CHAPTER 1:

BRANDS & BRAND MANAGEMENT

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.

Brands vs. Products

A product is anything we can offer to a market for

attention, acquisition, use, or consumption that might
satisfy a need or want.

Five Levels of Meaning for a Product

The core benefit level

is the fundamental need or want
The generic product level

is a basic version of the product containing only those attributes or

characteristics absolutely necessary for its functioning

The expected product level

is a set of attributes or characteristics that buyers normally expect and

agree to when they purchase a product.

The augmented product level

includes additional product attributes, benefits, or related services

The potential product level

includes all the augmentations and transformations that a product might

ultimately undergo in the future.

Why do brands matter?

Importance of Brands to Consumers

Identification of the source of the product
Assignment of responsibility to product maker
Risk reducer
Search cost reducer
Promise, bond, or pact with product maker
Symbolic device
Signal of quality

Reducing the Risks in Product Decisions

Functional riskThe product does not perform up to
expectations.
Physical riskThe product poses a threat to the physical wellbeing or health of the user or others.
Financial riskThe product is not worth the price paid.
Social riskThe product results in embarrassment from others.
Psychological riskThe product affects the mental well-being of
the user.
Time riskThe failure of the product results in an opportunity
cost of finding another satisfactory product.

Importance of Brands to Firms

Identification to simplify handling or tracing
Legally protecting unique features
Signal of quality level
Endowing products with unique associations
Source of competitive advantage
Source of financial returns

Can everything be branded?

Physical goods
Services
Retailers and distributors
Online products and services
People and organizations
Sports, arts, and entertainment
Geographic locations
Ideas and causes

What are the strongest brands?

Top Ten Global Brands

Brand

2006 ($Billion)

2005 ($ Billion)

Coca-Cola

67.00

67.53

2. Microsoft

56.93

59.94

3. IBM

56.20

53.38

4. GE

48.91

47.00

5. Intel

32.32

35.59

6. Nokia

30.13

26.45

7. Toyota

27.94

24.84

8. Disney

27.85

26.44

9. McDonalds

27.50

26.01

10. Mercedes-Benz

21.80

20.00

1.

Branding Challenges & opportunities

Savvy customers
Brand proliferation
Media fragmentation
Increased competition
Increased costs
Greater accountability

The Brand Equity Concept

Differential effect

Brand knowledge

Consumer response to marketing

Strategic Brand Management Process

Steps
Identify and establish
brand positioning and values

Plan and implement

brand marketing programs

Measure and interpret

brand performance

Grow and sustain

brand equity

Key Concepts
Mental maps
Competitive frame of reference
Points-of-parity and points-of-difference
Core brand values
Brand mantra

Mixing and matching of brand elements

Integrating brand marketing activities
Leveraging of secondary associations

Brand
Brand
Brand
Brand

value chain
audits
tracking
equity management system

Brand-product matrix
Brand portfolios and hierarchies
Brand expansion strategies
Brand reinforcement and revitalization

1. Identify and establish brand positioning and values

Mental maps: Visual depiction of different type of
associations linked to the brand in the mind of
customer
Competitive frame of reference: Creating brand
superiority in the mind of customer.
Points-of-parity and points-of-difference: POD ..is
not available in other brand, POP.is similar to other
brand
Core brand values: Attributes and benefits of brand.
Brand mantra: Core brand promise.

2.Plan and implement brand marketing programs

Mixing and matching of brand elements:
Name.logos symbols characters,packaging and slogans.

Integrating brand marketing activities: Marketing

programs can create strong,favorable and unique brand
association.

Leveraging of secondary associations: Brand may be

linked to
*Company *Character *Spokepeople
*Country
*Sonsorship
*Awards

3.Measure & interpret brand performance

Brand value chain: Value creation Process
Brand Audit: A comprehensive examination of a brand
to discover its sources of brand equity.
Brand Tracking: Collecting continuous information from
customer.
Brand equity management system:
*Brand equity charter *Brand equity report *Brand
equity responsibility

4.Grow and sustain brand equity

Defining the Branding Strategy

Managing Brand Equity Over Time

Managing Brand Equity Over Geographic Boundaries,

Cultures, and Market Segments.