CHAPTER 1:

BRANDS AND BRAND

MANAGEMENT

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BRANDS & BRAND
MANAGEMENT

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What is a brand?

 Brand emerges from old norse (Scandinavian language)

word brandr that means to burn
 “A brand is a storehouse of trust. That matters more and
more as choices multiply. People want to simplify their
lives.”
 In technocrat and colorless times, brands bring warmth,
familiarity and trust.

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 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.

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 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.

1.5
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What is a Brand?

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Brand Elements
 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

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

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 Five Levels of Meaning for a Product
For VCR

 The core benefit

(Convenient environment)
 The generic product level
(Record and play back television
program)
 The expected product level
( Channels)
 Augmented product
(HiFi sound)
 The potential product level
(Voice controlled programming)

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 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.

1.10
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 According to Kevin Lane Keller “A brand is therefore a
product, but one that adds other dimensions that
differentiate it in someway from other products
designed to satisfy the same need.”

 Understanding consumer motivations and desires and

creating relevant and appealing images surrounding
the products makes a brand leader.

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 Brand building tools:
 R&D
 Product
 Service
 Promotion
 Retail environment
 Advertising
 Merchandising
 Packaging
 CRM
 Price

1.12
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 Some brands create competitive advantages with
product performance; other brands create
competitive advantages through non-product-
related means.

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To Sum Up ....
 Through branding, organizations:
 Create perceived differences amongst products
 Develop loyal customer franchise
 Create value that can translate to financial profits

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Why Do Brands Matter?

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Consumers
 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 and
externally
 Helps set reasonable expectations about what
consumers may not know about the brand

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Consumers
 Signal product characteristics and attributes
 On the basis of attributes products can be classified as:
 Search goods
 Experience goods
 Credence goods
 Reduce risks in product decision
 These risk can be categorised as
 Functional ,physical, financial, social psychological, and time

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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
 Provide predictability and security of demand for the
firm and creates barriers of entry for competitors
 Provide a powerful means to secure competitive
advantage

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Figure 1.3 - Roles that Brands Play

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Can Anything Be Branded

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Physical Goods

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B2B products
• Example of B2B brand - Caterpillar
• Guidelines for marketers of B2B brands
• Ensure that entire organization supports branding and brand
management.
• Adopt a corporate branding strategy if possible and create a
well-defined brand hierarchy.
• Frame value perceptions.
• Link relevant non-product-related brand associations.
• Find relevant emotional associations for the brand.
• Segment customers carefully both within and across
companies.

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High-tech Products
• Struggle with branding due to lack of branding
strategy.
• Have realised that financial success is no longer

driven by product innovation alone.

• Marketing skills play an important role in the

adoption and success of high-tech products.

• Guidelines for high-tech branding:

• Understand your brand hierarchy and manage it

appropriately over time.

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High-tech Products
• Know who your customer is and build an appropriate
brand strategy.
• Realize that building brand equity and selling products
are two different exercises.
• Brands are owned by customers, not engineers.

• Brand building on a small budget necessitates

leveraging every possible positive association.
• Technology categories are created by customers and
external forces, not by companies themselves.

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High-tech Products
• The rapidly changing environment demands that you
stay in tune with your internal and external
environment.
• Invest the time to understand the technology and value
proposition and do not be afraid to ask questions.

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Services

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Role of branding with services
• Challenges in marketing services:
• Less tangible than products and vary in quality.
• Depend on the particular person or people providing
them.
• Branding addresses problems related to intangibility
and variability.
• Brand symbols help make abstract nature of the

services more concrete.

• Provides competitive edge to the services.

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Professional services
• Offer specialized expertise and support to other
businesses and organizations.
• Combination of B2B and traditional consumer

services branding.
• Challenges:

• Greater variability
• Harder to standardize

• Threat from greater equity of employees

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Can Anything Be Branded

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Role of Branding

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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

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Strong Brands
 Brands that have been market leaders in their
categories for decades
 Any brand is vulnerable and susceptible to poor
brand management

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Factors Responsible for Branding
Challenges

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Factors Responsible for Branding
Challenges

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Figure 1.9- Challenges to Brand
Builders

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Brand Equity
 Principles of branding and brand equity
 Differences in outcomes arise from the “added value”
endowed to a product
 The added value can be created for a brand in many different
ways
 Brand equity provides a common denominator 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

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Strategic Brand Management
Process

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Identifying and Developing Brand
Plans

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Designing and implementing Brand
Marketing Program

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Measuring and Interpreting Brand
Performance
 To manage brands profitably, managers must d
implement a brand equity measurement system

  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.

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Measuring and Interpreting Brand
Performance
 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.

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Measuring and Interpreting Brand
Performance
• Three steps that help implement a brand equity
management system are: creating brand equity
charters, assembling brand equity reports, and
defining brand equity responsibilities.

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Growing and Sustaining Brand
Equity

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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:

• Brand portfolio: Set of different brands that a

particular firm offers for sale to buyers in a particular
category.
• Brand hierarchy: Displays the number and nature of
common and distinctive brand components across the
firm’s set of brands.

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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.

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Over geographic boundaries,
cultures, and 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.

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Figure 1.12 - Strategic Brand
Management Process

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