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CHAPTER 1:
BRANDS & BRAND MANAGEMENT
S. Rashid Hussain12th Sep, 2011
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Strategic Brand Management Process
Mental maps
Competitive frame of reference
Points-of-parity and points-of-difference
Core brand values
Brand mantra
Mixing and matching of brand elementsIntegrating brand marketing activities
Integrating Marketing Communications to Build
Brand Equity
Leveraging secondary association to build brand
equity
Brand audits
Brand tracking
Brand equity management system
Brand-product matrix
Brand portfolios and hierarchies
Brand expansion strategies
Brand reinforcement and revitalization
KEY CONCEPTSSTEPS
Grow and SustainBrand Equity
Identify and EstablishBrand Positioning and Values
Plan and ImplementBrand Marketing Programs
Measure and InterpretBrand Performance
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What is a brand? For the American Marketing Association (AMA), a brand is
a name, term, sign, symbol, or design, or a combination ofthem, intended to identify the goods and services of one
seller or group of sellers and to differentiate them fromthose of competition.
These different components of a brand that identify anddifferentiate it are brand elements.
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What is a brand?Many practicing managers refer to a brand
as more than thatas something that has
actually created a certain amount ofawareness, reputation, prominence, and soon in the marketplace.
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Brands vs. ProductsAproduct is anything we can offer to a
market for attention, acquisition, use, or
consumption that might satisfy a need orwant.
Aproduct may be a physical good, a service,
a retail outlet, a person, an organization, aplace, or even an idea.
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Five Levels of Meaning for a Product The core benefit levelis the fundamental need or want that
consumers satisfy by consuming the product or service. Thegeneric product levelis a basic version of the product
containing only those attributes or characteristicsabsolutely necessary for its functioning but with nodistinguishing features. This is basically a stripped-down,
no-frills version of the product that adequately performsthe product function. The expected product levelis a set of attributes or
characteristics that buyers normally expect and agree towhen they purchase a product.
The augmented product levelincludes additional productattributes, benefits, or related services that distinguish theproduct from competitors.
Thepotential product levelincludes all the augmentationsand transformations that a product might ultimately
undergo in the future.
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A brand is therefore more than
a product, as it can havedimensions that differentiate itin some way from other
products designed to satisfy thesame need.
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Some brands create
competitive advantages withproduct performance; other
brands create competitiveadvantages through non-product-related means.
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Why do brands matter?
What functions do brands
perform that make them sovaluable to marketers?
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Importance of Brands to Consumers
Identification of the source of the product
Assignment of responsibility to productmaker
Risk reducer
Search cost reducer
Promise, bond, or pact with product maker
Symbolic device
Signal of quality
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Reducing the Risks in Product Decisions
Consumers may perceive many different types of risks inbuying and consuming a product:
Functional riskThe product does not perform up toexpectations.
Physical riskThe product poses a threat to the physicalwell-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.
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Importance of Brands to FirmsTo firms, brands represent
enormously valuable pieces of legalproperty, capable of influencingconsumer behavior, being bought
and sold, and providing thesecurity of sustained futurerevenues.
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Importance of Brands to Firms
Identification to simplify handling ortracing
Legally protecting unique featuresSignal of quality level
Endowing products with unique
associationsSource of competitive advantage
Source of financial returns
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Can everything be branded? Ultimately a brand is something that resides in the
minds of consumers.
The key to branding is that consumers perceivedifferences among brands in a product category.
Even commodities can be branded:
Coffee (Nescafe`), bath soap (Lux), flour
(Punjab No.1), salt (National), Ispaghol(Hashmi), pickles (Shezan), bananas (Chiquita),chickens (K&N`s), and even water (Aquafina)
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An Example of Branding a Commodity
De Beers Group added
the phrase ADiamondIs Forever
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What is branded?Physical goodsServices
Retailers and distributors
Online products and services
People and organizations
Sports, arts, and entertainmentGeographic locations
Ideas and causes
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Source of Brands Strength The real causes of enduring market leadership are
vision and will. Enduring market leaders have arevolutionary and inspiring vision of the mass market,and they exhibit an indomitable will to realize thatvision. They persist under adversity, innovaterelentlessly, commit financial resources, and leverageassets to realize their vision.
Gerald J. Tellis and Peter N. Golder, First to Market, First toFail? Real Causes of Enduring Market Leadership,MIT Sloan
Management Review, 1 January 1996
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Importance of Brand ManagementThe bottom line is that any
brand
no matter how strong atone point in timeisvulnerable, and susceptible to
poor brand management.
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Branding Challenges and Opportunities
Savvy customersBrand proliferation
Media fragmentationIncreased competition
Increased costsGreater accountability
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The Brand Equity Concept
No common viewpoint on how it should beconceptualized and measured
It stresses the importance of brand role inmarketing strategies.
Brand equity is defined in terms of the marketingeffects uniquely attributable to the brand.
Brand equity relates to the fact that different outcomesresult in the marketing of a product or service because of
its brand name, as compared to if the same product orservice did not have that name.
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Strategic Brand Management It involves the design and implementation of marketing
programs and activities to build, measure, and managebrand equity.
The Strategic Brand Management Process is defined as
involving four main steps:1. Identifying and establishing brand positioning and values
2. Planning and implementing brand marketing programs
3. Measuring and interpreting brand performance
4. Growing and sustaining brand equity
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Writing 1 Name different industries, those brands are being
represented in the course pack
Name different media being used by the brands
Identify the differences (if any) in the advertisement ofa brand through different mediums
Identify seasonality (if given) in the brands
Highlight major differences in the seasonal and regulartimes for brands
Which AD you like at most? And Why?
Which Ad you hate at most and Why?