lec 07 - brand management

7/31/2019 Lec 07 - Brand Management

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Strategic Brand Management


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Strategic brand management

Lecture: 07


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Brand

Branding

BrandManagement

Category


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Laws to Success - 1

The fundamental law of Marketing is the Law ofLeadership.

The Law of Leadership is the Law of PR. Buildingbuzz makes news. Being first in a new category makesnews. Not being better than your competitors.

In spite of this law, every company focuses on beingbetter.

The key is to create the perception in the mind thatbeing first means being the best.


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Laws to Success - 2

Another Law of Marketing is the Law of the Mind.First in the market is nothing. First in the mind iseverything.

Law of Profits. You can sell anything if it's cheapenough. To make money you need a brand.

The Law of Line Extension. You can't stand forsomething if you put your name on everything.

Law of Divergence. As time goes on every categorywill diverge.


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OBJECTIVES OF BUSINESS

1. To Build equityOr

To make profit

Savings

Re-Investment

Growth


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THE ENTIRE MARKETING PROCESS

TARGETMARKET

OTHERVARIABLE

S

VALUEINNOVATIO

N

VALUEPRICING

VALUEDELIVERY

VALUEPROPOSITI

ON

Product,Service, Place,

Idea,

Entertainment,HumanResources etc

ThroughIMC

Options

BUILDINGBRANDEQUITY

TRACKING OFEQUITY

EQUITYMANAGEMENT

Branding


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MARKETING PROCESS CONTROLLABLE &UNCONTROLLABLE VARIABLES :


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Marketing is the management process thatidentifies, anticipates and satisfies customerrequirements profitably.

-By Kotler

Marketing is a process of planning and executing theconception, pricing, promotion and Distribution of ideas,

goods and services to create exchanges that satisfy individualand organization objectives. AmericanMarketing Association

Marketing is creating and retaining consumers by creating

value. By CourseInstructor.


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Bottom Line of All MarketingActivities

Creating Difference

For Value Delightment

To Have CompetitiveEdge

Leading To BuildingBrands

Building Brand Equity

Creating & RetainingConsumer / Customer

CreatingDifference

ValueDelightment

CompetitiveEdge

CreatingConsumers

RetainingConsumers

Show crazy


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What is a brand?

The word brand is derived from the OldNorse word brandr, which means toburn as brand were and still are themeans by which owners of livestock marktheir animals to identify them. Accordingto the American Marketing Association, abrandis a name, term, sing, symbol, ordesign, or a combination of themintended to identify the goods andservices of one seller or group of sellersand to differentiate them from those ofcompetition. Thus, the key to creating abrand, according to this definition, is to


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What is a brand name?

That part of a brand which can be vocalized the utter able.


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What is a brand mark?

That part of a brand which can berecognized but is not utter able, such assymbol, design, or distinctive coloring orlettering.


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What is a trade mark?

A brand or part of a brand that is given legalprotection because it is capable of exclusiveappropriation. A trademark protects thesellers exclusive rights to use the brandname and/or brand mark.


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What is Brand

Abrand is a name, term, sign, symbol, or design whichis intended to identify the goods or services of oneseller or group of sellers and to differentiate themfrom those of competitors.

Name

Term

SignSymbol

Design

Combination of all

PROMISE


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Examples of Brands of computer products


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WHAT DOES BRANDING REALLY MEAN ?BRANDING CONSISTS IN TRANS FORMING THE PRODUCT CATEGORY

A BRAND IS A LONG-TERM VISION

A BRAND IS A LIVING MEMORY

A BRAND IS A GENETIC PROGRAM

BRANDS ENDOW PRODUCT WITH MEANING

A BRAND IS A CONTRACT

A BRAND IS AN UNWRITTEN CONTRACT IF INTRINSIC VALUE

A BRAND IS AN EXPECTATION OF PERFORMANCE


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WHAT DOES BRANDING REALLY

MEAN ?A BRAND IS A COVENANT OF GOODNESS WITH ITS USERS.

A BRAND IS A PREDICTABLE

A BRAND IS A UNWRITTEN WARRANTEE

A BRAND IS A MARK OF INTEGRITY

A BRAND IS A PRESENTATION OF CREDENTIALS

A BRAND IS A MARK OF TRUST AND REDUCED RISK

A BRAND IS A REPUTATION

A BRAND IS A COLLECTION OF MEMORIES.

A BRAND CAN BE ----MUST BE---MORE THAN THE SUM OF ALL THESE PARTS.


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Consumers Manufacturers

Identification of the

source of productsAssignment of

responsibility ofproduct maker

Risk reducerSearch cost reducer

Promise, bond, or pactwith maker of product

Symbolic device

Means of identification

to simplify handling ortracing

Means of legallyprotecting unique

featuresSignal of quality level to

satisfy customers

Means of endowing

products with unique

Roles that Brands play


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The Key to Branding

For branding strategies to be successful, consumersmust be convinced that there are meaningfuldifferences among brands in the product or servicecategory.

Consumer must not think that all brands in thecategory are the same.

PERCEPTION =VALUE


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GOAL OF BRANDING

q TO ESTABLISH A POWERFUL, RELEVANT IDENTITY INTHE MINDS OF CUSTOMERS IN ORDER TOENCOURAGE THEIR INITIAL PURCHASES ANDNURTURE AN ONGOING RELATIONSHIP BETWEEN

THE MARKETER AND THE END USER.

q CREATING CUSTOMER LOYALTY THROUGH VALUE

INNOVATION IS THE ULTIMATE OBJECTIVE ANDMEANING OF BRAND.


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What is brand equity?

In a simples term Brand equity is the financial valueof the brand.

While marketers have long viewed Brand as assets,the real asset is Brand Loyalty. A Brand is not anasset. Brand Loyalty is the asset.

Creating customer loyalty is neither strategy nortactic; rather, it is the ultimate objective andmeaning of Brand equity.

To earn that loyalty a Brand must build relationship


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A brand was name, term, sign, symbol ordesign, or a combination of them,intended to identify the goods or servicesof one seller or group of sellers and todifferentiate them

Day before

yesterday


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A brand was a bundle of benefits delivered byproducts/services to consumers

Yesterday


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A brand is an experience that real people enjoy(hopefully) everyday

And it has a name and a personality which fitswith me

Today


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Brand + Nothing =Fiasco

Sound + Sight + Smell + Taste + Touch =Brand

Sound + Sight + Smell + Taste + Touch +Feeling + Emotions =BrandBrand = Product + Images

Example :

Volvo = Car + Safety

Nokia = Mobile set + User friendly


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Where do you all fit in ?

(i)All of you have a name = Mr.. X or Ms.Y

(ii) All of you have Distinguishable features like brand mark

(iii) All of you have trade mark ???

Wh t th V i T f


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What are the Various Types ofbrand?

Product:

The most common brand is that associated with a tangible product, such as acar or drink. This can be very specific or may indicate a range of products. Inany case, there is always a unifying element that is the 'brand' being referred toin the given case.

Individual productProduct brands can be very specific, indicating a single product, such as classic

Coca-Cola. It can also include particular physical forms, such as Coca-cola in atraditional bottle or a can.

Product rangeProduct brands can also be associated with a range, such as the Mercedes S-

class cars or all varieties of Colgate toothpaste.

Wh t th V i T f


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What are the Various Types ofbrand?

Person

The person brand is focused on one or a few individuals, where the branding isassociated with personality.

IndividualA pure individual brand is based on one person, such as celebrity actor or

singer. The brand can be their natural person or a carefully crafted projection.

Politicians work had to project a brand that is attractive to their electorate (andalso work hard to keep their skeletons firmly in the cupboard). In a similar way, rockstars who want to appear cool also are playing to a stereotype.

GroupNot much higher in detail than an individual is the brand of a group. In

particular when this is a small group and the individuals are known, the group brandand the individual brand overlap, for example in the way that the brand of a popgroup and the brand of its known members are strongly connected.

Organizations can also be linked closely with the brand of an individual, forexample Virgin is closely linked with Richard Branson.


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EventEvents have brands too, whether they are rock

concerts, the Olympics, a space-rocket launch or atown-hall dance.

Event brands are strongly connected with theexperience of the people attending, for example withmusical pleasure or amazement at human feats.

Product, service and other brands realize thepower of event brands and seek to have their brands

associated with the event brands. Thus sponsorshipof events is now big business as one brand tries toget leverage from the essence of the event, such asexcitement and danger of car racing.


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GeographyAreas of the world also have essential qualities

that are seen as characterizations, and hence alsohave brand. These areas can range from countries to

state to cities to streets and buildings.Those who govern or represent these geographies

will work hard to develop the brand. Cities, forexample, may have de-facto brands of being

dangerous or safe, cultural or bland, which will beused by potential tourists in their decisions to visitand by companies in their decisions on where to setup places of employment.


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What is Brand Management?

Brand Management is a total approach to managing brandsthat is sometimes extended, by those who understand thepower of brands, to cover the whole approach to managing thecompany.

Creating promise

Making promise

Keeping promise


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Creating the promise

Creating the promise means defining the brand. A goodbrand promise is memorable and desirable. It cannot beeffective if nobody remembers it, and is no good either ifnobody wants it!

A good brand promise evokes feelings, because feelings driveactions. Volvo offers feelings of safety. Mustang offersfeelings of excitement.

The promise must be unique and identified with you alone.

Within an industry, promises can be very close, but if youwant any hope of success, you must stake out the veryspecific territory of your promise and know clearly how it isdifferent from the promises of other firms.


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Making the promise

Once you have created the promise, the next (and not sotrivial) step is to somehow inject it into the minds of yourcustomers, your staff and everyone who receives anythingfrom you or has any impact on what you deliver.

This is where marketing people come into their own.Although it is still not their sole preserve, a large part ofmarketing, which includes advertising and PR, is aboutpositioning the company and its products in the minds ofcustomers and against your competitors.


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Keeping the promise

Creating and making the right promise is one thing, but thenyou have to keep it. If you do not, you brand will still exist,but now the promise will be of slipshod products andinconsistent delivery.

Keeping promises means managing capability. It meansconsistent processes that are capable of delivering what isrequired. It means technology and systems which arereliable and usable. It means motivated people who arewilling and able to deliver the goods.


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Strategic brand management involves the design andimplementation of marketing programs and activitiesto build, measure, and manage brand equity


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d i i


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Brand VisionCore brand value & Positioning

Brand vision What the brand should stand for inthe future.

Core brand values set of abstract associations thatcharacterize a brand.

A brand mantra is a short 3-5 words expression of themost important aspect of a brand and its core brand

values.

B d Vi i


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Brand VisionCore brand value & Positioning

Brand Positioning the act of designing the companysoffer and image so that it occupies a distinct and values placedin the target consumers mind.

The goal is to locate the brand in the minds of consumers.

Competitive brand positioning creating brand superiority inthe minds of consumers.

Brand Positioning a specification of brand core valuesand brand mantra.



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Strategic Brand Managementprocess

The strategic brand management process isdefined as involving four main steps:

1) Identifying and establishing brand positioning andvalues2) Planning and implementing brand marketing programs

3) Measuring and interpreting brand performance

4) Growing and sustaining brand equity

St t i B d M t


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Strategic Brand Management process


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thank you

for

your attention

END OF LECTURE : 07

lec 07 - brand management

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