BRAND MANAGEMENT

BRAND MANAGEMENTPRODUCTAnything offered to market for attention, acquisition, use or consumption that might satisfy a need or want5 Levels of meaning for a product Core benefit fundamental need or wantGeneric product basic version with only necessary attributesExpected product attributes normally expectedAugmented product - additional attributesPotential product all augmentations & transformations a product might undergo in future Portable MP3 PlayerCB Musical Entmnt. on the moveGP Ability to play music downloaded from the Web/CDEP solid state device with no moving parts, memory, expansion slotsAP colour LCD screen, audio equalizer, ability to store file other than digital audio filesPP voice-controlled programming, extended infinite life batteriesBrandA brand is more than a product, it can havedimensions that differentiate it in some way from other products designed to satisfy thesame need/want. These differentiations may be rational & tangible related to product performance orsymbolic, emotional & intangible related towhat the brand represents.BRAND DefinedA name, symbol, design or some combination that identifies the product of a particular organisation as having a substantial, differentiated advantageA name, term, sign, symbol, or design,or a combination of them, intended to identify the goods & services of one seller or group of sellers and todifferentiate them from those ofcompetition.Brand - RolesIdentification of source of productAssignment of responsibility to the product makerRisk reducerSearch cost reducerPromise, bond or pact with maker of the productSymbolic device Signal of quality

8Categories of ProductsSearch Goods Attributes like sturdiness, size, colour, style, design, weight & ingredient composition can be evaluated by inspection. e.g., grocery produceExperience Goods Attributes like durability, service quality, safety & ease of handling can be evaluated only through trial & experience. e.g., tyresCredence Goods Consumers may rarely learn product attributes. e.g., insurance coverageRisks in Buying & Consuming ProductsFunctional risk Product does not performPhysical risk Poses a threat to physical well-beingFinancial risk Not worth the priceSocial risk Results in embarrassment from othersPsychological risk Affects mental well-beingTime risk Opportunity cost of finding anotherThe Economic IdealMicro economic theory & Diff. market structuresWelfare economists favour perfect competition; it promotes economic efficiencyIndustrial economists Structure, Conduct Performance approach for analysing marketsStructure Seller concentration, product differentiation, entry barriersConduct Advtg., pricing, product developmentPerformance Efficiency, technical progress, profitabilityThe Economic IdealGap b/w real market structure & theoretical idealGovt. intervention To protect & promote competitionCompetitionEconomists idealCustomer friendly, not marketer friendlyIntegration of Indian economy with global economyEmpowers the customers: Filling gaps b/w demand & supply Accelerates PLCProduct CommonalityTime lag b/w innovation & imitation shorteningOutsourcing may be from same sourcesProduct superiority based on technology, ingredients & processes is difficultProduct parity & price advantageDifferentiationTraditional economic analysis price differentialConsumers value sensitiveCustomer value ratio b/w benefits & costs with an exchangeTotal customer value total customer costs = Customer delivered valueValue emanates from - product, service, image, personnelCost incurred from time, monetary sacrifice, energy, psychic costs

DifferentiationValue delivery satisfying customer retaining him Business purpose To create customers DruckerHighly differentiated & valued offeringsBrands are new business warriors connecting the corporations with the consumersBrand PowerKey drivers of economic values of a corporationUltimate differentiatorsDictates companys worthDetermines the market value of a corporationCreates an identifiable economic earning streamBrands are the basis of consumer relationshipBrands cannot be copiedMarketers transform products into brands by loading them with value proposition consumers look for Brand Loyalty and BondsFrom customer attraction to customer retentionShould provide emotional & rational reasonsEssence of brand building developing loyal customer 6 pointsTrust (Reliability & Integrity)ConsistencyAccessibilityCommitmentResponsivenessAffinity Types of Customer Brand RelationshipSocial bondsPsychological bondsFinancial bondsStructural bondsConditions Essential for Brand LoyaltyBiasBehavioral responseExpressed over timeDecision making unitAlternative brandsPsychological processStrategic Brand Management ProcessInvolves the design & implementation of marketingprogrammes & activities to build, measure and manageBrand Equity.

The steps involved are: Identifying & establishing brand positioning Planning & implementing brand marketing programmes Measuring & interpreting brand performance Growing & sustaining brand equity1. Identifying & establishing brand positioningPositioning Act of designing the companys offer and image so that itoccupies a distinct and valued place in the target customers mind.Creating brand superiority in the minds of consumersPositioning convinces consumers of points of differences (advantages)a brand has over competitors & alleviates concerns about any possiblepoints of parity (disadvantages) Mental map a visual depiction of different types of associations linked to the brand in the minds of consumersCore brand associations subset of associations (attributes & benefits) that best characterize a brandBrand mantra - a 3 to 5 word expression of the most important aspects of a brand & its core brand associations 2. Planning & implementing brand marketing programmesCreating a brand that consumers are sufficiently aware of & with which they have strong, favourable and unique brand associations.Depends on 3 factors:Choosing brand elements brand names, URLs, logos, symbols, characters, packaging and slogansIntegrating brand into marketing activities & supporting marketingprogrammes product strategy, pricing strategy, channels strategy &communication strategyLeveraging secondary associations linking brand associations toother entities that have their own associations3. Measuring & interpreting brand performanceInvolves:Brand audit a comprehensive examination of a brand to assess its health, uncover its sources of equity, & suggest ways to improve & leverage that equityBrand value chain - Tracing the value creation of brands brand mktg.expenditures & investmentsBrand equity measurement system - a set of research procedures to provide timely, accurate & actionable information for strategizingBrand tracking measuring brand awareness & image, measuring brand performanceBrand equity management system organizational processes designedto improve the understanding & use of brand equity concept within firm4. Growing & sustaining brand equityInvolves:Defining branding strategy brand portfolio set of allbrands & brand lines offered by the firm; brand hierarchy displays the number & nature of common & distinctive brand components across the firms products; brand-product matrix graphical representation of all brands & products of the firm;brand extension; brand reinforcement & revitalizationManaging brand equity over timeManaging brand equity over geographic boundaries, cultures & market segmentsBrand Perspectives5 types of values customers expectFunctional valueSocial valueEmotional valueEpistemic value Situational valueBrand PerspectivesVisual/Verbal PerspectivePositioning PerspectiveValue PerspectiveBrand Image PerspectiveAdded Value PerspectivePerceptual Appeal PerspectivePersonality PerspectiveBrand PerspectivesVisual/Verbal Perspective Focus on logo, packaging, trademark & name aspect of the brand.eg. Three pointed star Mercedes; Golden Arches McDonalds K yellow sign Kodak; Red Coke; Blue - PepsiPositioning Perspective Brands unique position vis--vis competition in the customers mind.eg. IBM Computers; Kodak Photography; Xerox - Photocopying Value Perspective Product is extended by adding values around it. Brand as deliverer of functional, expressive & central values.eg. Functional Performance, Watch(Titan) keeps time, Water(Kinley) quenches thirst; Expressive Ability to express value(State more about the customer), Mercedes, Rolex, Armani; Central Religious, national or political persuasion.

Brand PerspectivesBrand Image Perspective Perceived image in the consumers mind. Brands are represented in the minds of consumers through images. Symbolism & imagery are the key aspects.eg. Pepsi epitomizes what youthfulness is all about; Close-up.Added Value Perspective Brand embodies additional attributes. Brand name adds value to the generic product.eg. Coke was preferred by 44% in a blind test, when the brand name was revealed ,it went up to 65%.

Brand PerspectivesPerceptual Appeal Perspective View from the standpoint of the appeal it makes to prospects. Appeal it makes To reason rational eg. Dettol antiseptic To senses sensory eg. the pleasure of washing clothes To emotions emotional eg. Gillette the best man can getPersonality Perspective Personality traits consumers perceive in brands- masculine, dependable, friendly.

Anatomy of a BrandTwo components of a Brand :-Product Component Physical productPerceptual Components:- - User imagery - Portraying their typical user both demographically & psychographically, eg. Raymonds the complete man, Elle 18 be yourself. - Brand Personality Visualisation of brand in human terms, humanising the brand, brand personification. Anatomy of a Brand - Emotional/Psychological Benefits Brands create satisfying emotional states, eg. Maggi noodles portray the joy of giving. - Brand Image How a brand is perceived by the customers in its totality.Anatomy of a BrandBased on the product & perceptual components, there can be three different types of brands:Functional brandsSymbolic brandsMixed brands

WHY BRANDS MAKE SENSE?Benefits & Promises Unique benefits & promises ; eg. Pepsodent keeps working even after brushing, Vatika hair protection against dust & pollution Norms & Values Consumers avoid brands that create value conflictsPerceptions & Programmes Brand must be clearly linked to a compelling purchase motive; eg.Cadburys chocolate was earlier perceived as an indulgence for kids, later changed to adult indulgence and now to celebrate the day-to-day happy occasions. WHY BRANDS MAKE SENSE?Identity & Self-expression Ability to express the users character and identity; eg.Mercedes Benz status,class,exclusivity,luxury; Woodland shoes adventure & enduranceEmotion & Love Bonding with the prospects; eg.ICICI Bank a trustworthy friendBRAND ELEMENTSBrand Names & URLsLogos & SymbolsCharactersSlogans & JinglesPackaging & SignageCRITERIA FOR CHOOSING BRAND NAMEMemorable Easily recognised, easily recalled, inherently memorable & attention gettingMeaningful - may take on all kinds of meaning, with either descriptive or persuasive contentLikeable Funny & interesting, Rich visual & verbal imagery, aesthetically pleasingTransferable Within & across product categories, across geographic boundaries & cultureAdaptable Flexible, updatableProtectable Legally & competitivelyCRITERIA FOR CHOOSING BRAND NAMESimplicity and ease of pronunciation & spellingFamiliarity and meaningfulnessDifferentiated, Distinctive & UniqueTYPES OF BRAND NAMEDescriptive Describes the function literally, eg. Singapore AirlinesSuggestive Suggestive of a benefit or function, eg. Agilent TechnologiesCompounds Combination of two or more , often unexpected words, eg. RedhatClassical Based on Latin, Greek or Sanskrit, eg. Meritor Arbitrary Real words with no tie-in to the company, eg. AppleFanciful Coined words with no obvious meaning, eg. Avanade

BRAND NAMING PROCEDUREDefine objectives In terms of the six criteria and the ideal meaning the brand should conveyGenerate names Generate as many names & concepts as possibleScreen initial candidates Screen all the names against branding objectives & marketing considerations identified in step 1Study candidate names Collect more extensive information about each of the final 5 to 10 namesResearch the final candidates Conduct consumer research to confirm management expectations about memorability & meaningfulness Select the final name

BRAND EQUITYThe power of a Brand lies in what resides in the minds of customers.Customer-based brand equity(CBBE) can be defined as the differential effect that brand knowledge has on consumer response to the marketing of that brand.3 Elements:Differential effect differences in consumer responsesBrand knowledge what they have learned, felt, seen & heard about the brand - experiencesConsumer response to marketing reflected in perceptions, preferences & behaviour to all aspects of brand marketing.