Brand Management Chapter 1

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  • 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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