BRAND MANAGEMENT ASSIGNMENTBRAND AND BRAND MANAGEMENT REVIEW

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Compiled by:Dwiky RahardianC1K012030

MINISTRY OF EDUCATION DEPARTMENTJENDERAL SOEDIRMAN UNIVERSITYECONOMICS AND BUSINESS FACULTYMAJORING IN INTERNATIONAL MANAGEMENT PROGRAM2015

BRAND AND BRAND MANAGEMENT

1. Definition of BrandAccording to 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. Technically speaking, then, whenever a marketer creates a new name, logo, or symbol for a new product, he or she has created a brand.

Brand ElementsThere are kind of brand elements: name, logo, symbol, package design. These 4 elements will identifies a product and distinguishes it from others. Brand names themselves come in many different forms. There are brand names based on peoples names, like Este Lauder cosmetics, Porsche automobiles, and Orville Redenbacher popcorn; names based on places, like Sante Fe cologne, and names based on animals or birds, like Mustang automobiles, Dove soap, and Greyhound buses. In the category of other, we find Apple computers, Shell gasoline, and Carnation evaporated milk. Some brand names use words with inherent product meaning, like Lean Cuisine, Ocean Spray 100% Juice Blends, and Ticketron, or suggesting important attributes or benefits, like DieHard auto batteries, Mop & Glo floor cleaner, and Beautyrest mattresses. Other names are made up and include prefixes and suffixes that sound scientific, natural, or prestigious, like Lexus automobiles, Pentium microprocessors, and Visteon auto supplies. Not just names but other brand elements like logos and symbols also can be based on people, places, things, and abstract images. In creating a brand, marketers have many choices about the number and nature of the brand elements they use to identify their products.Differentiation between Brand and ProductThere are several fundamental differences between a brand and a product (or a service):1. Companies Make Products and Consumers Make BrandsA product is made by a company and can be purchased by a consumer in exchange for money while brands are built through consumer perceptions, expectations, and experiences with all products or services under a brand umbrella. For example, Toyotas product is cars. Its umbrella brand is Toyota and each product has its own more specific brand name to distinguish the various Toyota-manufactured product lines from one another. Without a product, there is no need for a brand.

2. Products Can Be Copied and Replaced but Brands Are UniqueA product can be copied by competitors at anytime. When Amazon launched the Kindle e-reader device, it didnt take long for competitors to come out with their own branded versions of an e-reader product. However, the brand associated with each e-reader device offers unique value based on the perceptions, expectations, and emotions that consumers develop for those brands through previous experiences with them. Similarly, a product can be replaced with a competitors product if consumers believe the two products offer the same features and benefits. Products with low emotional involvement are typically easily replaced.

3. Products Can Become Obsolete but Brands Can Be TimelessRemember VHS players? With the introduction of DVD players and more recently DVR devices and streaming video services, VHS players have become obsolete. The same thing happened to 8-track tapes, vinyl records, cassettes, and CDs. Today, most people buy their music in digital format and listen to it on their iPods. The Elvis Presley brand is timeless, but no one buys Elvis music on cassettes anymore.

4. Products Are Instantly Meaningful but Brands Become Meaningful over TimeWhen you launch a new product, its easy to make that product instantly meaningful and useful to consumers because it serves a specific function for them. However, a brand is meaningless until consumers have a chance to experience it, build trust with it, and believe in it. Thats why the 3 steps to brand building include consistency, persistence, and restraint. It takes time and effort to convince consumers to believe in your brand.Consider Google as an example. When Google first hit the Internet scene it offered a simple product a search engine. That product was instantly meaningful to consumers because it helped them find information online quickly. However, the Google brand didnt become meaningful to consumers until people had a chance to use the Google search engine product and see for themselves that it really was a better search engine. Through those experiences, consumers began to trust that the Google brand could deliver faster and better information online. Today, when Google launches a new product (like Google+ recently), people are quick to try those products because they trust the Google brand.

2. The Brand Equity Concept

One of the most popular and potentially important marketing concepts to arise in the 1980s was brand equity. Its emergence, however, has meant both good news and bad news to marketers. The good news is that brand equity has elevated the importance of the brand in marketing strategy and provided focus for managerial interest and research activity. The bad news is that, confusingly, the concept has been defined a number of different ways for a number of different purposes. No common viewpoint has emerged about how to conceptualize and measure brand equity. Fundamentally, branding is all about endowing products and services with the power of brand equity. Despite the many different views, most observers agree that brand equity consists of the marketing effects uniquely attributable to a brand. That is, brand equity explains why different outcomes result from the marketing of a branded product or service than if it were not branded. That is the view we take in this book. As a stark example of the transformational power of branding, consider the auctions sales in Figure 1-11. Without such celebrity associations, it is doubtful that any of these items would cost more than a few hundred dollars at a flea market.Branding is all about creating differences. Most marketing observers also agree with the following basic principles of branding and brand equity: Differences in outcomes arise from the added value endowed to a product as a result of past marketing activity for the brand. This value can be created for a brand in many different ways. Brand equity provides a common denominator for interpreting marketing strategies and assessing the value of a brand. There are many different ways in which the value of a brand can be manifested or exploited to benefit the firm (in terms of greater proceeds or lower costs or both).

3. Strategic Brand Management Process

It's very important to understand the various aspects in the process of strategic brand management. The process of strategic brand management basically involves 4 steps:1. Building BrandAs a first step, marketers should define what they want their brand to represent(brand identity). A brand identity can be pictured in the form of a map with concentric circles, with the core defining elements of the brand in the center and secondary elements of the brand in an outer circle. Once marketer have a clear idea of the brands identity, they can use marketing tool to build the brand. Using a 4 Ps framework (product, price, place, promotion), marketer can create a promotional strategy that utilizes both promotional advertising and inventive approaches.2. Leveraging BrandsMarketers want to achieve a return on their investment, and one vital decision is how to best utilize their brand assets. Marketers may choose to leverage some of the brands established equity to create line extension, brand extension, or co-brand products.

a. Line Extension : Adding a new form of a product or service is generally regarded as the easiest extension, but is likely to generate low incremental revenue.b. Brand Extension : This type of extension differs from a line extension in that it consist of extending the products or services brand into a new category. A brand extension has the benefits of real growth opportunity, but the drawback is the potential for costly mistakes.c. Co-Branded Products : This method of leveraging brands consist of an alliance of complimentary brands. This can often take the form of ingredient branding. A good marketing strategy will consider whether co-branding is appropriate for particular situations.

3. Identifying and Measuring BrandsThe questions of identifying brands considers: What does the brand mean to customers? What product associations do customers have and their attitudes toward the brand? A marketer should also consider the non-product associations that accompany the brand. For ex. What colors are associated with the brand? What is the brands personality and what are the perceptions of the brands country of origin? Monitoring customers impression of all these important elements of the brand plays an important role in brand management.4. Protecting the BrandThe area of strategic brand management has historically been short-changed, being forgotten as the brand building bandwagon took off. However, it is not taking its rightful place as a key element of strategic brand management. Traditionally, protection come from legal teams whose work with trademark remains an element of protecting the brand but is, by no means, the entire protection needed.