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.