Professional Documents
Culture Documents
1 Intro PDF
1 Intro PDF
1 Intro PDF
Brand Management
MK542E
Introduction to Contemporary Brand Management
Chapter Overview
Overview
Introduction to contemporary brand management
Functions of brands
What branding means to customers
What brands means to the manufacturer/the producer/the brand owner
Learning Objectives
Understand meaning, function, and importance of brands
Explain the role of brands from different perspectives i.e., consumer, company and the society
Understand components of a brand and different types of brands
Discuss advantages and disadvantages of brands
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Definition of Brands - 1
Definition of Brands - 2
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Definition of Brands -3
Definition of Brands - 4
Products
Attributes ( coke has a curvy glass bottle)
Uses (apple computers are great for graphical applications)
Quality/ value (Marks & Spencer delivers quality products)
Functional benefits (Tesco provides extra value)
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Importance of Brands
Premium pricing
Functions of Brands
Efficiency of information
Facilitate information process by providing information regarding
manufacturer and the origin of the product
Help customers to repeatedly find trusted brands
Reduction of Risk
Help customers to reduce risk of wrong purchase
Monetary risk, functional risk, social risk, etc.
Provide reassurance regarding negative effects of purchase
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Brand Relationships -1
Brands can be viewed as relationships
It is the promise a company makes to its current and future customers
Relationship is based on trust, fulfillment of promises and common values
Relationships change as needs change
Buyers can become footloose
Find new interests
Become bored with their usual habits
Brands can
Stagnate and focus on new customers
Change in their essence
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Brand Relationships -2
Brand relationship is also fragile
Brands can suffer chronic damage through
Failure to deliver promises
Unreliability
Failure to deliver on specifications
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Metaphors of Branding
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Brand Components
Brand identity
Strategic goal for a brand
Aspirational from brand owners point of view
Brand image
What currently resides in the minds of consumers
Brand position
The process by which companies try to create an image or identity in the minds of consumers
Also relative and competitive comparison in a given market
Brand equity
An asset to the firm
Preference in the marketplace, adding value to products and services, charging premium
pricing
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Types of Brands
Generic Brands
Names used like common names
Hoover, Paracetamol
Captive Brands
National brands exclusively sold by a retail chain e.g., Marks & Spencer
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Branding Decisions - 1
Brand strategy
Whether to brand a product or not
Nature of the product, types of the outlets, perceived advantages and costs of branding
Whether to add or maintain brands with the companys portfolio
Whether to create new brands or use existing brand elements
(symbols, colors, packaging, etc.)
Brand naming
Selecting a name
Needs to be relevant to both product and audience
Should be able to generate favorable associations
Different types of brand names (Initialism, descriptive, suggestive, free-standing, Founders,
etc. )
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Branding Decisions - 2
Brand sponsorship
Whether the company should manufacture the brand itself
Whether to use a private label/brand
Or to combine both
Brand portfolio
Concerns a multi-product company
Mostly FMCGs like Nestl operating in a multi-product market
e.g., coffee, baby products, chocolates, etc.
Must be managed in a way that each brand is distinct, has differentiated value and unique
image
These products may also be competing with each other
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Branding Decisions - 3
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Online branding
First, companies thought that new brands need to created for the dotcom age
Now, realized that it may be too expensive hence old and trusted ones need to be adapted to
the new environment
Consumers are more willing to engage in ecommerce with known brands
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Key challenges
Environment and social responsibility through marketing
and brand ethics
Growing importance in creating brand loyalty and corporate culture
Marketing versus sustainability i.e., selling more versus consume less
Some solutions
Marketing needs to move away from the traditional approach of considering volume increase
as the only route to great profitability
It needs to focus on what matters to consumers and how companies perform on these
attributes
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Definition of brands
Importance of brands
Functions of brands
Brand components
Brand decisions
http://www.youtube.com/watch?v=k5016fh7TgQ&feature=related
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Case Study
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dildar.hussain@esc-rennes.com
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