CHAPTER 1: BRANDS & BRAND MANAGEMENT
What is a brand?
For the American Marketing Association (AMA),
..a brand is a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition.
Brands vs. Products
A product is anything we can offer to a market for attention, acquisition, use, or consumption that might satisfy a need or want.
Five Levels of Meaning for a Product
The core benefit level
is the fundamental need or want
The generic product level
is a basic version of the product containing only those attributes or characteristics absolutely necessary for its functioning
The expected product level
is a set of attributes or characteristics that buyers normally expect and agree to when they purchase a product.
The augmented product level
includes additional product attributes, benefits, or related services
The potential product level
includes all the augmentations and transformations that a product might ultimately undergo in the future.
Why do brands matter?
Importance of Brands to Consumers Identification of the source of the product Assignment of responsibility to product maker Risk reducer Search cost reducer Promise, bond, or pact with product maker Symbolic device Signal of quality
Reducing the Risks in Product Decisions Functional riskThe product does not perform up to expectations.
Physical riskThe product poses a threat to the physical well-being or health of the user or others.
Financial riskThe product is not worth the price paid. Social riskThe product results in embarrassment from others.
Psychological riskThe product affects the mental well-being of the user.
Time riskThe failure of the product results in an opportunity cost of finding another satisfactory product.
Importance of Brands to Firms Identification to simplify handling or tracing Legally protecting unique features Signal of quality level Endowing products with unique associations Source of competitive advantage Source of financial returns
Can everything be branded? Physical goods Services Retailers and distributors
Online products and services
People and organizations Sports, arts, and entertainment Geographic locations Ideas and causes
What are the strongest brands?
Top Ten Global Brands
Brand 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Coca-Cola Microsoft IBM GE Intel Nokia Toyota Disney McDonalds MercedesBenz 2006 ($Billion) 67.00 56.93 56.20 48.91 32.32 30.13 27.94 27.85 27.50 21.80 2005 ($ Billion) 67.53 59.94 53.38 47.00 35.59 26.45 24.84 26.44 26.01 20.00
Branding Challenges & opportunities
Savvy customers Brand proliferation Media fragmentation Increased competition
Increased costs
Greater accountability
The Brand Equity Concept
Differential effect
Brand knowledge
Consumer response to marketing
Strategic Brand Management Process
Steps
Key Concepts
Identify and establish brand positioning and values
Mental maps Competitive frame of reference Points-of-parity and points-of-difference Core brand values Brand mantra
Plan and implement brand marketing programs
Mixing and matching of brand elements Integrating brand marketing activities Leveraging of secondary associations
Measure and interpret brand performance
Brand Brand Brand Brand
value chain audits tracking equity management system
Grow and sustain brand equity
Brand-product matrix Brand portfolios and hierarchies Brand expansion strategies Brand reinforcement and revitalization
1. Identify and establish brand positioning and values Mental maps: Visual depiction of different type of associations linked to the brand in the mind of customer Competitive frame of reference: Creating brand superiority in the mind of customer. Points-of-parity and points-ofdifference: POD ..is not available in other brand, POP.is similar to other brand Core brand values: Attributes and benefits of brand. Brand mantra: Core brand promise.
2.Plan and implement brand marketing programs
Mixing and matching of brand elements: Name.logos symbols characters,packaging and slogans.
Integrating brand marketing activities: Marketing programs can create strong,favorable and unique brand association.
Leveraging of secondary associations: Brand may be linked to *Company *Character *Spokepeople *Country *Sonsorship *Awards
3.Measure & interpret brand performance Brand value chain: Value creation Process Brand Audit: A comprehensive examination of a brand to discover its sources of brand equity.
Brand Tracking: Collecting continuous information from customer.
Brand equity management system: *Brand equity charter *Brand equity report *Brand equity responsibility
4.Grow and sustain brand equity
Defining the Branding Strategy
Managing Brand Equity Over Time
Managing Brand Equity Over Geographic Boundaries, Cultures, and Market Segments.
