Brand Management Chapter 1
Post on 02-Feb-2016
CHAPTER 1: BRANDS & BRAND MANAGEMENT
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.
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.
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.
Why do brands matter?
Importance of Brands to ConsumersIdentification of the source of the product
Assignment of responsibility to product maker
Search cost reducer
Promise, bond, or pact with product maker
Signal of quality
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.
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
Can everything be branded?Physical goods
Retailers and distributors
Online products and services
People and organizations
Sports, arts, and entertainment
Ideas and causes
What are the strongest brands?
Top Ten Global Brands
Branding Challenges & opportunitiesSavvy customers
The Brand Equity Concept
Consumer response to marketing
Strategic Brand Management ProcessMental mapsCompetitive frame of referencePoints-of-parity and points-of-differenceCore brand valuesBrand mantra
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.
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
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
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.