introduction to brand and brand management

1. Brand and Brand
Management
Prepared By: Divya Gadaria

2. What is a brand?
• For the American Marketing Association (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.
1.2
 OriginOrigin
 Branding has been around for centuries as a means to distinguish the goods ofBranding has been around for centuries as a means to distinguish the goods of
one producer from those of another. In fact, the word "brand" is derived fromone producer from those of another. In fact, the word "brand" is derived from
the Old Norse brandr meaning "to burn." It refers to the practice of producersthe Old Norse brandr meaning "to burn." It refers to the practice of producers
burning their mark (or brand) onto their products.burning their mark (or brand) onto their products.

3. 1.3
 “A successful brand is an identifiable product,
service, place or person, augmented in such a way
that the buyer or user perceives relevant, unique
added values which match their needs most closely.
Furthermore, its success results from being able to
sustain these added values in face of competition.”
 According to David Aaker,
 “A Brand is a distinguishing name and/or symbol
(such as a logo, trade mark, or package design)
intended to identify the goods or services of either
one seller or a group of sellers and to differentiate
those goods or services from those of competitors”
 “Strategic Brand Management involves the design
and implementation of marketing programs and
activities to build, measure, and manage brand
equity.”

4. 1.4
Brands vs. ProductsBrands vs. Products
 AA productproduct is anything we can offer to a market foris anything we can offer to a market for
attention, acquisition, use, or consumption that mightattention, acquisition, use, or consumption that might
satisfy a need or want.satisfy a need or want.
 AA productproduct may be a physical good, a service, a retailmay be a physical good, a service, a retail
outlet, a person, an organization, a place, or even anoutlet, a person, an organization, a place, or even an
idea.idea.

5. 1.5
Five Levels of Meaning for a ProductFive Levels of Meaning for a Product
 TheThe core benefit levelcore benefit level is the fundamental need or want thatis the fundamental need or want that
consumers satisfy by consuming the product or service.consumers satisfy by consuming the product or service.
 TheThe generic product levelgeneric product level is a basic version of the product containingis a basic version of the product containing
only those attributes or characteristics absolutely necessary for itsonly those attributes or characteristics absolutely necessary for its
functioning but with no distinguishing features. This is basically afunctioning but with no distinguishing features. This is basically a
stripped-down, no-frills version of the product that adequatelystripped-down, no-frills version of the product that adequately
performs the product function.performs the product function.
 TheThe expected product levelexpected product level is a set of attributes or characteristics thatis a set of attributes or characteristics that
buyers normally expect and agree to when they purchase abuyers normally expect and agree to when they purchase a
product.product.
 TheThe augmented product levelaugmented product level includes additional product attributes,includes additional product attributes,
benefits, or related services that distinguish the product frombenefits, or related services that distinguish the product from
competitors.competitors.
 TheThe potential product levelpotential product level includes all the augmentations andincludes all the augmentations and
transformations that a product might ultimately undergo in thetransformations that a product might ultimately undergo in the
future.future.

6. 1.6

7. 1.7

8. 1.8

9. 1.9
 A brand is therefore more than a product, as itA brand is therefore more than a product, as it
can have dimensions that differentiate it in somecan have dimensions that differentiate it in some
way from other products designed to satisfy theway from other products designed to satisfy the
same need.same need.

10. 1.10
 Some brands create competitive advantages withSome brands create competitive advantages with
product performance; other brands createproduct performance; other brands create
competitive advantages through non-product-competitive advantages through non-product-
related means.related means.

11. 1.11
Why do brands matter?Why do brands matter?
 What functions do brands perform that makeWhat functions do brands perform that make
them so valuable to marketers?them so valuable to marketers?

12. 1.12
Importance of Brands to ConsumersImportance of Brands to Consumers
 Identification of the source of the productIdentification of the source of the product
 Assignment of responsibility to product makerAssignment of responsibility to product maker
 Risk reducerRisk reducer
 Search cost reducerSearch cost reducer
 Promise, bond, or pact with product makerPromise, bond, or pact with product maker
 Symbolic deviceSymbolic device
 Signal of qualitySignal of quality

13. 1.13
Reducing the Risks in Product DecisionsReducing the Risks in Product Decisions
 Consumers may perceive many different types of risks in buyingConsumers may perceive many different types of risks in buying
and consuming a product:and consuming a product:
 Functional riskFunctional risk——The product does not perform up toThe product does not perform up to
expectations.expectations.
 Physical riskPhysical risk——The product poses a threat to the physical well-The product poses a threat to the physical well-
being or health of the user or others.being or health of the user or others.
 Financial riskFinancial risk——The product is not worth the price paid.The product is not worth the price paid.
 Social riskSocial risk——The product results in embarrassment from others.The product results in embarrassment from others.
 Psychological riskPsychological risk——The product affects the mental well-being ofThe product affects the mental well-being of
the user.the user.
 Time riskTime risk——The failure of the product results in an opportunityThe failure of the product results in an opportunity
cost of finding another satisfactory product.cost of finding another satisfactory product.

14. 1.14
Importance of Brands to FirmsImportance of Brands to Firms
 To firms, brands represent enormously valuableTo firms, brands represent enormously valuable
pieces of legal property, capable of influencingpieces of legal property, capable of influencing
consumer behavior, being bought and sold, andconsumer behavior, being bought and sold, and
providing the security of sustained futureproviding the security of sustained future
revenues.revenues.

15. 1.15
Importance of Brands to FirmsImportance of Brands to Firms
 Identification to simplify handling or tracingIdentification to simplify handling or tracing
 Legally protecting unique featuresLegally protecting unique features
 Signal of quality levelSignal of quality level
 Endowing products with unique associationsEndowing products with unique associations
 Source of competitive advantageSource of competitive advantage
 Source of financial returnsSource of financial returns

16. 1.16
Can everything be branded?Can everything be branded?
 Ultimately a brand is something that resides inUltimately a brand is something that resides in
the minds of consumers.the minds of consumers.
 The key to branding is that consumers perceiveThe key to branding is that consumers perceive
differences among brands in a product category.differences among brands in a product category.
 Even commodities can be branded:Even commodities can be branded:
 Coffee (Maxwell House), bath soap (Ivory), flourCoffee (Maxwell House), bath soap (Ivory), flour
(Gold Medal), beer (Budweiser), salt (Morton),(Gold Medal), beer (Budweiser), salt (Morton),
oatmeal (Quaker), pickles (Vlasic), bananasoatmeal (Quaker), pickles (Vlasic), bananas
(Chiquita), chickens (Perdue), pineapples (Dole), and(Chiquita), chickens (Perdue), pineapples (Dole), and
even water (Perrier)even water (Perrier)

17. 1.17
What is branded?What is branded?
 Physical goodsPhysical goods
 ServicesServices
 Retailers and distributorsRetailers and distributors
 Online products and servicesOnline products and services
 People and organizationsPeople and organizations
 Sports, arts, and entertainmentSports, arts, and entertainment
 Geographic locationsGeographic locations
 Ideas and causesIdeas and causes

18. 1.18

19. 1.19

20. 1.20

21. 1.21

22. 1.22
Source of Brands StrengthSource of Brands Strength
 “The real causes of enduring market leadership
are vision and will. Enduring market leaders have a
revolutionary and inspiring vision of the mass
market, and they exhibit an indomitable will to
realize that vision. They persist under adversity,
innovate relentlessly, commit financial resources,
and leverage assets to realize their vision.”
Gerald J. Tellis and Peter N. Golder, “First to Market, First to
Fail? Real Causes of Enduring Market Leadership,” MIT Sloan
Management Review, 1 January 1996

23. 1.23
Importance of Brand ManagementImportance of Brand Management
 The bottom line is that any brandThe bottom line is that any brand——no matterno matter
how strong at one point in timehow strong at one point in time——is vulnerable,is vulnerable,
and susceptible to poor brand management.and susceptible to poor brand management.

24. What are the strongest brands?What are the strongest brands?

25. 1.25
Top Ten Global BrandsTop Ten Global Brands
BrandBrand 2006 ($Billion)2006 ($Billion) 2005 ($ Billion)2005 ($ Billion)
1.1. Coca-ColaCoca-Cola
2.2. MicrosoftMicrosoft
3.3. IBMIBM
4.4. GEGE
5.5. IntelIntel
6.6. NokiaNokia
7.7. ToyotaToyota
8.8. DisneyDisney
9.9. McDonald’sMcDonald’s
10.10. Mercedes-BenzMercedes-Benz
67.0067.00
56.9356.93
56.2056.20
48.9148.91
32.3232.32
30.1330.13
27.9427.94
27.8527.85
27.5027.50
21.8021.80
67.5367.53
59.9459.94
53.3853.38
47.0047.00
35.5935.59
26.4526.45
24.8424.84
26.4426.44
26.0126.01
20.0020.00

26. 1.26
Branding Challenges and OpportunitiesBranding Challenges and Opportunities
 Savvy customersSavvy customers
 Brand proliferationBrand proliferation
 Media fragmentationMedia fragmentation
 Increased competitionIncreased competition
 Globalization
 Low-priced competitors
 Brand extension
 Deregulation
 Increased costsIncreased costs
 Greater accountabilityGreater accountability

27. Brand ProliferationBrand Proliferation

28. 1.28
The Brand Equity ConceptThe Brand Equity Concept
 No common viewpoint on how it should beNo common viewpoint on how it should be
conceptualized and measuredconceptualized and measured
 It stresses the importance of brand role inIt stresses the importance of brand role in
marketing strategies.marketing strategies.
 Brand equity is defined in terms of the marketingBrand equity is defined in terms of the marketing
effects uniquely attributable to the brand.effects uniquely attributable to the brand.
 Brand equity relates to the fact that different outcomes resultBrand equity relates to the fact that different outcomes result
in the marketing of a product or service because of its brandin the marketing of a product or service because of its brand
name, as compared to if the same product or service did notname, as compared to if the same product or service did not
have that name.have that name.

29. 1.29
Strategic Brand ManagementStrategic Brand Management
 It involves the design and implementation ofIt involves the design and implementation of
marketing programs and activities to build,marketing programs and activities to build,
measure, and manage brand equity.measure, and manage brand equity.
 TheThe Strategic Brand Management ProcessStrategic Brand Management Process is defined asis defined as
involving four main steps:involving four main steps:
1. Identifying and establishing brand positioning and values1. Identifying and establishing brand positioning and values
2. Planning and implementing brand marketing programs2. Planning and implementing brand marketing programs
3. Measuring and interpreting brand performance3. Measuring and interpreting brand performance
4. Growing and sustaining brand equity4. Growing and sustaining brand equity

30. Strategic Brand Management Process
The Strategic Brand Management Process consists of the following four steps:
Strategic
Brand
Management
Process
Identifyingand
Establishing
Brand
Position
Planningand
Im
plem
entingBrand
M
arketingProgram
s
M
easuring and
Interpreting Brand
Perform
ance
Grow
ing and
Sustaining Brand
Equity
Step1Step2
Step
4
Step3

31. 1.31
Strategic Brand Management ProcessStrategic 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 elements
Integrating brand marketing activities
Leveraging of secondary associations
Brand value chain
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 sustain
brand equity
Identify and establish
brand positioning and values
Plan and implement
brand marketing programs
Measure and interpret
brand performance

32. 1.32
Brand positioning define as the “act of designing the company’s
offer and image so that it occupies a distinct and valued place in the
target customer’s mind”

33. 1.33
A Mental map is a visual depiction of the different types of associations linked to the
brand in the minds of consumers. Core Brand associations are that subset of
association (attributes and benefits) that best characterized a brand. A Brand mantra
(also known as brand essence or core brand promise) is a short three to five word
expression of the most important aspect of the brand. For examples; Nike-
Authentic athletic performance. Disney- Fun Family Entertainment.

34. 1.34

35. 1.35

36. A Mental map is a visual depiction of the different types of
associations linked to the brand in the minds of
consumers

37. 1.37
A Brand mantra (also known as brand essence or core
brand promise) is a short three to five word expression of
the most important aspect of the brand

38. Step 2: Planning & Implementing Brand Marketing ProgramsStep 2: Planning & Implementing Brand Marketing Programs
A Brand that consumers are sufficiently aware of andA Brand that consumers are sufficiently aware of and
with which they have strong, favorable, and uniquewith which they have strong, favorable, and unique
associations. In general, this knowledge-building processassociations. In general, this knowledge-building process
will depend on three factors:will depend on three factors:
A.A.The initial choices of the brand elements or identities makingThe initial choices of the brand elements or identities making
up the brand and how they are mixed and matched.up the brand and how they are mixed and matched.
B.B.The marketing activities and supporting marketing programThe marketing activities and supporting marketing program
and the way the brand is integrated into them.and the way the brand is integrated into them.
C.C.Other associations indirectly transferred to or leveraged by theOther associations indirectly transferred to or leveraged by the
brand as a result of linking it to some other entity (such as abrand as a result of linking it to some other entity (such as a
company, country of origin or other brand).company, country of origin or other brand).

39. Choosing brand elements:The most common brand elements
are brand names, URLs, logos, symbols, characters, packaging, and
slogans.A number of option and criteria are relevant for choosing
them to enhance brand awareness or facilitate the formation of
strong, favorable, and unique brand associations.
Integrating the Brand into Marketing Activities and the
Supporting Marketing Program: Choice of brand elements can
make some contribution to building brand equity, the biggest
contribution comes from marketing activities related to the brand.
Marketing programs can creates strong, favorable, and unique brand
association in variety of ways.
Leveraging Secondary Association:The third and final way to
build brand equity is to leverage secondary associations. Brand
associations may themselves be linked to other entities. For example;
the company (through branding strategies), country (identification of
product origin), channel of distribution, co-branding, celebrity
endorsement, sponsorship or awards or reviews.

40. Choosing Brand Elements to Build Brand Equity -
Options and Tactics for Brand Elements
Brand Elements
Options and Tactics for Brand Elements:
The following are few options and tactics for Brand Elements:
Jingles:
These are
musical slogans
that help in
reminding by
repetition.
Examples: The
axe song and
O Fortuna, the
Old Spice Theme
Song.
Characters:
Characters can also
be used as brand
elements.
Slogans:
Slogans are short
phrases that are
descriptive or
persuasive in nature
and provide more
info about the
brands.
Packaging:
Packaging is an important
brand element. It helps to
identify the brand, convey
descriptive and persuasive
information through labelling,
allows protection,
transportation, storage and
consumption of product .

41. Choosing Brand Elements to Build Brand Equity -
Options and Tactics for Brand Elements
Brand Elements
Options and Tactics for Brand Elements:
The following are few options and tactics for Brand Elements:
Brand Names:
Descriptive brand names in
which the function is described
literally in brand name.
Suggestive brand names in
which the name is suggestive
of a benefit provided by the
brand to the customer.
URLs:
• Keep the URLs as simple as
possible,
• Avoid clichés,
• Use a new term for the
real word
• Use catchy phrases
Logos and Symbols:
Various kinds that can be used
are:• Family Shields
• Fonts
• Symbols
• Abstract – shapes and image

42. Step 3: Measuring & Interpreting Brand
Performance
The task of determining or evaluating a brand’s positioning often
benefits from a brand audit. A Brand Audit is a comprehensive
examination of a brand to assess its health, uncover its source of equity,
and suggest ways to improve and leverage that equity. A brand audit
requires understanding sources of brand equity from the perspective
of both the firm and the consumer.To understand the effects of these
brands marketing program, marketers should measure and interpret
brand performance through marketing research. The useful tool for
the task is the Brand value chain. The brand value chain is means to trace
the value creation process for brands, to better understand the financial impact
of brand marketing expenditures and investment. . It can also be used as a
model to take a critical look at the way resources are being spent. It
helps to reallocate the company’s resources so that more is spent in the
customer system and less in the product and distribution system.

43. To manage their brands profitably,
managers must successfully design and
implement a brand equity
measurement system. A Brand
Equity Measurement system is a set
of research procedures designed to
provide timely, accurate, and
actionable information for marketers
so that they can make the best possible
tactical decisions in the short run and
the best strategic decisions in the long
For implementing such a system
involves two key steps—
conducting Brand tracking
(Tracking studies involve
information collected from
consumers on a routine basis
over time. Tracking studies help
to understand, where, how much
and in what ways brand value is
being created) and implementing
Brand Equity Measurement

44. Step 4: Growing and Sustaining
Brand Equity
Maintaining and expanding on brand equity can be quit challenging.
Managing Brand equity can mean managing brands within the context
of other brands, as well as over multiple categories, overtime, and
across multiple market segments.
Defining the branding strategy: The firm’s branding strategy
provides general guidelines about which brand elements to apply
across its products.Two main tools in defining the corporate branding
strategy are the brand—product matrix and the brand hierarchy.
Brand-product matrix—is a graphical representation of all the brands
and products sold by the firm.The brand hierarchy displays the number and
nature of common and distinctive brand components across the firm’s product.

49. Managing brand equity over time: effective brand management
also requires taking a long-term view of marketing decisions. Because
consumers’ responses to marketing activity depend on what they
know and remember about brand, short-term marketing mix actions,
by changing brand knowledge, necessarily increase or decrease the
success of future marketing actions.
Managing Brand Equity over Geographic Boundaries,
cultures, and market segments: another important consideration
in managing brand equity is recognizing and accounting for different
types of consumers in developing branding and marketing programs.
International factors and global branding strategies are particularly
important in these decisions.