Brands and Brand

Management
The Issue of Branding
 Branding simplifies the complexity of
the offering via brand elements such as:
– Brand names
– Logos
– Symbols
– Package designs
Branding helps in the thought processes of
consumers when they are considering
purchasing or purchasing an offering.
The Issue of Branding contd.
 Branding helps in reducing risk
associated with an offering.
 Used as a differentiating criteria between
offerings.
 The genesis/basis of brand management
is consumer perceptions – the need to
satisfy consumers’ perceived differences
between offerings.
So, what exactly is a brand?
 In its simplest definition,
it is a name, term,
symbol, feature or any
combination of these. It
is used/employed to
identify the
distinctiveness (special)
of an offering (i.e.,
product, service, brand)
from those of
competitors.
 A brand name must be:
 Unique
 Distinctive
 Easy to remember
 Easy to pronounce
 Relevant to the offering
 Positive about the offering
 Brands
 Because product differences are
generally non-existent, brands have been
successful in creating a seeming tangible
image of the product.
 “Products are made in the factory”
 “Brands are what consumers buy”
 Brands
 Virtually anything can be and has been
branded—
 Similarly, anything can be positioned
– Any brand – no matter how strong at any
one point in time is vulnerable and is
susceptible to poor brand management.
Five Factors Leading to Brand
Leadership
1. Vision of the mass market
2. Managerial persistence
3. Financial commitment
4. Relentless innovation
5. Asset leverage

The underlying issue about the above is the

concept of “added value”
What is added value?
 “…this is the case/situation whereby the
finished offering can command a higher price
than the cost of its component parts or the raw
material used in producing it…”
…in other words...

 The finished offering is more valuable to the

consumer than the pile of raw material from
which it was made.
Brand/added values contd.
 Brand values help create a uniqueness about
the offering where none may exist functionally.
 They are the means by which offerings are
positioned in the market place.
 Brand values create a total image and
personality for the “brand”/offering.
 To the consumer the brand provides a
guarantee of quality, value for money, the best
choice.
 Brand Equity
 “…fundamentally, branding is about endowing products
and services with the power of brand equity..” (Keller,
2002, pp.42).
 Brand equity refers to brand/added value that has been
associated with the offering over time.
 Brand equity = the value of the brand.

 Several ways in which the value of a brand can be

manifested or exploited to benefit the firm:
 (a) greater profits,
 (b) market share,
 © lower production costs
 (d) clear and long-lasting position in the market place.
How to achieve brand equity
 Skillful design and implementation of
marketing programs
 The capitalization on a well thought-out
positioning
 Strong brand leadership position in the
market place