptions that are perceived to be different against alternativesperceived to be different against alternatives
Differentiation buys trialDifferentiation buys trial
Achieving Brand PowerAchieving Brand Power
1.28
Brand Relevance:Brand Relevance:
The degree to which the brand is applicable to, or The degree to which the brand is applicable to, or makes a connection with makes a connection with people‘s lifestyles, people‘s lifestyles, issues, needs, issues, needs, desires, etc.desires, etc.
Relevance gains repeat considerationRelevance gains repeat consideration
Achieving Brand PowerAchieving Brand Power
1.29
Brand Equity:Brand Equity:
Derived from Derived from experienceexperience--based associations based associations with the with the brand, and the emotional connections that grow from brand, and the emotional connections that grow from themthem
Brand Equity provides insulationBrand Equity provides insulation
Achieving Brand PowerAchieving Brand Power
1.30
Customer will not change brands for price reasonsCustomer will not change brands for price reasons
Customer is satisfied; no reason to changeCustomer is satisfied; no reason to change
Customer is satisfied and would take pains to get Customer is satisfied and would take pains to get the brandthe brand
Customer values the brand and sees it as a friendCustomer values the brand and sees it as a friend
Customer is devoted to the brandCustomer is devoted to the brand
When Is Brand Power Achieved?When Is Brand Power Achieved?
1.31
Brand LoyaltyBrand Loyalty
Brand loyalty Brand loyalty is the bias, behavioral response, is the bias, behavioral response,
expressed over time, by some decisionexpressed over time, by some decision--making making
unit, with respect to one or more alternatives, unit, with respect to one or more alternatives,
and is a function of psychological process and is a function of psychological process
‗Loyal customer base‘ is the essence of brand ‗Loyal customer base‘ is the essence of brand buildingbuilding
1.32
Brand LoyaltyBrand Loyalty
LLoyal customer base depends on:oyal customer base depends on:
1.33
TrustTrust
ConsistencyConsistency
AccessibilityAccessibility
ResponsivenessResponsiveness
CommitmentCommitment
AffinityAffinity
Social bondsSocial bonds
Psychological bondsPsychological bonds
Financial bondsFinancial bonds
Structural bondsStructural bonds
Brand LoyaltyBrand Loyalty
Trust: willing to rely on brandTrust: willing to rely on brand
Consistency: no variation in qualityConsistency: no variation in quality
Accessibility: accessible to customersAccessibility: accessible to customers
Responsiveness: quick response to customersResponsiveness: quick response to customers
Commitment: dedicated to customersCommitment: dedicated to customers
Affinity: identify with brandAffinity: identify with brand
Social bonds: customerSocial bonds: customer--seller relationseller relation
Psychological bonds: influencing personality, lifestylesPsychological bonds: influencing personality, lifestyles
Financial bonds: discounts offeringFinancial bonds: discounts offering
Structural bonds: physical connection between buyer‘s and Structural bonds: physical connection between buyer‘s and
seller‘s systemsseller‘s systems1.34
Brand is Brand is possessedpossessed by customers but by customers but ownedowned by by firms because it is…firms because it is…
…an intangible and a perceptual entity− difficult to copy…an intangible and a perceptual entity− difficult to copy
…like knowledge structure which lives in customer‘s …like knowledge structure which lives in customer‘s
mind in form of a universe of associations which…mind in form of a universe of associations which…
…stores variety of information …stores variety of information
…creates brand awareness, and brand associations (brand image)…creates brand awareness, and brand associations (brand image)
…elicits customer response…elicits customer response
Brands Are Customer PossessedBrands Are Customer Possessed
1.35
PepsiPepsi
Urban RefreshingThirst
Young
Good Times
Fun
S. KhanRebel
Sweet
US
Cola
Coke Fanta
Orange
Mirinda
Black
Brands Are Customer PossessedBrands Are Customer Possessed
1.36Fig: Associative Network for PepsiFig: Associative Network for Pepsi
To Sum Up ....To Sum Up ....
Through branding, organizations:Through branding, organizations:
Create perceived differences amongst productsCreate perceived differences amongst products
Develop loyal customer franchiseDevelop loyal customer franchise
Create value that can translate to financial profitsCreate value that can translate to financial profits
1.37
1.38
Why Is Branding So Hot?Why Is Branding So Hot?
We have too We have too many choices many choices and and too little timetoo little time
Most offerings have Most offerings have similar quality similar quality and and featuresfeatures
We make our buying choices on We make our buying choices on trusttrust
Why Do Brands Matter?Why Do Brands Matter?
What What functionsfunctions do brands perform that make do brands perform that make
them so valuable to marketers?them so valuable to marketers?
What brands do to CONSUMERS and FIRMS?What brands do to CONSUMERS and FIRMS?
1.40
Roles to Consumers (Individual and Roles to Consumers (Individual and OrganizationsOrganizations
Functions provided by brands to consumersFunctions provided by brands to consumers
Identify the Identify the maker maker of the product and allow of the product and allow
consumers to consumers to assign responsibility assign responsibility to a producerto a producer
Simplify product decisionsSimplify product decisions
Lower the search costs for products internally and Lower the search costs for products internally and
externallyexternally
Help set reasonable expectations about what Help set reasonable expectations about what
consumers may not know about the brandconsumers may not know about the brand
ContinuedContinued
1.41
Roles to ConsumersRoles to Consumers
Do promise and establish relationship between a Do promise and establish relationship between a consumer and a brandconsumer and a brand
Serve as symbolic devices allowing consumers to Serve as symbolic devices allowing consumers to project their selfproject their self--imageimage
Signal product characteristics and attributesSignal product characteristics and attributes
On the basis of attributes, products are classified as On the basis of attributes, products are classified as search goods, experience goods and credence goodssearch goods, experience goods and credence goods
Reduce Reduce risks risks in product decisionin product decision
ContinuedContinued
1.42
Reducing the risks in product decisionsReducing the risks in product decisions
RRisks consumers perceive in buying and consuming isks consumers perceive in buying and consuming a product:a product:
Functional riskFunctional risk——The product does not perform up to The product does not perform up to
expectationsexpectations
Physical riskPhysical risk——The product poses a threat to user‘s health The product poses a threat to user‘s health
Financial riskFinancial risk——The product is not worth the price paidThe product is not worth the price paid
Social riskSocial risk——The product results in embarrassmentThe product results in embarrassment
Psychological riskPsychological risk——The product affects the mental wellThe product affects the mental well--
beingbeing
Time riskTime risk——The failure of the product results in an The failure of the product results in an
opportunity cost of finding another satisfactory productopportunity cost of finding another satisfactory product
1.43
Roles to FirmsRoles to Firms
Brands provide valuable functionsBrands provide valuable functions
Simplify product handling and tracingSimplify product handling and tracing
Help organize inventory and accounting recordsHelp organize inventory and accounting records
Offer the firm legal protection for unique features or Offer the firm legal protection for unique features or
aspects of the productaspects of the product
Provide Provide predictability and security of demand for the firm predictability and security of demand for the firm
and creates barriers of entry for competitorsand creates barriers of entry for competitors
Provide a powerful means to secure competitive Provide a powerful means to secure competitive
advantageadvantage
Provide source of financial returnsProvide source of financial returns
Figure 1.3 Figure 1.3 -- Roles that Brands PlayRoles that Brands Play
1.45
Can Everything Be Branded?Can Everything Be Branded?
YES!!!YES!!!
How are brands created? How are brands created?
How do you brand a product?How do you brand a product?
Firms create brand through Firms create brand through marketing programsmarketing programs, , although it resides in the mindsalthough it resides in the minds
1.46
How Are Brands Created?How Are Brands Created?
To brand a product it is necessary to teach To brand a product it is necessary to teach consumers:consumers:
Who the product is Who the product is
What the product does What the product does
Why consumers should care itWhy consumers should care it
BBranding provides firms with value through randing provides firms with value through
creating creating mental structures mental structures that help consumers that help consumers
organizeorganize their knowledge about product to make their knowledge about product to make
decision decision
1.47
Can Everything Be Branded?Can Everything Be Branded?
EEverything even commodities can be verything even commodities can be
brandedbranded
Coffee (Maxwell House), bath soap (Ivory), flour Coffee (Maxwell House), bath soap (Ivory), flour
(Gold Medal), beer (Budweiser), salt (Morton), (Gold Medal), beer (Budweiser), salt (Morton),
oatmeal (Quaker), pickles (Vlasic), bananas oatmeal (Quaker), pickles (Vlasic), bananas
(Chiquita), chickens (Perdue), pineapples (Dole), (Chiquita), chickens (Perdue), pineapples (Dole),
and even water (Perrier) and even water (Perrier)
1.48
An Example of Branding a CommodityAn Example of Branding a Commodity
De Beers Group added the phrase De Beers Group added the phrase
―A Diamond Is Forever‖ ―A Diamond Is Forever‖
1.49
What Can Be Branded?What Can Be Branded?
Physical goods (BMW, Sony)Physical goods (BMW, Sony)
Services (British Airways, FedEx, Hilton Hotel)Services (British Airways, FedEx, Hilton Hotel)
Retailers and distributors (Sears, WalRetailers and distributors (Sears, Wal--Mart, M&S)Mart, M&S)
Online products and services (Amazon.com, Google) Online products and services (Amazon.com, Google)
People and organizations (People and organizations (MaradonaMaradona, Red Cross), Red Cross)
Sports, arts, and entertainment (Real Madrid)Sports, arts, and entertainment (Real Madrid)
Geographic locations (Geographic locations (SunderbonSunderbon))
Ideas and causes (AIDS Ribbons)Ideas and causes (AIDS Ribbons)
Physical Goods: B2B ProductsPhysical Goods: B2B Products
Know branding from corporate perspectiveKnow branding from corporate perspective
Create a Create a positive brand image and reputation positive brand image and reputation for the for the
company as a whole which will create…company as a whole which will create…
…greater selling opportunity and more profitable …greater selling opportunity and more profitable relationshipsrelationships
Some B2B firms believe that buyers are so informed Some B2B firms believe that buyers are so informed
and professional that brands don‘t matterand professional that brands don‘t matter
DeDe--commoditize B2B brands to create difference, commoditize B2B brands to create difference,
although it is difficultalthough it is difficult
1.50
Physical Goods: HighPhysical Goods: High--Tech ProductsTech Products
Challenging due to the speed and brevity of Challenging due to the speed and brevity of
technology PLCstechnology PLCs
Don‘t brand Don‘t brand only by naming only by naming (technologists‘ view)(technologists‘ view)
Financial success depends not only on innovation but Financial success depends not only on innovation but
also on marketing skillsalso on marketing skills
CEOs are the dominant factors (Bill Gates: Microsoft)CEOs are the dominant factors (Bill Gates: Microsoft)
Adoption of Adoption of classic consumer marketing techniques classic consumer marketing techniques has has
increased expenditures on marketing communicationsincreased expenditures on marketing communications
1.51
Challenging as services are less tangible and Challenging as services are less tangible and
more variable in qualitymore variable in quality
Address intangibility and variability problemsAddress intangibility and variability problems
Tanagibilize Tanagibilize the servicethe service
Brand symbols Brand symbols may be important because they make the may be important because they make the abstract nature of services more concreteabstract nature of services more concrete
BrandsBrands help identify and provide meaning to different help identify and provide meaning to different servicesservices
Branding is an effective Branding is an effective way to signal way to signal to consumers that to consumers that service is special and deserving of its nameservice is special and deserving of its name
1.52
Role of Branding with ServicesRole of Branding with Services
Corporate credibility Corporate credibility is key in terms of expertise, is key in terms of expertise,
trustworthiness, and likeabilitytrustworthiness, and likeability
Variability Variability is more of an issue with professional is more of an issue with professional
servicesservices
Individual employees Individual employees have a lot more of their own have a lot more of their own
equity in the firmequity in the firm
Referrals and testimonials Referrals and testimonials can be powerful when the can be powerful when the
services are intangible and subjectiveservices are intangible and subjective
EmotionsEmotions can play a big role in terms of sense of can play a big role in terms of sense of
security and social approvalsecurity and social approval
1.53
Professional ServicesProfessional Services
Brands can help createBrands can help create... ...
…consumer interest, patronage, and loyalty in stores…consumer interest, patronage, and loyalty in stores
…the retailer‘s image and establish positioning…the retailer‘s image and establish positioning
Retailers can create their own brand image by…Retailers can create their own brand image by…
…attaching unique associations to service quality, product …attaching unique associations to service quality, product
assortment, pricing, and credit policy to their storesassortment, pricing, and credit policy to their stores
…introducing their own brands through using store names, …introducing their own brands through using store names,
creating new names, or some combination of bothcreating new names, or some combination of both
1.54
Retailers and DistributorsRetailers and Distributors
3 strongest online brands are Google, 3 strongest online brands are Google, FacebookFacebook, ,
and Twitterand Twitter
Flashy or unusual ads fail to create awarenessFlashy or unusual ads fail to create awareness
Create Create unique aspects of the brand unique aspects of the brand on some dimensions like on some dimensions like
convenience, price, varietyconvenience, price, variety
Ensure that brands Ensure that brands perform satisfactorily in other areas perform satisfactorily in other areas like like
customer service, credibility and personalitycustomer service, credibility and personality
Offer Offer unique features and services unique features and services to consumers and avoid to consumers and avoid
extensive ads extensive ads
Rely more on Rely more on WOM and publicityWOM and publicity
1.55
Online products and servicesOnline products and services
Branding is simple if the product category is Branding is simple if the product category is people or organizationpeople or organization
Build up a name and reputationBuild up a name and reputation
Right awareness and image determine the way people treat Right awareness and image determine the way people treat
you, interpret your words, and actionsyou, interpret your words, and actions
Check Check whowho the person is and the person is and whatwhat kind of person he is in kind of person he is in
terms of skills, talents, attitude, and so forthterms of skills, talents, attitude, and so forth
Organizations take on meanings through their Organizations take on meanings through their programs, activities, and productsprograms, activities, and products
1.56
People and OrganizationsPeople and Organizations
People and organizations are used as brandsPeople and organizations are used as brands
Some apply traditional packagedSome apply traditional packaged--goods techniquesgoods techniques
Apply creative combination of ad, promotions, Apply creative combination of ad, promotions,
sponsorship, direct mail, digital, and other forms of sponsorship, direct mail, digital, and other forms of
communicationcommunication
Building brand awareness, image, and loyalty, some are able Building brand awareness, image, and loyalty, some are able
to meet ticket sales targetto meet ticket sales target
Brand symbols and logos work as a financial contributorBrand symbols and logos work as a financial contributor
In arts and entertainment, buyers judge quality In arts and entertainment, buyers judge quality not by inspection, but use cuesnot by inspection, but use cues
1.57
Sports, Arts, and EntertainmentSports, Arts, and Entertainment
Place marketing is on the rise Place marketing is on the rise
Use IMC to promote cities, states, regions, and Use IMC to promote cities, states, regions, and
countriescountries
IMC creates awareness and a favorable image of a IMC creates awareness and a favorable image of a location that will entice visitorslocation that will entice visitors
1.58
Geographic LocationsGeographic Locations
Ideas and causes are branded by mostly nonIdeas and causes are branded by mostly non--profit organizations profit organizations
Use phrase or slogan or symbols for branding Use phrase or slogan or symbols for branding (AIDS Ribbons)(AIDS Ribbons)
Make them more visible and concreteMake them more visible and concrete
1.59
Ideas and CausesIdeas and Causes
To Sum up....To Sum up....
Branding is universal and pervasive in different Branding is universal and pervasive in different
product categories product categories
Applicable to both tangible and intangible offerings Applicable to both tangible and intangible offerings
of an organizationof an organization
Technological developments have impacted the way Technological developments have impacted the way
firms market their offeringsfirms market their offerings
Organizations reap financial benefits from positive Organizations reap financial benefits from positive
brand imagesbrand images
Revolutionary and inspiring vision of mass Revolutionary and inspiring vision of mass
marketmarket
An indomitable will to realize that visionAn indomitable will to realize that vision
Managerial persistence under adversityManagerial persistence under adversity
Financial commitmentFinancial commitment
Relentless innovationRelentless innovation
Asset Leverage to realize vision Asset Leverage to realize vision
Keys to Enduring Brand LeadershipKeys to Enduring Brand Leadership
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Essentials to Success of a BrandEssentials to Success of a Brand
Successful brands achieve discriminatory Successful brands achieve discriminatory
response from consumersresponse from consumers
Two basic strategies can be used:Two basic strategies can be used:
Better Brand StrategyBetter Brand Strategy
Superior Band StrategySuperior Band Strategy
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Better Brand StrategyBetter Brand Strategy Superior Brand StrategySuperior Brand Strategy
BBeats competition of building eats competition of building more value on attributes/benefits more value on attributes/benefits sought by customerssought by customers
OOffers competitive as well as ffers competitive as well as some unique attributes/benefits some unique attributes/benefits not offered by competitionnot offered by competition
CConfined to existing attributes/ onfined to existing attributes/ benefits benefits
GGoes beyond existing oes beyond existing attributes/benefitsattributes/benefits
IIncreases CV incrementallyncreases CV incrementally IIncreases CV exponentiallyncreases CV exponentially
TToothpaste offers germ oothpaste offers germ protection round the clock protection round the clock instead of 12 hoursinstead of 12 hours
TToothpaste offers mintingoothpaste offers mintingattributeattribute
Essentials to Success of a BrandEssentials to Success of a Brand
How to Build Superior Brands?How to Build Superior Brands?
SSuperior brands must achieve valued uperior brands must achieve valued
discriminationdiscrimination
Not sufficient just to achieve valued discrimination Not sufficient just to achieve valued discrimination
or deliver what target market wantsor deliver what target market wants
Rather deliver what others fail to and what Rather deliver what others fail to and what
customers look forward to customers look forward to
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TTo achieve valued discrimination, marketers o achieve valued discrimination, marketers
must know:must know:
For whom is the brand meant? (target market)For whom is the brand meant? (target market)
What do competitive brands offer? (similarity)What do competitive brands offer? (similarity)
What do customers desire or value but do not What do customers desire or value but do not
get? (discriminating value)get? (discriminating value)
How to Build Superior Brands?How to Build Superior Brands?
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Five steps for achieving valued discriminationFive steps for achieving valued discrimination
1.1. Identify SegmentsIdentify Segments
Study existing segments‘ characteristics and Study existing segments‘ characteristics and
competitioncompetition
2.2. Understand the Key Drivers of BuyingUnderstand the Key Drivers of Buying
List down the attributes/benefits/values sought List down the attributes/benefits/values sought
Do extensive marketing research to figure outDo extensive marketing research to figure out
How to Build Superior Brands?How to Build Superior Brands?
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3.3. Determine Relative ImportanceDetermine Relative Importance
Rate these in order of importanceRate these in order of importance
4.4. Analyze CompetitionAnalyze Competition
Make competitive analysis and customer analysisMake competitive analysis and customer analysis
5.5. Find Sources of Discriminative ValueFind Sources of Discriminative Value
Find attributes which are the sources of valued Find attributes which are the sources of valued
discriminationdiscrimination
How to Build Superior Brands?How to Build Superior Brands?
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Strong BrandsStrong Brands
Brands Brands that have that have been market leaders in their been market leaders in their
categories for decadescategories for decades
Any brand is vulnerable and susceptible to Any brand is vulnerable and susceptible to
poor brand managementpoor brand management
The appeal of brand is not timeless, if it is not The appeal of brand is not timeless, if it is not
properly managed properly managed
What Are the Strongest Brands?What Are the Strongest Brands?
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Top Ten Global Brands (Top Ten Global Brands (InterbrandInterbrand))
Rank in 2015Rank in 2015 2015 ($Billion)2015 ($Billion)
1.1. AppleApple
2.2. GoogleGoogle
3.3. CocaCoca--ColaCola
4.4. MicrosoftMicrosoft
5.5. IBMIBM
6.6. ToyotaToyota
7.7. SamsungSamsung
8.8. GEGE
9.9. MacDonald'sMacDonald's
10.10. AmazonAmazon
170.28170.28
120.31120.31
78.4278.42
67.6767.67
65.0965.09
49.0549.05
45.3045.30
42.2742.27
39.8139.81
37.8537.85
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Factors Responsible for Branding Factors Responsible for Branding ChallengesChallenges
Savvy Savvy customerscustomers
Economic Economic downturnsdownturns
Brand Brand proliferationproliferation
Media Media transformationtransformation
Increased Increased competitioncompetition
Increased Increased costcost
Increased Increased accountabilityaccountability
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Factors Responsible for Branding Factors Responsible for Branding ChallengesChallenges
Types of Failure of BrandsTypes of Failure of Brands
Parity BrandsParity Brands–– offer only similar valuesoffer only similar values
Inferior BrandsInferior Brands–– offer lesser value or suffering offer lesser value or suffering
competitive disadvantagecompetitive disadvantage
Mismatch BrandsMismatch Brands–– offer value not in the line offer value not in the line
with customer needswith customer needs
OverOver--priced Brandspriced Brands–– offer superior value but at offer superior value but at
a higher sacrifice a higher sacrifice
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Brand EquityBrand Equity
The added value endowed to products reflected The added value endowed to products reflected
in how consumers think, feel, and act with in how consumers think, feel, and act with
respect to brandrespect to brand
The premium a brand can command in the The premium a brand can command in the
marketmarket
The difference between the perceived value The difference between the perceived value
and the intrinsic value of a brandand the intrinsic value of a brand
No common viewpoint on how BE should be conceptualized and measured.No common viewpoint on how BE should be conceptualized and measured.
Brand Equity Brand Equity
Principles of branding and brand equityPrinciples of branding and brand equity
Differences in outcomes Differences in outcomes arise from arise from the ―added value‖ the ―added value‖
endowed to a productendowed to a product
The added value The added value can be created can be created for a brand in many for a brand in many
different waysdifferent ways
Brand equity provides Brand equity provides a common denominator a common denominator for for
interpreting marketing strategies and interpreting marketing strategies and assessing assessing the the
value of a brandvalue of a brand
There are There are many different ways many different ways in which the value of a in which the value of a
brand can be exploited to benefit the brand can be exploited to benefit the firmfirm
Brand EquityBrand Equity–– Competitive AdvantagesCompetitive Advantages
RReduced marketing costseduced marketing costs
TTrade leveragerade leverage
CCan charge a higher pricean charge a higher price
CCan easily launch brand extensionsan easily launch brand extensions
CCan take some price competitionan take some price competition
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Strategic Brand ManagementStrategic Brand Management
The design and The design and implementation of implementation of
marketing programs marketing programs to build, measure, to build, measure, and manage brand and manage brand
equity. equity.
The four main steps of the The four main steps of the process:process:
•• Identifying and Developing Brand Identifying and Developing Brand PlansPlans
•• Designing and Implementing Brand Designing and Implementing Brand Marketing ProgramsMarketing Programs
•• Measuring and Interpreting Brand Measuring and Interpreting Brand PerformancePerformance
•• Growing and Sustaining Brand Growing and Sustaining Brand EquityEquity
Identifying and Developing Brand Identifying and Developing Brand PlansPlans
Brand Positioning ModelBrand Positioning Model
How to How to createcreate a position in the minds of customers and a position in the minds of customers and guide guide integrated marketing to maximize CAintegrated marketing to maximize CA
Brand Resonance ModelBrand Resonance Model
How to How to create create intense, active loyalty relationshipsintense, active loyalty relationships
Brand Value ChainBrand Value Chain
Traces Traces the value creation process to better understand the value creation process to better understand the the financial impact financial impact of brand marketing expenditures and of brand marketing expenditures and investments. investments.
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Designing and implementing Brand Designing and implementing Brand Marketing Program Marketing Program
Choosing brand elements (mixing and Choosing brand elements (mixing and
matching)matching)
Integrating the brand into marketing activities Integrating the brand into marketing activities
and the supporting marketing programand the supporting marketing program
Leveraging secondary associationsLeveraging secondary associations
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Measuring and Measuring and Interpreting Brand Interpreting Brand PerformancePerformance
Marketers must develop and implement a Marketers must develop and implement a BEMS BEMS to to manage brands profitablymanage brands profitably
BEMS is a set of BEMS is a set of research procedures research procedures designed to designed to provideprovide
timely, accurate, and actionable information for marketers so timely, accurate, and actionable information for marketers so
that they can make the best possible that they can make the best possible tactical decisions tactical decisions in the in the
short run and the best short run and the best strategic decisions strategic decisions in in the long runthe long run
BE BE measurement system involves:measurement system involves:
Brand auditsBrand audits
Brand tracking studiesBrand tracking studies
Brand equity management systemBrand equity management system
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Measuring and Measuring and Interpreting Brand Interpreting Brand PerformancePerformance
Brand Brand auditsaudits: : A comprehensive A comprehensive examinationexamination of a brand to, of a brand to, assessassessits health, its health, uncoveruncover its sources of equity, and its sources of equity, and suggestsuggest ways to ways to improve and leverage that equityimprove and leverage that equity
Brand tracking studies: Brand tracking studies: Collecting informationCollecting information from consumers, from consumers, on a routine basis over time on key dimensions identified in the on a routine basis over time on key dimensions identified in the brand audit or other means to know how brands and marketing brand audit or other means to know how brands and marketing programs are performingprograms are performing
BE management systemBE management system: A : A set of set of organizational processes organizational processes designed to designed to understand understand and and useuse of the BE concept within a firm of the BE concept within a firm
Three steps help implement a BEMS: creating BE charters, assembling Three steps help implement a BEMS: creating BE charters, assembling
BE reports, and defining BE responsibilitiesBE reports, and defining BE responsibilities
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Growing and Sustaining Brand EquityGrowing and Sustaining Brand Equity
Defining brand architectureDefining brand architecture
Managing over time Managing over time
Managing BE over geographic boundaries, Managing BE over geographic boundaries,
cultures, and market segmentscultures, and market segments
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Defining Brand ArchitectureDefining Brand Architecture
Provides general Provides general guidelinesguidelines about branding strategy about branding strategy
and the brand elements to be applied across all the and the brand elements to be applied across all the
different products sold by the firmdifferent products sold by the firm
Two key concepts in defining BA:Two key concepts in defining BA:
Brand portfolio: Brand portfolio: A set of different brands that a particular A set of different brands that a particular firm offers for sale to buyers in a particular categoryfirm offers for sale to buyers in a particular category
Brand hierarchy: Brand hierarchy: Displays the Displays the numbernumber and and naturenature of of common and distinctive brand components across the firm‘s common and distinctive brand components across the firm‘s set of different brandsset of different brands.
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Managing Brand Equity Over Time Managing Brand Equity Over Time
A longA long--term perspective of brand management term perspective of brand management
recognizes that:recognizes that:
Any Any changeschanges in the supporting marketing program may in the supporting marketing program may
affect the success of future marketing programsaffect the success of future marketing programs
A longA long--term view produces term view produces proactive strategies proactive strategies to to
enhance CBBE and enhance CBBE and reactive strategies reactive strategies to revitalize to revitalize
a brand that encounters problemsa brand that encounters problems
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Managing Brand Equity over Geographic Managing Brand Equity over Geographic
Boundaries, Cultures, and Market Boundaries, Cultures, and Market
SegmentsSegments
In expanding a brand overseasIn expanding a brand overseas,… ,…
…managers …managers need to build BE by relying on specific need to build BE by relying on specific knowledge about knowledge about
…the …the experience and behaviors of those market experience and behaviors of those market
segmentssegments
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Global branding decisionsGlobal branding decisions
Decide which markets to enterDecide which markets to enter
Decide how to enter the marketDecide how to enter the market
Decide on the marketing programDecide on the marketing program
Decide on marketing organizationDecide on marketing organization
Managing Brand Equity over Geographic Managing Brand Equity over Geographic
Boundaries, Cultures, and Market Boundaries, Cultures, and Market
SegmentsSegments
BBuilding Global CBBEuilding Global CBBE
Understand similarities and differences in the global Understand similarities and differences in the global branding landscapesbranding landscapes
No shortcutsNo shortcuts
Establish marketing infrastructureEstablish marketing infrastructure
Integrated marketing communicationIntegrated marketing communication
Brand partnershipBrand partnership
Balance standardization & customizationBalance standardization & customization
Local and global controlLocal and global control
Establish operable guidelinesEstablish operable guidelines
Global BEMSGlobal BEMS
Brand elementsBrand elements
Managing Brand Equity over Geographic Managing Brand Equity over Geographic
Boundaries, Cultures, and Market Boundaries, Cultures, and Market
SegmentsSegments
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