branding lecture notes Product and Brand Management. With introduction branding and what is the Brand equity.

marketing MBA lectures

1. Product
and
Brand Management

2. #
Branding

3. #
Branding
Name, term, sign, symbol or design
or a combination intended to
identify goods or services of a seller
or group to differentiate them from
competitors

4. #
The need for Brand Management
•Themarketisevolvingtosuitindividualconsumer
preferences,socompaniesandtheirbrandsmustevolveto
keeppace
•Goodmarketersshouldbeabletocreate,maintain,enhance
andprotectbrands
•Brandmanagementinvolvesthedesignandimplementation
ofmarketingactivitiesandprogramstobuild,measure&
managebrandsinordertomaximizetheirvalue

5. #
The key to branding
•Consumersmustbeconvincedthattherearemeaningful
differencesamongbrandsintheproduct/service
category
•Consumersshouldknowthatallbrandsinthecategory
areNOTthesame
•Branddifferencesarecreatedbycontinuousinnovation
orbycompetitiveadvantagescreatedthroughnon
productrelatedmeans

6. #
The Role of Brands
•Make manufacturers/ service providers more responsible
•Customers can find the brand that fits their lifestyle
closest
•Separates the good from the bad
•Copyright protection & trademark registrations possible
because of brands

7. #
Branding;
Provides quality assurance
Reduces search time.
Allows a company to charge more.
Reduces brand parity.
Provides legal protection
Helps segment markets
Consumers choose a brand because it is:
–Salient
–Memorable
–Noteworthy

8. #
10 top attributes strong brands share
•Hit on benefit delivery to the customer
•Staying relevant
•Pricing based on evolving consumer perception of
values
•Proper positioning of the brand
•Consistent branding
•Makes use of & coordinates a full range of marketing
activities to build equity
•Brand managers understand exactly what the brand
means to people who buy it
•Brand has proper, sustained support
•The company monitors brand equity constantly

9. #
Brand should be able to answer the questions
•Who are you?
•What do you do?
•Why should I care?

10. #
Developing a Strong Brand Name
Whatarethemostcompellingbenefits?
Whatemotionsareelicitedbythebrandeitherduringor
afterthepurchase?
Whatonewordbestdescribesthebrand?
What is important to consumers in the purchase of the
product?
Begins with understanding why consumers buy a brand.

11. #
Six levels of meaning
•Attributes
•Benefits
•Values
•Culture
•Personality
•User

12. #
Decisions in Branding
Brand
No Brand
Line extension
Brand Extension
Multi Brands
New Brands
Repositioning
No Repositioning
Manufacture Brand
Distributer (Private
)Brand
Licensed brand
Individual Names
Blanket Family Names
Separate Family Names
Company individual names
Branding decision Brand Sponsor
Decision
Brand Name Decision
Brand Strategy Decision Brand repositioning
Decision

13. #
2-13
Promoting the Right Image
Creating the right image.
•Conveys a clear message about the organization.
•Should reveal the nature of the firm.
•Fit with products being sold.
Refresh an image.
•Easier than changing a well-established image.
•Add new elements but continue current image.
Changing an image
–Extremely difficult.
–Necessary when
•Target market has shrunk or disappeared.
•Current image not consistent with industry trends.

14. #
Testfor Effective Logos
•Should be easily recognizable.
•Should be familiar.
•Should extract a correct meaning among firm’s
target market.
•Stimulus codability
•Should evoke positive feelings.

15. #
Benefits of Logo Recognizability
•Aids in recall of specific brands.
•Aids in recall of advertisements.
•Reduces shopping effort.
•Reduces search time and evaluation of
alternatives.

16. #
Brand equity
The added value endowed to a product or service: brand
equity
Brandequityreflectedinthewayconsumersthink,feel,act
withrespecttothebrand,aswellastheprice,marketshare
&profitabilitythatthebrandcommandsforthefirm
BE is an important intangible asset that has psychological
& financial value to the firm

17. #
Brand Equity
–Higher brand loyalty
–Name awareness
–Perceived quality
–Strong brand associations
–Patents, trademarks, channel relationships

18. #
What does strong brand
equity translate to?/Benefits of Brand Equity
Category/ market leadership
Better sales
Creates greater value for stake holders
Better earnings & profit margins for company
Demands a premium during sale of brand
Higher prices ,Higher gross margins
Channel power ,Additional retail shelf space
Reduces customer switching behavior
Prevents erosion of market share
Greater loyalty
Less vulnerability to competitive marketing actions/ Less vulnerability to
marketing crises
More inelastic consumer response to price increases/ elastic consumer response
to price decreases
Additional brand extension opportunities

19. #
Building Brand Equity
1.Research current brand image.
2.Decide what makes the brand unique.
3.Communicate brand’s uniqueness.
4.Spend heavy on promotions/communication.
5.Make domination the goal.
6.Deliver on uniqueness.

20. #
Top three brand equity drivers
Brand elements/ identities making up the brand (brand
names, logos, symbols, characters, spokespeople, slogans)
• The product/ service & all accompanying marketing
activities & supporting marketing programs
• Other associations indirectly transferred to the brand
by linking it to some other entity (a person, place or thing)

21. #
2-21
Customer based brand equity model
•BE arises out of differences in consumer response
If no differences occur, the brand name product can be classified a
generic version or commodity
Competition then would be based on price
• Differences in response are a result of consumers’ knowledge about the
brand
Brand knowledge consists all the thoughts, feelings, images,
experiences ,beliefs that become associated with the brand
Brands aim to create strong, unique and favorable brand associations
with customers (Volvo -safety)
• The differential response by consumers is reflected in perceptions,
preferences & behavior related aspects of marketing the brand

22. #
Brand Equity Models :Aaker’sModel:
According to David Aaker, brand equity is a set of 5 categories of
brand
assets & liabilities that add/ subtract value provided by the
product/service to a firm &/or to a firm’s customers
–Brand Loyalty
–Brand Awareness
–Perceived Quality
–Brand Associations
–Other proprietary assets such as patents, trademarks & channel
relationships
• A particularly important concept in understanding BE is Brand
Identity
• Brand Identity: The unique set of brand associations that represent
what the brand stands for & promises to customers

23. #

24. #
The terminology used
BrandSalience:howoften&easilythebrandisevokedunder
variouspurchaseorconsumptionsituations
BrandPerformance:howproduct/servicemeetscustomers’
functionalneeds
BrandImagery:Howbrandattemptstomeetcustomer’s
psychologicalorsocialneeds
BrandJudgments:focusoncustomer’sownpersonalopinions
&evaluations
BrandFeelings:customers’emotionalresponses&reactions
withrespectthebrand
BrandResonance:Natureoftherelationshipthatcustomers
havewiththebrand

25. #
Brand equity as a bridge
•All marketing dollars spent on products and services each year to
be viewed as investments in consumer brand knowledge
• The quality of investment is critical not quantity
• It is actually possible to waste ‘overspend’ on brand building
• On the other hand, brand knowledge created by investments in
marketing can help pave future direction for the brand
• A brand in essence is a marketer’s promise to deliver predictable
product/service performance
• A brand promise therefore, is a marketer’s vision of what the
brand must be and do for consumers
• Understanding consumer brand knowledge is of dominant
importance as it is the foundation of brand equity

26. #
Successful Brand Development
•Continue commitment to the brand.
•Increase market penetration.
•Understand the brand’s target market
•Leverage the effects of penetration