Unit 2:

BRANDS & BRAND MANAGEMENT

1.1
 What is a brand?

 For the American Marketing Association (AMA), a brand is a

“name, term, sign, symbol, or design, or a combination of them,
intended to identify the goods and services of one seller or group
of sellers and to differentiate them from those of competition.”
 These different components of a brand that identify and
differentiate it are brand elements.

1.2
 Key Brand Elements
• Brand Name-name, tagline, logo
• Brand Position-description of your organization
• Brand Promise-The single most important thing your organization
promises to deliver every time
• Brand Personality-what you want your brand to be known for
(fun, serious,magical,forceful,imaginative, etc.)
• Brand Tone-edgy, humorous, conservative, subtle
• Brand Story-Your organizational history and how it adds value to
the brand, highlights how your products and services grew from that
background and how your methodology impacts what you offer
• Brand Associations-colors, taglines, images, fonts, uniforms,
signage, equipment, etc.
Figure 4.1- Criteria for Choosing
Brand Elements
 Types of Brand Elements
Logos and
Brand Names URLs
Symbols

Characters Slogans Jingles

Packaging
 Brand Names
 Captures the central theme or key associations
of a product in a very compact and economical
fashion
 Most difficult element for marketers to change
 Closely tied to the product in the minds of
consumers
 Naming guidelines
 Naming procedures
 Uniform Resource Locators
(URLs)
 Specify locations of pages on the Web
 Known as domain names
 Protect the brands from unauthorized use in
other domain names
 Cybersquatting- Registering, trafficking in, or
using a domain name with bad-faith to profit
from:
 The goodwill of a trademark belonging to someone
else
 Logos and Symbols
 Indicate origin, ownership, or association
 Range from corporate names or trademarks
written in a distinctive form, to abstract designs
that may:
 Be completely unrelated to the corporate name or
activities
 Characters
 Special type of brand symbol
 One that takes on human or real-life characteristics
 Introduced through advertising and can play a
central role in ad campaigns and package
designs
 Slogans
 Short phrases that communicate descriptive or
persuasive information about the brand
 Function as useful “hooks” or “handles” to
help consumers grasp the meaning of a brand
 Indispensable means of summarizing and
translating the intent of a marketing program
 Packaging
 Activity of designing and producing containers
or wrappers
 From the perspective of both the firm and
consumers, packaging must:
 Identify the brand
 Convey descriptive and persuasive information

 Facilitate product transportation and protection

 Assist in at-home storage

 Aid product consumption

 To Sum up...
 Entire set of brand elements makes up the
brand identity
 Cohesiveness of the brand identity depends on
the extent to which the brand elements are
consistent
 Each brand element plays a different role in
building brand equity, so marketers should “mix
and match” to maximize brand equity
 What is a brand?

 Many practicing managers refer to a brand as more than that—

as something that has actually created a certain amount of
awareness, reputation, prominence, and so on in the marketplace.

 We can make a distinction between the AMA definition of a

“brand” with a small b and the industry’s concept of a “Brand”
with a capital b.

1.13
 Brands vs. Products

 A product is anything we can offer to a market for

attention, acquisition, use, or consumption that might
satisfy a need or want.
 A product may be a physical good, a service, a retail
outlet, a person, an organization, a place, or even an
idea.

1.14
 A brand is therefore more than a product, as it
can have dimensions that differentiate it in some
way from other products designed to satisfy the
same need.

1.15
 Some brands create competitive advantages with
product performance; other brands create
competitive advantages through non-product-
related means.

1.16
 Why do brands matter?
 What functions do brands perform that make
them so valuable to marketers?

1.17
Importance of Brands to Consumers
 Identification of the source of the product
 Assignment of responsibility to product maker
 Risk reducer
 Search cost reducer
 Promise, bond, or pact with product maker
 Symbolic device
 Signal of quality

1.18
Reducing the Risks in Product Decisions
 Consumers may perceive many different types of risks in buying
and consuming a product:
 Functional risk—The product does not perform up to
expectations.
 Physical risk—The product poses a threat to the physical well-
being or health of the user or others.
 Financial risk—The product is not worth the price paid.
 Social risk—The product results in embarrassment from others.
 Psychological risk—The product affects the mental well-being of
the user.
 Time risk—The failure of the product results in an opportunity
cost of finding another satisfactory product.

1.19
 Importance of Brands to Firms
 To firms, brands represent enormously valuable
pieces of legal property, capable of influencing
consumer behavior, being bought and sold, and
providing the security of sustained future
revenues.

1.20
 Importance of Brands to Firms
 Identification to simplify handling or tracing
 Legally protecting unique features
 Signal of quality level
 Endowing products with unique associations
 Source of competitive advantage
 Source of financial returns

1.21
 Can everything be branded?
 Ultimately a brand is something that resides in
the minds of consumers.
 The key to branding is that consumers perceive
differences among brands in a product category.
 Even commodities can be branded:
 Coffee (Maxwell House), bath soap (Ivory), flour
(Gold Medal), beer (Budweiser), salt (Morton),
oatmeal (Quaker), pickles (Vlasic), bananas
(Chiquita), chickens (Perdue), pineapples (Dole), and
even water (Perrier)
1.22
 An Example of Branding a Commodity

 De Beers Group added the phrase “A Diamond

Is Forever”

1.23
 What is branded?
 Physical goods
 Services
 Retailers and distributors
 Online products and services
 People and organizations
 Sports, arts, and entertainment
 Geographic locations
 Ideas and causes
1.24
 Source of Brands Strength
 “The real causes of enduring market leadership
are vision and will. Enduring market leaders have a
revolutionary and inspiring vision of the mass
market, and they exhibit an indomitable will to
realize that vision. They persist under adversity,
innovate relentlessly, commit financial resources,
and leverage assets to realize their vision.”
Gerald J. Tellis and Peter N. Golder, “First to Market, First to
Fail? Real Causes of Enduring Market Leadership,” MIT Sloan
Management Review, 1 January 1996

1.25
 Importance of Brand Management

 The bottom line is that any brand—no matter

how strong at one point in time—is vulnerable,
and susceptible to poor brand management.

1.26
 Brand Management
 Identify and establish brand positioning and
values
 Plan and implement marketing programs

 Measure and interpret brand performance

 Grow and sustain brand equity

1.27
What are the strongest brands?
 Top Ten Global Brands- Jan, 2019-
Forbes
Brand 2019 ($Billion)
1. Apple 265.00
2. Google 136.00
3. Microsoft 110.00
4. Facebook 948.00
5. Amazon 709.00
6. Coca Cola 573.00
7. Samsung 476.00
8. Disney 475.00
9. Toyota 447.00
10. McDonalds 416.00

1.29
 The Brand Equity Concept
 No common viewpoint on how it should be
conceptualized and measured
 It stresses the importance of brand role in
marketing strategies.
 Brand equity is defined in terms of the marketing
effects uniquely attributable to the brand.
 Brand equity relates to the fact that different outcomes result
in the marketing of a product or service because of its brand
name, as compared to if the same product or service did not
have that name.

1.30
 Strategic Brand Management
 It involves the design and implementation of
marketing programs and activities to build,
measure, and manage brand equity.
 The Strategic Brand Management Process is defined as
involving four main steps:
1. Identifying and establishing brand positioning and values
2. Planning and implementing brand marketing programs
3. Measuring and interpreting brand performance
4. Growing and sustaining brand equity
1.31
Strategic Brand Management Process

Steps Key Concepts

Identify and establish
brand positioning and values
Mental maps
Competitive frame of reference
Points-of-parity and points-of-difference
Core brand values
Brand mantra

Plan and implement Mixing and matching of brand elements

brand marketing programs Integrating brand marketing activities
Leveraging of secondary associations

Brand value chain

Measure and interpret Brand audits
brand performance Brand tracking
Brand equity management system

Brand-product matrix
Grow and sustain Brand portfolios and hierarchies
brand equity Brand expansion strategies
Brand reinforcement and revitalization 1.32
 Brand Management

Brand
Identity

Results
Strategy

Brand Strategist

Brand
Image

Brand
Position

Customers & Potential Messaging Marketing, PR,

Product
customers
 Brand Management

Popular, fun,
goofy
expressive
Results
Strategy

Brand Strategist

Do you
Yahoo?

Customers & Potential Messaging Marketing, PR,

Product
customers
 Branding Challenges and Opportunities

 Savvy customers
 Brand proliferation
 Media fragmentation
 Increased competition
 Increased costs
 Greater accountability

1.35
 Brand Test Experimentation
 Is a process of measuring the performance of
brand.
 is a process of measuring the properties or
performance of products. The theory is that
since the advent of mass production
manufacturers produce branded products
which they assert and advertise to be identical
within some technical standard.

1.36
 Non Product Branding
 Advertisements exist to sell something to an
audience, but they don't always feature a product
to sell. When a business try to promote an idea
that it considers important, it's engaging in a type
of marketing known as non-product advertising.
 Television commercials, print advertisements and
other forms of marketing that don't focus on a
company's product are known as image
advertising. These types of advertisements sell
the idea of that particular business as a better
company, regardless of product.
1.37
 Public service announcements are another type
of non-product advertising that appears through
traditional advertising channels. These types of
advertisements also focus on sending a message
instead of selling a product, although public
service announcements are typically paid for by
charities

1.38
 Coca-Cola case study & Pepsi
Challenge 1975-2010
 That idea was the Pepsi Challenge. In 1975
Pepsi went inside malls around the country and
invited people to do a blind taste test between
Coke and Pepsi. The results were remarkable;
people picked Pepsi over Coke by a
significant margin.
 Pepsi happily touted the results in a TV
campaign showing people, much to their own
surprise, picking Pepsi. The competition
between them is called Cola Wars 1.39
 Perceptual Mapping
 Perceptual mapping is a graphic display
explaining the perceptions of customers with
relation to product characteristics.

1.40
 Approaches of Perceptual Map
•A perceptual map is of the visual technique designed to show how the
average target market consumer understands the positioning of the
competing products in the marketplace. In other words, it is a tool that
attempts to map the consumer's perceptions and understandings in a diagram.
1. Looking for market gaps
2. Crowding a competitor
3. Repositioning a brand
4. Repositioning a competitor
5. Adopting a me-too positioning

1.41
 PM for Positioning
•Firms use perceptual or positioning maps to help them
develop a market positioning strategy for their product or
service.
•As the maps are based on the perception of the buyer they
are sometimes called perceptual maps. Positioning maps
show where existing products and services are positioned in
the market so that the firm can decide where they would like
to place (position) their product.
• Firms have two options they can either position their
product so that it fills a gap in the market or if they would
like to compete against their competitors they can position it
where existing products have placed their product.
1.42
In the example below two dimensions price and quality have been
used. If we plot the UK chocolate market, we can identify where
existing chocolate brands have been positioned by manufacturers.
For example our fictional brand of Belgian chocolates called
Belgium Chocolates are high quality and high price so they are
placed in the top right hand box, whilst Twix is an affordable
"every day" treat chocolate so it has been placed in the bottom left
hand square, in the low quality low price brand box.

1.43
 Repositioning of Brands - Horlicks

 Initially introduced as a substitute and additive to milk and

positioned as ‘food for convalescing’ and nutrient
supplement for kids.

 From a boring nutritional drink, repositioned by launching

it in vanilla, chocolate and honey versions.

 Introduced other variants like Jr.Horlicks, Mother

Horlicks and Women’s Horlicks

Chapter
44 Six Slide
 Perceptual Map for different brands of bar soap
High moisturizing

Dove
1
7

4 5

Non-
Deodorant
deodorant

8 3

6 Lifebuoy
2
What bar soap?
What position?
Low moisturizing
 Repositioning of Brands - Cadbury

 In the early 90's, chocolates were seen as 'meant for kids', usually a reward or a bribe for
children.

Repositioned as:
 In the Mid 90's the category was re-defined by the very popular `Real Taste of Life'
campaign, shifting the focus from `just for kids' to the `kid in all of us'. It appealed to the
child in every adult.
 The "girl dancing on the cricket field" has remained etched in everyone's memory, as the
most spontaneous & un-inhibited expression of happiness.
 The 'Khanewalon Ko Khane Ka Bahana Chahiye' campaign. This campaign built social
acceptance for chocolate consumption amongst adults, by showcasing collective and shared
moments.
 Mischievous, bubbly teenagers getting out of their 'stuck and hungry' situations by having a
Cadbury Perk. Cadbury Perk became the new mini snack in town and its proposition
"Thodi si pet pooja" went on to define its role in the category.

Chapter
46 Six Slide
 ASSIGNMENT
 You are the marketing and advertising manager of ADVANCE
STEREO SYSTEMS with five competitors Philips, Videocon,
BPL, AIWA and Sony. Your market share is 3%. You have to
increase it to 5% in one year. Answer the following questions
about the market and its behaviour.
1. What cultural, social, personal and psychological factors
influence the buyer most. What sort of research should be
undertaken to know the buyer’s attitude and behaviour ?
2. What factors should be focused in ACTION’S marketing plan?

3. What kind of marketing activities ADVANCE should plan to

coincide with each stage of consumer buying process?
Plan your target market in Delhi, and look at the marketing mix
factors for giving your recommendations to MD of ADVANCE.
Creating Sustainable Competitive
Advantage
 Establish brand loyalty
 Patent product

 Continually innovate

 Hire connected team members

 Use long term contracts and incentives

E.g- Starbucks, McDonalds

Competing through Innovation
 Product Line Extensions

 Brand Extensions
 Competing through superior
service and customer relationship
 Manage customer perceptions of the service
value proposition
 Customized pricing for profitability
 Service excellence in implementation: people
and processes
 Planning for service recovery
 Holistic consumption experiences: the role of
servicescape