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

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  • MKTG311

    NOTES

    CHAPTER ONE: Brands and Brand Management

    o Brand: a name, term, sign, symbol or design, or a combination of them

    - Resides in consumers minds

    - Provides a label and meaning to a product/service

    - Optimal in consumer choice situations

    - Is made up of different components (brand elements) that allow for identification and differentiation

    o Product: A good offered to a market for attention, acquisition, use or consumption

    - Five levels of meaning for a product:

    1. Core benefit level: fundamental need or want satisfies by consuming the product/service

    2. Generic product level: a basic version of the product only containing attributes or characteristics

    absolutely necessary for functioning (no distinguishing features)

    3. Expected product level: a set of attributes or characteristics normally expected and agreed to when

    purchasing

    4. Augmented product level: includes additional product attributes, benefits or related services that

    distinguish from competitors

    5. Potential product level: the augmentations and transformations a product might undergo in the future

    Researchers have classified products and their associated attributes or benefits into three major

    categories:

    1) Search goods: consumers can evaluate product attributes (size, colour, style, design, weight etc) by visual

    inspection

    2) Experience goods: consumer cannot assess product attributes (durability, service quality, safety etc) by

    inspection; actual product trial and experience is necessary

    3) Credence goods: consumer may rarely learn product attributes

    Consumers may perceive many different types of risks in buying and consuming a product:

    a. Functional risk: product does not perform up to expectations

    b. Physical risk: product poses a threat to physical well-being or health of the user of others

    c. Financial risk: product is not worth the price paid

    d. Social risk: product results in embarrassment from others

    e. Psychological risk: products affect the mental well-being of the user

    f. Time risk: failure of the products results in a loss of time invested

    o Brand equity: no common viewpoint on how to conceptualise and measure brand equity

    - Stresses the importance of the brands role in marketing strategies

  • - Provides a common denominator to interpret marketing strategies and assess a brands value

    Kellers customer based brand equity (CBBE) model:

    1) Differential effect: customers +/- reaction to an element of the 4 Ps

    2) Customer brand knowledge: brand image and brand awareness associative network memory model

    3) Customer responses to a brands marketing: favourable, strong and unique brand associations in memory

    STRATEGIC BRAND MANAGEMENT PROCESS

    o Strategic brand management: the design and implementation of marketing programs and activities to

    build, measure and manage brand equity

    - process involves four main steps:

    1. Identifying and developing brand plans

    Brand planning uses the following three interlocking models:

    a) Brand positioning model: describes how to guide integrated marketing to maximise competitive

    advantages

    b) Brand resonance model: described how to create intense, activity loyalty relationships with customer

    c) Brand value chain: a means to trace the value creation process for brands better understanding of the

    financial impact of brand marketing expenditures and investments

    2. Designing and implementing brand marketing programs

    This knowledge building process will depend on three factors:

    a) The initial choices of the brand elements and how they are mixed and matched

    b) The marketing activities and supporting marketing programs and the way the brand is integrated with

    them

    c) Secondary associations indirectly transferred or leveraged by the brand as a result of linking it to some

    other entity

    3. Measuring and interpreting brand performance

    o Brand equity measurement system: a set of research procedures designed to provide timely, accurate

    and actionable information for marketers best possible tactical decisions (short term) and the best

    strategic decisions (long term)

    o Brand audit: a comprehensive evaluation of a brand to assess its health, its sources and potential sources

    of equity and ways to improve and leverage that equity

    4. Growing and sustaining brand equity