Brand management

What is a product?

A product is simply any offering by a company to a market that serves to satisfy customer needs and wants.

It can be an object, service, idea, etc.

Levels of a Product

What is a Service? A form of product that consists of

activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.

Examples: banking, hotel, airline, home repairs.

Nature and Characteristics of a Service

KEY TO BRANDING

For branding strategies to be successful, consumers must be convinced that there are meaningful differences among brands in the product or service category.

• Consumer must not think that all brands in the category are the same.•

BrandA brand is a name, term, sign, symbol,

or design which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.

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What is a Brand?

Name

Term

Sign

Symbo

l

Design

Combination

Identifies product/service

of seller anddifferentiates from

competitors

A name becomes a brand when consumers associate it with a set of tangible and intangible benefits that they obtain from the product or service

It is the seller’s promise to deliver the same bundle of benefits/services consistently to buyers

Purpose of Brand

Inspire

Inject your organization with heart and soul Motivate Spur action Connect Unify departments and divisions for “global” presence. Simplify Clarify and crystallize your mission Inform Convey values, attributes, and advantages to

customers

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What is branded?Physical goodsServicesRetailers and distributorsOnline products and servicesPeople and organizationsSports, arts, and entertainmentGeographic locationsIdeas and causes

Types of brandsA number of different types of brands are recognized. A

"premium brand" typically costs more than other products in the same category. These are sometimes referred to as 'top-shelf' products A "fighting brand" is a brand created specifically to counter a competitive threat. When a company's name is used as a product brand name, this is referred to as corporate branding. (Philips) When one brand name is used for several related products, this is referred to as family branding. (Tata). When all a company's products are given different brand names, this is referred to as individual branding

Fighting brand

A "fighting brand" is a brand created specifically to counter a competitive threat.

DefinitionLower priced, lower quality version of a main

brand, launched to protect the main brand's market share without cutting prices. After it forces the cheaper competitors out of the market, a fighting brand is often discontinued to avoid its sales eating into the main brand's sales

Family branding

When one brand name is used for several related products, this is referred to as family branding

Family branding is a marketing strategy that involves selling several related products under one brand name. Family branding is also known as umbrella branding. It contrasts with individual product branding, in which each product in a portfolio is given a unique brand name and identity. Family branding is a manufacturer’s branding strategy that uses one name for all products.”

Individual brandingWhen all a company's products are given

different brand names, this is referred to as individual branding. Individual branding, also called multi branding, is the marketing strategy of giving each product business The noun product is defined as a "thing produced by labor or effort" or the "result of an act or a process", and stems from the verb produce from the Latin produce, lead or bring forth.... in a product portfolio its own unique brand name

Advantages of branding

Easy for the seller to track down problems and process orders

Provide legal protection of unique product features

Branding gives an opportunity to attract loyal and profitable set of customers

It helps to give a product category at different segments, having separate bundle of benefits

It helps build corporate imageIt minimizes harm to company reputation if

the brand fails

Brand name should express

Product benefitsProduct qualitiesEasy to pronounceShould be distinctiveShould not have poor meanings in other

languages and countries

What does a Brand mean to a company?  Future earnings Influence on customers’ behaviorKeep (and increase) customersAwareness, commitment, cultureInfluence on shareholdersBrand and corporate images  

What does a Brand mean to Customers?  Good relation quality/priceReliability, safety, functionality of productsEffectiveness, efficiency of servicesStyle, design.Emotional experience(Entertainment, approval, self-esteem

Customer loyalty level with brand

Customer will change brands for price reasons

Customer is satisfied. No reason to change.

Customer is satisfied and would take pains to get the brand

Customer values the brand and sees it , as a friend

Customer is devoted to the brand

Why brands fail?Idea failures (Pepsi: in pursuit of purity)Extension failures (Colgate Kitchen Entry )PR failures (Pan American airlines)Culture failures (Pepsi in Taiwan)  In Taiwan Pepsi’s

advertising slogan ‘Come alive with the Pepsi generation’ was translated as ‘Pepsi will bring your ancestors back from the dead.’People failures (Enron scandal: failing the truth)

Rebranding failures (British Airways)Internet and new technology failures (IBM’s

Linux software)Tired brands (Pear’s soap: failing to hit the

present taste)

Brands fails due to:Brand amnesia (When a brand forgets what it is supposed to stand for)

Brand ego.(Egotism)

Brand megalomania. (spread into every product)

Brand deception.(act of covering up the reality of their product)

Brand fatigue.(companies get bored)

Edsel and its failure

1. The Edsel was a brand of car of the Ford Motor Company during the 1958, 1959, and 1960 model years. Due to its disastrous history, the word "Edsel" has become synonymous with failure.

1958 Edsel Citation convertible.

1959 Edsel.

EDSEL…..?

1959 Edsel Corsair convertible.

Packaging

Includes the activities of designing and producing the container for a product

Packaging

Packaging as a marketing toolSelf serviceCompany and brand imageinnovation

Designing packaging:Technical specificationsEngineering testsVisual testsDealer testsConsumer testsPackaging innovationsEnvironmental considerations

LabelsIdentificationGrade classificationDescription of productManufacturer identityDate of mfg., batch no.Instructions for usePromotionLabels need to change with time .

Corporate Brand Building

CORPORATE IDENTITYThe way in which an organization presents

itselfSymbolsCommunication (products , service)Behavior

Referred to as Corporate Identity (CI) MixPersonality manifested through this mix

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CORPORATE IDENTITY MEDIAProductPriceLogosNameStationeryBrochuresSigns

Visiting cardsBuildingsUniformsSponsorshipPackagingWork environment

IMPORTANCE OF IDENTITY

Raises motivation among employeesInspires confidence in stakeholder groupsAcknowledges important role of customersAcknowledges vital role of financial groups

Brand building—corporate image

An image is the set of meanings by which an object is known and through which people describe, remember and relate to it. That is the result of the interaction of a person’s beliefs, ideas, feelings and impressions about an object

Corporate identity and reputationCorporateIdentity

Names,Self-Representations

CustomerImage

CommunityImage

InvestorImage

EmployeeImage

Corporate Reputation building

KEY ATTRIBUTES OF REPUTATION BUILDINGFinancial soundnessValue as a long-term

investmentUse of corporate

assetsInnovativenessQuality of

Management

Ability to attract, develop and keep talented people

Quality of products and services

Community and environmental responsibility

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America’s Most Admired Companies, The Top Ten

Rank Company1 General Electric2 Microsoft3 Dell Computer4 Cisco Systems5 Wal-Mart Stores6 Southwest Airlines7 Berkshire Hathaway8 Intel9 Home Depot10 Lucent Technologies

Brand building for services

Maximize service quality--physical facilities, equipment and appearance of personnel-reliability-customer responsiveness-competence-trust worthiness-empathy-caring-courtesy-communication

Enhance brand recall brand elements- logos , symbols, slogans and other elements.

Create and communicate strong organizational associations—company credibility-service quality

Design communication programs-advertising-direct mail ( exp -city group-city never sleeps)

Establish brand hierarchy by creating distinct family brands or individual brands.

Customization

Examples of Service Industries

Health Care hospital, medical practice, dentistry, eye care

Professional Services accounting, legal, architectural

Financial Services banking, investment advising, insurance

Hospitality restaurant, hotel/motel, bed & breakfast, ski resort, rafting

Travel airlines, travel agencies, theme park

Others: hair styling, pest control, plumbing, lawn maintenance, counseling

services, health club

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INCREASING IMPORTANCE OF brand building for SERVICES

Advances in technology Growth in per capita income A trend towards outsourcing Deregulation Increasing growth in retailing due to

increase in propensity to consumer

Differences Between Goods and Services

Intangibility

PerishabilitySimultaneous

Productionand

Consumption

Heterogeneity

Expanded Mix for brand building for Services -- The 7 Ps

ProductPricePlacePromotionPeopleProcessPhysical Evidence

Brand Audit (TO CHECK BRAND STATUS)Brand HistoryAssessment of current status– brand

hierarchy, customer-based brand equity, brand positioning, brand mantra

Analyses of how branding elements and marketing mix are contributing to this brand status

Recommendations re- building & managing brand equity in the future

Brand Audit

Brand Inventory Brand Exploratory

Brand Positioning

Brand InventoryCurrent profile of how all products and

services sold by a company are marketed and branded

Catalog names, symbols, characters, packaging, slogans, trademarks

Product strengths and weaknessesRelevant marketing activity

Brand ExploratorySecondary SourcesCompany archivesPrior researchPersonal interviews

Primary SourcesConduct quantitative

research - surveysConduct qualitative

research - focus groups, depth interviews

Brand PositioningBrand positioning is all about identifying the

optimal location in our customers’ minds for our Brand and our competitors

Proper positioning makes it easier to facilitate understanding of our Brand

Positioning“The process of creating a perception in the consumer’s mind regarding the nature of a company and its products relative to the competition”

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7 ways to achieve effective positioning:

Brand Hierarchy

The brand – product connectivity pattern

Or

The combination of brand - product matrics

Brand HierarchyEvery company sometimes has range of products and

brands

Brand Hierarchy shows the connectivity pattern of

various brands and product category

As a result a product may have multiple brand name

elements

Example for Brand Hierarchy Individual brand +

Corporate name +

Family brand +

Modifier(model)

Example for Brand Hierarchy

IBM

A22 M – Model(Intel Pentium III)

Think pad- type of computers

Example for Brand Hierarchy

General motors

Chevrolet

truck

Astro

Cargo van

VentureS-10 Pick up

cars

Cavaliar

Camaro

Prizm

Metro

Brand personalitySum total of all characteristicsPsychological + physical characters

personality traits

1. Excitement- spirited2. Competence- reliable3. Sophistication- upper class4. Ruggedness --(tough)5. Sincerity –wholesome, cheerful,

Examples; parley-G-- (carved for children +old

people)Lux --cine star soapLifebuoy—germ killing platform (health

position)Scooty---feminineOnida TV-irritation

Brand Personality is a set of human characteristics associated with a brand• Personality is how the brand behaves• Gender, age, socio-economic class, psychographic, emotional characteristics. Brand Personality, like human personality, is both distinctive and enduring – Both are built over a period of time.Refers to the outcome of all the consumer’s experiences with the brand.

 In other words, the brand’s personality is the weighted average of previous impressions

In consumer’s mind, these impressions merge to form an overall concept of what to expect from brand.

Brand Personality is eagerly searched by brand strategists and researchers

Differences in responses by different consumers provide useful insights

For example, users of a product will perceive a brand different from non-users. 

Some examples of Brand Personality:

Marlboro is ‘masculine’ while Virginia Slims is ‘feminine’

IBM is ‘older’ while Apple is ‘younger’ India Today is ‘old-fashioned’ while Outlook is

‘trendier’ Coke is ‘conforming’ while Pepsi is ‘irreverent’ 

Why use brand personality?

Enriches understandingHelps gain an in-depth understanding of

consumer perceptions and attitudes towards the brand

Can provide more insight than is gained by asking about attribute perceptions

For ex., Microsoft, IBM etc. 

Contributes towards a differentiating identity Can differentiate brands especially where

brands are similar in product attributesIn fact, it can define not only the brand but

the product class context and experienceMercedes Vs BMW; Clinic Plus Vs PanteneGuides the communication effort  Communicates the brand identity with

richness and texture If the brand is specified only in terms of

attribute associations, very little meaningful guidance is provided – Is Nike shoes or sports, performance and attitude?

Creates brand equity Builds long-term brand equity Differentiates the brand and makes it distinct

from other competitive offeringsServes as a powerful relationship device

 

How to create brand personality?

Personality of a person is affected by everything associated with him – friends, neighborhood, activities, clothes etc.,

So too is a brand personality 

What is Brand Identity?

Brand Identity is the unique set of brand associations that the brand strategist aspires to create or maintain. These associations represent what the brand stands for and imply a promise to customers for the organization members.

• A promise that gets kept consistently• Defines your organization• It creates a personality and a life for your

products/services• A unique and consistent look, feel, tone

and voice for all communications• Conveys-at a-glance the distinctive

attributes of your organization• Over time, it builds awareness of and an

attitude towards your organization

Brand identity:1. Brand as a product—product qty/attributes2. From which organization ? (local/global)3. Brand as a person?(energetic/rugged)4. Brand as symbol—imagery &meta

KAPFERER represents brand identity diagrammatically as a six-sided prism as shown below:

Internalisation

Externalisation

Physique according to him is the basis of the brand. E.G. the physique of Philips is “technology and

reliability” while for the brand Tata it is “trust”

Personality is same as Aaker, it answers the question “what happens to this brand when it becomes a person?”

Culture symbolizes the organization, its country-of-origin and the values it stands for.

Relationship is the handshake between consumer and the organisation. E.G. the relationship with “safola” is safety.

Reflection is the consumer’s perception for what the brands stands for. E.G. coke’s image more attract youth.

Self-image is what the consumer think of himself.E.G. benz Car owner think that since he has

bought the car he is treating himself to one of the best car in the world.

15 Reasons Why Business Need a Brand Identity      

•To convey that you are established.•To attract more clients.•To increase your credibility.•To be more memorable•To stand out in your field. •To look "bigger.“•To brand yourself. •To give clients a sense of stability•To explain your company name•To show what practices differentiate you from your competition.•To show your commitment and for the sense of personal pride it will add to your practice.

9 Keys to Building a Stand-Out Brand Identity

A successful brand identity is built around following 9 key characteristics: •Unique •Repetition •Consistent•Memorable•Meaningful•Clear•Honesty•Personality•Professionalism

Brand Identity model

1.Product Scope

2. Product Attributes3. Quality/Value4. Uses5. Users6. Country

1. Organizational Attributes2. Local vs. Global

1. Personality2. Brand-customer relationship

1. Visual Imagery and metaphors2. Brand Hreritage

Brand as a Product

Brand as a Organization

Brand as a person

Brand as a symbol

BRAND IDENTITY

BRAND IMAGE

BRAND IMAGEBrand as intended Brand as decoded Brand in relation

to competitor brands

BRANDIDENTTITY BRBBBBBBBBBBRB

BBBBBBANDBBBBRAND

POSITIONINGBRAND IMAGE

Definition

It is the impression in the consumers’ mind of brand’s total personality (real and imaginary qualities and short-comings).

Measures to evoke the image of a brand: Brand image can be reinforced by:Brand communication techniquesPackagingAdvertisingPromotion Customer serviceWord of mouth

Attributes of Brand Image Product Image FunctionalSymbolicCompany Image R&DSizeSocialGrowthLeadership

User Image Psychographic Personality AttitudeDemographic Age Sex Income

Brand Image is developed over time through advertising campaigns with a consistent theme, and is authenticated through the consumers’ direct experience .

Brand associations:

Brand All that is associated with the brand. Linkage of

human mind with the brand is brand association. ElementsBrand name, slogan, sign, symbol PackagingBrand ambassadorBrand as a productBrand as a symbolic value

Defining AssociationsPoints-of-difference

(PODs)Attributes or

benefits consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand

Points-of-parity (POPs)Associations that

are not necessarily unique to the brand but may be shared with other brands

POP and POD

POD (Point of Difference)Strong, favorable, unique brand associationsMay be any kind of attribute or benefit

Two types of PODsAttribute Based

Functional, performance related differencesImage Based

Affective, experiential, brand image related differences

POP and POD

POP (Point of Parity)Associations that are shared with other brands

Two typesCategory: attributes that are required to include

your product as a member of that categoryCompetitive: POP that negate your competitors

PODsPOPs can be “good enough”, but PODs should

be “superior

Points of Difference & Parity:

DifferenceStrong, favorable, uniqueAttribute or benefitParity• Shared with other brands• Important for brand extensions

several types of associations lProduct attributes, Customer Benefits, Use/application, Celebrity/person, Product class, Competitiors Country or geographic area.

1.BRAND PROMISEBenefits and experiences that

marketing campaigns try to associate with a product in its current and prospective consumers' minds.

2.Brand drivers

Brand drivers are words that support the brand essence and communicate in one word the ‘what' of the brand

The following brand drivers areService – co-ordination.Products – developmental.Staff – supportive.Beneficiary return – empowered.Measurement – sustainable.

3.Core Values or messages – Core values are an expression of an organization’s principles and culture and provide the foundation for living

4.Brand Dimensions (proof points)– The impressions of what the organization does, the distinctive qualities it delivers in every relationship, and the consistent qualities that every client can expect in every interaction.

5.Brand Position – The brand position pragmatically defines the brand’s desired position among competitors in the category.

Brand Value:

Non image factors(market

Growth +profit margin

+competition)

Brand equity

Brand image

Brand value/worth

Brand relationship:

BRAND RELATIONSHIP:1.interdependence:degree of dependency

both behaviorally and cognitively 2. self concept: integration of self concept and brand concept

3. commitment: dedication to continued brand association and betterment of relationship despite unforeseen circumstances 4. Love and passion: Affinity and adoration of brand by users 5.Intimacy: A sense of deep familiarity and understanding the brand as partners 6. Partner quality: a)empathy orientation b)character reliability c) trust

Brand Manager Job Description: Brand managers plan, develop, and direct the

marketing efforts for a particular brand or product. It is not uncommon for a brand manager to be responsible for coordinating activities of specialists in production, sales, advertising, promotion, research and development, marketing research, purchasing, distribution, package, development,and finance.

Personality Synopsis: Common traits of brand Managers include them being results oriented and creative; possess strong interpersonal, communication, and analytical skills; and have entrepreneurial leanings.

 Brand management is the career track we hear most often. It is the

key function in the consumer products industry. Brand managers are often likened to small business owners because they assume responsibility for a brand or brand family. They are always focused on the big picture. It is their job to distill the brand's essence, map out their competitors in their brand's category, identify marketing opportunities, and be able to effectively communicate the unique benefits of that product or service. 93

Brand managers are also responsible for guiding the market research team by setting the agenda and criteria and also selecting the stimuli, such as product-benefit statement, pictures, product samples, and video clips. Once the research is complete it is the brand manager's job to analyze the data that's been collected then develop a marketing strategy.

This marketing strategy may call for a new ad campaign, development of new products, or drawing out a new vision for the brand. It is also then the brand manager's job to ensure that other functions such as promotions, market research, research and development, and manufacturing are orchestrated to implement the strategy that they have developed.

Careers in product and brand management tend to attract high potential, well motivated individuals who can accept broad responsibilities easily and with little supervision, communicate well with other people, are willing to do some traveling, and thrive on constant change. Pay and perks are good, with career and compensation advancement based on achievement.

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What is Brand Leveraging?

A brand can grow quickly if its owner builds on the foundation of performance, personality, and presence to create innovative strategies for expansion through focus or diversification A brand leveraging strategy uses the power of an existing brand name to support a company’s entry into a new, but related, product category.

Brand leveraging communicates valuable product information to consumers about new products.Consumers enter retail outlets equipped with pre existing

knowledge of a brand’s level of quality and consistently relate this knowledge to new products carrying the familiar brand. Generally,

consumers maintain a consistent brand perception until disappointed – creating a risky advantage for established brands.

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Why is Brand Leveraging Important? Brand leveraging is an important form of new product introduction

because it provides consumers with a sense of familiarity by carrying positive

brand characteristics and attitudes into a new product category. Instant recognition of the brand is established, and consumers with

favorable brand opinion likely will try a new product they perceive to have a similar quality level and attributes as their original favorite.

Additionally, because the products are in different categories, they will not compete for market share – the crux of a successful branding strategy.

To avoid disappointing brand-loyal consumers, the greatest risk involved in brand leveraging, it is important to maintain a consistent level of

quality within the brand across category lines. Likewise, it is as important to leverage a brand only into new categories that are related to the

original product. Trying to sell too many diverse products will dilute the brand name and yield poor results.

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