Chapter Index
S. No Reference No Particulars Slide
From-To
1 Learning Objectives 3
2 Topic 1 Concept of Brand 4-16
3 Topic 2 Developing Branding Strategy 17-20
4 Topic 3 Concept of Brand Equity 21-22
5 Topic 4 Intellectual Property Rights 23-24
Learning Objectives
• Explain the concept of brand
• Describe the process of developing a branding strategy
• Discuss the concept of brand equity
• State the importance of intellectual property rights
Concept of Brand
A brand refers to a name, given to a product/service to provide it an identity.
Processes of Brand Management
Creating the promise
Making the promise
Keeping the promise
Branding is a practice that is implemented to distinguish the offerings of
one producer from those of others as well as increasing the profitability or
financial value of organisations.
Brand recognises the origin or the producer of any offering and permits
customers to judge the performance of the offering
related with a particular manufacturer or
distributors.
Brand provide legal protection for an
organisation against the special features of their
offerings in terms of registered trademarks,
patent rights, copyrights and proprietary designs for the protection of packaging.
Brands ensure a significant level of quality and it gives
customers a satisfaction that they have invested in right products or services.
It makes them buy the product again and thus
brings brand loyalty.
Brand loyalty brings certainty and security to an
organisation about a certain amount of demand for a defined time period.
Role of Brand
Scope of Branding
Branding helps in preparing a mental structure according to which customers
organise their information about the offering in a way that makes them to take a
purchase decision.
Branding can be done with any:
Physical good (Liril soap, Lakme cosmetics, Mercedes car),
Service (SBI bank, Kingfisher Airlines, Blue Dart courier service),
Store (Reebok, Big Bazaar, Pantaloons, Globus),
Person (Amitabh Bachchan, Sachin Tendulkar, Karina Kapoor, Dan
Brown),
Place (the city of Varanasi, the state of Himachal Pradesh, the country
India),
Organisation (UNICEF, Red Cross)
Idea (blood donation, freedom of speech, family planning).
Brand Image
Brand image can be developed through metaphorical and non-metaphorical ways.
Brand image refers to a term that evokes images and perceptions
related with style, class, modernity, quality and so on.
Metaphors such as ‘Alto is hot’ and
‘Rin is White’ create metaphorical
images in the minds of customers;
Non-metaphorical brand image
creators could be quality, delivery
and aftersales services.
Another aspect of brand image is its corporate logo which is a symbol
that is used to identify any organisation and its brands and conveys a
corporate image.
(a) Easily recognisable
(b) Familiar
(c) Provoke a consensual meaning among the target market
(d) Evoke positive feelings
Brand names should
meet four tests:
Brand Attributes
Attributes are established through images, activities or assumptions and help
in creating brand identity.
Relevancy Consistency
Proper positioning Sustainable
Credibility Inspirational
Uniqueness Appealing
Brand
Attributes
Brand Identity
Fu
nct
ion
s of
Bra
nd
Iden
tity
Strengthen the impact of messages conveyed by an
organisation to its customers.
Pave the way for new customer relationships.
Play an important role in the success of a brand.
Brand Personality
Brand personality means conveying personality traits of human beings to any brand
in such a way that it could help them in gaining differentiation.
Giving human traits to a brand image or a brand identity is known as brand
personality.
Brand personality helps in developing brand equity by setting the brand attitude.
Brand personality is the factor that generates differentiation among various brands
precisely when they are similar in numerous attributes.
Brand strategy is developed through brand personality, which leads to strategy
implementation. A customer can easily associate himself with the brand personality.
Brand Awareness
Aided Awareness
It refers to mentioning the product category from where a customer is expected to recognise a particular brand from the lists of brands shown.
Immediate Brand Recall
It refers to the first brand that a customer recalls from his mind by mentioning the product category.
Brand Awareness refers to the degree to which customers exactly associate a product
with the specific brand. It includes both brand recognition as well as brand recall.
Types of Brand Awareness
Brand Association
Brand associations are images and symbols that are associated with a brand
or with the benefits that the brand provides.
Brand association refers to anything which is deeply instilled in the minds of
customers with relation to the brand.
Brand associations can be formed on the following basis:
• Customer’s contact with the
organisation and its personnel
• Advertisements
• Publicities
• Price at which the brand is sold
• Celebrity endorsements
• Quality of the offerings
• Offerings offered by competitors
• Product category in which the
brand fits
• Point of purchase (POP) displays
or merchandising
Loyal Customers
Satisfied Buyers
Shifters
Swithches
Brand Loyalty
Brand loyalty refers to the extent to which a customer is trustful to
a particular brand.
Brand Loyalty Pyramid
Brand Position Strategy
Kotler defines positioning as the act of designing the company’s offering and image
to occupy a distinctive place in the minds of the target market.
Brand positioning presents a medium for any organisation to depict to its
customers what it wants to gain and what it means to them.
Brand positioning can be defined as an activity of creating a brand offer in such a
way that it occupies a distinctive place and value in the minds of target customers.
Brand positioning involves creating a proper brand image by identifying and
defining points of similarity and differences to discover accurate brand identity.
Brand positioning also gives reasons to customers for buying and using specific
brands.
Points of Difference
Points of Parity
• Point-of-difference (PODs) refers to the attributes or benefits with which a
customer can strongly associate a brand.
• With PODs, the brand shows clear superiority in comparison to other brands.
• Point-of-Parity (POP) refers to associations that are not necessarily unique to a
specific brand but are common with other brands. These associations can be
categorised in two forms, which are:
Category points-of-parity: It refers to associations that a customer identifies
as an essential part to a genuine and reliable offering within a particular
product category.
Competitive points-of-parity: It refers to associations that are designed to
contradict the points-of-difference of competitors. Points of Difference
Brand Repositioning
A brand is repositioned when its current positioning
statement fails to provide desirable results.
Steps that help to ensure the success of the brand
Ensure relevance of customers’ reference
Secure customers’ permission for repositioning
Deliver brand’s new positioning
When an established brand is used by an organisation to introduce a new product, it is
known as brand extension.
Brand extension can be further
generalised into two categories.
Developing Branding Strategy
An organisation generally has three choices to brand a new product, which are as follows:
New brand elements can be developed for the new product.
Some of the existing brand elements can be used for the new product.
Combination of new and existing brand elements can be used for the new product.
Line extension Category extension
General Strategies in Deciding Brand Names
Branding Decisions
Branded House
An organisation
follows branded
house strategy when it positions its
corporate name as a
brand.
Blanket Family
Branding
This strategy is simple and economically
beneficial because a
company uses the same
name for their all products. This strategy helps a new
product to get recognised
easily in the market.
House of brands
Under this strategy,
rather than featuring one
main corporate
brand, sub-brands are featured or promoted.
Individual Branding
In individual branding, the
individual name is used
for an individual
product offered by a
single company in the market.
Endorsed Brand
Under this branding strategy
products and offerings are promoted as
separate brands, but
they are supported by
the Masterbrand or corporate
brand.
Sub Brands
Under the sub-brand
strategy, both the
Masterbrand and sub
brands are considered as
co-drivers, however, the sub-brands are never positioned
more strongly than the
Masterbrand.
Co-Branding
Utilisation of two or more
brands to name a new
product is known as co-
branding.
Ingredient
co-branding
Composite
co-branding Types of Co-
Branding
Brand Portfolios
Brand portfolio comprises all brands and sub-brands that are attached to product
market offerings.
Increasing the visibility of the products on shelf.
Increasing healthy competition within the organisation.
Attracting customers who desire variety and present threat to
switch to another brand if they get the versatility over there.
Bringing economies of scale in advertising, sales and other
promotional and distributional cost.
Marketers
uses brand
portfolio for
Brand equity is brand power resulting from the goodwill that a brand has earned over a period of time.
Brand equity helps an organisation to achieve higher sales volume and more profit.
Brand equity is created through marketing campaigns.
An organisation can utilise its brand equity to launch new products.
Concept of Brand Equity
Building Brand Equity
Brand equity refers to a set of assets such as loyal customers, name
awareness, perceived quality and associations that are linked to a brand
and provide value to the product/service being offered.
Brand equity creates value for both the customers and the organisation.
Brand equity helps customers in interpreting, processing and storing
information about product and brand.
Brand equity also provides value to the organisations by generating marginal
cash flow.
Intellectual Property Rights
Copyrights
Industrial Property
Intellectual property rights are rights given to a person for a certain period of
time to provide them exclusivity over the use of creations of their minds.
A copyright means legal monopoly that provides protection to published or
unpublished creative (literary, artistic, musical, etc.) work and grants the creator
of such creative work the sole right to publish and sell that work.
Industrial property rights mean intangible intellectual property rights which are
related to any industry. Industrial property can be divided into two main areas,
which are:
• Protection of distinctive signs
• Protected for stimulating innovation, design and the creation of technology
Trademark
Patent
• A trademark means a sign, phrase or other symbol that is easily recognisable
and can be used to differentiate a business’ goods or services from those of
other traders.
• By using a registered trade mark, a business can protect its brand by
restricting other businesses from using its name or logo.
• Trademarks can also be licensed to other companies for a specified period of
time from which crossover brands can be created.
• A patent means a government license which provides the assignee exclusive
rights to a process, design or new invention for a specified period of time.
• In India, the Indian Patent Office grants licenses for patents which are
administered by the Office of the Controller General of Patents, Designs &
Trade Marks (CGPDTM).