Branding and Brand Management

What is a Brand?
A brand is a name, term, sign, symbol, or design which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. (AMA)

Brand Definitions
A bundle of intrinsic and extrinsic offerings blending both functional and psychological benefits.
(Gardner and Levy 1955)

A successful brand is an identifiable product, service, person or place, augmented in such a way that the buyer or user perceives relevant unique added values which match their needs most closely. Furthermore, its success results from being able to sustain these added values in the face of competition.
De Chernatony and McDonald (1998)
3

Products are made in the factory, but brands are created in the mind
Walter Landor, branding consultant
4

Product versus Brand

Perceptions & feelings about attributes

 

Launched by Mr Mathlouthi, the French entrepreneur in November 2002 Slogan: "No more drinking stupid, drink with commitment" 10% of the profits go to charities operating in Palestinian territories (UNICEF) and 10% to European NGOs.

Hell is the official drinks partner of the William's Formula One team. It is marketed in 16 countries including Kazakhstan.

Why do brands matter for the companies?



Means of identification to simplify handling Legally protecting unique features Signal of quality level to satisfied customers Source of financial returns Source of competitive advantage

New Branding Challenges

Brands are important as ever due to:  Consumer need for simplification  Consumer need for risk reduction


(time, psychological. social, financial., physical )

Brand management is as difficult as ever:  Savvy consumers  Increased competition  Decreased effectiveness of traditional marketing tools and emergence of new marketing tools  Complex brand and product portfolios
9

What can be branded?

       

Physical good Service Store Person Place Org-on Idea Sub-components

10

Can anything be branded?

Idaho potatoes

California raisins

11

brand versus Brand

Most Valuable Ten Brands in 2009

1. Coca-Cola 2. IBM 3. Microsoft 4. GE 5. Nokia 6. McDonald's 7. Google 8. Toyota 9. Intel 10. Disney 68,734 ($m) 60,211 ($m) 56,647 ($m) 47,777 ($m) 34,864 ($m) 32,275 ($m) 31,980 ($m) 31,330 ($m) 30,636 ($m) 28,447 ($m)

Source: Interbrand Annual Survey (Http://www.interbrand.com.league_chart.html

The Concept of Brand Equity

A set of assets linked to a brands name and symbol that adds to the value provided by a product or service to a firm and/or that firms customers.
(D. Aaker)

Brand equity is the willingness for someone to continue to purchase your brand or not. (Brand Equity Board)

14

Determinants of Customer-Based Brand Equity

Customer is aware of and familiar with the brand Customer holds some strong, favorable, and unique brand associations in memory

15

Benefits of Customer-Based Brand Equity

     

Enjoy greater brand loyalty, usage, and affinity Command larger price premiums Receive greater trade cooperation & support Increase marketing communication effectiveness Yield licensing opportunities Support brand extensions.

16

The Concept of Brand Equity

The brand equity concept stresses the importance of the brand in marketing strategies. Brand equity is defined in terms of the marketing effects uniquely attributable to the brand. Brand equity relates to the fact that different outcomes result in the marketing of a product or service because of its brand name, as compared to if the same product or service did not have that name.
17

Strategic Brand Management

involves the design and implementation of marketing programs and activities to build, measure, and manage brand equity.

18

Strategic Brand Management Process

STEPS
Identify and Establish Brand Positioning and Values

KEY CONCEPTS
Mental maps Competitive frame of reference Points-of-parity and points-of-difference Core brand values Brand mantra (3-5 words expression of the most Important aspects and values (essence, promise) Mixing and matching of brand elements Integrating brand marketing activities Leveraging of secondary associations Brand Value Chain (sources and outcomes) Brand audits Brand tracking Brand equity management system Brand-product matrix Brand portfolios and hierarchies Brand expansion strategies Brand reinforcement and revitalization 19

Plan and Implement Brand Marketing Programs

Measure and Interpret Brand Performance

Grow and Sustain Brand Equity

The Key to Branding

For branding strategies to be successful, consumers must be convinced that there are meaningful differences among brands in the product or service category. Consumer must not think that all brands in the category are the same. PERCEPTION = VALUE

20