BRAND MANAGEMENT

Bhushan D. Sudhakar, Ph.D

Assistant Professor & Co-
Co-ordinator (UG)
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Jhat is a Brand?

ƥ A 
 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.

3
|ew Branding Challenges
ƥ Brands are important as ever
ƛ Consumer need for simplification
ƛ Consumer need for risk reduction
ƥ Brand management is as difficult as ever
ƛ Savvy consumers
ƛ Increased competition
ƛ Decreased effectiveness of traditional
marketing tools and emergence of new
marketing tools
ƛ Complex brand and product portfolios
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„he Customer/Brand Challenge
ƥ In this difficult environment, marketers
must have a keen understanding of:
ƛ customers
ƛ brands
ƛ the relationship between the two

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„he Concept of Brand Equity

ƥ „he brand equity concept stresses the

importance of the brand in marketing
strategies.
ƥ Brand equity is defined in terms of the
marketing effects uniquely attributable
to the brand.
ƛ 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. r
„he Concept of
Customer--Based Brand Equity
Customer

ƥ À
 

 
  

ƛ Differential effect
ƛ Customer brand knowledge
ƛ Customer response to brand marketing

 
Determinants of
Customer--Based Brand Equity
Customer

ƛ Customer is aware of and familiar with the

brand

ƛ Customer holds some strong, favorable, and

unique brand associations in memory

·
Building
Customer--Based Brand Equity
Customer
ƥ Brand knowledge structures depend on . . .
ƛ „he initial choices for the brand elements
ƛ „he supporting marketing program and the
manner by which the brand is integrated into it
ƛ Other associations indirectly transferred to the
brand by linking it to some other entities

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Benefits of
Customer--Based Brand Equity
Customer
ƥ Enjoy greater brand loyalty, usage, and
affinity
ƥ Command larger price premiums
ƥ Receive greater trade cooperation & support
ƥ Increase marketing communication
effectiveness
ƥ Yield licensing opportunities
ƥ Support brand extensions.
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Customer-Based Brand Equity
Customer-
as a ƠBridgeơ

ƥ Customer
Customer--based brand equity
represents the Ơadded valueơ endowed
to a product as a result of past
investments in the marketing of a
brand.
ƥ Customer
Customer--based brand equity provides
direction and focus to future marketing
activities
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„he Key to Branding
ƥ For branding strategies to be successful,
consumers must be convinced that there
are meaningful differences among brands
in the product or service category.
ƥ Consumer must not think that all brands in
the category are the same.
ƥ PERCEP„IO| = VALUE

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Strategic Brand Management

ƥ Strategic brand management involves the design

and implementation of marketing programs and
activities to build, measure, and manage brand
equity.
ƥ „he strategic brand management process is
defined as involving four main steps:
1) Identifying and establishing brand positioning and values
2) Planning and implementing brand marketing programs
3) Measuring and interpreting brand performance
4) Growing and sustaining brand equity
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Motivation for
Customer--Based Brand Equity Model
Customer
ƥ Marketers know strong brands are
important but arenƞt always sure how to
build one.
ƥ CBBE model was designed to be Ʀ
ƛ comprehensive
ƛ cohesive
ƛ well-
well-grounded
ƛ up-
up-to
to--date
ƛ actionable
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Rationale of
Customer--Based Brand Equity Model
Customer
ƥ Basic premise: Power of a brand resides in the
minds of customers
ƥ Challenge is to ensure customers have the right
types of experiences with products & services
and their marketing programs to create the right
brand knowledge structures:
ƛ „houghts
ƛ Feelings
ƛ Images
ƛ Perceptions
ƛ Attitudes
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Building
Customer--Based Brand Equity
Customer
ƥ Building a strong brand involves a series of steps
as part of a Ơbranding ladderơ
ƥ A strong brand is also characterized by a logically
constructed set of brand Ơbuilding blocks.ơ
ƛ Identifies areas of strength and weakness
ƛ Provides guidance to marketing activities

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Salience Dimensions

ƥ Depth of brand awareness

ƛ Ease of recognition & recall
ƛ Strength & clarity of category membership

ƥ Breadth of brand awareness

ƛ Purchase consideration
ƛ Consumption consideration

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Performance Dimensions

ƥ Primary characteristics & supplementary

features
ƥ Product reliability, durability, and
serviceability
ƥ Service effectiveness, efficiency, and
empathy
ƥ Style and design
ƥ Price cü
Imagery Dimensions
ƥ User profiles
ƛ Demographic & psychographic characteristics
ƛ Actual or aspirational
ƛ Group perceptions -- popularity
ƥ Purchase & usage situations
ƛ „ype of channel, specific stores, ease of purchase
ƛ „ime (day, week, month, year, etc.), location, and context of
usage
ƥ Personality & values
ƛ Sincerity, excitement, competence, sophistication, & ruggedness
ƥ History, heritage, & experiences
ƛ |ostalgia
ƛ Memories
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ƒudgment Dimensions
ƥ Brand quality
ƛ Value
ƛ Satisfaction

ƥ Brand credibility
ƛ Expertise
ƛ „rustworthiness
ƛ Likability

ƥ Brand consideration
ƛ Relevance

ƥ Brand superiority
ƛ Differentiation

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Feelings Dimensions
ƥ Jarmth
ƥ Fun
ƥ Excitement
ƥ Security
ƥ Social approval
ƥ Self
Self--respect

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Resonance Dimensions
ƥ Behavioral loyalty
ƛ Frequency and amount of repeat purchases
ƥ Attitudinal attachment
ƛ Love brand (favorite possessions; Ơa little pleasureơ)
ƛ Proud of brand
ƥ Sense of community
ƛ Kinship
ƛ Affiliation
ƥ Active engagement
ƛ Seek information
ƛ ƒoin club
ƛ Visit web site, chat rooms

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Brand Positioning
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ƛ „arget market
ƛ |ature of competition

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ƛ Points-
Points-of
of--parity
ƥ necessary
ƥ competitive
ƛ Points-
Points-of
of--difference
ƥ strong, favorable, and unique brand associations
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Issues in Implementing
Brand Positioning
ƥ Establishing Category Membership
ƥ Identifying & Choosing POPƞs & PODƞs
ƥ Communicating & Establishing POPƞs &
PODƞs
ƥ Sustaining & Evolving PODƞs & POPƞs

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Establishing Category
Membership
ƥ Product descriptor
ƥ Exemplar comparisons

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Identifying & Choosing
POPƞs & PODƞs
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ƛ Personally relevant
ƛ Distinctive & superior
ƛ Believable & credible
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ƛ Feasible
ƛ Profitable
ƛ Pre-
Pre-emptive, defensible & difficult to attack
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Major Challenges in Positioning
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HBR ƌ97
HBR
ƛ How do people become aware of their need for your
product and service?
ƛ How do consumers find your offering?
ƛ How do consumers make their final selection?
ƛ How do consumers order and purchase your product
or service?
ƛ Jhat happens when your product or service is
delivered?
ƛ How is your product installed? 3ü

ƛ How is your product or service paid for?

Major Challenges in Positioning

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ƛ How is your product stored?

ƛ How is your product moved around?
ƛ Jhat is the consumer really using your product for?
ƛ Jhat do consumers need help with when they use
your product?
ƛ Jhat about returns or exchanges?
ƛ How is your product repaired or serviced?
ƛ Jhat happens when your product is disposed of or no
longer used? Ñ
Communicating & Establishing
POPƞs & PODƞs
ƥ À 
 POPƍ

 PODƍ
 

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ƛ Price & quality
ƛ Convenience & quality
ƛ „aste & low calories
ƛ Efficacy & mildness
ƛ Power & safety
ƛ Ubiquity & prestige
ƛ Comprehensiveness (variety) & simplicity
ƛ Strength & refinement

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Strategies to Reconcile
Attribute & Benefit „rade-
„rade-Offs
ƥ Establish separate marketing programs
ƥ Leverage secondary association (e.g., co-
co-
brand)
ƥ Re
Re--define the relationship from negative to
positive

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Sustaining & Evolving
POPƞs & PODƞs
ƥ Core Brand Values &
Core Brand Proposition

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Core Brand Values
ƥ Set of abstract concepts or phrases that
characterize the 5-
5-10 most important
dimensions of the mental map of a brand.
ƥ Relate to points-
points-of
of--parity and points-
points-of
of--
difference
ƥ Mental Map M Core Brand Values M Brand Mantra

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Brand Mantras

ƥ A brand mantra is an articulation of the

Ơheart and soulơ of the brand.
ƛ Brand mantras are short three to five word
phrases that capture the irrefutable essence or
spirit of the brand positioning and brand values
values
ƥ Nik
ik
ƛ Authentic Athletic Performance
ƥ isn
ƛ Fun Family Entertainment
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 Jhat Makes an Ad
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Functions of Advertising

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„he Evolution of Advertising

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 How Brands Jork

ƥ Brand personalities
ƥ Branding
ƥ „rust
ƥ Brand image
ƥ Brand relationships
ƥ Brand equity
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Role of Integrated Marketing
Communications

ƥ Marketing communications Ʀ
ƛ are the Ơvoiceơ of the brand and are a means
by which it can establish a dialogue and build
relationships with consumers.
ƛ allow marketers to inform, persuade, incent,
and remind consumers directly or indirectly
ƛ can contribute to brand equity by establishing
the brand in memory and linking strong,
favorable, and unique associations to it.

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Role of Integrated Marketing
Communications (Cont.)
ƛ Consumers can be told or shown how and why a
product is used, by what kind of person, and where
and when;
ƛ Consumers can learn about who makes the product
and what the company and brand stand for
ƛ Consumers be given an incentive or reward for trial or
usage
ƛ Brands can be linked to other Ʀ
ƥ People
ƥ Places
ƥ Events
ƥ Brands
ƥ Experiences
ƥ Feelings
ƥ „hings rc
Simple „est for
Marketing Communications

1. 3. 2.
Current Desired
Brand Brand
Knowledge Knowledge

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Integrated Marketing Communications
and Customer-
Customer-Based Brand Equity
ƥ One implications of the CBBE framework is
that the manner in which brand
associations are formed does not matter --
only the resulting strength, favorability,
and uniqueness

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Designing Integrated Marketing
Communications Programs
ƥ From the perspective of customer-
customer-based brand
equity, marketers should evaluate all possible
communication options available to create
knowledge structures according to effectiveness
criteria as well as cost considerations.
ƥ Different communication options have different
strengths and can accomplish different
objectives.

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Alternative Communication Options
(Consumer)

ƥ Media Advertising („V, radio, newspapers, magazines)

ƥ Direct Response Advertising
ƥ Interactive (on-
(on-line) Advertising & Jeb Sites
ƥ Outdoor Advertising (billboards, posters, cinema)
ƥ Point--of
Point of--Purchase Advertising
ƥ „rade Promotions
ƥ Consumer Promotions
ƥ Sponsorship of Event Marketing
ƥ Publicity or Public Relations

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Alternative Communication Options
(Business--to
(Business to--Business)
ƥ Media Advertising („V, radio, newspaper, magazines)
ƥ „rade ƒournal Advertising
ƥ Interactive (on-
(on-line) Advertising & Jeb Sites
ƥ Directories
ƥ Direct Mail
ƥ Brochures & Sales Literature
ƥ Audio--Visual Presentation „apes
Audio
ƥ Giveaways
ƥ Sponsorship or Event Marketing
ƥ Exhibitions, „rade Shows, Conventions
ƥ Publicity or Public Relations
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Print Ad Evaluation Criteria
ƥ Is the message clear at a glance?
ƥ Is the benefit in the headline?
ƥ Does the illustration support the headline?
ƥ Does the first line of the copy support or
explain the headline and illustration?
ƥ Is the ad easy to read and follow?
ƥ Is the product easily identified?
ƥ Is the brand or sponsor clearly identified?
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Ad Campaign Considerations
ƥ Campaigns make brands -- not single ads
ƥ Be creative and develop creative themes
ƛ Avoid slavishly sticking to executional formulas
ƥ Brand communications should sing like a choir
ƛ Multiple voices
ƛ Multiple notes
ƥ Find fresh consumer insights & compelling brand
truths
ƥ Productively conduct ad research

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IMC Case Study
CMPB Success Factors
ƥ Smart strategy
ƛ Relative deprivation
ƥ Imaginative creative
ƛ Funny but relevant
ƥ Clever hook
ƛ ƠGot milk?ơ slogan
ƥ „imely secondary media
ƛ In store
ƥ Right partners
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Common Mistakes in
Developing Advertising
ƥ Failure to distinguish ad positioning (what
you say) from ad creative (how you say it)
ƥ Mistaken assumptions about consumer
knowledge
ƥ Improperly positioned
ƥ Failure to break through the clutter
ƥ Distracting, overpowering creative in ads
 
Common Mistakes in
Developing Advertising
(cont.)

ƥ Under
Under--branded ads
ƥ Failure to use supporting media
ƥ Changing campaigns too frequently
ƥ Substituting ad frequency for ad quality

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Evaluating IMC Programs
ƥ À
  what proportion of the target
audience is reached by each
communication option employed, as well as
how much overlap exists among options
ƥ À
  what is the per capita expense

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Evaluating IMC Programs (cont.)
ƥ À   - the collective effect on
brand equity in terms of
ƛ enhancing depth & breadth of awareness
ƛ improving strength, favorability, & uniqueness
of brand associations

ƥ À
 - the extent to which

information conveyed by different
communication options share meaning
 -
Evaluating IMC Programs (cont.)
ƥ À 
 - the extent to which
different associations and linkages are
emphasized across communication options
ƥ 

  - the extent to which
information contained in a communication
option works with different types of
consumers
ƥ Different communications history
ƥ Different market segments

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ƠKeller Beƞsơ
ƥ B

c
:


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: Use frameworks of consumer behavior
and managerial decision-
decision-making to develop well-
well-
reasoned communication programs
ƥ B c 
:
: Fully understand consumers by using all
forms of research and always be thinking of how you
can create added value for consumers
ƥ B
  :: Focus message on well-

  well-defined
target markets (less can be more)
ƥ B 
:

: reinforce your message through
consistency and cuing across all communications

  
ƠKeller Beƞsơ
ƥ B c 


:: State your message in a unique
fashion; use alternative promotions and media
to create favorable, strong, and unique brand
associations
ƥ B 
 
:

: Monitor competition,
customers, channel members, and employees
through tracking studies
ƥ B 

c


c:: Understand the complexities
involved in marketing communications
ƥ B 
:

: „ake a long-
long-term view of
communication effectiveness to build and
manage brand equity  ·
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