- Prof.

Antre Ganesh
 Company A
Product / services
Company B Consumer

Company C
 In complex markets, the differences between
companies are not much.

 The companies can not differentiate much themselves

from others on the basis of quality and technology etc.
factors as all the companies are competent enough.

 This scenario explains the need for the differentiation

for the companies.
 What is a Brand?
• A brand is a name, term, sign, symbol, or
design which is intended to Identify the
goods or services of one seller or group of
sellers and to Differentiate them from those
of competitors.
 Branding - Definition
• Branding is the imagery a company uses to make us
IDENTIFY them and pick them out from their
competition.

• Branding can involve the use of a CONSISTENT

range of colour or a LOGO.

• The “Brand” can be the company e.g. or it can be a

product range that is a “Brand”
 What is a brand ?

Branding is a combined effort of the company which is

projected to the consumer.
Brand
Marketing

Company Consumer

Design
 ELEMENTS OF A BRAND

• Name • Colors

• Logo • Sounds

• Tagline or catchphrase • Scents

• Graphics • Tastes

• Shapes • Movement
 FEATURES OF A BRAND

• A brand has physical qualities

• A brand has its own personality

• A brand has its own culture
• A brand is a relationship
 FUNCTIONS OF A BRAND
• Identification
• Practicality
• Guarantee
• Optimization
• Continuity
• Characterization
• Ethics
 BRAND MARK
• The brand mark is a design Aspect or element (such as
element, such as a symbol (e.g., color, design, picture, symbol,
Nike swoosh ), logo (e.g.,
typeface) of a brand that
Yahoo! graphic), a character
cannot be expressed in words.
(e.g., Keebler elves) or even a
sound (e.g., Intel inside sound),
that provides visual or
auditory recognition for the
product.
Customer-based brand equity pyramid
 What is a brand ?

(1) Products and services have become so alike that they fail to distinguish
themselves by their quality, efficacy, reliability, assurance and care. Brands add
emotion and trust to these products and services, thus providing clues that
simplify consumers’ choice.
(2) These added emotions and trust help create a relationship between brands
and consumers, which ensures consumers’ loyalty to the brands.
(3) Brands create aspirational lifestyles based on these consumer relationships.
Associating oneself with a brand transfers these lifestyles onto consumers.
(4) The branded lifestyles extol values over and above the brands’ product or
service category that allow the brands to be extended into other product and
service categories. Thus saving companies the trouble and costs of developing
new brands, while entering new lucrative markets.
(5) The combination of emotions, relationships, lifestyles and values allows
brand owners to charge a price premium for their products and services, which
otherwise are barely distinguishable from generics.
Tangibles of brand equity
• Shape
• Colour
• Size
• Models
• Price
• Features
• Benefits
• Grades
 Intangibles of brand equity
• Company name • Customer base
• Brand name • Trademarks and
• patents
Slogan and its underlying associations
• Perceived quality • Channel
• Brand awareness relationships
• Customer loyalty
• Customer confidence
• Competitive
advantage
 Integrity of Brand

Product Packaging
Websites

logo
Company
Product A

Product B
Advertisements

A brand is a promise. A promise to achieve certain results,

deliver a certain experience, or act in a certain way. A promise
that is conveyed by everything people see, hear, touch, taste or
smell about your business.
Pros and Cons of Branding:
Advantages: Drawbacks:
• Increases loyalty
• Cost of developing and
• Can charge HIGHER PRICES establishing it

• Successful brand names CAN • Can be copied/ near

link to product (e.g. a “Hoover”) copied

• Can Launch complimentary • Could get a bad name as

products in same brand name – well as a good one if
e.g. shampoo; conditioner; quality is not kept up
hairspray.
 New Branding Challenges
• Brands are important as ever
– Consumer need for simplification
– Consumer need for risk reduction
• Brand management is as difficult as ever
– Savvy consumers
– Increased competition
– Decreased effectiveness of traditional marketing
tools and emergence of new marketing tools
– Complex brand and product portfolios
 The Customer/Brand
Challenge
• In this difficult environment, marketers
must have a keen understanding of:
– customers
– brands
– the relationship between the two
 Difference Between Product and Brand

1.Product is made in 1. A brand is bought a factory

by the customer.

2. A product can be 2. A brand is unique.

copied.

3. A product can be quickly 3. A successful brand is

outdated. timeless
 The Concept of Brand Equity
• The brand equity concept stresses the
importance of the brand 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.

19
 BRAND EQUITY
• BRAND EQUITY : is a set of brand assets and
liabilities linked to a brand , its name and
symbol , that add to or subtract from the value
provided by a product or service to a firm
and /or to that firm’s customers.
• For assets or liabilities to underlie brand equity
they must be linked to the name and/or
symbol of the brand.
 BRAND EQUITY
• The assets and liabilities on which brand equity is
based can be grouped into 5 categories
1) Brand Loyalty 2) Name
awareness 3) Perceived quality
4)Brand associations in addition
to perceived quality 5)other
proprietary assets : patents, trademarks,channel
relationship etc.
 BRAND EQUITY
Name Awareness
Perceived quality
Brand Associations
Brand Loyalty
Other proprietary
brand assets
Brand Equity

Provides value to customer by Provides value to firm by

enhancing customer’s enhancing:-
• Interpretation /Processing of • Efficiency and effectiveness
information. • of marketing programs
• Confidence in the purchase decision.
• Prices/Margins
• Use satisfaction/delight
• Brand Extensions
• Trade Leverage
• Competitive advantage
 Building
Customer-Based Brand Equity
• Brand knowledge structures depend on . . .
– The initial choices for the brand elements
– The supporting marketing program and the
manner by which the brand is integrated into it
– Other associations indirectly transferred to the
brand by linking it to some other entities
 Benefits of
Customer-Based Brand Equity
• Enjoy greater brand loyalty, usage, and affinity
• Command larger price premiums
• Receive greater trade cooperation & support
• Increase marketing communication
effectiveness
• Yield licensing opportunities
• Support brand extensions.
Customer-Based Brand Equity
as a “Bridge”
• Customer-based brand equity represents
the “added value” endowed to a product as a
result of past investments in the marketing
of a brand.
• Customer-based brand equity provides
direction and focus to future marketing
activities
 The Key to Branding
• For branding strategies to be successful,
consumers must be convinced that there are
meaningful differences among brands in the
product or service category.
• Consumer must not think that all brands in
the category are the same.
• PERCEPTION = VALUE
Strategic Brand Management
• Strategic brand management 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
The Role of Brands

Identify
Identify the
the maker
maker

Simplify
Simplify product
product handling
handling

Organize
Organize accounting
accounting

Offer
Offer legal
legal protection
protection
The Role of Brands

Signify
Signify quality
quality

Create
Create barriers
barriers to
to entry
entry

Serve
Serve as
as aa competitive
competitive
advantage
advantage

Secure
Secure price
price premium
premium
 Strategic Brand Management Process
STEPS KEY CONCEPTS
Mental maps
Identify and Establish Competitive frame of reference
Brand Positioning and Values 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
 Motivation for
Customer-Based Brand Equity Model
• Marketers know strong brands are
important but aren’t always sure how to
build one.
• CBBE model was designed to be …
– comprehensive
– cohesive
– well-grounded
– up-to-date
– actionable
 Rationale of
Customer-Based Brand Equity Model
• Basic premise: Power of a brand resides in the
minds of customers
• Challenge is to ensure customers have the right
types of experiences with products & services and
their marketing programs to create the right brand
knowledge structures:
– Thoughts
– Feelings
– Images
– Perceptions
– Attitudes
 Building
Customer-Based Brand Equity
• Building a strong brand involves a series of steps
as part of a “branding ladder”
• A strong brand is also characterized by a logically
constructed set of brand “building blocks.”
– Identifies areas of strength and weakness
– Provides guidance to marketing activities
 CUSTOMER-BASED BRAND EQUITY
PYRAMID

4.4. RELATIONSHIPS
RELATIONSHIPS ==
RESONANCE What
Whatabout
aboutyou
you&&me?
me?

3.3. RESPONSE
RESPONSE ==
JUDGMENTS FEELINGS
What
Whatabout
aboutyou?
you?

2.2. MEANING
MEANING ==
PERFORMANCE IMAGERY What
Whatare
areyou?
you?

1.1. IDENTITY
IDENTITY ==
SALIENCE
Who
Whoare
areyou?
you?
 Salience Dimensions
• Depth of brand awareness
– Ease of recognition & recall
– Strength & clarity of category membership

• Breadth of brand awareness

– Purchase consideration
– Consumption consideration
 Performance Dimensions
• Primary characteristics & supplementary
features
• Product reliability, durability, and
serviceability
• Service effectiveness, efficiency, and
empathy
• Style and design
• Price
 Imagery Dimensions
• User profiles
– Demographic & psychographic characteristics
– Actual or aspirational
– Group perceptions -- popularity
• Purchase & usage situations
– Type of channel, specific stores, ease of purchase
– Time (day, week, month, year, etc.), location, and context of usage
• Personality & values
– Sincerity, excitement, competence, sophistication, & ruggedness
• History, heritage, & experiences
– Nostalgia
– Memories
 Judgment Dimensions
• Brand quality
– Value
– Satisfaction
• Brand credibility
– Expertise
– Trustworthiness
– Likability
• Brand consideration
– Relevance
• Brand superiority
– Differentiation
 Feelings Dimensions
• Warmth
• Fun
• Excitement
• Security
• Social approval
• Self-respect
 Resonance Dimensions
• Behavioral loyalty
– Frequency and amount of repeat purchases
• Attitudinal attachment
– Love brand (favorite possessions; “a little pleasure”)
– Proud of brand
• Sense of community
– Kinship
– Affiliation
• Active engagement
– Seek information
– Join club
– Visit web site, chat rooms
Customer-Based Brand Equity Model

Consumer- INTENSE,
INTENSE,ACTIVE
ACTIVE
LOYALTY
LOYALTY
Brand
Resonance

RATIONAL
RATIONAL&&
Consumer Consumer EMOTIONAL
EMOTIONAL
Judgments Feelings REACTIONS
REACTIONS

POINTS-OF-
POINTS-OF-
PARITY
PARITY&&
Brand Brand POINTS-OF-
POINTS-OF-
Performance Imagery DIFFERENCE
DIFFERENCE

DEEP,
DEEP,BROAD
BROAD
Brand Salience BRAND
BRAND
AWARENESS
AWARENESS
 Brand Positioning
• Define competitive frame of reference
– Target market
– Nature of competition
• Define desired brand knowledge
structures
– Points-of-parity
• necessary
• competitive
– Points-of-difference
• strong, favorable, and unique brand associations
 Issues in Implementing
Brand Positioning
• Establishing Category Membership
• Identifying & Choosing POP’s & POD’s
• Communicating & Establishing POP’s &
POD’s
• Sustaining & Evolving POD’s & POP’s
 Establishing Category
Membership
• Product descriptor
• Exemplar comparisons
 Sony

* Aesthetics – integrated family

look. All products bear some
common elements.
* Style of use – interface design
– unique way of operating a
product.
* Some functions special to the
brand

The Sony Vaio series – one voice by Sony