CHAPTER ONE: Brands and Brand Management ?· CHAPTER ONE: Brands and Brand Management o Brand: a name,…

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<ul><li><p>MKTG311 </p><p>NOTES </p><p>CHAPTER ONE: Brands and Brand Management </p><p>o Brand: a name, term, sign, symbol or design, or a combination of them </p><p>- Resides in consumers minds </p><p>- Provides a label and meaning to a product/service </p><p>- Optimal in consumer choice situations </p><p>- Is made up of different components (brand elements) that allow for identification and differentiation </p><p>o Product: A good offered to a market for attention, acquisition, use or consumption </p><p>- Five levels of meaning for a product: </p><p>1. Core benefit level: fundamental need or want satisfies by consuming the product/service </p><p>2. Generic product level: a basic version of the product only containing attributes or characteristics </p><p>absolutely necessary for functioning (no distinguishing features) </p><p>3. Expected product level: a set of attributes or characteristics normally expected and agreed to when </p><p>purchasing </p><p>4. Augmented product level: includes additional product attributes, benefits or related services that </p><p>distinguish from competitors </p><p>5. Potential product level: the augmentations and transformations a product might undergo in the future </p><p>Researchers have classified products and their associated attributes or benefits into three major </p><p>categories: </p><p>1) Search goods: consumers can evaluate product attributes (size, colour, style, design, weight etc) by visual </p><p>inspection </p><p>2) Experience goods: consumer cannot assess product attributes (durability, service quality, safety etc) by </p><p>inspection; actual product trial and experience is necessary </p><p>3) Credence goods: consumer may rarely learn product attributes </p><p>Consumers may perceive many different types of risks in buying and consuming a product: </p><p>a. Functional risk: product does not perform up to expectations </p><p>b. Physical risk: product poses a threat to physical well-being or health of the user of others </p><p>c. Financial risk: product is not worth the price paid </p><p>d. Social risk: product results in embarrassment from others </p><p>e. Psychological risk: products affect the mental well-being of the user </p><p>f. Time risk: failure of the products results in a loss of time invested </p><p>o Brand equity: no common viewpoint on how to conceptualise and measure brand equity </p><p>- Stresses the importance of the brands role in marketing strategies </p></li><li><p>- Provides a common denominator to interpret marketing strategies and assess a brands value </p><p>Kellers customer based brand equity (CBBE) model: </p><p>1) Differential effect: customers +/- reaction to an element of the 4 Ps </p><p>2) Customer brand knowledge: brand image and brand awareness associative network memory model </p><p>3) Customer responses to a brands marketing: favourable, strong and unique brand associations in memory </p><p>STRATEGIC BRAND MANAGEMENT PROCESS </p><p>o Strategic brand management: the design and implementation of marketing programs and activities to </p><p>build, measure and manage brand equity </p><p>- process involves four main steps: </p><p>1. Identifying and developing brand plans </p><p>Brand planning uses the following three interlocking models: </p><p>a) Brand positioning model: describes how to guide integrated marketing to maximise competitive </p><p>advantages </p><p>b) Brand resonance model: described how to create intense, activity loyalty relationships with customer </p><p>c) Brand value chain: a means to trace the value creation process for brands better understanding of the </p><p>financial impact of brand marketing expenditures and investments </p><p>2. Designing and implementing brand marketing programs </p><p>This knowledge building process will depend on three factors: </p><p>a) The initial choices of the brand elements and how they are mixed and matched </p><p>b) The marketing activities and supporting marketing programs and the way the brand is integrated with </p><p>them </p><p>c) Secondary associations indirectly transferred or leveraged by the brand as a result of linking it to some </p><p>other entity </p><p>3. Measuring and interpreting brand performance </p><p>o Brand equity measurement system: a set of research procedures designed to provide timely, accurate </p><p>and actionable information for marketers best possible tactical decisions (short term) and the best </p><p>strategic decisions (long term) </p><p>o Brand audit: a comprehensive evaluation of a brand to assess its health, its sources and potential sources </p><p>of equity and ways to improve and leverage that equity </p><p>4. Growing and sustaining brand equity </p></li></ul>