CHAPTER 1: BRANDS & BRAND MANAGEMENT

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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 of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition.

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Brands vs. ProductsA product is anything we can offer to a market for attention, acquisition, use, or consumption that might satisfy a need or want.

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Five Levels of Meaning for a Product

The core benefit level is the fundamental need or want

The generic product level is a basic version of the product containing only those attributes or characteristics absolutely necessary for its functioning

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

The potential product level includes all the augmentations and transformations that a product might ultimately undergo in the future.

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Why do brands matter?

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Importance of Brands to ConsumersIdentification 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

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Reducing the Risks in Product Decisions

Functional riskThe product does not perform up to expectations.

Physical riskThe product poses a threat to the physical well-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 FirmsIdentification 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

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Can everything be branded?Physical goods

Services

Retailers and distributors

Online products and services

People and organizations

Sports, arts, and entertainment

Geographic locations

Ideas and causes

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What are the strongest brands?

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Top Ten Global Brands

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Branding Challenges & opportunitiesSavvy customers

Brand proliferation

Media fragmentation

Increased competition

Increased costs

Greater accountability

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The Brand Equity Concept

Differential effect

Brand knowledge

Consumer response to marketing

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Strategic Brand Management ProcessMental mapsCompetitive frame of referencePoints-of-parity and points-of-differenceCore brand valuesBrand mantra

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1. Identify and establish brand positioning and values Mental maps: Visual depiction of different type of associations linked to the brand in the mind of customer

Competitive frame of reference: Creating brand superiority in the mind of customer.

Points-of-parity and points-of-difference: POD ..is not available in other brand, POP.is similar to other brand

Core brand values: Attributes and benefits of brand.

Brand mantra: Core brand promise.

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2.Plan and implement brand marketing programsMixing and matching of brand elements: Name.logos symbols characters,packaging and slogans.

Integrating brand marketing activities: Marketing programs can create strong,favorable and unique brand association.

Leveraging of secondary associations: Brand may be linked to

*Company *Character *Spokepeople *Country *Sonsorship *Awards

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3.Measure & interpret brand performanceBrand value chain: Value creation Process

Brand Audit: A comprehensive examination of a brand to discover its sources of brand equity.

Brand Tracking: Collecting continuous information from customer.

Brand equity management system: *Brand equity charter *Brand equity report *Brand equity responsibility

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4.Grow and sustain brand equity

Defining the Branding Strategy

Managing Brand Equity Over Time

Managing Brand Equity Over Geographic Boundaries, Cultures, and Market Segments.

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