Chapter 1 brand and brand management

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<ul><li><p>Brand and Brand ManagementPrepared By: Divya Gadaria</p></li><li><p>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. </p><p>1.*</p><p>OriginBranding 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 from the Old Norse brandr meaning "to burn." It refers to the practice of producers burning their mark (or brand) onto their products.</p><p>1</p></li><li><p>1.*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 competitorsStrategic Brand Management involves the design and implementation of marketing programs and activities to build, measure, and manage brand equity.</p></li><li><p>1.*</p><p>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. A product may be a physical good, a service, a retail outlet, a person, an organization, a place, or even an idea.</p><p>1</p></li><li><p>1.*Five Levels of Meaning for a Product The core benefit level is the fundamental need or want that consumers satisfy by consuming the product or service. The generic product level is a basic version of the product containing only those attributes or characteristics absolutely necessary for its functioning but with no distinguishing features. This is basically a stripped-down, no-frills version of the product that adequately performs the product function.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 that distinguish the product from competitors. The potential product level includes all the augmentations and transformations that a product might ultimately undergo in the future.</p></li><li><p>1.*</p></li><li><p>1.*</p></li><li><p>1.*</p></li><li><p>1.*A brand is therefore more than a product, as it can have dimensions that differentiate it in some way from other products designed to satisfy the same need. </p></li><li><p>1.*Some brands create competitive advantages with product performance; other brands create competitive advantages through non-product-related means. </p></li><li><p>1.*Why do brands matter?What functions do brands perform that make them so valuable to marketers?</p></li><li><p>1.*</p><p>Importance of Brands to ConsumersIdentification of the source of the productAssignment of responsibility to product makerRisk reducerSearch cost reducerPromise, bond, or pact with product makerSymbolic deviceSignal of quality</p><p>1</p></li><li><p>1.*Reducing the Risks in Product DecisionsConsumers may perceive many different types of risks in buying and consuming a product: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.</p></li><li><p>1.*Importance of Brands to FirmsTo firms, brands represent enormously valuable pieces of legal property, capable of influencing consumer behavior, being bought and sold, and providing the security of sustained future revenues. </p></li><li><p>1.*</p><p>Importance of Brands to FirmsIdentification to simplify handling or tracingLegally protecting unique featuresSignal of quality levelEndowing products with unique associationsSource of competitive advantageSource of financial returns</p><p>1</p></li><li><p>1.*Can everything be branded?Ultimately a brand is something that resides in the minds of consumers. The key to branding is that consumers perceive differences among brands in a product category. Even commodities can be branded:Coffee (Maxwell House), bath soap (Ivory), flour (Gold Medal), beer (Budweiser), salt (Morton), oatmeal (Quaker), pickles (Vlasic), bananas (Chiquita), chickens (Perdue), pineapples (Dole), and even water (Perrier) </p></li><li><p>1.*</p><p>What is branded?Physical goodsServicesRetailers and distributorsOnline products and servicesPeople and organizationsSports, arts, and entertainmentGeographic locationsIdeas and causes</p><p>1</p></li><li><p>1.*</p></li><li><p>1.*</p></li><li><p>1.*</p></li><li><p>1.*</p></li><li><p>1.*Source of Brands StrengthThe 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.</p><p>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 </p></li><li><p>1.*Importance of Brand ManagementThe bottom line is that any brandno matter how strong at one point in timeis vulnerable, and susceptible to poor brand management. </p></li><li><p>What are the strongest brands?</p></li><li><p>1.*</p><p>Top Ten Global Brands</p><p>Brand2006 ($Billion)2005 ($ Billion)Coca-ColaMicrosoftIBMGEIntelNokiaToyotaDisneyMcDonaldsMercedes-Benz67.0056.9356.2048.9132.3230.1327.9427.8527.5021.8067.5359.9453.3847.0035.5926.4524.8426.4426.0120.00</p><p>1</p></li><li><p>1.*Branding Challenges and OpportunitiesSavvy customersBrand proliferationMedia fragmentationIncreased competitionGlobalizationLow-priced competitors Brand extension DeregulationIncreased costsGreater accountability </p></li><li><p>Brand Proliferation</p></li><li><p>1.*</p><p>The Brand Equity ConceptNo common viewpoint on how it should be conceptualized and measuredIt stresses the importance of brand role in marketing strategies.Brand equity is defined in terms of the marketing effects uniquely attributable to the brand.Brand equity relates to the fact that different outcomes result in the marketing of a product or service because of its brand name, as compared to if the same product or service did not have that name. </p><p>17</p></li><li><p>1.*Strategic Brand ManagementIt involves the design and implementation of marketing programs and activities to build, measure, and manage brand equity. The Strategic Brand Management Process is defined as involving four main steps:</p><p>1. Identifying and establishing brand positioning and values2. Planning and implementing brand marketing programs3. Measuring and interpreting brand performance4. Growing and sustaining brand equity</p></li><li><p>Strategic Brand Management Process</p><p>Step 1Step 2Step 4Step 3</p></li><li><p>1.*</p><p>Strategic Brand Management ProcessMental mapsCompetitive frame of referencePoints-of-parity and points-of-differenceCore brand valuesBrand mantra</p><p>Mixing and matching of brand elementsIntegrating brand marketing activitiesLeveraging of secondary associationsBrand value chainBrand auditsBrand trackingBrand equity management systemBrand-product matrixBrand portfolios and hierarchiesBrand expansion strategiesBrand reinforcement and revitalizationKey ConceptsSteps</p><p>1</p></li><li><p>1.*Brand positioning define as the act of designing the companys offer and image so that it occupies a distinct and valued place in the target customers mind </p></li><li><p>1.*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.</p></li><li><p>1.*</p></li><li><p>1.*</p></li><li><p>A Mental map is a visual depiction of the different types of associations linked to the brand in the minds of consumers</p></li><li><p>1.*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</p></li><li><p>Step 2: Planning &amp; Implementing Brand Marketing ProgramsA Brand that consumers are sufficiently aware of and with which they have strong, favorable, and unique associations. In general, this knowledge-building process will depend on three factors:The initial choices of the brand elements or identities making up the brand and how they are mixed and matched.The marketing activities and supporting marketing program and the way the brand is integrated into them.Other associations indirectly transferred to or leveraged by the brand as a result of linking it to some other entity (such as a company, country of origin or other brand).</p></li><li><p>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.</p></li><li><p>Choosing Brand Elements to Build Brand Equity - Options and Tactics for Brand Elements</p><p>Brand Elements</p><p>Options and Tactics for Brand Elements:The following are few options and tactics for Brand Elements:</p></li><li><p>Choosing Brand Elements to Build Brand Equity - Options and Tactics for Brand Elements</p><p>Brand Elements</p><p>Options and Tactics for Brand Elements:The following are few options and tactics for Brand Elements:</p></li><li><p>Step 3: Measuring &amp; Interpreting Brand PerformanceThe task of determining or evaluating a brands 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 companys resources so that more is spent in the customer system and less in the product and distribution system.</p></li><li><p>Step 4: Growing and Sustaining Brand EquityMaintaining 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 firms 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 brandproduct matrix and the brand hierarchy. Brand-product matrixis 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 firms product.</p></li><li><p>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.</p></li><li><p>1</p><p>1</p><p>1</p><p>1</p><p>1</p><p>1</p><p>17</p><p>1</p></li></ul>