A brand is a name, term, sign, symbol, or design, or a combination of them, intended to identity the goods or services of one seller

or group of sellers and to differentiate them from those of competitors.

- American Marketing Association

C ONSUMERS

THEY CHOOSE BRANDS !

BUY PRODUCTS ;

A brand can convey up to 5 levels of meanings:

Attributes
Benefits

Values
Culture Personality Users

 Brand

signals the source of the product. Protects customer and producer from competitors who have identical products Consumers form relationships with brands, not products or companies Brand makes an emotional and trustbased connection with consumer and distinguishes it from competition

 Brand

loyalty is the foundation of business purchase opportunity presents itself an excuse to change brands and shift loyalties
Father buys cigarettes every day Mother buys diapers every week Family buys groceries every month

Every

Branding

determines status quo vs. shift

 Proliferation

of competitors. Pressure to compete on price. Fragmenting markets and media. Complex brand strategies and relationships. Bias towards changing strategies. Bias against innovation. Pressure to invest elsewhere.

 Brand

Equity is 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 Brand Equity is a set of liabilities linked to a brands name and symbol that subtracts from the value provided by a product or service to a firm and/or that firms customers

 Brand equity is a set of assets Management of brand equity involves Each

investment to create and enhance these assets

brand equity asset creates value in a variety of very different ways

It is imperative to be sensitive to the ways in which strong brands create value

Brand

equity creates value for customer and firm

Brand equity assets can help customers interpret, process and store huge quantities of info about products / brands It can affect customers confidence in purchase decision

Due to past-use experience or familiarity

Both perceived quality and brand associations can enhance customers satisfaction with use experience
feel different

with brand

Knowing brand is Arrow can make user

Brand equity can enhance programs to attract new customers or recapture old ones Perceived quality, associations and known name provide reasons to buy & affect use satisfaction Usually allows higher margins by permitting both premium pricing and reduced promotions Can provide leverage in the distribution channel Brand equity assets provide a competitive advantage that present a barrier to competitors

Brand Equity Categories

Brand Equity can be grouped into five categories:

Brand Loyalty Name Awareness

Perceived Quality
Brand Associations Other Brand Assets

Attachment: High measure of a customers attachment towards a brand. Loyalty: A highly brand loyal customer is unlikely to switch brands. Bargaining Power: Allowing the company to bargain with channel members. Highly loyal customers are difficult to be wooed and act as deterrent to competitive action.

Familiarity: Customers prefer to buy a brand familiar to them. Recognition: The ability of a potential buyer to recognize or recall that a brand belongs to a certain product category. Awareness: A high level of awareness signals a well established brand, Enhances customers confidence in the brand.

Consumer perception: Perceived quality is the consumers perception of the overall quality or superiority of a product. Quality: Quality as interpreted by the customers rather than what the brand actually delivers. Allows the company to adopt premium pricing.

Memory: Brand
association is anything linked in memory, to a brand. A set of associations result in formation of the brand image. Provide a basis for extension into new product categories.

Patents, Trademarks and Channel relationships . Trademark: A trademark refers to name, symbol, logo, package design etc., which is registered with a company. Patents: Patents can provide tangible basis of differentiation

Equity

Marketers build brand equity by creating the right brand knowledge structures with the right customers. Philip Kotler There are 3 main elements in building Brand Equity:

Choice of Brand Elements Product/Service & supporting marketing activities Other associations indirectly transferred to the brand by linking it to some other entity.

Memorable Meaningful Likeability Transferable Adaptable Protectable

Personalization Integration Internalization

Creation of new brand associations

Effects on existing brand knowledge
Awareness and knowledge of the entity
Meaningfulness of the knowledge of the

entity Transferability of the knowledge of the entity

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Brand associations may themselves be linked to other entities, creating secondary associations:
Company (through branding strategies) Country of origin (through identification of product

origin)

Channels of distribution (through channels strategy) Other brands (through co-branding) Celebrity spokesperson (through endorsements)

Events (through sponsorship)

Other third-party sources (through awards and

reviews)

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Building Brand Equity using Integrated Marketing Communications

Building a strong brand involves a series of steps as part of a branding ladder A strong brand is also characterized by a logically constructed set of brand building blocks.
Identifies areas of strength and weakness
Provides guidance to marketing activities

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Brand Name Slogans Colors Symbols Logos Taglines Cartoons & Animations Objects

The value of a brand and thus its equity is ultimately derived in the marketplace from the words and actions of consumers. Consumers decide with their purchases, based on whatever factors they deem important, which brands have more equity than other brands.

Market research approach used when there is little to choose functionally between the products

Projective techniques
Projective techniques are diagnostic tools to

uncover the true opinions and feelings of consumers when they are unwilling or otherwise unable to express themselves on these matters. Consumers are presented with an incomplete stimulus and asked to complete it or given an ambiguous stimulus that may not make sense in and of itself and are asked to make sense of it.

Completion and interpretation tasks

Classic projective techniques use incomplete or

Comparison tasks

ambiguous stimuli to elicit consumer thoughts and feelings.

Technique that may be useful when consumers

are not able to directly express their perceptions of brands Consumers are asked to convey their impressions by comparing brands to people, countries, animals, activities, fabrics, occupations, cars, magazines, vegetables, nationalities, or even other brands.

 Ethnographic and observational approaches

Fresh data can be gathered by directly observing relevant actors and settings Consumers can be unobtrusively observed as they shop or as they consume products to capture every nuance of their behaviour. Marketers such as Procter & Gamble seek consumers permission to spend time with them in their homes to see how they actually use and experience products.

Although qualitative measures are useful to identify and characterize the range of possible associations to a brand, a more quantitative portrait of the brand often is also desirable to permit more confident and defensible strategic and tactical recommendations.
Quantitative research typically employs various types of scale questions so that numerical representations and summaries can be made.

Quantitative research techniques Awareness

Brand awareness is related to the strength of the

brand in memory, as reflected by consumers' ability to identify various brand elements (i.e., the brand name, logo, symbol, character, packaging, and slogan) under different conditions. Brand awareness relates to the likelihood that a brand will come to mind and the ease with which it does so given different type of cues.

Recognition
Recognition processes require that consumers be

able to discriminate a stimulus -- a word, object, image, etc. -- as something they have previously seen. Simple yes or no tasks

Recall
To determine whether the brand elements will

actually be recalled under various circumstances, measures of brand recall are necessary. Brand recall relates to consumers' ability to identify the brand under a variety of circumstances. With brand recall, consumers must retrieve the actual brand element from memory when given some related probe or cue. More demanding than recognition technique Recall of Porsche 944 German sports car

Image
Brand awareness is not just sufficient For most customers in most situations, other

considerations, such as the meaning or image of the brand as reflected by the associations that consumers hold toward the brand, also come into play.

Image of the brand is influenced by two broad levels of association

The purpose of measuring higher-order brand associations is to find out how consumers combine all of the specific considerations about the brand in their minds to form different responses.
Brand judgments(personal opinions) Brand quality Brand credibility Brand consideration Brand superiority Brand feelings (emotional responses and reactions) Warmth Fun Excitement Security Social approval Self-respect

Managing

Brand Equity

Brand equity is:

A set of brand assets and liabilities linked to a brand.

Its main component being: NAME AWARENESS PERCEIVED QUALITY BRAND ASSOCIATIONS BRAND LOYALTY

BRAND AWARENESS
Is when people recognize your brand as yours. Brand awareness is the

ability of potential buyer to recognize or recall that a brand is a member of a certain product category, IT CONSISTS OF BOTH

Brand Recognition, which is the ability of consumers to confirm that they have previously been exposed to your brand, Brand Recall, which reflects the ability of consumers to name your brand

when given the product category, category need, or some other similar cue.

Mercedes and BMW

They have established their brand names as synonymous with high-quality, luxurious automobiles. Years of marketing, image building, brand nurturing and quality manufacturing has lead consumers to assume a high level of quality in everything they produce. Consumers are

likely to perceive Mercedes and BMW as providing superior

quality to other brand name automobiles, even when such a perception is unwarranted.

BRAND ASSOCIATIONS:

Brand association with certain emotions, feelings, and qualities and also with some tangible benefits like freebies. Though often difficult to quantify, associations with which the brand is consciously linked - say

with a sports event, a charity, a celebrity, a joint

venture - can enhance a brand's perceived image

Thus, McDonald's could be linked to a character such as Ronald McDonald, a consumer segment such as kids, a feeling such as having fun, a product characteristic such as service, or a symbol such as the Golden Arches.

BRAND LOYALTY:
Consumer returns back to your product even after having a choice of many other products in market. This asset combines characteristics associated with :

Image (Brand Loyalty, Name Awareness)

and
Impact (Customer Life Value and Price

Premium).

Managing Brand Equity when it is tied up to one person.

Apple without Steve Jobs

Steve Jobs dominates the tech world and culture. When he stands before industry conferences, holds up a gadget and says, this is cool, whatever it is becomes cool. The Apple brand is known for design, but it is also known for the guy who invented the PC as we know it in his garage.

Institutionalize the cult of personality. Coco Chanel has become an icon. Though she passed away decades ago, her spirit lives on. Calving Klein is transforming his company, stepping back and letting others learn to keep his unique style going.

Find a successor. As apple did ,finding a successor for Steve Jobs in the face of Tim Cook . Diversify. Add new attributes to the base begun by the iconic person.