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STRATEGIC BRAND MANAGEMENTBUILDING, MEASURING, AND MANAGING

BRAND EQUITY

Chapter 1Brands & Brand Management

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Product VS BrandAproduct is anything that can be offered to the

market for attention , acquisition, use, orconsumption that might satisfy a need or want.Thus, a product can be a physical good, service,

organization, person, place, experience, event,property or ideas.

Abrand is a product but adds other dimensions

that differentiate it in some way from otherproducts designed to satisfy the same need. Abrand is therefore more than a product.

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Five Levels of Meaning for a Product1. The core benefit level is the fundamental need or want that

consumers satisfy by consuming the product or service.

2. The generic product levelis a basic version of the product containingonly those attributes or characteristics absolutely necessary for itsfunctioning but with no distinguishing features. This is basically astripped-down, no-frills version of the product that adequatelyperforms the product function.

3. The expected product level is a set of attributes or characteristicsthat buyers normally expect and agree to when they purchase aproduct.

4. The augmented product level includes additional product attributes,benefits, or related services that distinguish the product fromcompetitors.

5. The potential product level includes all the augmentations andtransformations that a product might ultimately undergo in thefuture.

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What is a Brand?

A brand is a name, term, sign, symbol, or designwhich is intended to identify the goods or services ofone seller or group of sellers and to differentiate

them from those of competitors. (For the AmericanMarketing Association-AMA)

The legal term for brand is trademark. A brand may

identify one item, a family of items, or all items ofthat seller. If used for the firm as a whole, thepreferred term is trade name."

http://en.wikipedia.org/wiki/Trademarkhttp://en.wikipedia.org/wiki/Trademark

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What is a Brand?

A trademark may be designated by the followingsymbols:

(for an unregistered trade mark, that is, amark used to promote or brand goods)

(for an unregistered service mark, that is, amark used to promote or brand services)

(for a registered trademark)

http://en.wikipedia.org/wiki/Trademark_symbolhttp://en.wikipedia.org/wiki/Unregistered_trade_markhttp://en.wikipedia.org/wiki/Service_mark_symbolhttp://en.wikipedia.org/wiki/Service_markhttp://en.wikipedia.org/wiki/Registered_trademark_symbolhttp://en.wikipedia.org/wiki/Registered_trademark_symbolhttp://en.wikipedia.org/wiki/Service_markhttp://en.wikipedia.org/wiki/Service_markhttp://en.wikipedia.org/wiki/Service_markhttp://en.wikipedia.org/wiki/Service_mark_symbolhttp://en.wikipedia.org/wiki/Unregistered_trade_markhttp://en.wikipedia.org/wiki/Unregistered_trade_markhttp://en.wikipedia.org/wiki/Unregistered_trade_markhttp://en.wikipedia.org/wiki/Unregistered_trade_markhttp://en.wikipedia.org/wiki/Unregistered_trade_markhttp://en.wikipedia.org/wiki/Trademark_symbol

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Examples of brands of computer products

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Brand management is the application ofmarketing techniques to a specific

product, product line, or brand.

The discipline of brand management was

started at Procter & Gamble as a result ofa famous memo by Neil H. McElroy.

Brand Management

http://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Product_%28business%29http://en.wikipedia.org/wiki/Product_linehttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Procter_%26_Gamblehttp://en.wikipedia.org/wiki/Neil_H._McElroyhttp://en.wikipedia.org/wiki/Neil_H._McElroyhttp://en.wikipedia.org/wiki/Neil_H._McElroyhttp://en.wikipedia.org/wiki/Neil_H._McElroyhttp://en.wikipedia.org/wiki/Neil_H._McElroyhttp://en.wikipedia.org/wiki/Neil_H._McElroyhttp://en.wikipedia.org/wiki/Neil_H._McElroyhttp://en.wikipedia.org/wiki/Procter_%26_Gamblehttp://en.wikipedia.org/wiki/Procter_%26_Gamblehttp://en.wikipedia.org/wiki/Procter_%26_Gamblehttp://en.wikipedia.org/wiki/Procter_%26_Gamblehttp://en.wikipedia.org/wiki/Procter_%26_Gamblehttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Product_linehttp://en.wikipedia.org/wiki/Product_linehttp://en.wikipedia.org/wiki/Product_linehttp://en.wikipedia.org/wiki/Product_%28business%29http://en.wikipedia.org/wiki/Marketing

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Brand Elements

A variety of brand elements canbe chosen that inherentlyenhance brand awareness orfacilitate the formation of strong,favorable, and unique brand

associations:

Brand Name: Company,Individual, Peoples, Birds or Animal& etc.

Logo:A logo is a graphic mark or

emblem commonly used by commercialenterprises, organizations and evenindividuals to aid and promote instantpublic recognition.

LOGO OF Red Cross

http://en.wikipedia.org/wiki/Emblemhttp://en.wikipedia.org/wiki/Graphichttp://en.wikipedia.org/wiki/Emblemhttp://en.wikipedia.org/wiki/Emblemhttp://en.wikipedia.org/wiki/Graphic

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Symbol:Asymbol is something which representsan idea, a physical entity or a process but is distinctfrom it.

CharacterDisney Nike Symbol

Packaging: Packaging is the science, art, andtechnology of enclosing or protecting products for

distribution, storage, sale, and use.

Slogan:Aslogan is a memorable motto or phrase used ina political, commercial, religious and other context as arepetitive expression of an idea or purpose.(Basundhara Group-For the people, for the Country)

Brand Elements

http://en.wikipedia.org/wiki/Ideahttp://en.wikipedia.org/wiki/Entityhttp://en.wikipedia.org/wiki/Entityhttp://en.wikipedia.org/wiki/Processhttp://en.wikipedia.org/wiki/Ideahttp://en.wikipedia.org/wiki/Entityhttp://en.wikipedia.org/wiki/Processhttp://en.wikipedia.org/wiki/Mottohttp://en.wikipedia.org/wiki/Phrasehttp://en.wikipedia.org/wiki/Political_sloganhttp://en.wikipedia.org/wiki/Advertising_sloganhttp://en.wikipedia.org/wiki/Religioushttp://en.wikipedia.org/wiki/Religioushttp://en.wikipedia.org/wiki/Advertising_sloganhttp://en.wikipedia.org/wiki/Political_sloganhttp://en.wikipedia.org/wiki/Phrasehttp://en.wikipedia.org/wiki/Mottohttp://en.wikipedia.org/wiki/Processhttp://en.wikipedia.org/wiki/Entityhttp://en.wikipedia.org/wiki/Idea

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Why do brand matter?

Importance of BrandsTo consumersIdentification of sources of product

Assignment of responsibility to product maker.

Risk reducer

Search cost reducer

Symbolic device

Signal of qualityPromise or bond with product or maker

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Search Goods: Consumers can evaluate productattributes or benefits like size, color, style, design,weight and ingredient composition by visual inspection.(Ex: Grocery items )

Experience Goods: It cannot be assessed so easily byinspection, and actual product trial and experience isnecessary to judge durability, service quality, safety, andease of handling or use. (Ex: Automobile Tire)

Credence Goods: Consumer may rarely learn productattributes. (Ex: Insurance Coverage, Medical Surgery)

Product Classification and theirassociated benefits

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Reducing the Risks in ProductDecisions

Consumers may perceive many different types of risks inbuying and consuming a product:

Functional Risk The product does not perform up toexpectations.

Physical RiskThe product poses a threat to the physical well-

being or health of the user or others.

Financial RiskThe product is not worth the price paid.

Social Risk The product results in embarrassment fromothers.

Psychological RiskThe product affects the mental well-beingof the user.

Time RiskThe failure of the product results in an opportunitycost of finding another satisfactory product.

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Why do brand matter?

Importance of BrandsTo ManufacturerMeans of identification to simplifying handling

and tracing.

Means of legally protecting unique feature.

Signal of quality

Means of endowing products with uniqueassociations.

Sources of competitive advantageSources of financial returns.

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Ultimately a brand is something that resides inthe minds of consumers.

The key to branding is that consumers perceive

differences among brands in a product category. Commodity is a product so basic that it cannot

be physically differentiated in the minds ofconsumers.

Even commodities can be branded: Coffee (Maxwell House), bath soap (Ivory), flour

(Gold Medal), beer (Budweiser), salt (Morton),oatmeal (Quaker), pickles (Vlasic), bananas(Chiquita), chickens (Perdue), pineapples (Dole), andeven water (Perrier)

Can anything be branded?

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Can anything be branded?

Physical goods (Coca-Cola, Nescafe, Sony) Services (American Express, British Airways,

Hotel Radisson) Retailers (Wal-mart, Agora, PQS) On-line product or Services (Google) People (Madona, Farzana Shakil) Organization (National Geographic) Sports, Arts, Entertainment (Man U, Star

Wars, Basundhara Cineplex) Geographic location (City of Las Vegas,

Coxs Bazar, ) Ideas (AIDS Ribbons)

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The real causes of enduring market leadership arevisionandwill.

Enduring market leaders have a revolutionary andinspiring vision of the mass market, and

They exhibit an indomitable will to realize that vision.

They persist under adversity, innovate relentlessly,

Commit financial resources, and leverage assets torealize their vision.

Source: Gerald J. Tellis and Peter N. Golder, First to Market, First to

Fail? Real Causes of Enduring Market Leadership, MIT SloanManagement Review, 1 January 1996

Source of Brands Strength

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What are the strongest brands?

Brand 2006($Billion)

2005 ($Billion)

Coca-Cola

Microsoft

IBM

GE

Intel

Nokia

Toyota

Disney

McDonalds

Mercedes-Benz

67.00

56.93

56.20

48.91

32.32

30.13

27.94

27.85

27.50

21.80

67.53

59.94

53.38

47.00

35.59

26.45

24.84

26.44

26.01

20.00

Top Ten Global Brands

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What are the strongest brands?

Its easy to identify a number of other brands with amazing staying

power that have been market leaders in their categories fordecades. Similarly, many brands that were number one in theUnited Kingdom in 1933 also remain strong today. (Keloggs CornFlakes, Cadbury Chocolates, Gillette Razors, Brooke Bond Tea,Colgate Toothpaste)

At the same time, just as many brands have lost their marketleadership. (Winston Cigarette)

Besides, Levi-Strauss, General Motors, Xerox have run intodifficulties and seen their market preeminence challenged or everlost. Failure Factors that beyond the control of the firm such as

Technological advances or shifting consumer preferences.

The bottom line is that any brandno matter how strong at onepoint in timeis vulnerable, and susceptible to poor brandmanagement.

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Savvy consumers.

Brand Proliferation

Media Fragmentation Increased competition

Increased costs of introducing new

product or supporting existing product. Greater accountability

Branding Challenges & Opportunities

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Branding Challenges & Opportunities Savvy consumers:

More Experienced with marketing More knowledgeable More Demanding

Brand Proliferation: Rise in product line Brand Extension

Media Fragmentation:

Cost Clutter Fragmentation Technology

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Increased competition:

Globalization Low-priced Competitors Brand Extensions Deregulation

Increased costs of introducing new product orsupporting existing product:

Advertising costs increased due to increase in competition Development and Marketing cost

Greater accountability:

Short term profit targets because of financial pressures andsenior management imperatives

Branding Challenges & Opportunities

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Strategic Brand Management Process It involves the design and implementation of

marketing programs and activities to build, measure,and manage brand equity.

The Strategic Brand Management Processis defined as

involving four main steps:1. Identifying brand vision, core brand values

and brand positioning.2. Planning and implementing brand marketing

programs3. Measuring brand performance4. Growing and sustaining brand equity

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Strategic Brand ManagementBrand VisionBrand Values

& Brand PositioningBrand Marketing objectivesBrand Marketing strategiesBrand Marketing Programs

Implementing brand marketing program

Measuring brand performanceGrowing and sustaining brand equity

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Strategic Brand Management Process

Mental maps

Competitive frame of reference (Ch# 3)

Points-of-parity and points-of-difference (Ch# 3)

Core brand values

Brand mantra

Mixing and matching of brand elements (Ch# 4)

Integrating brand marketing activities (Ch# 5, 6)

Leveraging of secondary associations (Ch# 7)

Brand Value Chain (Ch# 9)

Brand audits

Brand tracking

Brand equity management system (Ch# 10)

Brand-product matrix (Ch# 11)

Brand portfolios and hierarchies (Ch# 11)

Brand expansion strategies (Ch# 12)

Brand reinforcement and revitalization

KEY CONCEPTSSTEPS

Grow and Sustain

Brand Equity

Identify and Establish

Brand Positioning and Values

Plan and Implement

Brand Marketing Programs

Measure and InterpretBrand Performance

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Brand VisionCore brand value & Positioning

Brand Vision What the brand should stand for in thefuture.

Core Brand Values set of abstract associations thatcharacterize a brand.

Mental Map is a visual depiction of the different typesof association linked to the brand in the minds ofconsumer.

Core Brand associations are that subset ofassociations (attributes or benefits) that best

characterized a brand.Brand Mantra is a short 3-5 words expression of the

most important aspect of a brand and its core brandvalues. (brand essence or core brand promise)

Nikes Mantra_Authentic Athletic

Performance

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Brand VisionCore brand value & Positioning

Brand Positioning the act of designing thecompanys offer and image so that it occupies a

distinct and values placed in the targetconsumers mind. The goal is to locate the brandin the minds of consumers.

Competitive brand positioning creating

brand superiority in the minds of consumers.Brand Positioning is a specification of brandcore values and brand mantra.

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Measuring & Interpreting BrandPerformance

Brand Audit is a comprehensive examination of abrand to assess its health, uncover its sources of equity,and suggest ways to improve and leverage that equity.

Brand Value Chain

is a means to trace the valuecreation process for brands, to better understand thefinancial impact of brand marketing expenditures andinvestments.

Brand Equity Measurement System

is a set ofresearch procedures designed to provide timely,accurate, and actionable information for marketers sothat they can make the best possible tactical decisions inthe short run and best strategic decisions in the longrun.

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Growing and sustaining Brand EquityBrand-Product Matrix is a graphical

representation of all the brands and productssold by the firm.

Brand Hierarchy displays the number andnature of common and distinctive brandcomponents across the firms products.

Brand Portfolio is the set of all brands andbrand lines that a particular firm offers for saleto buyers in a particular category.