Strategic Brand Management BMKT380 CH1

Lebanese International University
BMKT380-Strategic Branding Management

Spring 2021-2022
CHAPTER 1:
BRANDS AND BRAND
MANAGEMENT
Copyright © 2013 Pearson Education

Learning Objectives
 Define “brand,” state how brand differs from a
product, and explain what brand equity is
 Summarize why brands are important
 Explain how branding applies to virtually
everything
 Describe the main branding challenges and
opportunities
 Identify the steps in the strategic brand
management process

History of Branding
The word BRAND is derived from the

Old Norse brand meaning "to burn,"
which refers to the practice of producers
burning their mark (or brand) onto their
products.
In ancient times, in order to identify the

owner of the cows, cattle raisers used hot
ironing in order to identify the owner of
the cattle and differentiate it from others.
2 tricky words: identify andCopyright © 2013 Pearson Education

What is a Brand?
According to AMA (American Marketing Association), “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
- Differentiate them from those of competition”
 2 tricky words: identify and differentiate

Academic Definition Vs Managerial
Definition
Technically speaking, then, whenever a marketer creates a

new name, logo, or symbol for a new product, he or she has
created a brand. However, many practicing managers refer
to a brand as more than that— as something that has created
a certain amount of awareness, reputation, distinction, and
so on, in the marketplace.

The Essence of the Product Remains
Without a Logo / Name Even

Simply,
 Branding is a promise given to the customer; a

promise that needs to be fulfilled every single time.
 The every single time concept is important because
consistency and associations are important in
branding.

MATTE Restaurant: “The Same Taste, Over & Over Again !”

EIGHT O’CLOCK COFFEE: “New Look, Same Great
Taste !”

BLACKMORES* : “New Look, Same Great
Product !”

MEYER COMPUTER: “New Look, Same Great
Service!”

Brands’
Associations
Brands, especially strong ones, carry a number of different
types of associations, and marketers must account for all of
them when making marketing decisions. The marketers
behind some brands have learned this lesson the hard way
(e.g. The Epic Failure of Coca-Cola).

McDonalds Associations

Brands’ Associations:
The Epic Failure of New Coke (April 1985) *

Brand Elements
The key to creating a brand, according to the AMA

definition, is to be able to choose a name, logo, symbol,
package design, or other characteristic that identifies a
product and distinguishes it from others. These different
components of a brand that identify and differentiate it are
brand elements.

Types of Brand Elements
Logos and
Brand Names URLs
Symbols
Characters Slogans Jingles
Packaging
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Different Forms of Brand Elements
Brand elements come in many different forms.
For example, consider the variety of brand name strategies. Some
companies, like General Electric and Samsung, use their names for
essentially all their products. Other manufacturers assign new products
individual brand names that are unrelated to the company name, like
Procter & Gamble’s (P&G) Tide, Pampers, and Pantene product brands.
Samsung: The Same Brand Name for All Their Products

Procter & Gamble’s: An Individual Brand Name for Each Product
Line

Brand Names Come in Different Forms as
Well…
People’s names: Estée Lauder cosmetics
Names based on places: British Airways
Names based on animals: Mustang Automobiles
Some brands are named in relation to the products
attributes and benefits: TripAdvisor
Some brands are associated with a scientific, natural and
prestigious names such as Lexus Automobiles, Pentium
Microprocessors
Other brands have a unique name unassociated with the
product such as Apple Computers and Shell Gasoline.

British Airways: A Brand Name Based on Place

Not Just Names …
Not just names, but also other brand elements like logos and
symbols can be based on people, places, things, and abstract
images.

Logos & Symbols in Many Forms…

Number & Nature of the Brand
Elements
In creating a brand, marketers have many choices about the
number and nature of the brand elements they use to identify
their products.

McDonald’s Brand Elements

What is a Brand?
Set of expectations, memories, stories
and relationships taken together !

Products Vs Brands
How do we contrast a product and a brand ?
A product is anything we can offer to a market for attention,
acquisition, use, or consumption that might satisfy a need or
want.

Products Vs Brands
A product may be:

 A physical good - A cereal, tennis racquet, or automobile.
 A service - An airline, bank, or insurance company.
 A retail outlet - Department store, specialty store, super
market.
 A person - Political figure, professional entertainer, athlete.
 A place - City or country.
 An idea or a social cause.
Philip Kotler’s Five Product Levels
According to Kotler, we can define five levels of meaning for a

product:
1) Core Benefit Product: Satisfies the fundamental need of a customer

buying the product. For example, a lady wants to enhance her beauty so
she buys a makeup kit.
2) Generic Product: Includes the basic features of a product that are

necessary for it to achieve the core benefit. Proceeding with our makeup
kit example, the generic product might includes: Blush, eye shadow
trays, lipsticks, mascara and so on.
Five Product Levels: The Makeup Kit Example
3) Expected Product: Includes the set of attributes that a

consumer generally expect and agree to when buying the
product (e.g., quality, performance…). Proceeding with our
makeup kit example, the expected product might includes:
- The color of the eye shadows must have good pigmentation.

- Everything included must be able to stay on for hours.

4) Augmented Product: Includes additional features, benefits, or

related services that serve to differentiate the product from its
competitors. These attributes are usually unexpected by the
customer. Proceeding with our makeup kit, the augmented product
might includes:
 A surprise gift, samples, coupon for the next purchase, or
 Adding an extra cosmetic inside not offered by other brands.

5) Potential Product: all the transformations

that the same product can undergo. The ultimate
product. Proceeding with our makeup kit, the
potential product might includes: the continuous
development in the make up like removing
parabens or adding Aloe-Vera.
Example of the Five Product Levels
Applied to an Air Conditioner

Products Vs
Brands
In many markets, most competition takes place at the product
augmented level (level 4), because the majority of firms can
successfully build satisfactory products at the expected
product level (level 3). Academics argued that “the new
competition is not between what companies produce in their
factories but between what they add to their factory output in
the form of packaging, services, advertising, customer advice,
financing, delivery arrangements, warehousing, and other
Brands Vs
Products
A brand is, therefore, more than a product, because it can have

dimensions that differentiate it in some way from other
products designed to satisfy the same need. These differences
may be
rational and tangible (related to product performance of the
brand) — or more symbolic, emotional, and intangible
(related to what the brand represents).
Product Vs
Brand

Product Vs Brand
A Product: Ordinary Shoes The Brand: Jimmy Choo**

Product Vs Brand
A Product: An Ordinary
Brand: Madone Bikes***
Bike

Branding & Competitive
Advantage
Some brands create competitive advantages with product performance.

For example, Gillette has been leader in its product category for
decades, due to continuous innovations.
Other brands create competitive advantages through non-product-

related means. For example, Chanel No. 5 has been leader in its product
category for decades by understanding consumer motivations and
desires and creating relevant and appealing images surrounding their
products.

Branding & Competitive Advantage

To Sum Up ....
Through branding, organizations:

 Create perceived differences among
Charge
products and gain competitive advantage A
 Develop loyal customers Premiu
m
 Create value that can translate to financial Price
profits
 Tricky word PREMIUM PRICE

Tom Ford® Charging a Premium
Price
TOM FORD Now on
Sale for Only : 2600 $

Why Do Brands Matter?
 The obvious question is, why are brands
important?
 What functions do they perform that make
them so valuable to marketers?

Question to the Class….*
Assume that you are in a grocery and you have 10
seconds. Which carbonated soft drink (e.g. Coca-
Cola/ le cola/ bi cola / Pepsi) will you pick up?

Why Do Brands Matter?
We can take a couple of perspectives to uncover the
value of brands to both consumers and firms
themselves.

Consumers
Consumer: Encompass all types of customers, including
individuals as well as organizations
 Functions provided by brands to consumers
 Identify the source or maker of the product

 Simplify product decisions
 Lower the search costs for products internally (thinking) and
externally (looking around)
 Helps set reasonable expectations about what consumers may
not know about the brand

Consumers
Brands can also play a significant role in signing certain product
characteristics to consumers. Economists and marketers use of the
Search, Experience, Credence (SEC) classification of goods and
services, which is based on the ease or difficulty with which
consumers can evaluate the quality of the product:
1- Search Goods: those with attributes that can be evaluated prior to

purchase or consumption. Consumers rely on prior experience and direct
product inspection to evaluate the quality of the product. Most
products fall into the search goods category (e.g. clothing, office
Consumers
2- Experience Goods: those that can be accurately evaluated only after
the product has been purchased and experienced. Many personal services
fall into this category (e.g. restaurant, hairdresser, beauty salon, theme
park, travel, holiday).
3- Credence Goods: those that are difficult or impossible to evaluate

even after consumption has occurred. Evaluation difficulties may arise
because the consumer lacks the knowledge or technical expertise to
make a realistic evaluation of the product’s quality. Many professional
services fall into this category (e.g. legal services, medical
Consumers
Brands can reduce the risks in product decisions. Consumers
may perceive many different types of risks in buying and
consuming a product:
 Functional risk - Product does not perform up to expectations.
 Physical risk - Product poses a threat to the physical well-
being or health of the user or others.

 Financial risk - Product is not worth the price paid.
 Social psychological risk - Product affects the mental well-
being of the user.

 Time risk - Failure of the product results in an opportunity
cost of finding another satisfactory product.

Physical Risk: Some low Quality Products
Might be Harmful

Firms
Brands provide valuable functions:
 Simplify product handling and tracing
 Help organizing inventory and accounting records
 Offer the firm legal protection for unique features or aspects
of the product (trade marks, patents, copyrights and designs)
 Provide predictability and security of demand for the firm
(customer satisfaction leads to loyalty ends up with repeat
purchase)
 Creates barriers of entry for competitors and provide a
powerful means to secure competitive advantage

Roles that Brands Play for Consumers & Firms

Brand Value as a Percentage of Market Capitalization (2017) *

Q: Can Anything Be Branded?
To brand a product, it is necessary to teach consumers:
- “Who” the product is, by giving it a name and using other brand
elements to help identify the product.
- “What” the product does, and why consumers should care.
• Marketers must give consumers a label for the product and

provide meaning for the brand
• Marketers can benefit from branding whenever consumers are

in a choice situation (Consumer Decision Making Process).
Q: Can Anything Be Branded?
Branding creates mental structures and helps consumers
organize their knowledge about products and services in a
way that clarifies their decision making and, in the process,
provides value to the firm. The key to branding is that
consumers perceive differences among brands in a product
category. These differences can be related to attributes or
benefits of the product or service itself, or they may be
related to more intangible image considerations.
Can Anything Be Branded?
Physical Goods

Physical Goods
• Physical goods are what are traditionally associated with

brands:
– Mercedes-Benz
– Nescafé
– Sony
• Branding has been adopted in a variety of industries:
– Industrial business-to-business (B2B) products
– Technologically intensive “high-tech” products

Branding Consumer Physical Goods

Branding Industrial Physical Goods

Even Commodities May be
Branded
Commodities are basic goods
interchangeable between
producers, such as sugar, salt,
tea*, coffee, diamonds, gold,
beef, oil, and natural gas.

Branding Business-to-Business Products
Example Rolls Royce Engines in Aircrafts

Branding “High-Tech” Products
Many technology companies have struggled with branding.

These firms often lack any kind of brand strategy and
sometimes see branding as simply naming their products. In
many of their markets, however, financial success is no
longer driven by product innovation alone, or by the latest
and greatest product features. Branding skills are playing an
increasingly important role in the adoption and success of
Branding High-Tech Products
Example Meta Quest Virtual Reality Headset

Can Anything Be Branded
Services

Services
Getting to services, we will discuss two topics:

1- Role of Branding With Services
One of the challenges in marketing services is that they are

less tangible than products and more likely to vary in quality,
depending on the particular person or people providing them.
For that reason, branding can be particularly important to
service firms as a way to address intangibility and variability
problems. Brand symbols may also be especially important,
because they help make the abstract nature of services more
concrete. Copyright © 2013 Pearson Education
1- Role of Branding With Services
Brands can help identify and provide meaning to the different
services provided by a firm. For example, branding has
become especially important in financial services to help
organize and label the myriad new offerings in a manner that
consumers can understand.

Example of Branding in Financial Services

2- Professional Services
Professional services firms such as Lloyd’s (insurance), and
Ernst & Young (accounting) offer specialized expertise and
support to other businesses and organizations.
Professional services branding is an interesting combination

of B2B branding and traditional consumer services
branding. Corporate credibility is key in terms of expertise,
trustworthiness, and likability.
Example of Branding in Professional Services

Retailers and Distributors

Retailers and Distributors
For retailers and other distribution channel members (e.g.
Spinneys), brands provide important functions:
– Can generate consumer interest, patronage, and loyalty.
– Create an image and establish positioning within an industry.
– Yield higher price margins, increased sales volumes, and
greater profits.
Example of Retailers and Distributors Branding
Spinneys Own Brand

Online Brands

Online Brands
Some of the strongest brands in recent years have been born

online: Amazon; Google; Facebook; Twitter….
Brand building has become more important in recent years to

online marketers:
– It is critical to create unique aspects of the brand such as
convenience, price, or variety.
– The brand needs to perform satisfactorily in other areas,
such as customer service, credibility, and customization

Amazon, an Example of Online Brands

REVE Chat, an Example of Online Brands Customization

People and Organizations

People and Organizations
A product category can be a person or an organization:
– Naming of this branding is usually straightforward.
– Usually is accompanied by well-defined images that are
easily understood by consumers
– The key to a person or organization as a brand is that people
outside your industry know who you are and recognize your
skills, talents, and attitude:
▪ Lady Gaga
▪ Elie Saab
▪ The American Red Cross
▪ Amnesty International
Lady Gaga, an Example of People Branding
Lady Gaga is among the

best-known celebrity brands,
thanks to her musical talent,
unique style, and good
understanding of the social
media influence, all of which
have resulted in a loyal base
UNICEF, an Example of Organizations
Branding
Nonprofit organizations like

UNICEF need strong
brands and modern
marketing
practices to help them

fundraise and satisfy their
organizational goals and
Can Anything be Branded?
Sports , Arts, and Entertainment

Geographic Locations
Ideas and Causes

A special case of marketing people and organizations as brands

exists in the sports, arts, and entertainment industries:
- Sports marketing has become highly sophisticated in recent

years, employing traditional packaged-goods techniques. Many
sports teams are marketing themselves through a creative
combination of advertising, promotions, sponsorship, and other
forms of communication. By building image and loyalty, these
sports franchises are able to meet ticket sales targets regardless
of what their team’s actual performance might turn out to be.
Bayern Munich an Example of Sports Branding

Bayern Munich an Example of Sports Branding

Branding plays an especially valuable function in the arts and

entertainment industries that bring us cinemas, television, music,
and books. In fact, movies have become famous for their
marketing and branding:
 For years, some of the most valuable movie franchises (e.g.,
Paramount Pictures, Warner Brothers…) have featured
recurring characters (e.g., Superman, James Bond…) and
ongoing stories—a classic application of branding.
Harry Potter, an Example of
Entertainment Branding
Few brands have generated as much worldwide consumer

loyalty—and profits—as Harry Potter.
Geographic Locations
• What has contributed to the rise in place marketing?
– Increased mobility of people
– Increased mobility of businesses
– Growth in tourism
• Cities, states, regions, and countries actively promote through
advertising, direct mail, and other tools

Turkey an Example of Geographic Locations
Branding

Ideas and Causes
• Numerous ideas and causes have been branded:
– Especially by nonprofit organizations
• May be captured in a phrase or slogan or represented by a
symbol:
– Such as AIDS ribbons

DON’T SMOKE an Example of Ideas and Causes Branding

To Sum up....
 Branding is universal and pervasive in different
product categories
 Applicable to both tangible and intangible offerings
of an organization
 Technological developments have impacted the
way firms market their offerings
 Organizations reap financial benefits from positive
brand images

Strong Brands
It is clear from the above examples that virtually
anything can be and has been branded. Which brands are
the strongest, that is, the best known or most highly
regarded?

Branding Challenges & Opportunities
Although brands may be as important as ever to consumers,
in reality, brand management may be more difficult than
ever. These are some of the recent developments that have
significantly complicated marketing practices and pose
challenges for brand managers.

Factors Responsible for Branding Challenges / Opportunities
• Unparalleled access to information and new technologies

• Downward pressure on prices
• Ubiquitous connectivity and the consumer backlash
• Sharing information and goods
• Unexpected sources of competition
• Disintermediation and re-intermediation
• Alternative sources of information about product quality
• Winner-takes-all markets
• Media transformation
• Customer-centricity
Unparalleled Access to Information and New Technologies
• Technology has created vast amounts of information
• Over time, as technology becomes more standard, brand
marketers may find opportunities:
– Utilizing innovative features in designing better brand
experiences for their customers

The Chuzy Chef® Self Stirring Mug

Downward Pressure on Prices
As search costs for information become lower, consumers can

compare prices more easily:
– Thus, they can switch to a different brand more easily
– This may cause more commodification of products and

services
– This creates challenges for brand marketers

Example Kayak Downward Pressure on Prices
Due to the increased

availability of travel search
sites such as Kayak (with
easy access to pricing
information), travel brands
have to increasingly
differentiate themselves with
other attributes such as
quality and service.

Ubiquitous Connectivity and the Consumer Backlash
As digital and electronic connectivity becomes global,

consumers’ attention is lessened and are more vulnerable
to intrusions:
– Backlash may come as consumers become
increasingly resistant to marketers attempts to gain
access to them
– Software may come available that thwarts marketers
efforts to reach consumers
FAB Add Blocker Software

Sharing Information and Goods
New technologies have made it increasingly possible for
consumers to share information and goods with each other.
This trend has resulted in two related types of phenomena:
 Social Media Platforms
The opportunity offered by these platforms is that they
enable marketers to gain very precise information about their
target audiences, including political views and entertainment
preferences, which allows for a 360-degree view of a
consumer.
 Peer-to-Peer Sharing
▪ Airbnb, Uber, Zipcar
Social Media Platforms Sharing Consumers
Data
Social media platforms
have extraordinary access
to customers media and
browsing habits,
entertainment preferences,
etc., thereby providing
marketers with a unique
ability to target their
offerings with greater
precision (Microtargeting*).
Airbnb, Peer-to-Peer Sharing
Airbnb, as in “Air Bed and
Breakfast,” is a service that lets
property owners rent out their
spaces to travelers looking for
a place to stay. Airbnb
company acts as a broker and
charges a commission from
Unexpected Sources of Competition
The dynamics of the digital world are such that it can be easier for
companies to enter into new categories without having to face the
barriers to entry (e.g., the need for a well-established system for
distribution) that typically exist in the physical world. This means
that new competitors (e.g. Crackle) may crop up in unexpected
places, and a digital brand (e.g. Netflix) has to remain vigilant for
new sources of competition.Copyright © 2013 Pearson Education

Crackle Vs Netflix

Disintermediation and
Reintermediation
• Disintermediation:
– Reduction or elimination of intermediaries
– The travel industry, for example, has experienced significant
decline in the need for travel agencies:
▪ Once offered advisory services and helped make bookings in
return for a small fee or commission
• Reintermediation:
– Introduction of new intermediaries that perform some of the same
functions or have additional roles in the channel of distribution
(e. g., Yelp).

TripAdvisor an Example of Disintermediation
Online review sites have

become powerful platforms
that allow customers to share
word-of-mouth and learn
about product quality
quickly, causing the decline
of traditional advisory
services (e.g., travel agents).
Yelp an Example of Reintermediation
Yelp company provides

its site as a guide for
online search capabilities
for its visitors to find &
review local businesses
in the United States and
Canada.

Alternative Sources of Information About Product Quality
The growth of the Internet and availability of vast amounts of

information about products and brands online suggests that there
are many new ways in which consumers can learn about product
quality which reduced the reliance on brands as signals on quality.
– Brands now have to do more:
▪ Have to be translators of trends, acting on information

about changing customer tastes and desires almost
instantaneously
Alternative Sources of Information About Product Quality
How Credible Are Consumer Information Sources?

Winner-Takes-All Markets
The availability of information about product quality in vast quantities suggests
that consumers are likely to become much more quality sensitive. Brands which
are market leaders within categories (i.e., brands which are seen as having
high quality to consumers) are likely to be chosen at an even greater rate.
This will speed up the exit of brands that do not occupy a leadership position in
a category. Thus, brands will be under greater pressure to deliver a high quality
product or have a dominant position within the market on a particular aspect.

Media Transformation
Another important change in the marketing environment is the
erosion of traditional advertising media and the emergence of
interactive and nontraditional media, promotion, and other
communication alternatives.
Marketers are spending more on new forms of communication

such as:
– Social media
– Paid influencers
– Sponsored bloggers Copyright © 2013 Pearson Education

LaCroix an Example of Media Transformation
LaCroix’s unique
positioning as a
healthier
alternative to
traditional
beverages and its
effective use of
social media
advertising are key
factors enabling its
success in the
marketplace. Copyright © 2013 Pearson Education
Customer-Centricity
The growth of global connectivity has led in an era in which

product quality information is easily available online. This
suggests that brand equity can be vulnerable to destruction if
product claims are not verified by actual experience. Today ,
consumers can quickly reveal the real quality of products from
different sources (e.g., peers and quality forums). In turn, brands
have shifted their emphasis to becoming more customer-centric in
their marketing, focusing instead on customer issues and
concerns, as it relates to their everyday lives and society at large.
Customer Centric Organizations

Brand Equity
One of the most popular and potentially important marketing
concepts to arise in recent years is brand equity. One of the
most widely accepted definitions states that brand equity is
the: “Added value provided by the brand to the product”.
Brand equity is an asset that is the most valuable for a

company, and even though it is intangible, it is vital for the
success of a company.
Brand Equity
Brand equity represents the worth of
a brand compared to its generic
alternatives. It could be its name,
logo, slogan, and consumer
perceptions about its products and
Brand Equity
Brand Equity
=
Worth of the Brand compared to its Generic
Alternatives
=
Value Inherent in a Well Known Brand Name
=
Value Added to a Product by Branding it.
Branding
Fundamentally,
branding is all about
providing products and
services with the power
Brand Equity
Principles of branding and brand equity:
 Differences in outcomes (customer’s responses) arise from the “added
value” provided to a product
 The added value can be created for a brand in many different ways
(different branding strategies)
 Brand equity provides a common measure for interpreting marketing
strategies and assessing the value of a brand
 There are many different ways in which the value of a brand can be
exploited to benefit the firm (from customer loyalty to premium
pricing) Copyright © 2013 Pearson Education
Notable Recent Auction Sales:
Premium Pricing Due to Brand Equity

Justin Timberlake Unfinished
To a s t S o l d o n e B a y f o r $ 1 , 0 2 5 ! !

Strategic Brand Management Process
The strategic brand management process involves the
design and implementation of marketing programs and
activities to build, measure, and manage brand equity.
* The strategic brand management process has four
main steps :
I . Identifying and Developing Brand

Positioning & Values
II. Designing and Implementing Brand

Marketing Programs
III. Measuring and Interpreting Brand

Performance
IV. Grow and Sustaining Brand Equity


I. Identifying and Developing Brand Positioning & Values
Brand Positioning
Model
Brand Resonance
Model
Brand Value Chain

The strategic brand management process starts with a clear

understanding of what the brand is to represent and how it
should be positioned with respect to competitors. Brand
planning uses the following three interlocking models:
1) The Brand Positioning Model describes how to guide

integrated marketing to maximize competitive advantages.

2) The Brand Resonance Model describes how to create

intense loyalty and strong customer relationships with
customers.
3) The Brand Value Chain Model is a means to trace the

value creation process for brands, to better understand the
financial impact of brand marketing expenditures and
investments.
II. Designing and Implementing Brand Marketing Program
Choosing Brand Elements
Integrating the Brand into Marketing

Activities and the Supporting Marketing
Program
Leveraging Secondary Associations e.g.

Made In Italy

Building brand equity requires properly positioning the

brand in the minds of customers and achieving as much
brand resonance as possible. In general, this knowledge
building process (Brand Marketing Program) will depend on
three factors:
1) The initial choices of the brand elements making up

the brand and how they are mixed and matched.
2) The marketing activities and supporting marketing
programs and the way the brand is integrated into them.
Supporting marketing mix should be designed to enhance
awareness and establish desired brand image.

3) Leveraging secondary associations Because the brand

becomes identified with another entity, even though this
entity may not directly relate to the product performance,
consumers may infer that the brand shares associations
with that entity, thus producing indirect or secondary
associations for the brand. (such as the company, country
of origin, channel of distribution, or another brand).

III. Measuring and Interpreting Brand Performance
To manage their brands profitably, managers must successfully

design and implement a brand equity measurement system.
A brand equity measurement system is a set of research

procedures designed to provide timely, accurate, and
actionable information for marketers so that they can make the
best possible tactical decisions in the short run and the best
strategic decisions in the long run.
Brand equity measurement system involves:

 Brand audits: Comprehensive examination of a brand to,
assess its health, uncover its sources of equity, and suggest
ways to improve and leverage that equity.
 Brand tracking studies: Collect information from consumers
on a routine basis over time, typically through quantitative
measures of brand performance on a number of key
dimensions marketers can identify in the brand audit or other
means.
 Brand equity management system: Set of organizational

processes designed to improve the understanding and use of
the brand equity concept within a firm.
>> Three steps that help implement a brand equity

management system are:
1) Creating brand equity charters
2) Assembling brand equity reports
3) Defining brand equity responsibilities

Defining Brand Architecture
Managing Brand Equity over Time
Managing Brand Equity over Geographic

Boundaries, Cultures, and Market
Segments

Maintaining and expanding on brand equity can be quite

challenging. Brand equity management activities take a
broader and more diverse perspective of the brand’s equity
—understanding how branding strategies should reflect
corporate concerns and be adjusted, if at all, over time or
over geographical boundaries or multiple market segments.

Defining Brand Architecture

Provides general guidelines about branding strategy and the
brand elements to be applied across all the different products
sold by the firm.
Two key concepts in defining brand architecture are:
1) Brand portfolio: Set of different brands that a particular
firm offers for sale to buyers in a particular category.
2) Brand hierarchy: Displays the number and nature of
common and distinctive brand components across the
firm’s set of brands.
Pepsi Brand Portfolio Example

Brand Hierarchy of Toyota

Managing Brand Equity Over Time
• A long-term perspective of brand management recognizes

that any changes in the supporting marketing program for a
brand may affect the success of future marketing programs.
• Produces proactive strategies designed to enhance

customer-based brand equity and reactive strategies to
revitalize a brand that encounters problems.
Managing Brand Equity Over Geographic Boundaries, Cultures

& Market Segments
In expanding a brand overseas, managers need to build equity

by relying on specific knowledge about the experience and
behaviors of those market segments.

KEYWORD: Brand Image
-Association that consumers hold for a brand
-Useful for marketers to make distinctions between: lower level
considerations (performance and imagery) and higher level
considerations (judgements and feelings)
-Beliefs: descriptive thoughts that a person holds about something
-Multidimensional scaling

KEYWORDS: Brand Awareness
The extent to which consumers are familiar with the qualities or

image of a particular brand of goods or services.
- Recognition
- Recall (unaided, aided)
- Corrections for guessing
- Strategic implications: yields insight into how brand knowledge is

organized in memory; identifies cues or reminders necessary for
consumers to retrieve the brand from memory

Strategic Brand Management BMKT380 CH1

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Lebanese International University

BMKT380-Strategic Branding Management

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The word BRAND is derived from the

In ancient times, in order to identify the

2 tricky words: identify andCopyright © 2013 Pearson Education

 2 tricky words: identify and differentiate

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Technically speaking, then, whenever a marketer creates a

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 Branding is a promise given to the customer; a

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Brands, especially strong ones, carry a number of different

types of associations, and marketers must account for all of

them when making marketing decisions. The marketers

(e.g. The Epic Failure of Coca-Cola).

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The key to creating a brand, according to the AMA

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Characters Slogans Jingles

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Brand elements come in many different forms.

For example, consider the variety of brand name strategies. Some

essentially all their products. Other manufacturers assign new products

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symbols can be based on people, places, things, and abstract

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In creating a brand, marketers have many choices about the

number and nature of the brand elements they use to identify

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Set of expectations, memories, stories

and relationships taken together !

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How do we contrast a product and a brand ?

A product is anything we can offer to a market for attention,

acquisition, use, or consumption that might satisfy a need or

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A product may be:

According to Kotler, we can define five levels of meaning for a

1) Core Benefit Product: Satisfies the fundamental need of a customer

2) Generic Product: Includes the basic features of a product that are

3) Expected Product: Includes the set of attributes that a

- The color of the eye shadows must have good pigmentation.

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4) Augmented Product: Includes additional features, benefits, or

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5) Potential Product: all the transformations

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A brand is, therefore, more than a product, because it can have

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A Product: Ordinary Shoes The Brand: Jimmy Choo**

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