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 risk—The product does not
perform up to expectations.
Physical risk—The product poses a
threat to the physical well-being or
health of the user or others.
Financial risk—The product is not
worth the price paid.
Social risk—The product results in
embarrassment from others.
Psychological risk—The product
affects the mental well-being of the
user.
Time risk—The 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 2006 2005 ($
($Billion) Billion)
1. Coca-Cola 67.00 67.53
2. Microsoft 56.93 59.94
3. IBM 56.20 53.38
4. GE 48.91 47.00
5. Intel 32.32 35.59
6. Nokia 30.13 26.45
7. Toyota 27.94 24.84
8. Disney 27.85 26.44
9. McDonald’s 27.50 26.01
10. Mercedes- 21.80 20.00
Benz
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
Mental maps
Identify and establish
Competitive frame of reference
brand positioning and values
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 value chain
brand performance
Brand audits
Brand tracking
Brand equity management system
Grow and sustain Brand-product matrix
brand equity 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-of-
difference: 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.
