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Q 2 (a). Give two comprehensive definitions of Brand Equity so as to make its concept clear. Answer: Brand equity refers to the marketing effects or outcomes that accrue to a product with its brand name compared with those that would accrue if the same product did not have the brand name. And, at the root of these marketing effects is consumers' knowledge. In other words, consumers' knowledge about a brand makes manufacturers/advertisers respond differently or adopt appropriately adept measures for the marketing of the brand. The study of brand equity is increasingly popular as some marketing researchers have concluded that brands are one of the most valuable assets that a company has. Brand equity is one of the factors which can increase the financial value of a brand to the brand owner, although not the only one. Brand's power derived from the goodwill and name recognition it has earned over time, and which translates into higher sales volume and higher profit margins against competing brands. Brand equity refers to the intangible value that accrues to a company as a result of its successful efforts to establish a strong brand. A brand is a name, symbol, or other feature that distinguishes the company's goods or services in the marketplace. Consumers often rely upon brands to guide their purchase decisions. The positive feelings consumers accumulate about a particular brand are what makes the brand a valuable asset for the company that owns it. Alan Mitchell of Marketing Week described brand equity as "the storehouse of future profits which result from past marketing activities." Many companies structure their marketing programs around building and preserving their brand equity. "To be a strong brand, a company must instill a clear, unwavering consumer perception of the distinctive emotional or functional benefits of its products and services," Duane E. Knapp explained in an article for Risk Management. "At the end of the day, the brand is the sum total of the consumer's impressions about the product and service. The less distinctive these impressions, the greater the risk that a competitor's products or services may gain a stronger perceptionand competitive advantage." Building Brand Equity - The basis of brand equity lies in the relationship that develops between a consumer and the company selling the products or services under the brand name. A consumer who prefers a particular brand basically agrees to select that brand over others based primarily on his or her perception of the brand and its value. The consumer will reward the brand owner with dollars, almost assuring future cash flows to the company, as long as his or her brand preference remains intact. The buyer may even pay a higher price for the company's goods or services because of his commitment, or passive agreement, to buy the brand. In return for the buyer's brand loyalty, the company essentially assures the buyer that the product will confer the benefits associated with, and expected from, the brand. In order to benefit from the consumer relationship allowed by branding, a company must painstakingly strive to earn and maintain brand loyalty. Building a brand requires the company to gain name recognition for its product, get the consumer to actually try its brand, and then convince the buyer that the brand is acceptable. Only after those triumphs can the company hope to secure some degree of preference for its brand. Name awareness is a critical factor in achieving brand success. Companies may spend vast sums of money and effort just to attain recognition of a new brand. But getting consumers to recognize a brand name is only half the battle in building brand equity. It is also important for the company to establish strong, positive associations with the brand and its use in the minds of consumers. The first step in building brand equity is for the company to define itself and what it hopes to represent for consumers. The next step is to make sure that all aspects of the company's operations support this image, from its product and service offerings to its
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marketing programs to its customer service policies. When all of these elements support a distinctive image of the company and its products in the minds of consumers, the company has established brand equity. Measuring and Protecting Brand Equity - Although measuring brand equity can be difficult, it can also provide managers with a good indication of their company's future profitability. "Companies which develop good measures of their brand equity have an early warning indicator of likely future profit trends, and can get a much better feel of the dangers of short-termism," Mitchell noted. "If brand equity is falling, you're storing up trouble for yourself. If brand equity is rising, you're investing in future performance, even if it's not showing through in profits today. Real business performance therefore equals short-term results plus shifts in brand equity." Unfortunately, measuring brand equity is not as simple as counting the number of people who recognize a brand name or symbol. It is also dangerous to assume that simply because its brand is well-known, a company enjoys strong or growing brand equity. In fact, the most powerful brands can easily be diluted by company missteps or inconsistent marketing messages. Mitchell explained that the best way to measure brand equity depends on the particular company and its industry. For example, in some cases assessing consumer perceptions of product quality may provide the best indication of brand equity. In other cases, more traditional business measures such as customer satisfaction or market share may be more closely correlated with brand equity. Finding an appropriate measure of brand equity is vital in order for companies to ensure that they protect this valuable asset. In his Risk Management article, Knapp claims that managers must remain constantly vigilant to protect their brand equity, since a declining brand image poses a significant risk to company earnings. If a brand loses its distinctive image in the minds of consumers, then the branded product becomes more like a commodity and must compete on the basis of price rather than value. Customer loyalty decreases, which has a corresponding negative effect on market share and profit margins. In order to prevent this decline, Knapp recommends that companies consider the impact of major decisions on consumer perceptions and brand equity. Every action taken by managementincluding the introduction of new products or advertising strategies, or the decision to lay off employees or relocate a factoryshould be assessed for its effect on brand equity. Measurement There are many ways to measure a brand. Some measurements approaches are at the firm level, some at the product level, and still others are at the consumer level. Firm Level: Firm level approaches measure the brand as a financial asset. In short, a calculation is made regarding how much the brand is worth as an intangible asset. For example, if you were to take the value of the firm, as derived by its market capitalization - and then subtract tangible assets and "measurable" intangible assets- the residual would be the brand equity. One high profile firm level approach is by the consulting firm Interbrand. To do its calculation, Interbrand estimates brand value on the basis of projected profits discounted to a present value. The discount rate is a subjective rate determined by Interbrand and Wall Street equity specialists and reflects the risk profile, market leadership, stability and global reach of the brand. Product Level: The classic product level brand measurement example is to compare the price of a no-name or private label product to an "equivalent" branded product. The difference in price, assuming all things equal, is due to the brand. More recently a revenue premium approach has been advocated. Consumer Level: This approach seeks to map the mind of the consumer to find out what associations with the brand the consumer has. This approach seeks to measure the awareness (recall and recognition) and
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brand image (the overall associations that the brand has). Free association tests and projective techniques are commonly used to uncover the tangible and intangible attributes, attitudes, and intentions about a brand. Brands with high levels of awareness and strong, favorable and unique associations are high equity brands. All of these calculations are, at best, approximations. A more complete understanding of the brand can occur if multiple measures are used.

Q 2 (b) How do you measure and interpret brand Performance. Answer: The performance measures that we consider of interest in this context are the following: % Brand awareness - refers to the population that is aware (i.e. has heard of the brand) from the total target population. When measuring brand awareness, a particular attention needs to be given to the methodology: will prompted or unprompted awareness be measured? % Brand knowledge extends awareness to population that besides being aware of the brand, have some knowledge of that brand. Here, too, knowledge can be prompted or unprompted and, most important, a clear definition of the knowledge should be developed (What kind of data should consumers know about the brand and at what extend so as to be considered they have brand knowledge?). % Top of mind - measures the population that indicates the brand as coming first on their mind when asked to mention brand names for a particular type of product. It can give indication on brand preference, yet its relevance can be lowered by the fact of being the result of the most recent advertisement seen or contact had with the brand, rather than the result of a long-term experience. % Brand preference refers to the population that chooses the brand over competitor brands. The battle to gain consumer preference is a continuous one, as failing to deliver the brand promise can determine immediate switch to competition and therefore a switch in brand preference. The goal for each brand is to become the upmarket brand the first in the list of brands consumers prefer the most. % Brand coherence measures the population that believes correlation between various brand attributes exists. Coherence or incoherence are rather difficult to measure, as people fail or dont bother to analyze subtle brand attributes. Still, obvious incoherence can have negative impact on the brand. This happened with Pepsi, which tried twice to introduce new concepts that lacked to correlate with the attribute of brown that consumers associate with Pepsi it is the case of Pepsi Blue in 2002 and Pepsi Crystal in 1992. Both faced strong resistance on behalf of the customers.

Notes These are only some of the brand performance measures. Practice and literature reveal various models of measuring brand performance that integrate various brand measures. No matter the integrated model used, or even developing own concept of what to measure, when and how, organizations need to have clear understanding of the dimensions they measure and well-articulated methodologies (in terms of target groups, periods of measurement, survey questions etc.). Limitations
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Gathering performance data for these measures is generally done through consumer surveys. This makes the measurement rather expensive and subject to consumer subjectivity (which can translate into dishonesty in some cases). Purpose Still, they are helpful in assessing a brand s position within its relevant market and consumer beliefs and attitudes towards it. Whereas market and sales results measures reflect actual consumer behavior (frequency of purchases, dormancy rates etc.), brand dimensions help understand consumer attitudes that enhance and influence this behavior. They involve deep dives into customer perceptions, attitudes and beliefs, all of these standing at the base of their actual actions in respect to the physical product that the brand encompasses.

Brand performance can be easily traced by identifying brand value chain. Brand value chain is a structured approach to assessing the sources and outcomes of brand equity and the manner by which marketing activities create brand value. Brand value chain resides on certain premises. 1. 2. It assumes that the value of a brand ultimately resides with the customers. Brand value creation process begins when firm invests on marketing program.

3. The marketing program affects consumer mindset. The ability of the marketing program to affect the customer mindset will depend on the quality of that program investment, which is based on program multiplier. 4. This mindset, across the group of consumers results in certain outcomes, which then changes the market performance of a brand. 5. Shareholders also consider the market performance to arrive at an In short, companies with strong and proven brand names may have more shareholder interests.

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Q4. (a) What is meant by Brand Extension? In what way Brand extension occurs? Explain with examples. Answer:Brand extension or brand stretching is a marketing strategy in which a firm marketing a product with a well-developed image uses the same brand name in a different product category. The new product is called a spin-off. Organizations use this strategy to increase and leverage brand equity (definition: the net worth and long-term sustainability just from the renowned name). An example of a brand extension is Jello-gelatin creating Jello pudding pops. It increases awareness of the brand name and increases profitability from offerings in more than one product category. A brand's "extendibility" depends on how strong consumer's associations are to the brand's values and goals. Ralph Lauren's Polo brand successfully extended from clothing to home furnishings such as bedding and towels. Both clothing and bedding are made of linen and fulfill a similar consumer function of comfort and hominess. Arm & Hammer leveraged its brand equity from basic baking soda into the oral care and laundry care categories. By emphasizing its key attributes, the cleaning and deodorizing properties of its core product, Arm & Hammer was able to leverage those attributes into new categories with success. Another example is Virgin Group, which was initially a record label that has extended its brand successfully many times; from transportation (aeroplanes, trains) to games stores and video stores such a Virgin Megastores. In the 1990s, 81% of new products used brand extension to introduce new brands and to create sales. Launching a new product is not only time consuming but also needs a big budget to create awareness and to promote a product's benefits. Brand extension is one of the new product development strategies which can reduce financial risk by using the parent brand name to enhance consumers' perception due to the core brand equity. While there can be significant benefits in brand extension strategies, there can also be significant risks, resulting in a diluted or severely damaged brand image. Poor choices for brand extension may dilute and deteriorate the core brand and damage the brand equity. Most of the literature focuses on the consumer evaluation and positive impact on parent brand. In practical cases, the failures of brand extension are at higher rate than the successes. Some studies show that negative impact may dilute brand image and equity.
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In spite of the positive impact of brand extension, negative association and wrong communication strategy do harm to the parent brand even brand family. Product extensions are versions of the same parent product that serve a segment of the target market and increase the variety of an offering. An example of a product extension is Coke vs. Diet Coke in same product category of soft drinks. This tactic is undertaken due to the brand loyalty and brand awareness they enjoy consumers are more likely to buy a new product that has a tried and trusted brand name on it. This means the market is catered for as they are receiving a product from a brand they trust and Coca Cola is catered for as they can increase their product portfolio and they have a larger hold over the market in which they are performing in.

Types of product extension

Brand extension research mainly focuses on the consumer evaluation of extension and attitude of the parent brand. Following the Aaker and Kellers (1990) model, they provide a sufficient depth and breadth proposition to examine consumer behaviour and conceptual framework. They use three dimensions to measure the fit of extension. First of all, the Complement is that consumer takes two product (extension and parent brand product) classes as complement to satisfy their specific needs. Secondly, the Substitute indicates two products have same user situation and satisfy their same needs which means the products class is very similar so that can replace each other. At last, the Transfer is the relationship between extension product and manufacturer which reflects the perceived ability of any firm operating in the first product class to make a product in the second class. The first two measures focus on the consumers demand and the last one focuses on firms ability. From the line extension to brand extension, however, there are many different way of extension such as "brand alliance" co-branding or brand franchise extension. Tauber (1988) suggests seven strategies to identify extension cases such as product with parent brands benefit, same product with different price or quality, etc. In his suggestion, it can be classified into two category of extension; extension of productrelated association and non-product related association. Another form of brand extension, is a licensed brand extension. Where the brand-owner partners (sometimes with a competitor) who takes on the responsibility of manufacturer and sales of the new products, paying a royalty every time a product is sold.

Categorization theory
Researchers tend to use categorisation theory as their fundamental theory to explore the links about the brand extension. When consumers face thousands of products, they not only are initially confused and disorderly in mind, but also try to categorise the brand association or image with their existing memory. When two or more products exit in front of consumers, they might reposition memories to frame a brand image and concept toward new introduction. A consumer can judge or evaluate the extension by their category memory. They categorise new information into specific brand or product class label and store it. This process is not only related to consumers experience and knowledge, but also involvement and choice of brand. If the brand association is highly related to extension, consumer can perceive the fit among brand extension. Some studies suggest that consumer may ignore or overcome the dissonance from extension especially flagship product which means the low perceived of fit does not dilute the flagships equity.

Brand extension failure

Literature related to negative effect of brand extension is limited and the findings are revealed as incongruent. The early works of Aaker and Keller (1990) find no significant evidence that brand name can be diluted by unsuccessful brand extensions. Conversely, Loken and Roedder-John (1993) indicate that
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dilution effect do occur when the extension across inconsistency of product category and brand beliefs. The failure of extension may come from difficulty of connecting with parent brand, a lack of similarity and familiarity and inconsistent IMC messages. Equity of an integrated oriented brand can be diluted significantly from both functional and non-functional attributes-base variables, which means dilution does occur across the brand extension to the parent brand. These failures of extension make consumers create a negative or new association relate to parent brand even brand family or to disturb and confuse the original brand identity and meaning. In addition, Martinez and de Chernatony (2004) classify the brand image in two types: the general brand image and the product brand image. They suggest that if the brand name is strong enough as Nike or Sony, the negative impact has no specific damage on general brand image and the dilution effect is greater on product brand image than on general brand image. In consequence, consumer may maintain their belief about the attributes and feelings from parent brand. On the other hand, their study shows that brand extension dilutes the brand image, changing the beliefs and association in consumers mind. The flagship product is a money-spinner to a firm. Marketer spends budget and time to create maximum exposure and awareness for the product. Theoretically speaking, flagship product is usually had the top sales and highest awareness in its product category. In spite of Aaker and Kellers (1990) research reported that the prestige brand do no harm from failure of extension. Evidence shows that the dilution effect has great and instant damage to the flagship product and brand family. But in some findings, even overall parent belief is diluted; the flagship product would not be harmed. In addition, brand extension is also diminish consumers feelings and beliefs about brand name. To establish a strong brand, it is necessary to build up a brand ladder. Marketers may go behind the order and model created by Aaker and Keller which they are authorities on brand management. But branding does not always follow a rational line. One mistake can damage all brand equity. A classic extension failure example would be Coca Cola launching New Coke in 1985. Although initially accepted a backlash against New Coke soon emerged among consumers. Not only did Coca Cola not succeed in developing a new brand but sales of the original flavour also decreased. Coca Cola were had to make considerable efforts to regain customers who had turned to Pepsi cola. Although there are few works about the failure of extensions, literature still provides sufficient in depth research around this issue. Studies also suggest that brand extension is a risky strategy to increase sales or brand equity. It should consider the damage of parent brand no matter what types of extension are used. Example. BIC Pens tried to produce BIC pantyhose. You can read some more here

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Q4. (b) Describe briefly some major advantages of Brand Extension. Answer:Brand Extension is the use of an established brand name in new product categories. This new category to which the brand is extended can be related or unrelated to the existing product categories. A renowned/successful brand helps an organization to launch products in new categories more easily. For instance, Nikes brand core product is shoes. But it is now extended to sunglasses, soccer balls, basketballs, and golf equipments. An existing brand that gives rise to a brand extension is referred to as parent brand. If the customers of the new business have values and aspirations synchronizing/matching those of the core business, and if these values and aspirations are embodied in the brand, it is likely to be accepted by customers in the new business. Extending a brand outside its core product category can be beneficial in a sense that it helps evaluating product category opportunities, identifies resource requirements, lowers risk, and measures brands relevance and appeal. Brand extension may be successful or unsuccessful. Instances where brand extension has been a success arei. ii.

Wipro which was originally into computers has extended into shampoo, powder, and soap. Mars is no longer a famous bar only, but an ice-cream, chocolate drink and a slab of chocolate.

Instances where brand extension has been a failure areIn case of new Coke, Coca Cola has forgotten what the core brand was meant to stand for. It thought that taste was the only factor that consumer cared about. It was wrong. The time and money spent on research on new Coca Cola could not evaluate the deep emotional attachment to the original Coca- Cola. ii. Rasna Ltd. - Is among the famous soft drink companies in India. But when it tried to move away from its niche, it hasnt had much success. When it experimented with fizzy fruit drink Oranjolt, the brand bombed even before it could take off. Oranjolt was a fruit drink in which carbonates were used as preservative. It didnt work out because it was out of synchronization with retail practices. Oranjolt need to
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be refrigerated and it also faced quality problems. It has a shelf life of three-four weeks, while other softdrinks assured life of five months. Advantages of Brand Extension Brand Extension has following advantages: It makes acceptance of new product easy. a. It increases brand image. b. The risk perceived by the customers reduces. c. The likelihood of gaining distribution and trial increases. An established brand name increases consumer interest and willingness to try new product having the established brand name. d. The efficiency of promotional expenditure increases. Advertising, selling and promotional costs are reduced. There are economies of scale as advertising for core brand and its extension reinforces each other. e. Cost of developing new brand is saved. f. Consumers can now seek for a variety. g. There are packaging and labeling efficiencies. h. The expense of introductory and follow up marketing programs is reduced. 2. There are feedback benefits to the parent brand and the organization. a. The image of parent brand is enhanced. b. It revives the brand. c. It allows subsequent extension. d. Brand meaning is clarified. e. It increases market coverage as it brings new customers into brand franchise.
1.

f. associations.

Customers associate original/core brand to new product, hence they also have quality

Launching new products and services under (or linked to) an existing brand, if done properly, significantly decreases perceived customer risk and increases product/service acceptance, all at a fraction of the cost that it would have taken to launch a new brand. In addition to generating incremental revenue and profit for your brand, brand extensions can be beneficial in the following ways: helping to clarify and broaden brand meaning to consumers (for instance, extending Hallmark into candy and flowers may help redefine the brand, expanding it from greeting cards to ways to show you care.) reinforcing and building upon key brand associations extending the brands reach and relevance to new consumers creating brand news/buzz laying the groundwork for future extensions Risks of brand extension include the following: creating confusion regarding brand meaning tarnishing the quality image conflicting with or counteracting key brand associations creating new, undesired brand associations turning off current key consumer segments if done in great excess with no focus, completely diluting brand meaning and overexposing the brand in the market place
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According to David Taylor (2004, p1), this strategy of brand extension is popular because it is less risky and cheaper compared to the creation of a new brand. Leslie de Chaternatony and Malcolm McDonald (1998, p315) point the same economical advantage by indicating that the economics of establishing new brands are pushing companies more towards stretching their existing name into new markets. Daunted by the heavy R&D costs, and more aware of the statistics about failure rates for new brands, marketers are increasingly taking their established names into new product fields Leslie de Chaternatony and Malcolm McDonald, (1998, p315). Taylor (2004, p1) emphasizes the advantages connected to this strategy instead of brand creation as following: Consumer knowledge: the remaining strong brand used to promote a new product makes it less critical to create awareness and imagery. The association with the main brand is already done and the main task is communicating the specific benefits of the new innovation Taylor (2004, p1). Consumer trust: the existing well-known-strong brands represent a promise of quality, useful features etc. - for the consumer. Thus, the extension will benefit from this fame and this good opinion about the brand to create a compelling value proposition in a new segment or markets Taylor (2004, p1). In addition, according to a Brandgym survey in 2003, 58% of UK consumers will be more likely to try a new product from a brand they knew, versus only 3% for a new brand, Taylor (2004, p1). However, this has still to be done with ability to be successful. Catherine Viot (2007, p42) agrees to this concept when she considers that the customer is expecting to transfer his information from the brand to the extension. If the general opinion about the brand is favourable, the behaviour regarding the extension should be the positive as well. She adds that a successful brand extension can enable to get the customer loyalty. A satisfied customer by an extension will be more willing to repurchase the same brand. For 8 example in the sport field, a customer will more likely prefer a brand offering a complete equipment-shoes, outfit and accessories. Lower cost: compared to launching a new brand, brand extension strategy is cheaper especially because the new product use the name of an already well-known brand. Taylor (2004, p2) said that Studies show that cost per unit of trial is 36 % lower and that repurchase is also higher with an extension Indeed, Smith & Park (1992, p296) confirm this idea when suggesting that regarding the advertising effectiveness, it seems for same market share, the advertisement budget for brand extension are smaller than for new brands. Aaker (2004, p194) gives some advantages more or less close to Taylor or C. Viot (2007) beliefs: Enhancement of brand visibility: when a brand appears in another field it can be a more effective and efficient brand-building approach than spending money on advertising In addition, he suggests that the relationship with loyal customers will be strengthen because they will use the brand in another context and it is expected as well that they will rather this brand to the competitors one. Provide a source of energy for a brand: the brand image-especially when the brand is a bit tired- is expected to be reinforced by the extension. Indeed, this latter gives energy to the brand because it increases the frequency with which the brand is associated with good quality, innovations and large range of products. In addition, the customer sees the brand name more often and it can strengthen his idea that it is a good one. Thus, C. Viot states that the presence of the brand on a wider number of products should improve the popularity of the brand. The probability of being in contact with the brand both in the communication and in the supermarkets is more important and then should improve the brand memorization. Defensive strategy: an extension can prevent competitors from gaining or exploiting a foothold in the market and can be worthwhile even though it might struggle according to Aaker (2004). Microsoft for instance has decided to operate in different areas with the aim of limiting the ability of competitors to encroach on core business areas.
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Q5. (a) What is Brand Personality & how it is created? Answer:Brand personality is the way a brand speaks and behaves. It means assigning human personality
traits/characteristics to a brand so as to achieve differentiation. These characteristics signify brand behaviour through both individuals representing the brand (i.e. its employees) as well as through advertising, packaging, etc. When brand image or brand identity is expressed in terms of human traits, it is called brand personality. For instance - Allen Solley brand speaks the personality and makes the individual who wears it stand apart from the crowd. Infosys represents uniqueness, value ,and intellectualism. Brand personality is nothing but personification of brand. A brand is expressed either as a personality who embodies these personality traits (For instance - Shahrukh Khan and Airtel, John Abraham and Castrol) or distinct personality traits (For instance - Dove as honest, feminist and optimist; Hewlett Packard brand represents accomplishment, competency and influence). Brand personality is the result of all the consumers experiences with the brand. It is unique and long lasting Brand personality must be differentiated from brand image, in sense that, while brand image denote the tangible (physical and functional) benefits and attributes of a brand, brand personality indicates emotional associations of the brand. If brand image is comprehensive brand according to consumers opinion, brand personality is that aspect of comprehensive brand which generates its emotional character and associations in consumers mind. Brand personality develops brand equity. It sets the brand attitude. It is a key input into the look and feel of any communication or marketing activity by the brand. It helps in gaining thorough knowledge of customers feelings about the brand. Brand personality differentiates among brands specifically when they are alike in many attributes. For instance - Sony versus Panasonic. Brand personality is used to make the brand strategy lively, i.e , to implement brand strategy. Brand personality indicates the kind of relationship a customer has with the brand. It is a means by which a customer communicates his own identity. Brand personality and celebrity should supplement each other. Trustworthy celebrity ensures immediate awareness, acceptability and optimism towards the brand. This will influence consumers purchase decision and also create brand loyalty. For instance - Bollywood actress Priyanka Chopra is brand ambassador for J.Hampstead, international line of premium shirts. Brand personality not only includes the personality features/characteristics, but also the demographic features like age, gender or class and psychographic features. Personality traits are what the brand exists for. It is a comprehensive concept, which includes all the tangible and intangible traits of a brand, say beliefs, values, prejudices, features, interests, and heritage. A brand personality makes it unique. Brand Personality describes brands in terms of human characteristics. Brand personality is seen as a valuable factor in increasing brand engagement and brand attachment, in much the same way as people relate and bind to other people.

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Creating a brand personality At the turn of the century, corporate communication professionals experienced their finest hour: in the world of branding the concept of identity was the centre of attention. For many years corporate communication had been regarded as the department in charge of very important things - but without direct relevance to profit & loss results. The strategic reputation based long-term focus of the corporate communication professional entered the core of modern marketing-theories. The concept of identity connected the insideout way of thinking of corporate communication to the outside-in of marketing for years the predominant principle in business. The strategic shift towards identity was not surprising. The traditional marketing approach had lost its effect. Marketing professionals had become a bit too much mechanical, executing the accepted rules and processes of brand building, marketing communication and product innovation. Marketing itself became a mass produced product, a commodity lacking spirit and authenticity. And the consumers at the receiving end grew tired of the traditional approach of push marketing. They literally didnt buy it anymore. We all know the effects: declining brand loyalty, declining market share for well-known brands, more room for out-of-the-box ideas, no-brand products. This gave rise to new techniques like guerrilla marketing, pull marketing, experience marketing, niche marketing. Identity prism Thought provoking was the Identity Prism of academic Jean-Nol Kapferer in his bestselling book STRATEGIC BRAND MANAGEMENT (1995). His theory had a profound impact on how companies viewed the very nature of brand building. Of course the French professor didnt create the shift to identity singlehandedly, but he can be seen as one of the visionaries who ignited the process. Companies soon acknowledged that identity was one of the essential keys for building successful brands. The focus in companies shifted away from the stereotype marketing mantra: doing and communicating whatever the consumer wants according to research. Business and marketing professionals started to pay attention to their own, inner values as a company, as a brand. You can observe this shift in thinking from a historical perspective. Over the past fifty years the mentality/approach of companies has progressively evolved in several stages:

product based sales based market based marketing based (brand)identity based

Brand personality Just like people, all brands have a personality. Whether it is shallow and instrumental or deep, emotionally charged and carefully managed. This personality is crucial. Why? To put it boldly: personality is a key issue in our society. Look at politics: the popularity of politicians and government leaders is personality based. It is not about their identity, it is not about their views, which are elements of the overall concept that matter most: their personality. Was Tony Blair so successful because of his identity, his views, or his overall personality?

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In my view, the situation for brands is no different. It is all about personality. Personality is the concept to give life to a brand, to manage identity and image, to create likeability. Identity <-> Personality So what is the main difference between identity and personality? Lets set the record straight: of course they are not complete opposites, like Mars and Venus. It has to do with a fundamentally different approach. Identity as a term refers to background and facts in most languages. Your identity is about characteristics you share with others, like the country and culture you come from, your race, your religion, and facts, like the place where you live. In communication it mostly refers to your true inner self - as a company or a brand. To quote Kapferer: Having an identity means being who you are, following your own, determined, but individual path. Be who you are. This is the paradigm of identity. The concept of brand personality combines inside-out and outside-in; identity and image. A personality has its roots in the identity but is strongly externally focused. It is not be who your are. Personality is: Become who you should be. In the words of Carl Jung: Personality is the supreme realisation of the innate idiosyncrasy of a living being. It is an act of courage flung in the face of life, the absolute affirmation of all that constitutes the individual, the most successful adaptation to the universal conditions of existence, coupled with the greatest possible freedom of self-determination. [C.G. Jung, 1875-1961] In psychology, three elements are defined as a part of personality: -private personality (thoughts, feelings, fantasies, ambitions, talents) -public personality (how you want others to see you) -attributed personality (how others see you) The private personality overlaps identity; the public and attributed personalities indicate the external aim and nature of personality. Identity -> Personality In historic perspective, the shift from identity to personality was organic and logical. Identity-based thinking was a logical reaction to marketing-based thinking. Forgive me for dropping names, but in many dynamic processes, I use the theory of dialectic development of the German philosopher Georg Hegels to explain the developments that took place: thesis -> antithesis -> synthesis. It also applies in this matter: the thesis is marketing (outside-in), the antithesis is identity (inside-out), the synthesis is personality. This is an ongoing process that, fortunately, never stops. I am curious to see what will come next. The use of brand personality OK, now we have established the logic behind the concept of brand personality: what should we do with it? We use brand personality to bring brand strategy to life. Dont forget, consumers demand a brand of
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flesh and blood. The consumer will treat your brand like you treat the consumer. If your brand has no personality and no warmth, the consumer will treat it likewise: zero loyalty, high price sensitivity. The fact of the matter is that brand-strategy models are extremely important to modern business. But they are an intellectual piece of work, not necessarily a practical one. They are vital in telling what a brand should be all about and why; but less useful in helping professionals finding out how they should manage to achieve, follow and contribute to this strategy in the day-to-day business environment. The brand personality should be clearly defined; like you would describe the personality of a real person. Obviously this does not apply to every brand. You can choose other verbal concepts to express the brand personality. It is most important to define a brand personality without using any professional lingo. Use peoples language, simple words, create a lively picture of a personality that is absolutely clear to anyone. It will be a big contribution to what I call the internal governance of your brand. It brings you beyond the strategic words that are too abstract to manage a brand in daily business and beyond the strict guidelines that are too inflexible. The power of paradox One essential thing I would like to add to this outline about personality is the power of paradox. The point is that organisations are not one-dimensional, markets are not one-dimensional, people and personalities are not one-dimensional. So.....: why should a brand strategy be worded in one-dimensional keywords? Why is it that three or four keywords should stand for the eternal truth about the brand? Life isnt as simple as that. And you limit yourself from a commercial perspective. Unless, maybe, you are talking about a very simple fast-moving consumer product. Any brand with more richness and complexity (and therefore: power) in its personality can achieve more by crossing the line of one-dimensional key words. Right now I am involved in the strategic development of a European brand. One of the keywords of the brand strategy is innovative. This word is meaningful and meaningless at the same time. After reading and talking about the project we defined the paradox innovative - mainstream to replace the singleminded innovative. And then you feel energy: a brand that should be innovative and mainstream. That is much more like real life, much more exiting, much more strength and power. And: much easier to conduct creative reviews in developing the brand and to organize internal governance once the brand is on the market. I can tell you from experience. If you determine and define precisely the two or three fields of paradox that are crucial to your brand; you will have a unique and strong compass to build and conduct it.

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Q5. (b) Describe the advantages of Brand Personality. Answer:One of the advantages of brand personalities is that based on their distinctive personalities, consumers are able to differentiate between brands. Another advantage is that the consumer can interpret the brands image in such a way that it is personally more meaningful. Brand personality encourages more active processing on the part of the consumer. Thus, the consumer puts more effort in creating and using the brand personality. A further advantage of brand personality is that life is given to a brand. By vitalizing a brand, another perspective of brand personality can be examined, namely the role of a brand as a relationship partner in a consumer-brand relationship. Next we will concentrate on these consumer-brand relationships.

Enriches understanding

Helps gain an in-depth understanding of consumer perceptions of and attitudes towards the brand Can provide more insight than is gained by asking about attribute perceptions For ex., Microsoft, IBM etc.,

Contributes to a differentiating identity

Can differentiate brands especially where brands are similar in product attributes In fact, it can define not only the brand but the product class context and experience Mercedes Vs BMW; Clinic Plus Vs Pantene

Guides the communication effort Communicates the brand identity with richness and texture

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If the brand is specified only in terms of attribute associations, very little meaningful guidance is provided

Is Nike shoes or sports, performance and attitude?

Creates brand equity Builds long-term brand equity Differentiates the brand and makes it distinct from other competitive offerings Serves as a powerful relationship device

Brochures are good for endorsing product brands. It can provide a lot of information for the consumers. Building brand personality using these print materials offer a lot of benefits that contributes to giving a distinct character for your business. What is seen by your target market will be their basis when they decide for a purchase of product. Here are the advantages of using your prints in selling your product and establishing a brand personality. Advantages of Using Brochures for Business Product Brand Personality Enriching understanding. Using brand personality or giving a character to your business product makes your consumer get the gist of what your merchandise is. It helps in gaining an in-depth understanding of consumer perception towards the brand. Brochures can give a lot of details and provide insight about the products you are selling that enriches information gain on the part of the customers. Contributing to differentiating identity. There are several products in the market, chances are you have a lot of product the same others have. Create a differentiating identity through brochures. With your brochures, you can be unique from other merchandise despite the same product attributes. Your brochure can share and communicating this message across because you can add more information when using this print material for advertising and promotion. Guiding communication effort. Keep the communication effective on your consumers with the use of brochures. Make sure that your print material is always fresh so that people can be updated. It is more detailed so it can share a lot of information that a consumer want or needs to know. Creating brand equity. Functional benefits of a product are featured most on brochures. It also enhances the products trait and personality image because this print material can have a full feature of a certain product that it wants to endorse to the target market. Details provided on your prints can be a customers basis for product purchase which is vital to your product. Maximize the use of your brochures in creating brand personality for your product. Distinct quality or trait of your merchandise makes it more recognizable to consumer resulting to increase of sales. Stand out from others and have that association to a certain character trait to make your product more personal and appealing to customers.

The brand becomes part of the self

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The ultimate personality expression occurs when a brand becomes an extension or an integral part of the self The executive who wears Allen Solly on a Friday feels semi-casual and waiting to welcoming the weekend!

The potential to create this oneness with some people can represent a significant opportunity for a brand The brand as a badge A brand could serve as a consumers personal statement

Cars, cosmetics, apparels lend themselves to personality expression because their use occurs in a social context with relatively high involvement A brand personality can help a brand in several ways: brand It can provide a vehicle for customers to express their own identity A brand personality metaphor helps suggests the kind of relationship that customer has with Brand personalities serve to represent and cue functional benefits and product attributes well Importantly, brand personality is often a sustainable point of differentiation Sustainable because it is very difficult to copy a personality

Q6. (a) Define and explain Brand Positioning. Answer:In marketing, positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. Re-positioning involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market. De-positioning involves attempting to change the identity of competing products, relative to the identity of your own product, in the collective minds of the target market. The original work on Positioning was consumer marketing oriented, and was not as much focused on the question relative to competitive products as much as it was focused on cutting through the ambient "noise" and establishing a moment of real contact with the intended recipient. In the classic example of Avis claiming "No.2, We Try Harder", the point was to say something so shocking (it was by the standards of the day) that it cleared space in your brain and made you forget all about who was #1, and not to make some philosophical point about being "hungry" for business.

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The growth of high-tech marketing may have had much to do with the shift in definition towards competitive positioning.

Definitions
Although there are different definitions of Positioning, probably the most common is: identifying a market niche for a brand, product or service utilizing traditional marketing placement strategies (i.e. price, promotion, distribution, packaging, and competition). Positioning is a concept in marketing which was first popularized by Al Ries and Jack Trout in their bestseller book "Positioning - The Battle for Your Mind." This differs slightly from the context in which the term was first published in 1969 by Jack Trout in the paper "Positioning" is a game people play in todays me-too market place" in the publication Industrial Marketing, in which the case is made that the typical consumer is overwhelmed with unwanted advertising, and has a natural tendency to discard all information that does not immediately find a comfortable (and empty) slot in the consumers mind. It was then expanded into their ground-breaking first book, "Positioning: The Battle for Your Mind," in which they define Positioning as "an organized system for finding a window in the mind. It is based on the concept that communication can only take place at the right time and under the right circumstances". What most will agree on is that Positioning is something (perception) that happens in the minds of the target market. It is the aggregate perception the market has of a particular company, product or service in relation to their perceptions of the competitors in the same category. It will happen whether or not a company's management is proactive, reactive or passive about the on-going process of evolving a position. But a company can positively influence the perceptions through enlightened strategic actions.

Product positioning process

Generally, the product positioning process involves:
1. Defining the market in which the product or brand will compete (who the relevant buyers are) 2. Identifying the attributes (also called dimensions) that define the product 'space' 3. Collecting information from a sample of customers about their perceptions of each product on the relevant attributes 4. Determine each product's share of mind 5. Determine each product's current location in the product space 6. Determine the target market's preferred combination of attributes (referred to as an ideal vector) 7. Examine the fit between: o The position of your product o The position of the ideal vector 8. Position.

(Faheem,2010) The process is similar for positioning your company's services. Services, however, don't have the physical attributes of products - that is, we can't feel them or touch them or show nice product pictures. So you need to ask first your customers and then yourself, what value do clients get from my services? How are they better off from doing business with me? Also ask: is there a characteristic that makes my services different? Write out the value customers derive and the attributes your services offer to create the first draft of your positioning. Test it on people who don't really know what you do or what you sell, watch their facial
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expressions and listen for their response. When they want to know more because you've piqued their interest and started a conversation, you'll know you're on the right track.

Positioning concepts
More generally, there are three types of positioning concepts:
1.
o o o

2.
o o o o

3.
o o

Functional positions Solve problems Provide benefits to customers Get favorable perception by investors (stock profile) and lenders Symbolic positions Self-image enhancement Ego identification Belongingness and social meaningfulness Affective fulfillment Experiential positions Provide sensory stimulation Provide cognitive stimulation

Measuring the positioning

Positioning is facilitated by a graphical technique called perceptual mapping, various survey techniques, and statistical techniques like multi dimensional scaling, factor analysis, conjoint analysis, and logit analysis. (Erico, 2010)

Repositioning a company
In volatile markets, it can be necessary - even urgent - to reposition an entire company, rather than just a product line or brand. Take, for example, when Goldman Sachs and Morgan Stanley suddenly shifted from investment to commercial banks. The expectations of investors, employees, clients and regulators all need to shift, and each company will need to influence how these perceptions change. Doing so involves repositioning the entire firm. This is especially true of small and medium-sized firms, many of which often lack strong brands for individual product lines. In a prolonged recession, business approaches that were effective during healthy economies often become ineffective and it becomes necessary to change a firm's positioning. Upscale restaurants, for example, which previously flourished on expense account dinners and corporate events, may for the first time need to stress value as a sale tool. Repositioning a company involves more than a marketing challenge. It involves making hard decisions about how a market is shifting and how a firm's competitors will react. Often these decisions must be made without the benefit of sufficient information, simply because the definition of "volatility" is that change becomes difficult or impossible to predict.

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Q6. (b) Explain the Brand Strategy and describe in brief the Brand- Marketing Strategy. Answer:What is a Branding The American Marketing Association (AMA) defines a brand as 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 other sellers. Therefore it makes sense to understand that branding is not about getting your target market to choose you over the competition, but it is about getting your prospects to see you as the only one that provides a solution to their problem.
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The objectives that a good brand will achieve include:

Delivers the message clearly Confirms your credibility Connects your target prospects emotionally Motivates the buyer Concretes User Loyalty

To succeed in branding you must understand the needs and wants of your customers and prospects. You do this by integrating your brand strategies through your company at every point of public contact. Your brand resides within the hearts and minds of customers, clients, and prospects. It is the sum total of their experiences and perceptions, some of which you can influence, and some that you cannot. A strong brand is invaluable as the battle for customers intensifies day by day. It's important to spend time investing in researching, defining, and building your brand. After all your brand is the source of a promise to your consumer. It's a foundational piece in your marketing communication and one you do not want to be without.

Developing Your Brand Strategy Developing a brand strategy can be one of the most difficult steps in the marketing plan process. It's often the element that causes most businesses the biggest challenge, but it's a vital step in creating the company identity. Your brand identity will be repeatedly communicated, in multiple ways with frequency and consistency throughout the life of your business. To begin the development of your brands strategy you must have an understanding of these four marketing components:

Primary Target Customer and/or Client Competition Product and Service Mix Unique Selling Proposition

By identifying these components of your marketing plan you have created the basis for crafting your brand strategy. An effective branding process will create a unique identity that differentiates you from the competition. That is why it's often deemed as the heart of a competitive strategy. Developing a brand strategy can be one of the most difficult steps in the marketing plan process. It's often the element that causes most businesses the biggest challenge, but it's a vital step in creating the company identity. Your brand identity will be repeatedly communicated, in multiple ways with frequency and consistency throughout the life of your business.
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Determining Your Brand's Objectives Critical to effective brand management is the clear definition of the brand's audience and the objectives that the brand needs to achieve. What are the objectives that you hope to achieve with your brand? Your brand should be comprised of the company personality, image, core competencies and characteristics. The impressions that you make as well as the words people will use to describe your company to others, are the basic framework of your brand. With a strong brand you build credibility, have more influence on your market, and motivate customers and clients to purchase from you.If done correctly your company will be looked at as a leader not a follower. To determine your brand objectives ask yourself the following question:

What is it that you want your brand to do for your company? What do you want others to know and say about your products or services?

Sample objectives may include:

Being recognized by receiving a specific award Picking up a certain number of choice projects Gaining a specific number of new clients in the next year Positioning your company as an industry leader in the next five months

You will find that by defining your objectives with specifictimelinesit is easier to develop a plan of action to achieve those objectives. By defining your objectives you are able to map out a plan on how to achieve those objectives. Say for example your objective is to position your company as an industry leader. How can you go about doing this? You could:

Have members of your team speak at Trade Shows Schedule lectures at professional group gatherings within your industry Write and publish articles in newspapers, magazines, or online media

Once you've determined your objectives the next step is to build and develop your brand strategy by listing out how, when, and what you are going to do to accomplish and meet your those brand objectives. Use the questions above to determine your brand objectives. List each objective and map out how you plan to accomplish and succeed in meeting those objectives. Don't stop there! Once you've finished take time to list out what you can do in the this month or this quarter to meet that objective. Be specific and schedule those action items in your business calendar. Focusing on Your Target Audience

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The power of your brand relies on the ability to focus. That is why defining your target market will help to strengthen your brand's effectiveness. Learn how to define your target market in this week's lesson of the Developing Your Brand's Strategy course. Discovering and Crushing Your Brand Barriers When creating your brand strategy for a product or service it is important to perform a careful analysis to determine principal barriers that you may come in contact with. These barriers are also known as market conditions that can keep your product or service from achieving success. In this lesson you will learn where you can do the research to find your specific brand barriers. Brand Packaging and Identity Branding is your identity in the marketplace, is yours saying what it should? Your company image is all about the appearance of your packaging. What is your company image saying to the marketplace?

Brand Marketing Strategy

Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. A marketing strategy should be centered around the key concept that customer satisfaction is the main goal. Marketing strategy is a method of focusing an organization's energies and resources on a course of action which can lead to increased sales and dominance of a targeted market niche. A marketing strategy combines product development, promotion, distribution, pricing, relationship management and other elements; identifies the firm's marketing goals, and explains how they will be achieved, ideally within a stated timeframe. Marketing strategy determines the choice of target market segments, positioning, marketing mix, and allocation of resources. It is most effective when it is an integral component of overall firm strategy, defining how the organization will successfully engage customers, prospects, and competitors in the market arena. Corporate strategies, corporate missions, and corporate goals. As the customer constitutes the source of a company's revenue, marketing strategy is closely linked with sales. A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement.

Basic theory: 1. Target Audience 2. Proposition/Key Element 3. Implementation

Tactics and actions

A marketing strategy can serve as the foundation of a marketing plan. A marketing plan contains a set of specific actions required to successfully implement a marketing strategy. For example: "Use a low cost product to attract consumers. Once our organization, via our low cost product, has established a relationship with consumers, our organization will sell additional, higher-margin products and services that enhance the consumer's interaction with the low-cost product or service."

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A strategy consists of a well thought out series of tactics to make a marketing plan more effective. Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill market needs and reach marketing objectives[5]. Plans and objectives are generally tested for measurable results. A marketing strategy often integrates an organization's marketing goals, policies, and action sequences (tactics) into a cohesive whole. Similarly, the various strands of the strategy , which might include advertising, channel marketing, internet marketing, promotion and public relations can be orchestrated. Many companies cascade a strategy throughout an organization, by creating strategy tactics that then become strategy goals for the next level or group. Each one group is expected to take that strategy goal and develop a set of tactics to achieve that goal. This is why it is important to make each strategy goal measurable. Marketing strategies are dynamic and interactive. They are partially planned and partially unplanned. See strategy dynamics. Types of strategies

Marketing strategies may differ depending on the unique situation of the individual business. However there are a number of ways of categorizing some generic strategies. A brief description of the most common categorizing schemes is presented below: Strategies based on market dominance - In this scheme, firms are classified based on their market share or dominance of an industry. Typically there are four types of market dominance strategies: o Leader o Challenger o Follower o Nicher Porter generic strategies - strategy on the dimensions of strategic scope and strategic strength. Strategic scope refers to the market penetration while strategic strength refers to the firms sustainable competitive advantage. The generic strategy framework (porter 1984) comprises two alternatives each with two alternative scopes. These are Differentiation and low-cost leadership each with a dimension of Focusbroad or narrow. o Product differentiation (broad) o Cost leadership (broad) o Market segmentation (narrow) Innovation strategies - This deals with the firm's rate of the new product development and business model innovation. It asks whether the company is on the cutting edge of technology and business innovation. There are three types: o Pioneers o Close followers o Late followers Growth strategies - In this scheme we ask the question, How should the firm grow?. There are a number of different ways of answering that question, but the most common gives four answers: o Horizontal integration o Vertical integration o Diversification o Intensification

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A more detailed scheme uses the categories: Prospector Analyzer Defender Reactor Marketing warfare strategies - This scheme draws parallels between marketing strategies and military strategies.

Q9. Short Notes (a)

Intellectual Property Rights (IPRs)

Intellectual property (IP) is a term referring to a number of distinct types of creations of the mind for which property rights are recognised--and the corresponding fields of law. Under intellectual property law, owners are granted certain exclusive rights to a variety of intangible assets, such as musical, literary, and artistic works; discoveries and inventions; and words, phrases, symbols, and designs. Common types of intellectual property include copyrights, trademarks, patents, industrial design rights and trade secrets in some jurisdictions. Although many of the legal principles governing intellectual property have evolved over centuries, it was not until the 19th century that the term intellectual property began to be used, and not until the late 20th
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century that it became commonplace in the United States. The British Statute of Anne 1710 and the Statute of Monopolies 1623 are now seen as the origin of copyright and patent law respectively. Rights and justice Ayn Rand supported copyrights and patents, noting in Capitalism: The Unknown Ideal that they are the legal implementation of the base of all property rights: a man's right to the product of his mind. An idea as such cannot be protected until it has been given a material form. An invention has to be embodied in a physical model before it can be patented; a story has to be written or printed. But what the patent or copyright protects is not the physical object as such, but the idea which it embodies. Although it is important to note, that a discovery cannot be patented, only an invention. She argued that the term should be limited. If it were held in perpetuity, it would lead to the opposite of the very principle on which it is based: it would lead, not to the earned reward of achievement, but to the unearned support of parasitism.

(b) Packaging
Packaging is the science, art and technology of enclosing or protecting products for distribution, storage, sale, and use. Packaging also refers to the process of design, evaluation, and production of packages. Packaging can be described as a coordinated system of preparing goods for transport, warehousing, logistics, sale, and end use. Packaging contains, protects, preserves, transports, informs, and sells. In many countries it is fully integrated into government, business, institutional, industrial, and personal use. Packaging Types Packaging may be looked at as being of several different types. For example a transport package or distribution package can be the shipping container used to ship, store, and handle the product or inner packages. Some identify a consumer package as one which is directed toward a consumer or household. Packaging may be described in relation to the type of product being packaged: medical device packaging, bulk chemical packaging, over-the-counter drug packaging, retail food packaging, military materiel packaging, pharmaceutical packaging, etc.

Aluminium can with a pull tab

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It is sometimes convenient to categorize packages by layer or function: "primary", "secondary", etc. Primary packaging is the material that first envelops the product and holds it. This usually is the smallest unit of distribution or use and is the package which is in direct contact with the contents. Secondary packaging is outside the primary packaging, perhaps used to group primary packages together. Tertiary packaging is used for bulk handling, warehouse storage and transport shipping. The most common form is a palletized unit load that packs tightly into containers.

These broad categories can be somewhat arbitrary. For example, depending on the use, a shrink wrap can be primary packaging when applied directly to the product, secondary packaging when combining smaller packages, and tertiary packaging on some distribution packs. Packaging and package labeling have several objectives Physical protection - The objects enclosed in the package may require protection from, among other things, shock, vibration, compression, temperature, etc. Barrier protection - A barrier from oxygen, water vapor, dust, etc., is often required. Permeation is a critical factor in design. Some packages contain desiccants or Oxygen absorbers to help extend shelf life. Modified atmospheres or controlled atmospheres are also maintained in some food packages. Keeping the contents clean, fresh, sterile and safe for the intended shelf life is a primary function. Containment or agglomeration - Small objects are typically grouped together in one package for reasons of efficiency. For example, a single box of 1000 pencils requires less physical handling than 1000 single pencils. Liquids, powders, and granular materials need containment. Information transmission - Packages and labels communicate how to use, transport, recycle, or dispose of the package or product. With pharmaceuticals, food, medical, and chemical products, some types of information are required by governments. Some packages and labels also are used for track and trace purposes. Marketing - The packaging and labels can be used by marketers to encourage potential buyers to purchase the product. Package graphic design and physical design have been important and constantly evolving phenomenon for several decades. Marketing communications and graphic design are applied to the surface of the package and (in many cases) the point of sale display. Security - Packaging can play an important role in reducing the security risks of shipment. Packages can be made with improved tamper resistance to deter tampering and also can have tamper-evident features to help indicate tampering. Packages can be engineered to help reduce the risks of package pilferage: Some package constructions are more resistant to pilferage and some have pilfer indicating seals. Packages may include authentication seals and use security printing to help indicate that the package and contents are not counterfeit. Packages also can include anti-theft devices, such as dye-packs, RFID tags, or electronic article surveillance tags that can be activated or detected by devices at exit points and require specialized tools to deactivate. Using packaging in this way is a means of loss prevention. Convenience - Packages can have features that add convenience in distribution, handling, stacking, display, sale, opening, reclosing, use, dispensing, and reuse. Portion control - Single serving or single dosage packaging has a precise amount of contents to control usage. Bulk commodities (such as salt) can be divided into packages that are a more suitable size for individual households. It is also aids the control of inventory: selling sealed one-liter-bottles of milk, rather than having people bring their own bottles to fill themselves.

(e) Common Branding Problems

1) Branding decisions are ego- versus analysis-driven.
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I have seen this happen many times. One company acquires another one and forces its name on the acquired companys products when the acquired companys brands have much higher awareness and positive associations than the acquiring companys brand(s). Or, the CEO doesnt care what the research says or what his experienced chief marketing officer says. He wants to do it this way. Or, a new marketing VP is hired and changes something just to put his own mark on it regardless of whether the existing logo or tagline or marketing campaign was working well or not. Or, he does not want to back down on his decision regardless of what the new research study says because he would look like a fool if he did. Better to bury the research study than to look bad. Or I have even witnessed top managers sabotaging each others marketing decisions and approaches just to gain the upper hand. Its all about maintaining control and the perception of invulnerability.

2) Since branding has become widely known and embraced, I increasingly encounter people who can talk the talk, follow the steps in the brand management process and generally take a number of actions on behalf of the brand. What I often find missing though is a true deep-down understanding of what makes the customer tick and a passion for exceeding customer expectations in unique and compelling ways. That is, I see allot of people going through the motions without the depth of insight and the passion for excellence and differentiation. People often think that a new logo, tagline and brand style guide will do the trick. Usually, these are not based on deep customer insight and a carefully crafted compelling point of difference. And just as often, business managers are not willing or able to make the changes necessary to actually interact with the customer differently based upon the new brand promise.

3) The brand is gradually undermined by quarter-over-quarter revenue and profit pressures: Constant market pressures to increase revenues and profits cause a myriad of problems. One of the biggest problems is putting pressure on the brand to extend into more and more market segments to broaden its appeal and to provide for more revenue growth. This eventually comes at the expense of the meaning of the brand itself. Witness Volvo. It had a very clear point of differencefamily safety, until it created the 850 GLT, which was intended to extend the brand into younger and older childless markets. Volvo promoted this car as a fun car to drivenot necessarily a safe car for the family. Its styling departed from the boxy, armor/safety-implied styling of typical Volvos. The cars success has been underwhelming, precisely because it is incongruent with the brands image. The degree to which the 850 GLT is successful is the degree to which it will blur Volvos primary point of difference in the marketplace. 4) No person or department has responsibility for the brand. It lacks internal mindshare, supervision, and management. 5) Well thought-out marketing decisions are second guessed by non-marketers who think marketing is a matter of opinion rather than an art and a science in which experience matters 6) Licensing the brand name out to whoever will pay for it Analysis: While this will generate additional revenues and profits in the short term, it is an unwise practice in the long term. You should use brand licensing to:
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Extend the brand into new categories Expand the meaning of the brand Reinforce key brand associations Build your brand as a badge Bring your brand to life in new ways

7) Decisions that adversely affect the brand are made outside of the brand management context 8) Limiting the brand to one channel of distribution or aligning the brand too closely with a declining channel of trade 9) Spending too much money on trade deals and sales promotion at the expense of brand building 10) Choosing generic (non-proprietary) brand names Analysis: While it might be tempting to choose a name that describes your product or service, its a mistake. The name can soon become confused with that of every other brand that takes a similar approach or worse yet, it can link the brand to an outdated product or technology.

(f) Global Branding and its advantages

Global Brand
A global brand is one which is perceived to reflect the same set of values around the world. Global brands transcend their origins and creates strong, enduring relationships with consumers across countries and cultures. Global brands are brands sold to international markets. Examples of global brands include CocaCola, McDonald's, Marlboro, Levi's etc.. These brands are used to sell the same product across multiple markets, and could be considered successful to the extent that the associated products are easily recognizable by the diverse set of consumers

Benefits of Global Branding

In addition to taking advantage of the outstanding growth opportunities, the following drives the increasing interest in taking brands global:

Economies of scale (production and distribution) Lower marketing costs Laying the groundwork for future extensions worldwide Maintaining consistent brand imagery Quicker identification and integration of innovations (discovered worldwide) Preempting international competitors from entering domestic markets or locking you out of other geographic markets Increasing international media reach (especially with the explosion of the Internet) is an enabler Increases in international business and tourism are also enablers
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The following elements may differ from country to country:

Corporate slogan Products and services Product names Product features Positionings Marketing mixes (including pricing, distribution, media and advertising execution)

These differences will depend upon:

Language differences Fifferent styles of communication Other cultural differences Differences in category and brand development Different consumption patterns Different competitive sets and marketplace conditions Different legal and regulatory environments Different national approaches to marketing (media, pricing, distribution, etc.)

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