UNIT – 12

BRAND MANAGEMENT

LEARNING OBJECTIVES

After reading this unit, the learner will come to know

x The conceptual knowledge of Branding and Brand Management.

x The Relationship marketing and Brands.
x Various concepts of Brand Management.

STRUCTURE
12.1 MEANING AND DEFINITION OF BRANDING
12.2 BRANDING DECISIONS
12.3 CHARACTERISTICS OF BRANDS
12.4 RELATIONSHIP MARKETING AND BRANDS
12.5 BRANDING TODAY
12.6 BRAND AS OWNERSHIP SYMBOL
12.7 SUMMARY
12.8 SELF ASSESSMENT QUESTIONS
12.9 REFERENCE BOOKS

12.1 MEANING AND DEFINITION OF BRANDING

What is a Brand?

A brand is defined as "a name, term, sign, symbol or special design or some combination of
these elements that is intended to identify the goods or services of one seller or a group of
sellers. A brand differentiates these products from those of competitors." (American Marketing
Association, Chicago).

A brand in short is an identifier of the seller or the maker. A brand name consists of
words, letters, and/or numbers that can be vocalised. A brand mark is the visual representation
of the brand like a symbol, design, distinctive colouring or lettering. Mercedes Benz is a brand
name and the star with it is a brand mark. A trade mark is a brand that is legally protected. All
trade marks are brands and include both the brand name and the pictorial design. Exclusive
rights to use the brand in perpetuity are granted by the trade mark law, unlike the Patents and
Copyright Laws which have expiry dates. Essentially, a brand is a promise of the seller to
deliver a specific set of benefits or attributes or services to the buyer. Each brand represents a
level of quality. Irrespective of the fact from which the brand is purchased, this level of quality
can be expected of the brand. A brand is much more complex.

Apart from attributes and benefits, it also reflects the following:

Values: The values which govern a producer are reflected by the brand, thus Tata stands
quality, fair price and so on.

Culture: A brand represents a certain culture, e.g., Coke is an icon of American culture, while
Shilpa bindis are typically Indian.

Personality: A brand projects a personality. Had the brand been an animal or an object or a
person, what would come to our mind? Videocon suggests a lion, MRF suggests a muscle man
and Rin suggests a lighting flash. Sometimes a brand may take on the personality of an actual
person, e.g., Charlie Chaplin and Cherry Blossom.

User: The brand suggests its own target audience. We know what a Garden Woman is. We
know that Sunny is for teenagers. We expect a Mercedes to be driven by an executive or a top-
class businessman. These users correspond to the values, culture and personality of the brand.
Because of the imagery associated with the brands, they actually have the power to enhance or
limit a consumer's perceived image or self-image.

CARS AND OWNER’S PERSONALITY

Make Personality of one who drives it
Rolls Royce Pretensions to royalty
Ferrari Rich and true sportsman
Mercedes Benz Rich and powerful
BMW Limousine Rich and younger
BMW Sports Young and adventurous
Economy Models No class pretensions
Utility vehicle Rough- 'n' -tough type
Mini cars Female drivers
Sub-niches, thrifty, sporty, extravagant
Renault Twings Woman who has arrived
Ford KA
Mercedes A classe
Maruti 800 Liberated woman driver
Ambassador Car for bureaucrats, politicians and security
Padrnini personnel
Elderly pensioners
Taxis
Maruti Zen Upwardly mobile young people
Contessa Corporate cars
Maruti 1000
Cielo
Mercedes Benz E 220 Super rich
Heads of industry and commerce
BMW or Jaguar (India) Younger business tycoons
Armada, Sierra, Sumo Pseudo-tough types

Based on Murad Ali Baig' s The Shape of cars to Came.

The above discussion makes one thing very clear - a brand is a complex symbol. It is not
just a name. Branding, therefore, involves developing deeper meanings for the brand. The
lesser the dimensions a brand possesses, the .shallower it is. The more the dimensions, the
deeper it is.

PERFUMES AND PERSONALITY STATEMENT

A person wears a perfume that makes a personality statement about him. It is the way
he would like others to see him. The following table lists the perfumes and the personality of the
user who wears it.
Perfume
Brands Personality of the User
Family
Fruity Tresor (Lancome) Young, energetic, positive about life
Florals Deci Dela (Nina Ricci)
Tendre Poison (Chirshan Dior)
Powdery L ' Air du Temps (Nina Ricci) Feminine, true romantic
Florals Beautiful (Estee Lauder)
Madame Rochas (Rochas)
Paris (Yves Saint Laurent)
Effervescent cK One (Calvin Klein) Sophisticated, refined and spirited
Florals Dolce Vita (Christian Dior)
Gucci Envy (Christian Dior)
Semi- Poem (Lancome) Sophisticated, quietly sensual
Orientals Youth Dew (Estee lauder)
Booster for Men (Lacoste)
Spicy Eternity (Calvin Klein) Outgoing, passionate
Orientals Opium (Yves Saint Laurent)
Obsession (Calvin Klein)
Shalimar (Guerlain)
Poison (Christian Dior)
Acquatic Polo Sport Woman Trendy
Scents (Ralph Lauren)
Escape (Calvin Klein)
White Linen Breeze (Estee Lauder)
Smart cK One (Calvin Klein) Sensuality and sophistication
Scents Azzaro for Women
Miss Dior (Christian Dior)

A brand cannot be just a bundle of physical attributes. Attributes are very easy to copy.
Besides, attributes valued today may not be valued tomorrow. Even benefit-oriented brands are
not on firm grounds. Maruti's fuel economy can be attained by other brands. Maybe, the benefit
valued today may not be valued tomorrow. A brand becomes enduring by its values, culture and
personality. These constitute the essence of the brand. Mercedes stands for prestige, success
and high technology. Actually, this should become the building blocks of its brand strategy. We
just cannot think of a Mercedes being offered at a price of Maruti. Perhaps, this will dilute the
values associated with Mercedes. And remember, it takes years to build these values.

12.2 BRANDING DECISIONS

Branding is interwoven with religion. Mankind built branded environments, places to go

and practise religion. The chants and bells were to bring people into these places, which is very
much like advertising. The concepts and ideas have been there forever, and as society
developed, brands proliferated to differentiate and generate business.

Historically, most products were unbranded. Producers sold goods or commodities to

fulfil our core or basic needs like taste, hunger or energy. These products did not have any
identification mark on them. The first step towards branding a commodity is to package it, e.g.,
rice, papad, salt. Water, for example, used to be sold as a commodity. Today most mineral
waters are sold as brands. The company enhances the value of the commodity functionally.
Branding started formally when craftmen put trade marks on their products to protect them
against inferior quality. Painters started signing their art works. Pharmaceutical companies were
the first to put brand names on their products. Today hardly anything is unbranded. Products
from un-organised markets like vegetables, salt, fruits etc. are unbranded. But now we have
branded salts and atta too. Venky's, Real Good of Godrej and Suguna have branded chicken
successfully. In spite of a brand movement, products have been demanded in generic,
unbranded form in pharmaceutical and staple consumer goods sector. Al Ries feels a
commodity, is a good category to launch a new brand because one becomes the first in the
category.

When commodities are branded, they have to counter the retailer resistance, who get
greater pricing freedom when they are unbranded. Along with this, there is consumer resistance
- a housewife loves to select food grains, clean them, get them ground into flour. A readymade
Pillsbury or Ashirvad atta deprives her of all these sentimental actions. However, if we are
successful in lessening the consumer resistance there arises a demand. The pull effect compels
the retailer to stock the brand and his resistance also comes down. Consumers want a good
value for money from a branded commodity.

Functional products and commodities take less to branding than aspirational products.
Manufactured products are branded easily, whereas it is not so for agricultural ones. Of course,
a commodity can evolve into a brand in stages. Branding evolves through stages - a commodity,
a functional brand, a high value added brand and a premium product. Pads were used as
sanitary napkins. The next improvement was belted napkins. It was followed by beltless
napkins. We now have dry-weave napkins. The consumers are expected to adopt each of these
product versions one by one, as they come in the evolution of brand. However, it may so
happen that the aspiring middle-class with high disposable income leap frogs into the high end
brands like "Whisper" and "Ariel."

While branding the products, an attempt is made to go beyond mere functionality. Brand
equity is to be built up by advertising appropriately to reduce the initial consumer resistance.
The low involvement product can be made high involvement product by emphasing certain
situations, e.g., Cease Fire demonstrated how a family's bliss can be shattered by a sudden fire.
Sometimes, non-functional elements like fun are emphasised, e.g., Captain Cook salt. Textiles
are sold on imagery and not on functional appeals. The brand becomes aspirational. Later,
textiles are associated with values like machoism, friendship and growing up. Benetton ads do
just this. The brand then becomes an icon - it stands for something. However, all brands cannot
become icons.

The core need of clothing is satisfied by a set of product classes - jeans, shirts, dhotis. If
we consider two-legged garments only, we have a choice between trousers and jeans. Jeans is
a denim blue material, with rugged cuts, metal zippers and buttons and is a tough piece of
clothing. This product is augmented by giving fancy pockets, double stitching, wider range and
designs, and is associated with youth and machoism. The augmented product takes the brand
name of FM jeans. Brands thus help to make a personality statement. FM Jeans declare your
anti-traditional intentions and your desire to find a cause in your life. The onlooker may like this
attitude and shares it.

Branding is a way of life. Small companies need branding as much as big companies. hi
fact, small companies become big by branding. Every small action which sends a positive signal
to outside universe is banding. Branding is not restricted to products alone. Company branding
is as important as product branding. Public relations (PR) are the most underrated branding
tool. Advertising creates awareness. PR sells the product.

12.3 CHARACTERISTICS OF BRANDS

Brand can be considered in terms of four levels:

Generic: It is the commodity level which satisfies the basic needs such as transportation. It is
so easy to imitate a generic product. A brand continues to add values so as to reach the
expected level.

Expected: A generic is modified to satisfy some minimum buying conditions such as functional
performance, pricing, availability etc.

Augmented: Brand is refined further by adding non-functional values along with the functional
ones. We may direct advertising to the social prestige, the possessor of the brand is likely to
enjoy.

Potential: As brands evolve, we become more critical. Creativity plays an important role to grow
up the brand to its full potential. If no creative effort is taken, there is a danger of the brand
relapsing to its augmented or expected level. A formula milk company can provide structures on
the highway for nappy changes of the babies.
 Airlines used to sell transportation to begin with. Their functional target was timely
arrivals, thus making them reliable. But when all airlines happen to achieve this, they focus
more on in-flight services and customer services at the airports and on the ground. They also
develop emotional appeals by calling them friendly airlines. They take care of body and soul.

A brand has to evolve from a functional product to one with added values. A bank
customer values a welcome with a smile, and his updated pass book with names correctly spelt
out. The added values must be relevant to the customer, and not just to the manufacturer. A
talking washing machine may not be relevant to a customer. People are motivated to buy
brands by something in addition to the functional job that these brands perform. This does not
mean that the additional ingredient is the most important element. According to John Philip
Jones, a shampoo is expected to wash and beautify the hair and a car is expected to transport
us safely. However, there is something more as well. A brand is a synthesis of something
physical and something psychological.

A brand emits certain clues signaling the offer, and this leads us to perceive the added
value. A poor ad about the in-flight service may lead to a belief that the air-line is not capable of
delivering such service. Poor ad happens to be a clue, and leads to the rejection of the brand's
added value.

Brands possess not only functional values, but also symbolic values, which are non-
verbal clues to communicate with the peer group. A General Manager is comfortable to drive
Honda City not because of its elegant design and craftsmanship, but because it indicates his
position in the organisation. People choose their outfits, with great care, to manifest status, and
propriety. Sometimes clothes are used to seduce too. Those brands are chosen which provide
both physical and psychological comfort. Those brands are chosen which are consistent with
our own self-concept. Our brand of beer or liquor may convey an aspect of our life style and so
in social drinking a particular brand is chosen. But when alone, one may choose any other
brand. Even cars chosen must reflect our own self-concept. Marketers have to recognise brands
as value-expressive devices. They then provide supportive marketing mix. Promotional
messages in such cases may be targeted to the peer group so as to make them conscious of
the symbolic value of the brand.

A brand has a strategic perspective. We must have a unique added value sustained over
a period of time. Or else, the lifetime of the brand will be short. Brand managers use the concept
of a value chain discussed later in this book. Different brands have a competitive advantage at
different stages of the value chain. A branded coffee may have competitive advantage at the
sourcing stage - procurement of high grade coffee beans. This may be true for a branded atta
too. A branded watch may have competitive advantage at the design stage of the value chain. A
courier company may have competitive advantage at the distribution stage of value chain. An
insurance company may have competitive advantage at its low-cost sales force.

12.4 RELATIONSHIP MARKETING AND BRANDS

In relationship marketing, we try to create and maintain a pool of customers who

continue to do business with us over a period of time. This is achieved by identifying our current
customers and establishing long-lasting mutually beneficial relationships with them. Retailers
and banks have started practising relationship marketing. Such relationships can be nostalgic or
exciting. Successful marketers try to develop a quality relationship, thus developing in the
customers a sense of belonging, almost bordering on passion.

The aim of relationship marketing is to develop loyal customers. Our customers can be
retained by giving them financial incentives like reward points and discounts. But these can be
imitated by others. Another method employed for customer retention is that of social and
financial bonds. Here customers are treated as clients, and not as numbers. A doctor can take
interest in the social life of his patient. A lawyer can take his client to an opera. A computer
database of petrol buying clients may enable the manager to greet each customer next time as
a personal friend. The third way to build relationship is through structural bonds. Here clients are
made more productive. A courier company can provide a computer with software to track the
shipments. A pharma company can provide storage devices to a hospital. Major retailers can be
connected on-line to vendors.

12.5 BRANDING TODAY

We have already examined the evolution of brands, and the various types of brands.
Brands have a very large scope, and thus are likely to confuse us. Many in the agency and
marketing departments fail to appreciate the process of branding. Branding only for visibility is
not a correct approach. Brands have been classified into several categories depending on their
role in advertising. At one extreme we have simple brands associated with ad slogans. At the
other extreme, we have structural branding in which certain objects represent a product.
Brands, according to Langmaid and Gordon, move from simple verbal to aural to visual
association to branding devices to symbols, to analogies, to metaphors, to tone of voice and
ultimately to structure.
 Brands play a variety of roles, which we shall discuss later. "Branding is interpreted as
something done to consumers but not as something consumers do things with." (Chernatony
and McDonald). Branding is not just an input process. We use marketing resources to support
the brands. It is the input. But the output is the evaluation of the brand in the mind of the
consumer. Consumers are not just passive beings. They actively interpret the marketing activity.
They may also do selective perception. Marketers put the brands into the following categories:

12.6 BRAND AS OWNERSHIP SYMBOL

To begin with, brands were put into two slots - private brands owned by the retailers or
manufacturer's brands. It indicated the initiation of the marketing process.

Brands as Differentiators

Brands distinguish among similar products. But later brands came to acquire added
values. Thus Surf Excel distinguished it from other detergents, but also has an image of a
pleasantly flavoured highly effective, stain-removing washing powder that makes washing
clothes an easy activity. Small firms first put a name on the product, and believe this is all that is
there to branding. Brands must go beyond being differentiating devices, and should offer a set
of unique benefits to satisfy consumer needs. When competitors use brands just as
differentiators, one should take advantage of this fact, and develop a strategy whereby buyers
associate added values with the brand name. It gives a competitive advantage. A brand attains
a distinctive identity not only on the basis of brand name, but also through packaging and
advertising. Each person develops a perception of the brand.

Brands as Functional Device

Brands provide a consistent functional quality, and this has been used by the marketers
to protect their production investments. Functionality should be geared towards consumers,
rather than on internal considerations. A waiting room with long-queues is provided with TV sets
to make waiting easier. But the better option is to redesign the system so as to have lesser
queues. A functional attribute associated with a brand gives it rationality. But there is always an
emotional content in the buying process.

Brands as Symbolic Device

A brand can make a statement on behalf of the consumers. In other words, they are
symbolic devices. Consumers express themselves through the brands. The functional capability
is taken for granted. A brand is chosen more carefully when it has symbolic quality. Consumers
tend to personify brands. They choose brands which match their actual or desired self-concept.
When brands are associated with symbolic or emotional values, brand preferences do get
affected irrespective of functional similarities. Brands are used as non-verbal communication
devices. Such brands are promoted by communicating their personality and how they can be
used to relate to others. Though symbolic considerations are valuable for many brands, it does
not mean they are the only consideration for choosing the brand. Many brands are chosen both
on the basis of functional and symbolic dimensions. A brand is not solely a symbolic device.

Brand as Risk Reducer

In the buying process, there are many risks when confronted with a number of
competing brands. There is a doubt about the functional capability of a brand. There is
misgiving about whether others would approve the brand chosen. There is anxiety about the
money being wasted on account of wrong choice. It is also doubtful whether we will feel
comfortable with the brand afterwards. Marketers have to understand buyers’ perception of risk.

Brand as Shorthand Device

In this age of information explosion, brands serve as shorthand devices to recall

sufficient information to make a decision. People have limited memories. They put hits of
information as chunks in their memory. They use brand names as handles to recall these
chunks of information stored in their memory. It is an efficient method of processing information.
It comes handy to them at the point of purchase.

Brand as a Legal Device

At the beginning of the 20th century, brands were demanded by their names by
consumer in appreciation of .their values. Those who made inferior products sought survival by
counterfeiting the original brand. This was overcome by firms by registering trademarks as a
legal protection. A whole new category of registered brands -emerged. Consumers can be
confused by similar looking competing brands.

12.7 SUMMARY

A brand is defined as "a name, term, sign, symbol or special design or some combination of
these elements that is intended to identify the goods or services of one seller or a group of
sellers. A brand differentiates these products from those of competitors."
A brand cannot be just a bundle of physical attributes. Attributes are very easy to copy.
Besides, attributes valued today may not be valued tomorrow. Branding is a way of life. Small
companies need branding as much as big companies. In fact, small companies become big by
branding. Every small action which sends a positive signal to outside universe is banding.
Branding is not restricted to products alone. Company branding is as important as product
branding. Public relations (PR) are the most underrated branding tool. Advertising creates
awareness. PR sells the product.

12.8 SELF ASSESSMENT QUESTIONS

1. What is branding and explain the various decisions of Branding in detail?

2. What are characteristics of Branding and explain them in brief.

3. Describe the concept of Relationship Marketing.

12.9 REFERENCE BOOKS

1. Chunawala SA, & KC Sethia, Foundations of Advertising – Theory & Practice, Himalaya
Publisihing House.

2. Harsh V. Varma, Brand Management, Text & Cases, Excel Books.

3. Tapan K. Panda, Building Brands, Excel Books.

 UNIT – 13

BRANDS AND CONSUMERS

LEARNING OBJECTIVES

After reading this unit, the learner will come to know

x The conceptual knowledge of Consumer Decision Making Process.

x The Model of Buyer Behaviour.
x Concept of NeuroMarketing.

STRUCTURE
13.1 THE CONSUMER DECISION PROCESS
13.1.1 PROBLEM RECOGNITION
13.1.2 INFORMATION SEEKING
13.1.3 EVALUATION OF ALTERNATIVES
13.1.4 BUYING DECISION
13.1.5 PST-PURCHASE EVALUATION
13.2 MODEL OF BUYER BEHAVIOUR
13.2.1 HOWARD-SHETH MODEL
13.3 NEUROMARKETING
13.4 SUMMARY
13.5 SELF ASSESSMENT QUESTIONS
13.6 REFERENCE BOOKS

13.1 The Consumer Decision Making Process:

Consumer behavior does not consist of discrete acts, but is a process. A woman who
joins a slimming centre first recognizes the need to reduce her obesity. She then seeks
information about various methods of slimming down, and chooses a slimming centre as the
best alternative for her. She then decides in favour of a particular centre, considering the cost of
the total slimming plan, its credibility and the track record. After choosing the centre, she may or
may not be satisfied with the results. All this is a part of the purchase decision proms. It is not
just the decision but a whole series of decisions.

The following diagram shows a simplified model of consumer purchase decision

process.

Evaluation Post
Problem Information Buying
of Purchase
Recognition Seeking Decision
Alternatives Evaluation

Fig. 13.1 Consumer's Buying Decision Process

The five stages in the buying decision process are:

1. Problem recognition
2. Information seeking
3. Evaluation of alternatives
4. Buying decision
5. Post-purchase evaluation.

It will be appreciated that the process starts much before the actual purchase, and
continues beyond it.

13.1.1 Problem Recognition

Problem recognition in fact is the beginning of the buying process. It is a matter of

perception. We realise what we should ideally have and what we have at present. The decision
to buy a two-in-one music system is triggered by the gift amount received on the occasion of the
birthday. Mrs.Y may go in for a fridge because Mrs. X has already got it. A perfume bottle of
Charlie may be purchased when one sees it in the window of a shop. We may decide to buy
another paste, when the current one is on the point of running out. Problem recognition is
generally a slow process, but can occur fast when purchases are made impulsively.

Marketing efforts facilitate the problem recognition stage. Ads goad us to buy many a
thing. Similarly, a window display also acts as an incentive to buy. Personal selling makes us
realise what our unfulfilled needs and wants are. Psychological factors do influence problem
recognition stage.

13.1.2 Information Seeking

 This follows the problem recognition stage. More-often-than-not, there is little knowledge
about the alternatives available. The search is mostly directed towards the products that are
consistent with our needs. A housewife buying a mixie might start visiting the shops selling
appliances and might start discussing the need with her friends. She is interested in knowing
which brands are on offer and their features.

The amount and type information that is collected is related the product in question, and
the consumer's personality. To buy consumer durables like fridges and ACs, we need a great
deal of information from different sources. To buy fast moving consumer goods, we need limited
information.

To buy petty items, there is hardly any need for information seeking, except to know
what size is available, and at what price. The beauty of brand marketing is that it makes the
consumer loyal to the brands. These consumers then continue to buy the same brands, and do
not seek any information at all.

Information seeking starts with cognitive internal search - recalling information stored in
memory. This may lead to further stages of buying decision process. Alternatively, the
consumer may start external search; seeking information from sources other than memory.

The major external sources are peers, friends, colleagues, relatives whom we trust. In
addition, we get "information from different marketing communications, media, distribution
channels and consumer's own experience.

13.1.3 Evaluation of Alternatives

When, the consumer seeks information, he realises the alternative choices available to
him and gets the background against, which these choices can be judged. The brands which a
consumer consider while making a purchase decision forms an evoked set, which is a small
proportion of the total available brands.

Each brand in the evoked set is evaluated against some chosen criteria. A consumer
buying a mixie for example considers the following criteria:

• Band name
• Price
• Functions performed
• Appearance
• Attachments like a juicer, a chutney jar
• Reputation of the company marketing it
• Warranty
• Technical specifications
• After-sales service available.

Each of the above criterions is assigned some weightage, which may differ from
consumer to consumer. After this, it is all a matter of perception. To illustrate, flavour of sharbat
may have equal importance for two different consumers. But one feels Rasna orange has very
good flavour whereas the other feels that it is awful.

Promotion, especially advertising, provides information to the consumers enabling him to

evaluate the different alternatives.

13.1.4 Buying Decision

After the alternative choices are evaluated, the brands are ranked, and the top-ranking
brand may be purchased. The ultimate buying decision may undergo a change, if the preferred
brand is not available. In such a situation, the second-ranked brand may be bought. The
ultimate buying occurs only when the consumer finds a suitable outlet where the brand is
available, and price negotiations are complete.

13.1.5 Post-Purchase Evaluation

Now the product has been bought and consumed. It is the stage for post-purchase
evaluation. The consumer may either be satisfied or dissatisfied. A satisfied consumer stores
the product information in his memory and uses it next time at the time of problem recognition
stage. A dissatisfied consumer may go in for another brand next time he is out to buy. He will
seek additional information, and will consider another set of brands. To illustrate, a consumer
dissatisfied with Fiat may consider other small cars like Maruti 800, Zen, Hyundai Centro, Tata’s
Indica etc.

13.2 Model of Buyer Behaviour

Research workers have developed various models to explain the influences on buyer's
behaviour of purchase. Howard-Sheth model which has been developed by an Indian Jagdish
Sheth in collaboration with Howard explains the behaviour of an individual consumer. There are
separate models for group consumer behaviour and organisational buying behaviour.

13.2.1 Howard-Sheth Model

The decision process is influenced by four major sets of variables, e.g.: (1) Inputs, (2)
Perceptual and Learning Constructs, (3) Outputs, (4) External Variables.

(1) Inputs: These are stimuli to purchase decision. Significative stimuli are tangible product
characteristics provided by the marketer. Symbolic stimuli are intangible or perceptual
characteristics of the product, e.g., the overall quality. The actual price may be significative
stimulus, and the price being on high or low side for the bargain is symbolic stimulus. Social
groups like the family, reference groups and social class are the social stimuli.

(2) Perceptual and Learning Constructs: These are psychological variables, e.g., motivation,
attitudes, and perceptions affecting the buyer. The interpretation of the stimulus is influenced by
stimulus ambiguity and perceptual bias. Ambiguity of stimulus means the consumer is not sure
of the meaning of the stimulus and his response thereto. Perceptual bias makes him distort the
information received to fit his previous experience and his established needs.

His interpretation of the stimuli results in brand comprehension - his understanding of the
brands and their ratings. High rating builds up his confidence, resulting in the purchase decision.

(3) Outputs: The purchase decision itself is an output. Product trial may give him satisfaction. It
reinforces his positive attitude. Then there is reinforcement of purchase intent and brand. He is
favourably inclined to receiving stimuli which further improves his brand comprehension. On
getting dissatisfied with the product, he may develop negative attitude, insensitivity to stimuli,
poor brand comprehension and negative intention to purchase.

(4) External Variables: These are not part of the decision process in the model, but are
improvement to the extent they influence a buyer. These differ from buyer to buyer and include,
status, relevance of the product, social class, personality traits etc.
 Expectations of Evaluation of
Product / Brand
Performance from the Actual
Experience
Brand Performance

Evaluation of gap
Dissatisfaction between expected and Satisfaction
actual performance

Expenses confirmed
Performance does not Performance exceeds
Performance confirms
confirm to expectations expectations
to expectations mostly

Post-Purchase Behaviour

The desire to study the behaviour of consumers after the purchase has been made is a
'true' marketing orientation, identification with the consumers and seeing things from their
perspective. Purchases are purposive and motivated. Post-purchase behaviour indicates to
what extent these purposes have been met and motives achieved. Post-purchase activity gives
an indication as to whether the customers are going to again patronise a firm in future, and also
whether they will be in a mood to recommend a product to potential customers.

Formation of Satisfaction/Dissatisfaction

A purchase may lead either to satisfaction or dissatisfaction. Satisfaction is a result of

expected outcome - when the product meets our expectations. Dissatisfaction means it does not
perform as per our expectations. Dissatisfied customers may discontinue their association with
the company, may spread negative word of mouth, may send a formal complaint, or in extreme
cases, may sue the company. The communication strategy depends upon the expectation-
performance disparity.

Disparity Communication Strategy

Minimised by adjusting perceive1d Overstate product claims
expectations with performance Reasonably understate product claims
Magnified
Negative feeling Consistent claims with performance
Minor disparities minimised State product claims above the actual
Major disparities magnified performance marginally but within the overall
acceptance range of the consumer.

The other tips for advertisers to avoid dissatisfaction:

1. State the facts. Execute the factual promotion creatively.

2. Help the consumer on product use by giving adequate instructions or information.
3. Promotion should be solution-based rather than product-based. Emphasis products'
performance.
4. Assure the customers even when the purchase is over. State in your ads the fact - many
have used the product and are satisfied. Write thank you letters. Make the technical staff
visit the customer's residence to assess his feelings.

The technical term for a very wide gap between expectations and actual performance is
post-purchase dissonance.

13.3 NEUROMARKETING

Martin Lindstorm has made a valuable study of the buying habits of consumers by using a
technique of Neuromarketing which uses brain scanning results over 2000 participants from
around the globe to discern what led people to buy things. The whole study has been published
in a Book called Buyology- Truth and lies about why we buy.

Neuromarketing is the marriage of Science and Marketing. It looks at the brain by using MRI
and ECG to understand how the brain is affected by brands, ads and buying decisions.
Lindstorm feels that warnings of the injurious effects of cigarettes on packs suffer from Pavlov
effect because smokers get conditioned.

Religion is marketed by using many elements of brand building including mystery. Mystery is
leveraged by many brands such as Sony Trinitron TV’s. Trinitron is a mysterious technology.
Our senses play a great role to make us buy more and creative brand preferences. There are
audio clips which reminded us of particular products. However some tunes may provoke
negative feelings about the brand.

13.4 SUMMARY
Consumer behavior does not consist of discrete acts, but is a process. The five stages in the
buying decision process are: Problem recognition, Information seeking, Evaluation of
alternatives Buying decision and Post-purchase evaluation.

Research workers have developed various models to explain the influences on buyer's
behaviour of purchase. Howard- Sheth model which has been developed by an Indian Jagdish
Sheth in collaboration with Howard explains the behaviour of an individual consumer. There are
separate models for group consumer behaviour and organisational buying behaviour.

Martin Lindstorm has made a valuable study of the buying habits of consumers by using a
technique of Neuromarketing which uses brain scanning results over 2000 participants from
around the globe to discern what led people to buy things. The whole study has been published
in a Book called Buyology- Truth and lies about why we buy.

13.5 SELF ASSESSMENT QUESTIONS

1. What is Consumer Decision Making and explain the various stages in decision making.

2. What is Howard – Sheth Model of Buyer Behaviour.

3. Describe the concept of NeuroMarketing.

13.6 REFERENCE BOOKS

1. Chunawala SA, & KC Sethia, Foundations of Advertising – Theory & Practice, Himalaya
Publisihing House.

2. Harsh V. Varma, Brand Management, Text & Cases, Excel Books.

3. Tapan K. Panda, Building Brands, Excel Books.

 UNIT – 14

BRAND IMAGE AND IDENTITY

LEARNING OBJECTIVES

After reading this unit, the learner will come to know

x The conceptual knowledge of Brand Image and Brand identity in Brand Management.
x The scenario of Branding today.
x The concept of Band as Ownership symbol.

STRUCTURE

14.1 BRAND IMAGE

14.2 BRAND IDENTITY

14.3 BRANDING TODAY

14.4 BRAND AS OWNERSHIP SYMBOL

14.5 SUMMARY

14.6 SELF ASSESSMENT QUESTIONS

14.7 REFERENCE BOOKS

14.1 BRAND IMAGE

Brand image approach was developed by Ogilvy. Ogilvy described the role of advertising
as that of giving the brand a first-class ticket through life. A brand is invested with a set of
associations, favourable connotations and psychological overtones. These may not be an
intrinsic part of the brand, and may be just add-ons. It is the brand's image chemistry that works.
To illustrate, the image of Marlboro cigarettes evoke impressions of the maverick cowboys -
freedom, macho, mythical west. These are perceptions, which have been built around the
brand. Though most of these are extrinsic factors, some of these can be related to intrinsic
product characteristics.
 David Ogilvy observed in 1955 that 'advertisers who are dedicated to building the most
favourable image - the most sharply defined personality of their brand - are the ones who will
get the largest share of the market and the highest profit.'

Perception is defined as the process through which incoming stimuli are organised,
interpreted and given meaning. We perceive either through our senses or internally, some thing,
event or relation. Later we organise, interpret and put meaning on it based on the experience.
The nature of perception depends upon external stimuli and personal factors. Brand image is
the meaning consumers give to a product based on the perceived values it delivers. The
perceived value is more important than the actual value. A competitive brand may match our
quality and still is available at a lower price, thus giving better value. Our product, however, may
be purchased at a higher price because the perceived quality of our product is higher. The
actual better value delivered by the competitive product, thus becomes irrelevant.

According to Alycia Perry and David Wisnom III, brand image, is a matter of perception.
These collective perceptions are mostly uncontrollable; consisting of strength, weaknesses, plus
and minus points, formed over a period of time through direct or indirect experiences of a brand.
Since perceptions keep on changing, so does the brand image.

Research indicates that the brand image and consumer's self-concept together influence
his buying behaviour. The brand that closely matches the consumer's desired image of himself
is likely IQ find favour. The brand manager has to discover the prospect's self-image and invest
the brand with a matching image. The consumer then is likely to see himself reflected in the
brand. Brand Image is thus based upon our exposure to the brand or brand experience which
leads to the formation of brand perceptions. These perceptions consist of two components –
brand personality and brand associations. Collectively, thus brand image is a combination of
brand associations and brand personality.

Brand
Personality
Experience /
Perception Brand Image
Exposure
Brand
Association

Fig.14.1 Concept of Brand Image

Brand Associations

We have already observed that brand image evokes a set of associations. Aaker states
that a brand association is anything that is 'linked' in memory to a brand. He lists the following
types of associations:

a) Product attributes
b) Life-sty lei personality
c) Intangibles
d) Customer benefits
e) Relative price
f) Use/application
g) Celebrity/person
h) Product class
i) Competitors
j) Country/geographic area.

Upshaw (1991) thinks brand cluster is a group of meanings and associations that have
come to be attributed to the brand.

Brand Managers study the associations of product categories first, and then of the
brand. What are the associations of product category 'hair oil'? They are long, radiant hair with
sheen. In other words, nutrition to hair is a strong product category association. What are the
associations of, Oabur Vatika hair oil? It produces 'gahare lambe baal.' Thus it is positioned high
in the hair-oil category. Had it get weak association with hair nutrition, brand managers would
have worked to upgrade it to bring it the strong association expected in this product category.
Thus the correlation between product category association and brand association provides
clues to brand management.

Brand Beliefs and Brand Image

As we have seen, there are associations of a product category. Thus, a camera brings
picture sharpness and automatic operation to mind. Restaurants bring ambience, cost,
cleanliness to our mind. Some of these are salient to us, whereas some are not. Some become
salient to us when mentioned. Brand Managers, therefore, weigh these associations in terms of
their importance. Each brand is positioned on these associations. It is called a brand belief.
Brand beliefs together make up a brand image. The consumer's brand beliefs are a matter of
perception, and will vary with experience, and the nature of perception.

Expectancy-value Model

Multi-attribute or association brands are evaluated with the help of this model. Here a
weight is assigned to each attribute or association and each brand is rated oh 0-10 point scale
on each attribute. The products of weight and brand rating as per consumer beliefs are summed
up to get the perceived values.

Altering Brand Beliefs

Brand Managers can change the consumer's beliefs on the positioning of the brand on
key attributes. This is necessary when the brand is underestimated. This process is in reality
psychological repositioning.

It is possible to alter the beliefs on positioning of the competitor brands. This is

necessary when a competitive brand is mistakenly believed to be superior to our brand on some
key attributes. It is called competitive depositioning and is often done by comparative
advertising. It is necessary to change the weight the consumers assign to an attribute,
especially if it happens to be our brand's major attribute. \'\1e can invite the attention of the
consumers to the neglected attribute.

Organisational Association

One important association of any brand is the organisation that markets it. Most of the
times, we are not aware of the organisation that markets a well-known product, e.g., Lux which
is made by Hindustan Lever. There are, however, a number of products which are identified by
a corporate organisation making it, e.g., Godrej, Bajaj, Tata, Sony, GE and so on. We have
three options, to have a strong brand image, to have a strong corporate image for the benefit of
the brand, and to have a hybrid of both the brand and corporate image.

Corporate image is likely to be tarnished when there is a strong link between a brand
and organisation, and the brand fails, e.g., Bata, HMT and Hindustan Motors. Corporate image
in such cases can be revived by rehabilitating the product brand.

A strong corporate image can help establish the bona fides of the product offering. This
is specially valuable to high risk product categories. Creation of corporate image involves so
many parts of the oganisation. It is, therefore, more challenging than creating just a brand
image. Corporate image can be leveraged. In those cases where corporate brand name is used
as umbrella brand, the existing awareness and brand values of the corporate image are
leveraged, e.g., BPL, Videocon, Wipro. Formerly, it was seller's market where the demand far
exceeded the supply. There was no need for companies to have an image. In buyer's market
where the supply exceeds the demand, people's perception of a company do make a difference.

How to build a corporate image? Just statistics of achievements won't do. Neither the
fanciful account of corporate visions. A tombstone presentation of corporate milestones is also
no longer of interest. Corporate image is based upon the discovery of that special quality that
sets one company apart from all others. This difference must then be communicated aptly. A
corporate brand exists in the consumer's mind. It is built through a combination of overall
corporate behaviour and communications.

Japanese firms are highly obsessed by image considerations - their key dimensions are
innovativeness, success and social responsibility. These days companies just do not keep them
confined to products/brands. They address many philosophical and social issues, e.g., United
Colours of Benetton. Organisations have adopted relationship marketing which in essence
means coming closer to the customer to understand his problems so as to develop responsive
programmes.

Corporate brands are put by the Japanese companies on a wide variety of products.
Neon lights of these names can be seen in major metros of the world. Unlike the practice of
selling businesses in the US, Japanese businesses are never sold, and hence the investment in
creating a corporate image and identity is worthwhile. .

Brand advantage is built by basing it on corporate image in this age of more or less
similar products. Here differentiation is provided by values and culture of an organisation, its
people, its programmes and its competencies. Corporate brands denote organisational values
and competence, e.g., Sony is known for quality consumer electronic products and Bajaj
Electricals for a whole range of electrical appliances. Image is transferred to a variety and large
number of product brands. This is economical, and it is easy to promote such a corporate brand.
However, it is not necessary to have a corporate brand only to get some associations of
corporate image. Even without having a corporate brand, organisational associations can
become important elements of a brand image.

Some of the usual associations of corporate image are social orientation,

innovativeness, concern for customers, perceived quality, local and global and overall
availability and success. Corporate brands generally provide credibility by endorsing a product
brand. Credibility is a function of expertise, trustworthiness and likeability of an organisation. An
innovative corporate image gives a leverage in extending the brand name further. An innovative
corporate image provides respectability to the brand.

Nicholas Ind in his book The Corporate Brand (Macmillan) says that to. project the
desired image, the organisation should devise a well-thought-out strategy to build bridges with
its various audiences. The key word here is consistency; messages emanating from the
organisation reach a wider audience than managers ordinarily imagine. Unless there is
consistency in these messages, it is quite likely that the audience gets a distorted view of the
organisation.

Corporate image also provides a sense of direction to its employees. The advantage
conferred by a strong corporate image is difficult to assail; whereas a brand image based on
attributes is vulnerable, as attributes can be surpassed in course of time.

Brand Images and USP

Though apparently image approach and USP look a distance apart, they are quite close.
USP makes the consumer identify the brand with a particular benefit. Brand stimulates an
association of the benefit. But this very association is an image. The difference between USP
and the brand image is the difference of the degree of complexity of the associations. Marlboro
gave a cowboy image via USP. It is a focused identity, a narrow identity. The company was the
first to do it. Perhaps, brand image gives a rather diffused identity, open-textured identity.

Brand Image and Brand Identity

Brand image, as we have already observed, is perceptional whereas brand identity is

aspirational. It means brand identity covers even those perceptions which a brand manager
would like to be associated with the brand. It means a brand manager would like a brand image
to travel to brand identity which is the goal. A woman's magazine is associated for instance with
middle-aged women. It is a matter of brand image. However, the brand manager wants it to be
read by young women. It is a question of brand identity. In other words, brand identity is built on
re organising what the current brand image is. We thus have three distinct concepts, brand
image which leads to brand identity, of which a part will be chosen for communication, which is
brand position. Diagrammatically it is shown below:
 Brand

Brand Position
Brand Identity
Brand Image Part of brad identity and
Proposed perception to a
Current perception value proposition chosen
target audience
for communication

Brand Identity: Strategic Slant

Brand identity is not just brand image. Brand image, a concept developed by Ogilvy,
invests the brand with a set of associations, favourable connotations and positive psychological
overtones. Brand image no doubt gives what according to Ogilvy is 'a first class ticket through
life.' Mostly these images are not an intrinsic part of the brand, but are add-ons. In a blind test,
the customers may not be in a position to identify the given soft drinks on the basis of taste
when the brand names are not disclosed to them. Just disclose the brand names, and they start
comparing. In case of soaps, every blind test confirms that respondents' evaluation of even
'fragrance' and 'feel' changes radically when shown the label. In fact, they are tasting images.
The image of a Marlboro cigarette is maverick cowboys ... freedom ... macho ... mythical west.
Though mostly extrinsic, images may be based on intrinsic facts of the brand. Thus, the
quietness of Rolls Royce is conveyed by the loudest noise from a clock.

Though brand image is a matter of perception on the part of the consumers and do help
in creating brand identity, the brand identity goes much further. Brand image is a passive
perception and is based upon past associations. It is a short-term tactical view. It ignores the
direction of the brand in future. Many qualities of the brand may not be reflected in the brand
image, but they are incorporated in the brand identity. Brand is not just consumer's viewpoint
identity. It reflects essence of a brand and its futurity. It has strategic intent.

Brand identity is much more comprehensive than brand positioning which communicates
to the consumer relevant values of the brand so as to distinguish it from competing brands. In
an attempt to communicate the values of the brand, the positioning statement becomes just a
slogan. Mind well, brand identity is not just a slogan.
 Perception of the brand on the part of consumers which is an external perspective also
does not constitute brand identity. Intrinsic worth of the brand also forms an invaluable part of
the brand identity.

It should also be appreciated that a brand does not merely exist as a bundle of physical
attributes. It has intangible attributes, personality, symbolism and corporate associations.

Brand identity is thus much more than just physical attributes.

What Brand Identitty is not

Just physical
Just Brand Just Just outsiders
attributes of
Image positioning perception
the product

Fig. 14.2 What Brand Identity Is Not?

Brand vs. Product

A product is anything that may satisfy a want or need. It includes physical objects,
services, persons, places, organisations and ideas. Consider a motor-cycle. It is a product. It
has physical attributes of speed, fuel efficiency, comfort, load-carrying capacity while riding and
so on. Consider Hero Honda motorbike. It is all these physical attributes plus the feeling of
machoism and dynamism of present-day young generation. Jeans as a product is just a piece of
clothing for protection, but for most college-going students like you, it makes a fashion
statement. Products are thus attributes. They also show scope (Ponds makes cosmetics),
quality (Tribhovandas jewellery is qualitatively best) and uses (a motorbiketakesusplaces). A
brand is much more than a product. It includes not only the characteristics of products but also -

x Country of origin (Grundig has German technology)

x Corporate association (Asian Paints - a highly professional paint company)
x Brand users (the Garden woman)
x Brand-customer relationship (Grindlays is a relationship bank)
x Emotional benefits (Hamara Bajaj)
x Self-expressive benefits (Double Bull - for men of vision)
x Symbols (Cadbury - one and half glass of milk to show its nutritive quality)
x Brand personality (the Liril girl under the waterfall)

Fig. 14.3 Concept of a Brand

Thus, now you see why just product attributes do not constitute brand identity. First of
all, they are not sufficient to differentiate a brand, because over a period of time, most brands
show more or less the same attributes. They are so easily copiable. It is also not correct to
assume that a consumer is a rational human being. He does consider status and style also
along with other emotional attributes. A whole new field of research called motivational research
has opened up to study the hidden motives of a consumer while buying. A brand associated
with only attributes does face an extension problem. Videocon does not mean only colour TVs.
In that case, it is difficult to extend Videocon brand name to washing machines, air-conditioners
and audio products. It means reliable home appliances backed by reliable after sales service.
Videocon then can easily be extended to a host of other products. It is now obvious that a
change in focus from attributes to broader brand identity invests the brand with a strategic
flexibility.

Brand Identity Elements

Brand identity can be anchored to four elements. These are:

1. Brand as a product.
2. Brand as an organisation.
3. Brand as a person.
4. Brand as a symbol.

These have been tabulated here.

Brand identity sends a single message about the brand. The consumers feel they are
dealing with one brand. Brand identity has vision and aim, is different, fulfills a need, has values
and signs that make it recognisable. Graphic identity is a part of brand identity.

Brand identity has two dimensions - core identity and extended identity. Both of these
have product, organisational, personality and symbolic perspectives. It does not mean a brand
should reflect all these perspectives. It reflects the relevant ones so as to occupy a slot in the
consumer mind. The above table summarises these perspectives.

Brand identity consists of its core identity and extended identity.

Core Identity

It is, in fact, the essence of a brand. A brand, like an onion has many layers of extended
identity. Peel them off, and what ultimately remains is its core identity. Thus Lux is a soap for
complexion - a beauty soap. It is its core identity. Core identity represents the soul of the brand
and the fundamental values and beliefs that back it up. Core identity may draw its sustenance
from an organisation that stands for certain values. Though core identity can be reduced to a
few words of a slogan, a slogan may not always be capable of capturing the whole of core
identity. Mastercard's core identity is that it is an effective link between 'eyeing the merchandise
and buying it,' and thus shows 'the future of money.' However, it is not the full description of its
core identity. Mastercard is a convenient method of paying and has wider acceptance at so
many merchant establishments.

Extended Identity

Core identity is not enough to describe a brand. Elements of extended identity makes for
complete description. Elements of marketing programme which have a bearing on brand identity
are included in extended identity.

Perspective Dimensions Remarks

Brand as Product class Brand name evokes the name of product class, e.g.,
Product association Kwality and ice-cream.
Perspective Dimensions Remarks

Attributes Extra or additional benefits are ernphasiscd, e.g., Gillette

Sensor which glides smoothly over the contours of the
face.

Quality Quality-price relationship is kept in mind.

Quality can be made a core identity element.
Value is what we get at a price.
High quality products at reasonable prices increases the
value of the product.

Use occasion Ala is cloth whitening. Woolite is for woolen clothes. Ezee
for gentle washing.

Users Johnson and Johnson is for babies.

Country or region It lends credibility to the brand. A perfume brand from

France is accepted.

Organisation Oragnisational Tata stands for quality. Such an association is more

attributes enduring than one based on product attributes. 3M is an
innovative organisation.

Brand Brand as a It enriches a brand and makes it more exciting. A brand

personality person can be friendly, funny, youthful, casual, formal, active one-
up, competent and intellectual.
Vehicle to express the personality of the user.
Basis for the relationship between the brand and the
customer, c.g., Jeans and rugged rough and tough person.
(Rough and Tough ho to Ruf and Tuf pehno)

Symbol Contributes to functional benefits. MRF muscle man

suggests MRF tyres are strong.

Visual imagery Coca-Cola's classic bottle.

Metaphor Kodak and yellow colour.

Cupped hands in LIC logo shows security.

Heritage The journey in palace-on-wheels, the coaches of which are

the saloons of former Maharajas.

14.5 SUMMARY
Brand identity is not just brand image. Brand image, a concept developed by Ogilvy, invests the
brand with a set of associations, favourable connotations and positive psychological overtones.
Brand image no doubt gives what according to Ogilvy is 'a first class ticket through life.' Mostly
these images are not an intrinsic part of the brand, but are add-ons. In a blind test, the
customers may not be in a position to identify the given soft drinks on the basis of taste when
the brand names are not disclosed to them.

14.6 SELF-ASSESSMENT QUESTIONS

1. What is Brand Image. Explain it in brief?

2. Describe the concept of Brand Identity in detail?

3. Explain the status of Branding today?

14.7 REFERENCE BOOKS

1. Chunawala SA, & KC Sethia, Foundations of Advertising – Theory & Practice, Himalaya
Publisihing House.

2. Harsh V. Varma, Brand Management, Text & Cases, Excel Books.

3. Tapan K. Panda, Building Brands, Excel Books.

 UNIT – 15

BRAND PROTECTION STRATEGIES

LEARNING OBJECTIVES

After reading this unit, the learner will come to know

x The conceptual knowledge of Logistics and Logistics Management.

x The mission statement of logistics and objectives.
x Various models of logistics management.

STRUCTURE

15.1 INTRODUCTION
15.1.1 GENERIC BRANDS
15.1.2 INFRINGEMENT
15.1.3 TRADEMARKS.
15.2 TRADEMARKS AMENDMENT BILL, 2009
15.3 COPYRIGHT LAW
15.4 PATENTS
15.4.1 REVAMPING THE PATENT OFFICE
15.4.2 OBLIGATIONS OF THE PATENT HOLDER
15.4.3 VALIDITY OF PATENT
15.5 INTELLECTUAL PROPERTY RIGHTS (IPRS)
15.6 SUMMARY
15.7 SELF-ASSESSMENT QUESTIONS
15.8 SUGGESTED READINGS

15.1 INTRODUCTION

Brands are protected by a variety of laws - laws on copyrights, trademarks and other
intellectual property considerations. If a brand becomes a common household word, it is a
hazardous situation. As building a brand requires a heavy investment, it is necessary to make
careful plans to protect it. Richard S. Post and Penelope N. Post in their book Global Brand
Integrity Management make out a strong and passionate case for making the protection of
brands as important as the promotion used to market these brands. They use the all-inclusive
term brand integrity for brand protection, product protection and product integrity.

15.1.1 Generic Brands

A too powerful brand does not augur well for the company as it is likely to become
generic, and uses trademark protection. Thus Nylon, Escalator, Aspirin and Cellophane have
lost their brand character. Others like Xerox, Kleenex and Scotch are too close to becoming
generics.

15.1.2 Infringement

Registered brands get legal protection. Products are patented, and also get legal
protection, since brands arc intellectual property, we should understand what Infringement of
intellectual property means.

15.1.3 Trademarks.

Trademark protection is very common in most of the countries. They are words, names,
symbols or icons used by creators and sellers of goods and services to identify them and to
distinguish them from those made and sold by others.

India has trade mark registration legislation. A trademark that merely describes a
product category, say PC, cannot be protected. It must be a distinguishing symbol, say HP
computers. A trademark that is similar to one already in use and that which likely to cause
confusion or mistake cannot be protected by registration. Though trademark office makes is
own search for finding such similarities, a company must perform its own search.

Trademark Laws give the owner exclusive rights to use the trademark. The owner can
obtain injunctions against confusing use of their trademarks by infringers and they can collect
damages for infringement.

A trademark registration can be challenged initially if there is another user who can
prove its usage widely.

Trademark registrations have gone up from 11,190 in 2002-03 to 1,01,300 in 2007-08.

15.2 Trademarks Amendment Bill, 2009

 This bill sets the stage for a simpler trademark registration process in the country. A
person seeking global trademark will not have to apply it in several countries incurring additional
costs. The new bill is in line with the Madrid Protocol which is cost-effective system for
international registration of trademarks. It enables nationals of its member countries to obtain
trademark registration within 18 months by filling a single application with one fee and one
language in their country of origin. This in turn is transmitted to other designated countries.
India's accession to the protocol entailed the changes in the law. A new chapter has been
included in the law for protecting international registration of trademarks.

15.3 Copyright Law

Brands are not protected by copyright laws, but these can be used to protect ads and
package designs when trademark protection is not available, A copyright owner has the
following exclusive rights -

x Right to reproduce
x Right to distribute copies of the work
x Right to public performance
x Right to public display
x Right to modification

If copyrights are violated, it is called infringement, when there is wholesale copying it

amounts to copyright infringement, if there is limited copying, it is called plagiarism. Brand
literature and manuals are protected by copyrights.

The term of copyrights is the life of the author plus 50 years. Copyright is generally
owned by the person who created the work. However, if the work is created by an employee as
a part of employment, the employer 'owns' the copyright.

15.4 Patents

When inventions and processes are patented, it is called utility patents. When designs
are protected, it is called design patents. Patents do not protect a brand name. The patent
holder can exclude others from making, using or selling the patented invention/ design during
the term of the' patent. Any breach without the permission of the patent holder is an
infringement. Once an item goes off patent, it can be made,' used and sold, by anyone.
 Patents have a term of 20 years from the date of filling a complete specification under
IPR.

A patent is not a right to practise or use the invention. Rather, a patent provides the right
to exclude others from making, using, selling, offering for sale, o! importing the patented
invention for the term of patent.

Current Intellectual Property (IP) regimes are excessively formalistic in their orientation.
They, cater largely to what is known as "formal" economy. It is assumed that innovation is the
sole prerogative of a lone inventor. Similarly, content creation is the preserve of artists and
writers. But we ignore that there is an informal network of programmers who can bring us highly
innovative and free software products. It is a collaborative innovation. There are collaborative
innovations in biotech and pharrna industries. Since 60's there is no major breakthrough in anti-
TB treatment. CSIR is attempting to leverage an online collaborative model to come up with a
new drug for TB. In the context of copyright law, there is emergence of user-generated content.

15.4.1 Revamping the Patent Office

In India, the patent registration process is tedious. The infrastructure is poor. The patent
offices must be revamped to lay foundation of a good patent regime. Their number should be
increased. Attention must be paid to their staffing and manpower. The staff should have access
to the data base to enable them to know the state of affairs internationally. Or else, its difficult to
say whether the patent already exists or the formulation is novel.

Patent protection is also an area that needs attention. There is a huge backlog of cases.
The patent offices here have just 2 lakh specifications as against 2 million in other countries.
The minimum requirement for any international search authority is 30 million specifications.
There is tremendous scope of computerization, e.g., computerization of search files. The
classification must be refined. There are only a little over 200 search categories here with the
sub-categories adding up to 2000 subjects only. Internationally, classification subjects are about
50000.

Patent offices lack trained examiners who are subject experts. As against a handful of
examiners here, there arc hundreds of examiners in offices abroad.

There is Patent Information System at Nagpur which needs further upgradation.

 Existing vacancies must be filled up. Salaries must be revised. There should be a career
path. Different patent offices do not co-ordinate with each other. Pre-grant opposition in Indian
law is flawed. After gazetting the application, it tak~s a long time to record the objections.
Sometimes there is litigation. The patent period might lapse and the invention may be available
in .public domain.

Patents do not have enough safeguards. These are required to promote R & D. Proper
guidelines must be laid down to examine novelty, inventiveness and utility of a claim.

Patent attorneys must be given sufficient training. Information on patents must be

available to the public at a reasonable cost. Delays, cumbersome procedures and poor royalties
have discouraged patent regime in India. Inventers prefer to obtain patents in other countries.
Penalties for breach of patent must be increased In a year, we receive about 1500 to 2000
applications for patents whereas inother developed countries; this number is as high as 3 to 4
lakhs applications per year.

India's patent office is changing the process of examining applications. Currently,

controllers in charge of Kolkata, New Delhi, Mumbai and Chennai regional offices can assign
specific applications to examiners of their choice. The new process would centralise the
process. There would be co-ordination in all the four' offices in terms of patent examination and
granting process. There will be an integrated IT platform.

15.4.2 Obligations of the Patent Holder

He has to work on the patent, manufacture the patented goads, pur them in the market
and make them available in adequate numbers and good quality to consumers at equitable
prices.

The one year period between the provisional filing of specifications and the date of filing
complete specifications is allowed to explore the manufacturing and marketing possibilities
before the patent is finally granted.

The patent is likely to be revoked or treated as lapsed if:

a) The inventor does not work the patent.

b) Fails to file' reports about how it works.
c) Fails to pay annual fees.
 If the patent holder does not make the goods available in adequate numbers or quality,
the controller may grant what is called compulsory licence to any other person who is willing to
work the patent and supply the patented goods to the public.

The government has the option to fix a fair price if the patent holder puts an exorbitant
price. If the government is unsatisfied, it has the right to produce them by itself or make them
through some other agency for usage as it pleases. For instance, the government may produce
patented medicines and supply them to government hospitals.

As a relief, the patent holder is entitled to royalty the parties agree on. A patent not in
public interest can be revoked, e.g., supply of substandard goods, misbranding, non-patented
goods being passed off as patented goods, wrong attachment of symbols to non-patented
goods.

The patented goods can be manufactured abroad, and be imported to India, for
distribution and sale. A foreigner having patent there can get the goods manufactured here and
then export them abroad for distribution and sale.

15.4.3 Validity of Patent

As per the recent provisions of law, a pa tent is valid for 20 years for all types of goods
and services. Formerly, it was 14 years for all goods, 7 years for drugs and medicines and 5
years for food.

After the expiry of patent period, the art behind the patent enters the public domain. It is
then open to any person to deal in the patented goods in any manner without the consent of, or
reference to, the patent holder.

Use of a Brand Name

A brand name should be used just like a brand name. If we use it like it noun or a verb,
there is a danger of losing it (we have to say, get the document photocopied, rather than get it
xeroxed). Once the brand name become generic, we will not be able to protect it. Even while
choosing a brand name, a distinctive name should be chosen, rather than a name like Super
Glue or windsurfer which are difficult to protect.
Growth of R & D in India

According to Dataquest analysis, the number of patents filed from India went up to 1216
in Fiscal 2004, against 848 in 2003. However, only 9 per cent of patents filed out of India were
from Indian companies. The rest were from MNC development centers. In terms of patents
granted, of the 336, as many as 327 were for MNC development centers. Two factors have kept
Indian companies out of action-lack of awareness, and the high cost. It takes Rs. 15 lakhs to get
a patent filed and granted.

Litigation

If someone appropriates the brand name to usurp its reputation one has to fight in a
court of law by engaging a competent trademark and patent attorney.

15.5 Intellectual Property Rights (IPRS)

Intellectual property is now considered more precious, valuable, and significant than the
landed estate or the property as traditionally understood. April 26 is celebrated as World
Intellectual Property Day.

What is worth copying is prima [aae worth potecting is the genesis of intellectual
property rights. These rights refer to the property that is a creation of mind, inventions, literary
and artistic works, symbols, names, images and designs used in commerce. Like any other
property, the property created using the mind also entitles us to certain rights. Patents grant a
monopoly on the use of intellectual property for a limited time-frame. Inventors can get a patent
if they can prove that their product is useful, new and is not obvious. IPRS are saleable,
licensable just like any other concrete asset. These can also be abandoned. IPRS is a broad
concept with two major classes - copyrights and industrial property rights. Copyright are
exercised in respect of literary, musical, artistic, photographic and audio-visual works. Industrial
Property (IP) rights relate to the patents, industrial designs, trademarks and appellations of
origin. World Trade Organisation collectively puts, these rights as Trade-Related Industrial
Property Rights (TRIPS). The agreement has been signed by India, and ratified. TRIPS put
intellectual property in seven classes.

1) Copyrights and related rights

2) Trademarks and service marks
3) Geographical Indications
4) Industrial Designs
5) ICs - their layout designs
6) Patents
7) Trade Secrets or Undisclosed Information.

Each one of the above subjects is covered by a separate legislation as far as India is
concerned. In India, the Copyright Act has been amended in 1994, and provides for economic
and non-market rights. We satisfy WTO conditions. However, copyrights implementation leaves
much to be desired. Under the Trade and Merchandise Marks Act, there is a registration for a
period of seven years. Though WTO provides registration of service marks, we have not yet
legislated on this. WTO expects industrial designs to be protected, if they are nen. and original,
for a period of 10 years. The Indian Designs Act, 1911 does provide protection to industrial
designs in India, though the protection period needs upgradation. IPR, intends design
registration for a specific term - initially 10 years and renewable for another 10 years. The Indian
Designs Registration Act, 2000 and Rules 2004, provides protection period to industrial designs.
Geographic Indications must be protected, and in India Geographic Appellations Bill drafted by
the Ministry of Commerce awaits approval. Geographical Indications of Goods (Registration and
Protection) Act, 1999 mended in the year 2003 and Rules 2004 were introduced to comply with
WTO provisions. There is Biodiversity Act of 2002. Geographical indications are akin to
recognition of the global trademark of a product. Scotch whisky has special recognition in \'V'TO
charter itself. However no such special recognition is available to the Indian products such as
Darjeeling tea. Mysore silk, Kanjeevaram silk, Ratnagiri alphonso or Nagpur oranges. Goa's
own drinks feni will soon be India's first country-liquor to get the Geographical Identification tag.
No other state or country can then produce a beverage with the same name. Like Scotch
Whisky from Scotland, Champagne from France and Tequila from Mexico, Feni will soon
become India's own drink from Goa. During the last four years, 104 products have been
registered under the Act. The registered products include a wide variety of goods such as
Darjeeling tea, Pochampally, Ikat, Chanderi Sarees, Mysore Agarbathi, Kullu Shawl, Coorg
Orange, Kancheepuram Silk etc. The famous Tirupati Iaddu has a geographical indication. (GI)
tag on 15th Sept. 2009. ICs remain unprotected in India, whereas \'V'TO expects protection for
a period of 10 years. Trade secrets are not treated as a form of property under wro. However,
IPR provides protection to persons/institutions on information lawfully under their control from
being disclosed to, acquired by or used by others without their consent 111 a manner to
conform commercial practice, so long as the information is secret and has commercial value
due to its confidentiality. In India, the Law of Contract and Partnership Act offer some limited
protection to trade secrets.
 The Patents Act was completely revamped to make it WTO compliant so as to ensure
recognition of product patents rather than process patents. This will affect the traditional Indian
medicinal systems. TRIPS expects patent protection to be extended to inventions (which
includes both products and processes) in every field of technology. The Indian Patents Act,
1970 does not allow product patents for drugs and medicines, food and chemicals. IPRS
movement across borders has not been under international covenants. The implementation is
lax. Patent violation is not considered a serious crime.

Under WTO, except for patents, a transition period for IRPS allowed is till 2000 for
introducing protection norms. For patents, the dead-line is till 2005. In the meantime, there is
mail-box arrangement to decide patent priorities. Interim protection is through the grant of
Exclusive Marketing Rights (EMRs) for five years, starting from year 2000. India has not passed
the Patents Bill, 1995 which lapsed. The BJP-led government has passed the Patents
Amendment Bill, 1999. In this Bill, the government retains the right to examine the applications
before granting Exclusive Marketing Rights (EMRs). It will enable the applicant to be the sole
marketer of the product till the actual patent is enforced - the deadline for which is 2005. The
second provision is with respect to the government's right of taking over the licensing rights for a
product, and granting it to a third party. If the government finds that EMR-holder is not able to
meet all the demands, it may take away the right altogether. The Patent Act (Amendment), 2005
and Rules 2005 are passed with effect from 1 st January, 2005.

Indian Patents Act, 2005 allows both process and product patents in all fields of
technology. The duration of patents is 20 years. There is no discrimination between domestic
and imported products. The issue of microorganisms, non-biological processes and
microbiological processes patents is referred to expert committee. Plant varieties are not yet
protected, though some protection is available under Plant Varieties and Farmers Right Act,
2001. The Plant Breeders Rights Bill is under consideration.

The Government has also accepted the Paris Convention for protection of intellectual
property, which seeks to protect industrial property rights. India has also agreed to abide by' the
patent Co-operation Treaty of the UN Patent Agency WIPO. This will allow a single patent
application for a number of countries.

The most important resource today is not land, labour or capital but knowledge and
information, and it is no longer a free resource.

Patents and ideas

 There is no patent for ideas, however innovative they may be. Ideas should flow freely.
They are public property. It is also not possible to stop their spread. They have no commercial
use by themselves.

Theories of management and the ideas which are called business secrets are protected
as confidential information and are not entitled to the grant of a patent. They can be protected
by agreements.

The way the ideas are expressed can be copyrighted. A book is not copyrighted for the.
ideas, but for the way they are expressed, e.g., phraseolosy used and the content in which they
are put.

A patent is granted to the product manufactured by implementing the idea when such a
product has a commercial use.

Interestingly, Bikram Choudhary, President, Bikram's Yoga College of India, head-

quartered in LA, USA felt that yoga can be owned, for which he fought a three year court battle
in the US, Just as a musician picks a piece, studies it and creates his own melody; he created
his own sequence of yogic actions. It is his invention and it works. It is his Intellectual Property
Right, and he can own it by patenting.

Trade secrets are undisclosed information and should be treated as a form of property.
But there is no specific statute for this. National Officials Secret Act (NOS), Indian Contracts Act
and Indian Partnership Act offer minor protection. Data protection is proposed through
amendments in Drugs and Cosmetics Act, 1940.

15.6 SUMMARY

Brands are protected by a variety of laws - laws on copyrights, trademarks and other intellectual
property considerations. If a brand becomes a common household word, it is a hazardous
situation. As building a brand requires a heavy investment, it is necessary to make careful plans
to protect it. Richard S. Post and Penelope N. Post in their book Global Brand Integrity
Management make out a strong and passionate case for making the protection of brands as
important as the promotion used to market these brands.Brands are not protected by copyright
laws, but these can be used to protect ads and package designs when trademark protection is
not available, A copyright owner has the following exclusive rights - Right to reproduce, Right to
distribute copies of the work, Right to public performance, Right to public display and Right to
modification
 If someone appropriates the brand name to usurp its reputation one has to fight in a
court of law by engaging a competent trademark and patent attorney.

15.7 SELF-ASSESSMENT QUESTIONS

1. Explain the concept of Brand protection in brief.

2. Give a brief note on Trademarks amendment Bill, 2009.

3. Explain Copyright Law and Patents.

4. Give a Brief note on Intellectual Property Rights (IPRS)

15.8 SUGGESTED READINGS

1. Chunawala SA, & KC Sethia, Foundations of Advertising – Theory & Practice, Himalaya
Publisihing House.

2. Harsh V. Varma, Brand Management, Text & Cases, Excel Books.

3. Tapan K. Panda, Building Brands, Excel Books