Introduction to Brand Management. What are Brands? Why are they important to customers and firms? How do you create a brand? What are the important brand metrics?

1. BRAND MANAGEMENT
Author: Avi Chand
Company: Avi Chand Marketing
Phone: +91 99990 57404
Email: avi@avichand.com

2. Business = Brands

3. Top Brands 2018
Brand Value in Million US$
Apple $214.5
Google $155.5
Amazon $100.7
Microsoft $92.7
Coca Cola $66.3
Samsung $59.8
Toyota $53.4
Mercedes Benz $48.6
Facebook $45.2
McDonald’s $43.4
Source: Interbrand

4. Top Indian Brands 2017
Brand Value in Million US$
Tata Group $13.1
Airtel $7.8
LIC $6.8
Infosys $6.2
State Bank of India $5.5
Reliance Industries $4.8
Larsen & Toubro $4.6
Indian Oil $4.5
HCL Technologies $4.4
ITC $4.1
Source: Brand Directory

5. Brands
• Memorable and Appealing in product category
• Brand Equity – Favorable and Strong Mindshare

6. Challenges
Total toothpaste market size in India = Rs.10,000 Crores

7. Marketing Fundamentals
• American Marketing Association (AMA) Definition –
www.marketingpower.com
• Organizational Function, a set of processes for creating,
communicating, and delivering VALUE to customers +
managing customer relationships in ways that benefit the
organization and stakeholders

8. Value Proposition
• A set of benefits offered to customers, to satisfy their
needs
• Intangible Value Proposition - made physical as an
‘offering’ = combination of products, services,
information, and experience. E.g. Chik Shampoo
• Brand is a market offering from a known source

9. • Value Proposition – Portable Music
• “Music-on-the-Go”
• Offering – mp3 Player + Music Download Site
• Brand – Apple (iPod + iTunes)

10. Brand
• A brand is an identifiable + differentiated market offering

11. Identify
• For the 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.”
• These different components of a brand that identify and
differentiate it are brand elements.

12. Differentiate
• Many practicing managers refer to a brand as more than
that — as something that has actually created a certain
amount of awareness, reputation, prominence, and so on
in the marketplace.
• A successful brand is regarded as a promise towards the
delivery of superior performance and experience;
consumers are aware
• Superiority in Value – Product, Service, Information,
Experience

13. Philips – Sense and Simplicity

14. Differentiate

15. 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.
• A product may be a physical good, a service, a retail
outlet, a person, an organization, a place, or even an
idea.

16. Five levels of meaning for a Product
• The core benefit level is the fundamental need or want that
consumers satisfy by consuming the product or service.
• The generic product level is a basic version of the product
containing only those attributes or characteristics absolutely
necessary for its functioning but with no distinguishing features.
This is basically a stripped-down, no-frills version of the product
that adequately performs the product function.
• 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 that distinguish the
product from competitors.
• The potential product level includes all the augmentations and
transformations that a product might ultimately undergo in the
future.

17. From Products to Brands: Differentiation
• Generic Product [no frills]: Coke –
Together is Beautiful
• Expected Product [basics]: Colgate
Ved Shakti vs Dant Kanti
• Augmented Product [plus]: Daikin
Inverter
• Potential Product: Foldable iPhone

18. • A brand is therefore more than a product, as it can have
dimensions that differentiate it in some way from other
products designed to satisfy the same need.

19. • Where does the added value come from?
• Some brands create competitive advantages with product
performance; other brands create competitive advantages
through non-product-related means.
• But either way, it’s a promise to deliver additional value
– performance or experience!
• The promise/commitment is ‘perceived’ by the customer

20. Why do brands matter?
• What functions do brands perform that make them so
valuable to marketers?

21. 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

22. Reducing the risk in product decisions
• Consumers may perceive many different types of risks in
buying and consuming a product:
• Functional risk—The product does not perform up to
expectations.
• Physical risk—The product poses a threat to the
physical well-being or health of the user or others.
• Financial risk—The product is not worth the price paid.
• Social risk—The product results in embarrassment from
others.
• Psychological risk—The product affects the mental well-
being of the user.
• Time risk—The failure of the product results in an
opportunity cost of finding another satisfactory product.

23. Importance of Brands to firms
• To firms, brands represent enormously valuable pieces of
legal property, capable of influencing consumer behavior,
being bought and sold, and providing the security of
sustained future revenues.

24. 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

25. Can everything be branded?
• Ultimately a brand is something that resides in the
minds of consumers.
• The key to branding is that consumers perceive
differences among brands in a product category.
• Even commodities can be branded:
• Coffee (Nescafe), bath soap (Lux), flour (Ahaar), beer (Budweiser),
salt (Tata), oatmeal (Quaker), pineapples (Dole), and even water
(Bisleri)

26. Branding Challenges and Opportunities
• Savvy customers
• Brand proliferation
• Media fragmentation
• Increased competition
• Increased costs
• Greater accountability

27. Brand Storytelling
• Philips
• Why? Sustainability
• How? Conservation
• What? Home Lighting
• Offering = Product +
Experience. I am part of
something here
[believers]
Source:
www.startwithwhy.com
Simon Sinek

29. Brand Storytelling - Authenticity
1. Unique Brand Narrative
2. Know your target audiences
3. Data plays a supporting role
4. Campaigns serve roles in audience stories
5. Make it personal

30. Brand Storytelling – Authenticity
• Unique Brand Narrative: The benefits a company provides to
its customers are communicated in the who, what, why and
how of brand storytelling:
• Who are you?
• What are your values?
• What makes you unique?
• What’s your origin story?
• Discuss future goals, giving back, essential products and
services and beliefs.
• Pull relevant details from this narrative to integrate into
interviews, guest posts, campaigns and the company website.

31. Brand Storytelling - Airbnb
• New Year 2015
• Animated Video –
550,000 travelers had
spend NYE across
20,000 cities
• Up from 2,000 5 years
back
• 47,000 in New York
• Using data to create
enthusiasm for the brand

32. Brand Storytelling - Authenticity
• Know your target audiences
• Personas – not demographics
• Start with one character.
• Who is this person?
• What do they need?
• How do they go about their day?
• Listen socially for brand mentions
• Work with multiple brand personas

34. Brand Storytelling – Authenticity
• Data plays a supporting role
• Don’t make statements – tell stories with data
• National Geographic adds a wide variety of data to all its
photos – idea is to always stick to your origin and values
story

35. Brand Storytelling – Authenticity
• Campaigns serve roles in audience stories
• Campaigns are not standalone, plug-and-play devices
• Huggies Diapers organized a campaign in Canada to
educate mothers on the importance of “hugs” (skin-to-skin
contact boosts immunity, help stabilize vital signs, and
improve brain development). Volunteer huggers were
available. Sales increased 30% in 2016

36. Brand Storytelling - Authenticity
• Make it personal
• IBM’s AI Watson was used to detect possible Melanoma
in Australia. AI has 31% better detection rate than the
naked eye
• Over a single weekend, more than 800 people were
helped, with 22% being referred for a follow-up
appointment.

37. What result do you expect from sustained
Differentiation?
• Customer-based Brand Equity (CBBE)
• Concept: “The differential effect that brand knowledge has
on consumer response to the marketing of that brand.”
Keller, 1993
• E.g. Sales Promotion – Bose vs JBL
• You respond differently to, most likely, Bose because of
what you know about it!
• CBBE translates to leverage available to the marketer

38. CBBE = Leverage
• Improved perception of product performance
• Greater Loyalty
• Less vulnerability to competitive action
• Less vulnerability to market crisis
• Larger margins
• More inelastic consumer response to price increases
• More elastic consumer response to price decrease

39. CBBE = Leverage
• Greater trade co-operation and support
• Increased marketing communication effectiveness
• Possible licensing opportunities
• Additional brand extension opportunities

40. Strong Brands = Awareness + Image
• Break down strong brands into measurable metrics
• Brand knowledge is the key
• Brand knowledge consists of a brand node in memory
with a variety of associations linked to it.
• Brand knowledge has two components: brand awareness
and brand image.

41. Strong Brands = Awareness + Image
• Brand awareness = strength of brand memory
• Brand recognition – e.g. at point of purchase
• Brand recall – e.g. away from point of purchase, especially
important for services
• Brand image = nature of brand memory
• Strong, favorable, and unique brand associations
• Both attributes can be measured over time

42. Sony = Awareness + Image
• Electronics = Sony 
Awareness
• High Tech = Sony 
Imagery

43. Advantages of high Brand Awareness
• Learning advantages
• Register the brand in the minds of consumers
• Consideration advantages
• Likelihood that the brand will be a member of the consideration set
• Choice advantages
• Affect choices among brands in the consideration set
• Especially in case of low-involvement purchases, e.g. OTC drugs,
construction supplies, commodities

44. Establishing Brand Awareness
• Increasing the familiarity of the brand through repeated
exposure (for brand recognition)
• A&P, Sponsorships, PR, OOH Media
• Forging strong associations with the appropriate product
category or other relevant purchase or consumption cues
(for brand recall)
• Creative Advertising, Jingles etc.
• E.g. “Singapore Girl”

46. Creating Brand Imagery
• Brand Associations
• E.g. Garnier, John Abraham, Genelia D’Souza, No nonsense,
prolific, effective, confident, energetic! The imagery is so good, we
take these brands for granted.
• Does not matter which source of brand association
• Need to be favorable, strong, and unique
• Marketers should recognize the influence of other sources of
information by both managing them as well as possible and by
adequately accounting for them in designing communication
strategies.

47. Four Steps of Brand Building
1. Ensure identification of the brand with customers and
an association of the brand in customers’ minds
2. Establish the totality of brand meaning in the minds of
consumers [performance + imagery]
3. Elicit the proper customer responses to the brand
identification and brand meaning [judgment + feelings]
4. Convert brand response to create an intense, active
loyalty relationship between customers and the brand

48. Four Questions Customers Ask of Brands
1. Who are you? (brand identity)
2. What are you? (brand meaning)
3. What about you? What do I think or feel about you?
(brand responses)
4. What about you and me? What kind of association and
how much of a connection would I like to have with
you? (brand relationships)

49. RESONANCE
SALIENCE
JUDGMENTS FEELINGS
PERFORMANCE IMAGERY
4. RELATIONSHIPS
= What about you and
me?
3. RESPONSE =
What about you?
2. MEANING
= What are
you?
1. IDENTITY
= Who are
you?
CBBE Pyramid [Brand Laddering]

50. Salience Dimensions
• Depth of brand awareness
[in product category]
• Ease of recognition and recall
• Strength and clarity of
category membership
• Breadth of brand
awareness [in various
situations]
• Purchase consideration
• Consumption consideration

51. Performance Dimensions
• Primary characteristics and supplementary features
• Product reliability, durability, and serviceability
• Service effectiveness, efficiency, and empathy
• Style and design
• Price

52. Imagery Dimensions
• User profiles
• Demographic and psychographic characteristics
• Actual or aspirational
• Group perceptions—popularity
• Purchase and usage situations
• Type of channel, specific stores, ease of purchase
• Time (day, week, month, year, etc.), location, and context of
usage
• Personality and values
• Sincerity, excitement, competence, sophistication, and
ruggedness
• History, heritage, and experiences
• Nostalgia
• Memories

53. Rolex = Performance + Imagery

54. BMW = Performance + Imagery

55. • Brand quality
• Value
• Satisfaction
• Brand credibility
• Expertise
• Trustworthiness
• Likeability
• Brand consideration
• Relevance
• Brand superiority
• Differentiation
Judgment Dimensions

56. Feelings Dimensions
• Warmth
• Fun
• Excitement
• Security
• Social Approval
• Self-respect

57. Nokia = Feelings?

58. Resonance Dimensions
• Behavioral loyalty
• Frequency and amount of repeat purchases
• Attitudinal attachment
• Love brand (favorite possessions; “a little pleasure”)
• Proud of brand
• Sense of community
• Kinship
• Affiliation
• Active engagement
• Seek information
• Join club
• Visit website, chat rooms

60. Case Study: Got Milk?

61. RESONANCE
SALIENCE
JUDGMENTS FEELINGS
PERFORMANCE IMAGERY
4. RELATIONSHIPS
= What about you and
me?
3. RESPONSE =
What about you?
2. MEANING
= What are
you?
1. IDENTITY
= Who are
you?
CBBE Pyramid [Brand Laddering]

62. Names and Logos
• All brand names and logos used in the presentation are
property of their respective owners