Brand and Brand Management

CHAPTER 1:
BRANDS AND BRAND

MANAGEMENT
Copyright 2013 Pearson Education
BRANDS & BRAND

MANAGEMENT
What is a brand?
Brand emerges from old norse (Scandinavian

language) word brandr that means to burn
A brand is a storehouse of trust. That matters more
and more as choices multiply. People want to simplify
their lives.
In technocrat and colorless times, brands bring
warmth, familiarity and trust.
What is a brand?
For the American Marketing Association (AMA), a brand

is a name, term, sign, symbol, or design, or a
combination of them, intended to identify the goods and
services of one seller or group of sellers and to
differentiate them from those of competition.
These different components of a brand that identify and
differentiate it are brand elements.
What is a brand?
Many practicing managers refer to a brand as more than

that as something that has actually created a certain
amount of awareness, reputation, prominence, and so on
in the marketplace.
We can make a distinction between the AMA definition of
a brand with a small b and the industrys concept of a
Brand with a capital b.
1.5
What is a Brand?
Brand Elements
Brands versus Products
Brand Elements
Different components that identifies and

differentiates a brand
Name,
logo, symbol, package design, or other

characteristic
Can be based on people, places, things, and

abstract images
Brand versus Product

Brand
Product
Has dimensions that differentiate it in

some way from other products designed
to satisfy the same need
Anything available in the market for use

or consumption, that may satisfy a need
or want
Can be differentiated on the basis of:

Packaging
Services provided
Customer advice
Financing
Delivery arrangements
Warehousing
Other things valued by the customers
Can be categorized into five levels

namely:
Core benefit level
Generic product level
Expected product level
Augmented product level
Potential product level
Five Levels of Meaning for a

Product
For VCR
The core benefit

(Convenient environment)
The generic product level
(Record and play back television
program)
The expected product level
( Channels)
Augmented product
(HiFi sound)
The potential product level
(Voice controlled programming)
A brand is therefore more than a product, as it

can have dimensions that differentiate it in
some way from other products designed to
satisfy the same need.
1.10
According to Kavin Lane Keller A brand is therefore

a product, but one that adds other dimensions
that differentiate it in someway from other
products designed to satisfy the same need.
Understanding consumer motivations and desires

and creating relevant and appealing images
surrounding the products makes a brand leader.
Brand building tools:
R&D
Product
Service
Promotion
Retail environment
Advertising
Merchandising
Packaging
CRM
Price
1.12
Some brands create competitive advantages

with product performance; other brands create
competitive advantages through non-productrelated means.
To Sum Up ....
Through branding, organizations:

Create
perceived differences amongst products

Develop loyal customer franchise
Create value that can translate to financial profits
Why Do Brands Matter?
Consumers
Firms
Consumers
Encompass all types of customers, including

individuals as well as organizations
Functions provided by brands to consumers
Identify
the source or maker of the product

Simplify product decisions
Lower the search costs for products internally and
externally
Helps set reasonable expectations about what
consumers may not know about the brand
Consumers
Signal
On
product characteristics and attributes
the basis of attributes products can be classified
as:
Search goods
Experience goods
Credence goods
Reduce
These
risks in product decision

risk can be categorised as
Functional ,physical, financial, social psychological, and

time
Firms
Brands provide valuable functions

Simplify
product handling and tracing

Help organizing inventory and accounting records
Offer the firm legal protection for unique features
or aspects of the product
Provide predictability and security of demand for
the firm and creates barriers of entry for
competitors
Provide a powerful means to secure competitive
advantage
Figure 1.3 - Roles that Brands

Play
Can Anything Be Branded
Physical Goods
Services
Physical Goods
Business-to-Business
Products
High-tech Products
B2B products
Example of B2B brand - Caterpillar
Guidelines for marketers of B2B brands
Ensure that entire organization supports branding and

brand management.
Adopt a corporate branding strategy if possible and
create a well-defined brand hierarchy.
Frame value perceptions.
Link relevant non-product-related brand associations.
Find relevant emotional associations for the brand.
Segment customers carefully both within and across
companies.
High-tech Products
Struggle with branding due to lack of branding
strategy.
Have realised that financial success is no
longer driven by product innovation alone.
Marketing skills play an important role in the
adoption and success of high-tech products.
Guidelines for high-tech branding:
Understand your brand hierarchy and manage it

appropriately over time.
High-tech Products
Know who your customer is and build an
appropriate brand strategy.
Realize that building brand equity and selling
products are two different exercises.
Brands are owned by customers, not engineers.
Brand building on a small budget necessitates
leveraging every possible positive association.
Technology categories are created by customers
and external forces, not by companies
themselves.
High-tech Products
The rapidly changing environment demands that
you stay in tune with your internal and external
environment.
Invest the time to understand the technology and
value proposition and do not be afraid to ask
questions.
Services
Role of Branding with
Services
Professional Services
Role of branding with services
Challenges in marketing services:

Less tangible than products and vary in quality.
Depend on the particular person or people
providing them.
Branding addresses problems related to

intangibility and variability.
Brand symbols help make abstract nature of
the services more concrete.
Provides competitive edge to the services.
Professional services
Offer specialized expertise and support to other
businesses and organizations.
Combination of B2B and traditional consumer
services branding.
Challenges:
Greater variability
Harder to standardize
Threat from greater equity of employees
Can Anything Be Branded
Retailers and Distributors

Online Products and Services
People and Organizations
Role of Branding
Sports , Arts, and Entertainment

Geographic Locations
Ideas and Causes
To Sum up....
Branding is universal and pervasive in different

product categories
Applicable to both tangible and intangible
offerings of an organization
Technological developments have impacted
the way firms market their offerings
Organizations reap financial benefits from
positive brand images
Strong Brands
Brands that have been market leaders in their

categories for decades
Any brand is vulnerable and susceptible to
poor brand management
Factors Responsible for Branding

Challenges
Savvy customers
Economic downturns
Brand proliferation
Media transformation
Factors Responsible for Branding

Challenges
Increased Competition
Increased costs
Greater accountability
Figure 1.9- Challenges to Brand

Builders
Brand Equity
Principles of branding and brand equity
Differences in outcomes arise from the added value

endowed to a product
The added value can be created for a brand in many
different ways
Brand equity provides a common denominator for
interpreting marketing strategies and assessing the
value of a brand
There are many different ways in which the value of a
brand can be exploited to benefit the firm
Strategic Brand Management

Process
Identifying and Developing Brand Plans
Designing and Implementing Brand
Marketing Programs
Measuring and Interpreting Brand
Performance
Growing and Sustaining Brand Equity
Identifying and Developing

Brand Plans
Brand Positioning Model
Describes how to guide integrated marketing to maximize
competitive advantages.
Brand Resonance Model

Describes how to create intense, activity loyalty relationships
with customers.
Brand Value Chain

Means to trace the value creation process for brands, to
better understand the financial impact of brand marketing
expenditures and investments.
Designing and implementing Brand

Marketing Program
Choosing Brand Elements
Integrating the Brand into Marketing
Activities and the Supporting Marketing
Program
Leveraging Secondary Associations

Performance
To manage brands profitably, managers must

d implement a brand equity measurement
system
Brand equity measurement system involves:

Brand
audits
Comprehensive
examination of a brand to, assess its

health, uncover its sources of equity, and suggest
ways to improve and leverage that equity.

Performance
Brand
tracking studies
Collect
information from consumers on a routine basis

over time, typically through quantitative measures of
brand performance on a number of key dimensions
marketers can identify in the brand audit or other
means.
Brand equity management system Set
of organizational processes designed to improve

the understanding and use of the brand equity concept
within a firm.

Performance
Three steps that help implement a brand equity

management system are: creating brand equity
charters, assembling brand equity reports, and
defining brand equity responsibilities.
Growing and Sustaining Brand

Equity
Defining Brand Architecture
Managing Brand Equity over Time

Managing Brand Equity over Geographic
Boundaries, Cultures, and Market
Segments
Defining brand architecture

Provides general guidelines about branding
strategy and the brand elements to be applied
across all the different products sold by the
firm.
Two key concepts in defining brand architecture
are:
Brand portfolio: Set of different brands that a

particular firm offers for sale to buyers in a
particular category.
Brand hierarchy: Displays the number and
nature of common and distinctive brand
components across the firms set of brands.
Over time
A long-term perspective of brand management
recognizes that any changes in the supporting
marketing program for a brand may affect the
success of future marketing programs.
Produces proactive strategies designed to
enhance customer-based brand equity and
reactive strategies to revitalize a brand that
encounters problems.
Over geographic boundaries,

cultures, and market segments
In expanding a brand overseas, managers

need to build equity by relying on specific
knowledge about the experience and behaviors
of those market segments.
Figure 1.12 - Strategic Brand

Management Process

Brand and Brand Management

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CHAPTER 1:

BRANDS AND BRAND

Copyright 2013 Pearson Education

BRANDS & BRAND

Copyright 2013 Pearson Education

Brand emerges from old norse (Scandinavian

Copyright 2013 Pearson Education

For the American Marketing Association (AMA), a brand

Copyright 2013 Pearson Education

Many practicing managers refer to a brand as more than

Copyright 2013 Pearson Education

Different components that identifies and

logo, symbol, package design, or other

Can be based on people, places, things, and

Copyright 2013 Pearson Education

Brand versus Product

Has dimensions that differentiate it in

Anything available in the market for use

Can be differentiated on the basis of:

Can be categorized into five levels

Copyright 2013 Pearson Education

Five Levels of Meaning for a

The core benefit

A brand is therefore more than a product, as it

According to Kavin Lane Keller A brand is therefore

Understanding consumer motivations and desires

Copyright 2013 Pearson Education

Brand building tools:

Some brands create competitive advantages

Copyright 2013 Pearson Education

Through branding, organizations:

perceived differences amongst products

Copyright 2013 Pearson Education

Why Do Brands Matter?

Encompass all types of customers, including

the source or maker of the product

Copyright 2013 Pearson Education

product characteristics and attributes

the basis of attributes products can be classified

risks in product decision

Functional ,physical, financial, social psychological, and

Copyright 2013 Pearson Education

Brands provide valuable functions

product handling and tracing

Figure 1.3 - Roles that Brands

Copyright 2013 Pearson Education

Can Anything Be Branded

Copyright 2013 Pearson Education

Copyright 2013 Pearson Education

Example of B2B brand - Caterpillar

Guidelines for marketers of B2B brands

Ensure that entire organization supports branding and

Understand your brand hierarchy and manage it

Copyright 2013 Pearson Education

Copyright 2013 Pearson Education

Copyright 2013 Pearson Education

Role of branding with services

Challenges in marketing services:

Branding addresses problems related to

Copyright 2013 Pearson Education

Copyright 2013 Pearson Education

Can Anything Be Branded

Retailers and Distributors

Copyright 2013 Pearson Education