CHAPTER 1: BRANDS AND BRAND MANAGEMENT
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Learning Objectives
Define brand, state how brand differs from a product, and explain what brand equity is Summarize why brands are important Explain how branding applies to virtually everything Describe the main branding challenges and opportunities Identify the steps in the strategic brand management process
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What is a Brand?
Brand Elements Brands versus Products
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Brand Elements
Different components that identifies and differentiates a brand
Name,
logo, symbol, package design, or other characteristic
Can be based on people, places, things, and abstract images
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Brand versus Product
Brand Product
Has dimensions that differentiate it in some way from other products designed to satisfy the same need
Can be differentiated on the basis of: Packaging Services provided Customer advice Financing Delivery arrangements Warehousing Other things valued by the customers
Anything available in the market for use or consumption, that may satisfy a need or want
Can be categorized into five levels namely: Core benefit level Generic product level Expected product level Augmented product level Potential product level
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To Sum Up ....
Through branding, organizations:
Create
perceived differences amongst products Develop loyal customer franchise Create value that can translate to financial profits
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Why Do Brands Matter?
Consumers
Firms
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Consumers
Encompass all types of customers, including individuals as well as organizations Functions provided by brands to consumers
Identify
the source or maker of the product Simplify product decisions Lower the search costs for products internally and externally Helps set reasonable expectations about what consumers may not know about the brand
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.
Consumers
Signal
On
product characteristics and attributes
the basis of attributes products can be classified
Search goods Experience goods Credence goods
as:
Reduce
These
risks in product decision
risk can be categorised as
Functional ,physical, financial, social psychological, and time
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Firms
Brands provide valuable functions
Simplify
product handling and tracing Help organizing inventory and accounting records Offer the firm legal protection for unique features or aspects of the product Provide predictability and security of demand for the firm and creates barriers of entry for competitors Provide a powerful means to secure competitive advantage
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Figure 1.3 - Roles that Brands Play
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Can Anything Be Branded
Physical Goods
Services
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Physical Goods
Business-to-Business Products
High-tech Products
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Services
Role of Branding with Services Professional Services
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Can Anything Be Branded
Retailers and Distributors Online Products and Services People and Organizations
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Role of Branding
Sports , Arts, and Entertainment Geographic Locations
Ideas and Causes
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To Sum up....
Branding is universal and pervasive in different product categories Applicable to both tangible and intangible offerings of an organization Technological developments have impacted the way firms market their offerings Organizations reap financial benefits from positive brand images
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Strong Brands
Brands that have been market leaders in their categories for decades Any brand is vulnerable and susceptible to poor brand management
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Factors Responsible for Branding Challenges
Savvy customers
Economic downturns Brand proliferation Media transformation
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Factors Responsible for Branding Challenges
Increased Competition
Increased costs
Greater accountability
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Figure 1.9- Challenges to Brand Builders
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Brand Equity
Principles of branding and brand equity
Differences in outcomes arise from the added value endowed to a product The added value can be created for a brand in many different ways Brand equity provides a common denominator for interpreting marketing strategies and assessing the value of a brand There are many different ways in which the value of a brand can be exploited to benefit the firm
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Strategic Brand Management Process
Identifying and Developing Brand Plans Designing and Implementing Brand Marketing Programs Measuring and Interpreting Brand Performance Growing and Sustaining Brand Equity
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Identifying and Developing Brand Plans
Brand Positioning Model
Brand Resonance Model
Brand Value Chain
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Designing and implementing Brand Marketing Program
Choosing Brand Elements Integrating the Brand into Marketing Activities and the Supporting Marketing Program Leveraging Secondary Associations
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Measuring and Interpreting Brand Performance
To manage brands profitably, managers must d implement a brand equity measurement system Brand equity measurement system involves:
Brand
audits Brand tracking studies Brand equity management system
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Growing and Sustaining Brand Equity
Defining Brand Architecture
Managing Brand Equity over Time Managing Brand Equity over Geographic Boundaries, Cultures, and Market Segments
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Figure 1.12 - Strategic Brand Management Process
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