Dr Buston CHU

MKTG3512

Brand
Management 2nd Semester 2022-23
Week 1 – Part 2
Chapter 1
▪

▪
 1915-
1929
manufacturer
brands on 1946-
1266 regional and
national basis; 1985
English Law specialized brand
(bakers, marketing of management
goldsmith) brands standards

Co-creation
of Brands

1860-1914 1930- 1986-

widely 1945 now
distributed advertising branding
manufactured regulation; becomes
branded registration more
product; of service pervasive
retailers; marks
advertising;
Net Worth: US$380M
2.bp.blogspot.com

Source: Celebrity Net Worth Hdwalle.com

▪Identify
▪Differentiate
•

• Responsibilities
• Rights
 Brand
Elements

Brands versus
Products
Different components that
identifies and differentiates
a brand
▪ Name, logo, symbol,
package design, or
other characteristic
Can be based on people,
places, things, and abstract
images
Xiaomi Mi 11 Pro
HK$7,800

iPhone 12 Pro
HK$10,999
 Brand
Value
Apple (No.1)
US$178B

Brand Value
Samsung (No. 7)
2021 US$52B
Apple – No. 1 (US$408B)
Samsung – No. 5 (US$75B)
 Brand
Brand Commitment
Love Brand
Trust
 SMARTPHONE 1st 5th
GLOBAL MARKET SHARE 2015-
85th
$408B $75B $6B
2019
Samsung Huawei Apple
SMARTPHONE
GLOBAL MARKET SHARE 2015-2019
MARKET SHARE

13% 13.20% 12.40% 12.50% 13.40% 25.00%

16.80% 14.60% 10.40% 9.30% 7.60% 20.00%

21.80% 20.30% 22.10% 20.90% 23.30% 15.00%

10.00%

2019 Q3 2018 Q3 2017 Q3 2016 Q3 2015 Q3 5.00%

0.00%
YEAR 2019 Q3 2018 Q3 2017 Q3 2016 Q3 2015 Q3

Source: Statista Samsung Huawei Apple

2020
5 Level of Product Values Satisfying
Fundamental
need or want
Core benefits
Basic version with
Generic necessary functions,
product no distinguishing
features.
Expected
Productproduct
≠ Brand Normally expected
attributes or
Augmented characteristics
product
Potential Distinguishing additional
attributes, benefits, or
product related services

Possible future
augmentations and
transformations
Brand Product
Has dimensions that differentiate it in Anything available in the market for use
some way from other products designed or consumption, that may satisfy a need
to satisfy the same need or want

Can be differentiated on the basis of: Can be categorized into five levels
• Packaging namely:
• Services provided • Core benefit level
• Customer advice • Generic product level
• Financing • Expected product level
• Delivery arrangements • Augmented product level
• Warehousing • Potential product level
• Other things valued by the customers
 Perceived
differences

▪ perceived differences
Loyal
customer
▪ loyal customer
▪
Value &
profits Profits
 ▪

Source:
Interbrand
Consumers Firms
 =

GDP of HK = HK$2,703,402,000,000

+
=

=
• Brand value of 2020 data
• CK Hutchison (2020 Annual

HK$4,139,194,600,000
Report) :
Revenue HK$403,846,000,000;
Earning HK$29,143,000,000
▪

▪
▪

▪
 Signal

grocery automotive tyre Insurance

Search goods Experience Credence

Can judge simply by goods goods
looking Cannot tell by just Cannot judge the
Price leadership looking value even after
Channel (Convenient, easy-to-find) Price indicates consuming
Source (manufacturer you can trust) value – word-of- Faith-based
Longevity (since 1900) mouth, longevity Third party rating
Geography (made in Germany)
Packaging
 Functional
Physical
Reduce
risks Financial
Social psychological
Time
▪

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

Means of identification to simplify handling or tracking

Means of legally protecting unique features
Signal of quality level to satisfied customers
Firms Means of endowing products with unique associations
Source of competitive advantage
Source of financial returns
PHYSICAL GOODS SERVICES
Business-to-Business
Products

High-tech Products
Role of Branding with
Services

Professional Services
RETAILERS AND ONLINE PEOPLE AND
DISTRIBUTORS PRODUCTS AND ORGANIZATIONS
SERVICES

SPORTS , ARTS, AND GEOGRAPHIC IDEAS AND

ENTERTAINMENT LOCATIONS CAUSES
▪ universal pervasive

▪ tangible
intangible
▪ Technological developments

▪ financial benefits
▪ Without a strong brand as an
interface between your
incredibly fast-moving
company and your actual
customers, it’s difficult to
make real impact in the
market.
 Since 1853
Professor Peter Golder studied of brand leadership 1923 to
1997 (650 products in 100 categories)

▪ 23 of the top brands remained market leaders

▪ 28% leading brands failed
▪ Clothing and fashion experienced greatest
failure – 67%
▪ Food & Beverage 39% maintained leadership
while 21% failed
Since 1886
5 factors for enduring market leadership*
▪ Vision of the mass market
▪ Managerial persistence
▪ Financial commitment
▪ Relentless innovation
▪ Asset leverage

(*) Golder, Gerrard Tellis

10 factors present in leading brands*
1.
2. External
▪
– Relevance
▪
– Authenticity
▪
– Differentiation
▪
– Consistency
– Presence
– Understanding
Savvy Customers
Economic Downturns
Brand Proliferation
Media Transformation
Increased Competition
Increased Costs
Greater Accountability
▪ ▪
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▪
▪
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▪
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▪
 Brand is
vulnerable
and is
susceptible
to changes