Brand Mgt.

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BRAND MANAGEMENT
Prof. V.V.S.K.PRASAD
THE HINDU COLLEGE MBA MACHILIPATNAM
THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD
Brand Management
Brand management begins with having a thorough knowledge of the term brand. It includes developing a promise, making that promise and maintaining it. It means defining the brand, positioning the brand, and delivering the brand. Brand management is nothing but an art of creating and sustaining the brand. Branding makes customers committed to your business. A strong brand differentiates your products from the competitors. It gives a quality image to your business. Brand management includes managing the tangible and intangible characteristics of brand. In case of product brands, the tangibles include the product itself, price, packaging, etc. While in case of service brands, the tangibles include the customers experience. The intangibles include emotional connections with the product / service. Branding is assembling of various marketing mix medium into a whole so as to give you an identity. It is nothing but capturing your customers mind with your brand name. It gives an image of an experienced, huge and reliable business. It is all about capturing the niche market for your product / service and about creating a confidence in the current and prospective customers minds that you are the unique solution to their problem. The aim of branding is to convey brand message vividly, create customer loyalty, persuade the buyer for the product, and establish an emotional connectivity with the customers. Branding forms customer perceptions about the product. It should raise customer expectations about the product. The primary aim of branding is to create differentiation. Strong brands reduce customers perceived monetary, social and safety risks in buying goods/services. The customers can better imagine the intangible goods with the help of brand name. Strong brand organizations have a high market share. The brand should be given good support so that it can sustain itself in long run. It is essential to manage all brands and build brand equity over a period of time. Here comes importance and usefulness of brand management. Brand management helps in building a corporate image. A brand manager has to oversee overall brand performance. A successful brand can only be created if the brand management system is competent. An organizations Brand is among its most valuable assets. As such, smart organizations understand the importance of building, nurturing and leveraging a strong brand, just as they do other assets, making it a central strategic priority.
The terms brand and branding is thrown around a lot these days, usually with a very limited knowledge of what the process of brand development is really about. The process is simultaneously both an art and a discipline which, like most disciplined artful pursuits, takes practice to master.
When we talk about branding and brand management, we are really talking about a process with several central facets. It involves defining the brand essence; what the brand stands for. It involves definition of the brand personality; the brands character and imagery. It involves development of brand architecture; the central tool in defining the scope and depth of the brands extension across the enterprise it represents. And, it involves brand positioning; differentiating and giving relevance to the brand. At the center of the process is the all-important essence of the brand. This is usually a product of solesearching, looking deep within the organization for that handful of distinguishing characteristics which truly define its culture and the points of distinction which make it what it is. Defining a brands essence is not an afternoons task. It is more typically an interactive, group process of evolution and refinement that takes place over an extended period of time.
Effective brand management usually starts with a retrospective process of discovery and analysis. Unless the brands been well-managed, this process will almost always uncover what I call brand creep, the outgrowth of well-intentioned leaders within the organization who view their program, product or services as the center of the organizational universe and overlay the brand accordingly. The result is undisciplined brand extension and a multi-centered organizational universe.
Down the left-hand side of the diagram are internal disciplines which serve to anchor the brand and avoid brand creep. It is vital to formally document the parameters within which an organizations brand will be developed and that those parameters be purposefully endorsed by the organizations executive leadership, including the CEO. It has been my practice of seeking agreement from the organizations executive team that no changes will be made to the organizations brand architecture without each change being reviewed with and approved by that group, reflecting the value and importance of the discipline. Down the right-hand side of the diagram are external aspects of brand expression. It is the unifying aspects of a well-managed brand architecture that allows an organization to effectively position itself as an enterprise showcase its promise and creatively tell its story. At the bottom of the diagram is the intersection of the internal disciplines and external expressions, joined through internal communications. Building ownership of the brand and its essence on the part of staff and stakeholders is a vital step toward fulfillment of the brand promise extended to the marketplace through its marketing program. It is through the practice of discipline brand management and the artful portray of a brands essence, reflected in the actions of an engaged workforce, that organizations effectively live their brand. Following are the important concepts of brand management: Definition of Brand Brand Name Brand Attributes Brand Positioning Brand Identity Sources of Brand Identity Brand Image Brand Identity vs Brand Image Brand Personality Brand Awareness Brand Loyalty Brand Association
5 Building a Brand Brand Equity Brand Equity & Customer Equity Brand Extension Co-branding
Understanding Brand - What is a Brand ? Brands are different from products in a way that brands are what the consumers buy, while products are what concern/companies make. Brand is an accumulation of emotional and functional associations. Brand is a promise that the product will perform as per customers expectations. It shapes customers expectations about the product. Brands usually have a trademark which protects them from use by others. A brand gives particular information about the organization, good or service, differentiating it from others in marketplace. Brand carries an assurance about the characteristics that make the product or service unique. A strong brand is a means of making people aware of what the company represents and what are its offerings. To a consumer, brand means and signifies: Source of product Delegating responsibility to the manufacturer of product Lower risk Less search cost Quality symbol Deal or pact with the product manufacturer Symbolic device Brands simplify consumers purchase decision. Over a period of time, consumers discover the brands which satisfy their need. If the consumers recognize a particular brand and have knowledge about it, they make quick purchase decision and save lot of time. Also, they save search costs for product. Consumers remain committed and loyal to a brand as long as they believe and have an implicit understanding that the brand will continue meeting their expectations and perform in the desired manner consistently. As long as the consumers get benefits and satisfaction from consumption of the product, they will more likely continue to buy that brand. Brands also play a crucial role in signifying certain product features to consumers.
To a seller, brand means and signifies: Basis of competitive advantage Way of bestowing products with unique associations Way of identification to easy handling Way of legal protection of products unique traits/features Sign of quality to satisfied customer Means of financial returns A brand, in short, can be defined as a sellers promise to provide consistently a unique set of characteristics, advantages, and services to the buyers/consumers. It is a name, term, sign, symbol or a combination of all these planned to differentiate the goods/services of one seller or group of sellers from those of competitors. Some examples of well known brands are Mc Donalds, Mercedes-Benz, Sony, Coca Cola, Kingfisher, etc. A brand connects the four crucial elements of an enterprise- customers, employees, management and shareholders. Brand is nothing but an assortment of memories in customers mind. Brand represents values, ideas and even personality. It is a set of functional, emotional and rational associations and benefits which have occupied target markets mind. Associations are nothing but the images and symbols associated with the brand or brand benefits, such as, The Nike Swoosh, The Nokia sound, etc. Benefits are the basis for purchase decision.
7 Brand Name
Brand name is one of the brand elements which helps the customers to identify and differentiate one product from another. It should be chosen very carefully as it captures the key theme of a product in an efficient and economical manner. It can easily be noticed and its meaning can be stored and triggered in the memory instantly. Choice of a brand name requires a lot of research. Brand names are not necessarily associated with the product. For instance, brand names can be based on places (Air India, British Airways), animals or birds (Dove soap, Puma), people (Louise Phillips, Allen Solly). In some instances, the company name is used for all products (General Electric, LG).Features of a Good Brand Name A good brand name should have following characteristics: It should be unique / distinctive (for instance- Kodak, Mustang) It should be extendable.
8 It should be easy to pronounce, identified and memorized. (For instance-Tide) It should give an idea about products qualities and benefits (For instance- Swift, Quickfix, Lipguard). It should be easily convertible into foreign languages. It should be capable of legal protection and registration. It should suggest product/service category (For instance Newsweek). It should indicate concrete qualities (For instance Firebird). It should not portray bad/wrong meanings in other categories. (For instance NOVA is a poor name for a car to be sold in Spanish country, because in Spanish it means doesnt go). Process of Selecting a renowned and successful Brand Name Define the objectives of branding in terms of six criterions - descriptive, suggestive, compound, classical, arbitrary and fanciful. It Is essential to recognize the role of brand within the corporate branding strategy and the relation of brand to other brand and products. It is also essential to understand the role of brand within entire marketing program as well as a detailed description of niche market must be considered. Generation of multiple names - Any potential source of names can be used; organization, management and employees, current or potential customers, agencies and professional consultants. Screening of names on the basis of branding objectives and marketing considerations so as to have a more synchronized list - The brand names must not have connotations, should be easily pronounceable, should meet the legal requirements etc. Gathering more extensive details on each of the finalized names - There should be extensive international legal search done. These searches are at times done on a sequential basis because of the expense involved. Conducting consumer research - Consumer research is often conducted so as to confirm management expectations as to the remembrance and meaningfulness of the brand names. The features of the product, its price and promotion may be shown to the consumers so that they understand the purpose of the brand name and the manner in which it will be used. Consumers can be shown actual 3-D packages as well as animated advertising or boards. Several samples of consumers must be surveyed depending on the niche market involved. On the basis of the above steps, management can finalize the brand name that maximizes the organizations branding and marketing objectives and then formally register the brand name.
9 Brand Attributes Brand Attributes portray a companys brand characteristics. They signify the basic nature of brand. Brand attributes are a bundle of features that highlight the physical and personality aspects of the brand. Attributes are developed through images, actions, or presumptions. Brand attributes help in creating brand identity. A strong brand must have following attributes: Relevancy- A strong brand must be relevant. It must meet peoples expectations and should perform the way they want it to. A good job must be done to persuade consumers to buy the product; else inspite of your product being unique, people will not buy it. Consistency- A consistent brand signifies what the brand stands for and builds customers trust in brand. A consistent brand is where the company communicates message in a way that does not deviate from the core brand proposition. Proper positioning- A strong brand should be positioned so that it makes a place in target audience mind and they prefer it over other brands. Sustainable- A strong brand makes a business competitive. A sustainable brand drives an organization towards innovation and success. Example of sustainable brand is Marks and Spencers. Credibility- A strong brand should do what it promises. The way you communicate your brand to the audience/ customers should be realistic. It should not fail to deliver what it promises. Do not exaggerate as customers want to believe in the promises you make to them. Inspirational- A strong brand should transcend/ inspire the category it is famous for. For example- Nike transcendent Jersey Polo Shirt. Uniqueness- A strong brand should be different and unique. It should set you apart from other competitors in market. Appealing- A strong brand should be attractive. Customers should be attracted by the promise you make and by the value you deliver Brand Positioning - Definition and Concept Brand positioning refers to target consumers reason to buy your brand in preference to others. It is ensures that all brand activity has a common aim; is guided, directed and delivered by the brands benefits/reasons to buy; and it focusses at all points of contact with the consumer. Brand positioning must make sure that: Is it unique/distinctive vs. competitors ? Is it significant and encouraging to the niche market ?
10 Is it appropriate to all major geographic markets and businesses ? Is the proposition validated with unique, appropriate and original products ? Is it sustainable - can it be delivered constantly across all points of contact with the consumer ? Is it helpful for organization to achieve its financial goals ? Is it able to support and boost up the organization ? In order to create a distinctive place in the market, a niche market has to be carefully chosen and a differential advantage must be created in their mind. Brand positioning is a medium through which an organization can portray its customers what it wants to achieve for them and what it wants to mean to them. Brand positioning forms customers views and opinions. Brand Positioning can be defined as an activity of creating a brand offer in such a manner that it occupies a distinctive place and value in the target customers mind. For instance-Kotak Mahindra positions itself in the customers mind as one entity- Kotak - which can provide customized and onestop solution for all their financial services needs. It has an unaided top of mind recall. It intends to stay with the proposition of Think Investments, Think Kotak. The positioning you choose for your brand will be influenced by the competitive stance you want to adopt. Brand Positioning involves identifying and determining points of similarity and difference to ascertain the right brand identity and to create a proper brand image. Brand Positioning is the key of marketing strategy. A strong brand positioning directs marketing strategy by explaining the brand details, the uniqueness of brand and its similarity with the competitive brands, as well as the reasons for buying and using that specific brand. Positioning is the base for developing and increasing the required knowledge and perceptions of the customers. It is the single feature that sets your service apart from your competitors. For instance- Kingfisher stands for youth and excitement. It represents brand in full flight. There are various positioning errors, such asUnder positioning- This is a scenario in which the customers have a blurred and unclear idea of the brand. Over positioning- This is a scenario in which the customers have too limited a awareness of the brand. Confused positioning- This is a scenario in which the customers have a confused opinion of the brand. Double Positioning- This is a scenario in which customers do not accept the claims of a brand. Brand Identity - Definition and Concept Brand identity stems from an organization, i.e., an organization is responsible for creating a distinguished product with unique characteristics. It is how an organization seeks to identify itself. It represents how an organization wants to be perceived in the market. An organization communicates its THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD
11 identity to the consumers through its branding and marketing strategies. A brand is unique due to its identity. Brand identity includes following elements - Brand vision, brand culture, positioning, personality, relationships, and presentations. Brand identity is a bundle of mental and functional associations with the brand. Associations are not reasons-to-buy but provide familiarity and differentiation thats not replicable getting it. These associations can include signature tune(for example - Britannia ting-ting-ta-ding), trademark colours (for example - Blue colour with Pepsi), logo (for example - Nike), tagline (for example - Apples tagline is Think different),etc. Brand identity is the total proposal/promise that an organization makes to consumers. The brand can be perceived as a product, a personality, a set of values, and a position it occupies in consumers minds. Brand identity is all that an organization wants the brand to be considered as. It is a feature linked with a specific company, product, service or individual. It is a way of externally expressing a brand to the world. Brand identity is the noticeable elements of a brand (for instance - Trademark colour, logo, name, symbol) that identify and differentiates a brand in target audience mind. It is a crucial means to grow your companys brand. Brand identity is the aggregation of what all you (i.e. an organization) do. It is an organizations mission, personality, promise to the consumers and competitive advantages. It includes the thinking, feelings and expectations of the target market/consumers. It is a means of identifying and distinguishing an organization from another. An organization having unique brand identity have improved brand awareness, motivated team of employees who feel proud working in a well branded organization, active buyers, and corporate style. Brand identity leads to brand loyalty, brand preference, high credibility, good prices and good financial returns. It helps the organization to express to the customers and the target market the kind of organization it is. It assures the customers again that you are who you say you are. It establishes an immediate connection between the organization and consumers. Brand identity should be sustainable. It is crucial so that the consumers instantly correlate with your product/service. Brand identity should be futuristic, i.e, it should reveal the associations aspired for the brand. It should reflect the durable qualities of a brand. Brand identity is a basic means of consumer recognition and represents the brands distinction from its competitors. Sources of Brand Identity SYMBOLS- Symbols help customers memorize organizations products and services. They help us correlate positive attributes that bring us closer and make it convenient for us to purchase those products and services. Symbols emphasize our brand expectations and shape corporate images. Symbols become a key component of brand equity and help in differentiating the brand characteristics. Symbols are easier to memorize than the brand names as they are visual images. These can include logos, people, geometric shapes, cartoon images, anything. For instance, Marlboro has its famous cowboy, Pillsbury has its Poppin Fresh doughboy, Duracell has its bunny rabbit, Mc Donald has Ronald, Fed Ex has an arrow, and Nikes swoosh. All these symbols help us remember the brands associated with them.
12 Brand symbols are strong means to attract attention and enhance brand personalities by making customers like them. It is feasible to learn the relationship between symbol and brand if the symbol is reflective/representative of the brand. For instance, the symbol of LG symbolize the world, future, youth, humanity, and technology. Also, it represents LGs efforts to keep close relationships with their customers. LOGOS- A logo is a unique graphic or symbol that represents a company, product, service, or other entity. It represents an organization very well and make the customers well-acquainted with the company. It is due to logo that customers form an image for the product/service in mind. Adidass Three Stripes is a famous brand identified by its corporate logo. Features of a good logo are : It should be simple. It should be distinguished/unique. It should differentiate itself. It should be functional so that it can be used widely. It should be effective, i.e., it must have an impact on the intended audience. It should be memorable. It should be easily identifiable in full colours, limited colour palettes, or in black and white. It should be a perfect reflection/representation of the organization. It should be easy to correlate by the customers and should develop customers trust in the organization. It should not loose its integrity when transferred on fabric or any other material. It should portray companys values, mission and objectives.
The elements of a logo are: Logotype - It can be a simple or expanded name. Examples of logotypes including only the name are Kelloggs, Hyatt, etc. Icon - It is a name or visual symbol that communicates a market position. For example-LIC hands, UTI kalash. Slogan - It is best way of conveying companys message to the consumers. For instance- Nikes slogan Just Do It. TRADEMARKS- Trademark is a unique symbol, design, or any form of identification that helps people recognize a brand. A renowned brand has a popular trademark and that helps consumers purchase
13 quality products. The goodwill of the dealer/maker of the product also enhances by use of trademark. Trademark totally indicates the commercial source of product/service. Trademark contribute in brand equity formation of a brand. Trademark name should be original. A trademark is chosen by the following symbols: (denotes unregistered trademark, that is, a mark used to promote or brand goods); SM (denotes unregistered service mark) (denotes registered trademark).
Registration of trademark is essential in some countries to give exclusive rights to it. Without adequate trademark protection, brand names can become legally declared generic. Generic names are never protectable as was the case with Vaseline, escalator and thermos. Some guidelines for trademark protection are as follows: Go for formal trademark registration. Never use trademark as a noun or verb. Always use it as an adjective. Use correct trademark spelling. Challenge each misuse of trademark, specifically by competitors in market. Capitalize first letter of trademark. If a trademark appears in point, ensure that it stands out from surrounding text. Brand Image Brand image is the current view of the customers about a brand. It can be defined as a unique bundle of associations within the minds of target customers. It signifies what the brand presently stands for. It is a set of beliefs held about a specific brand. In short, it is nothing but the consumers perception about the product. It is the manner in which a specific brand is positioned in the market. Brand image conveys emotional value and not just a mental image. Brand image is nothing but an organizations character. It is an accumulation of contact and observation by people external to an organization. It should highlight an organizations mission and vision to all. The main elements of positive brand image are- unique logo reflecting organizations image, slogan describing organizations business in brief and brand identifier supporting the key values. Brand image is the overall impression in consumers mind that is formed from all sources. Consumers develop various associations with the brand. Based on these associations, they form brand image. An image is formed about the brand on the basis of subjective perceptions of associations bundle that the consumers have about the brand. Volvo is associated with safety. Toyota is associated with reliability.
14 The idea behind brand image is that the consumer is not purchasing just the product/service but also the image associated with that product/service. Brand images should be positive, unique and instant. Brand images can be strengthened using brand communications like advertising, packaging, word of mouth publicity, other promotional tools, etc. Brand image develops and conveys the products character in a unique manner different from its competitors image. The brand image consists of various associations in consumers mind - attributes, benefits and attributes. Brand attributes are the functional and mental connections with the brand that the customers have. They can be specific or conceptual. Benefits are the rationale for the purchase decision. There are three types of benefits: Functional benefits - what do you do better (than others ),emotional benefits - how do you make me feel better (than others), and rational benefits/support why do I believe you(more than others). Brand attributes are consumers overall assessment of a brand.
Brand image has not to be created, but is automatically formed. The brand image includes products' appeal, ease of use, functionality, fame, and overall value. Brand image is actually brand content. When the consumers purchase the product, they are also purchasing its image. Brand image is the objective and mental feedback of the consumers when they purchase a product. Positive brand image is exceeding the customers expectations. Positive brand image enhances the goodwill and brand value of an organization. Brand Identity vs Brand Image Brand Identity Brand identity develops from the source or the company. Brand message is tied together in terms of brand identity. The general meaning of brand identity is who you really are? Its nature is that it is substance oriented or strategic. Brand identity symbolizes firms reality. Brand identity represents your desire. It is enduring. Identity is looking ahead. Identity is active. It signifies where you want to be. It is total promise that a company makes to consumers. Brand Image Brand image is perceived by the receiver or the consumer. Brand message is untied by the consumer in the form of brand image. The general meaning of brand image is How market perceives you? Its nature is that it is appearance oriented or tactical. Brand image symbolizes perception of consumers Brand image represents others view It is superficial. Image is looking back. Image is passive. It signifies what you have got. It is total consumers perception about the brand.
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15 What is Brand Personality ? Brand personality is the way a brand speaks and behaves. It means assigning human personality traits/characteristics to a brand so as to achieve differentiation. These characteristics signify brand behaviour through both individuals representing the brand (i.e. its employees) as well as through advertising, packaging, etc. When brand image or brand identity is expressed in terms of human traits, it is called brand personality. For instance - Allen Solley brand speaks the personality and makes the individual who wears it stand apart from the crowd. Infosys represents uniqueness, value, and intellectualism. Brand personality is nothing but personification of brand. A brand is expressed either as a personality who embodies these personality traits (For instance - Shahrukh Khan and Airtel, John Abraham and Castrol) or distinct personality traits (For instance - Dove as honest, feminist and optimist; Hewlett Packard brand represents accomplishment, competency and influence). Brand personality is the result of all the consumers experiences with the brand. It is unique and long lasting. Brand personality must be differentiated from brand image, in sense that, while brand image denote the tangible (physical and functional) benefits and attributes of a brand, brand personality indicates emotional associations of the brand. If brand image is comprehensive brand according to consumers opinion, brand personality is that aspect of comprehensive brand which generates its emotional character and associations in consumers mind. Brand personality develops brand equity. It sets the brand attitude. It is a key input into the look and feel of any communication or marketing activity by the brand. It helps in gaining thorough knowledge of customers feelings about the brand. Brand personality differentiates among brands specifically when they are alike in many attributes. For instance - Sony versus Panasonic. Brand personality is used to make the brand strategy lively, i.e, to implement brand strategy. Brand personality indicates the kind of relationship a customer has with the brand. It is a means by which a customer communicates his own identity.
Brand personality and celebrity should supplement each other. Trustworthy celebrity ensures immediate awareness, acceptability and optimism towards the brand. This will influence consumers purchase decision and also create brand loyalty. For instance - Bollywood actress Priyanka Chopra is brand ambassador for J.Hampstead, international line of premium shirts. Brand personality not only includes the personality features/characteristics, but also the demographic features like age, gender or class and psychographic features. Personality traits are what the brand exists for. What is Brand Awareness ? Brand awareness is the probability that consumers are familiar about the life and availability of the product. It is the degree to which consumers precisely associate the brand with the specific product. It is
16 measured as ratio of niche market that has former knowledge of brand. Brand awareness includes both brand recognition as well as brand recall. Brand recognition is the ability of consumer to recognize prior knowledge of brand when they are asked questions about that brand or when they are shown that specific brand, i.e., the consumers can clearly differentiate the brand as having being earlier noticed or heard. While brand recall is the potential of customer to recover a brand from his memory when given the product class/category, needs satisfied by that category or buying scenario as a signal. In other words, it refers that consumers should correctly recover brand from the memory when given a clue or he can recall the specific brand when the product category is mentioned. It is generally easier to recognize a brand rather than recall it from the memory. Brand awareness is improved to the extent to which brand names are selected that is simple and easy to pronounce or spell; known and expressive; and unique as well as distinct. For instance - Coca Cola has come to be known as Coke. There are two types of brand awareness: Aided awareness- This means that on mentioning the product category, the customers recognize your brand from the lists of brands shown. Top of mind awareness (Immediate brand recall)- This means that on mentioning the product category, the first brand that customer recalls from his mind is your brand. The relative importance of brand recall and recognition will rely on the degree to which consumers make product-related decisions with the brand present or not. For instance - In a store, brand recognition is more crucial as the brand will be physically present. In a scenario where brands are not physically present, brand recall is more significant (as in case of services and online brands).
Building brand awareness is essential for building brand equity. It includes use of various renowned channels of promotion such as advertising, word of mouth publicity, social media like blogs, sponsorships, launching events, etc. To create brand awareness, it is important to create reliable brand image, slogans and taglines. The brand message to be communicated should also be consistent. Strong brand awareness leads to high sales and high market share. Brand awareness can be regarded as a means through which consumers become acquainted and familiar with a brand and recognize that brand. Brand Loyalty Brand Loyalty is a scenario where the consumer fears purchasing and consuming product from another brand which he does not trust. It is measured through methods like word of mouth publicity, repetitive buying, price sensitivity, commitment, brand trust, customer satisfaction, etc. Brand loyalty is the extent to which a consumer constantly buys the same brand within a product category. The consumers remain loyal to a specific brand as long as it is available. They do not buy from other suppliers within the product category. Brand loyalty exists when the consumer feels that the brand consists of right product
17 characteristics and quality at right price. Even if the other brands are available at cheaper price or superior quality, the brand loyal consumer will stick to his brand. Brand loyal consumers are the foundation of an organization. Greater loyalty levels lead to less marketing expenditure because the brand loyal customers promote the brand positively. Also, it acts as a means of launching and introducing more products that are targeted at same customers at less expenditure. It also restrains new competitors in the market. Brand loyalty is a key component of brand equity. Brand loyalty can be developed through various measures such as quick service, ensuring quality products, continuous improvement, wide distribution network, etc. When consumers are brand loyal they love you for being you, and they will minutely consider any other alternative brand as a replacement. Examples of brand loyalty can be seen in US where true Apple customers have the brand's logo tattooed onto their bodies. Similarly in Finland, Nokia customers remained loyal to Nokia because they admired the design of the handsets or because of user- friendly menu system used by Nokia phones. Brand loyalty can be defined as relative possibility of customer shifting to another brand in case there is a change in products features, price or quality. As brand loyalty increases, customers will respond less to competitive moves and actions. Brand loyal customers remain committed to the brand, are willing to pay higher price for that brand, and will promote their brand always. A company having brand loyal customers will have greater sales, less marketing and advertising costs, and best pricing. This is because the brand loyal customers are less reluctant to shift to other brands, respond less to price changes and self- promote the brand as they perceive that their brand have unique value which is not provided by other competitive brands.
Brand loyalty is always developed post purchase. To develop brand loyalty, an organization should know their niche market, target them, support their product, ensure easy access of their product, provide customer satisfaction, bring constant innovation in their product and offer schemes on their product so as to ensure that customers repeatedly purchase the product. Brand Association Brand Associations are not benefits, but are images and symbols associated with a brand or a brand benefit. For example- The Nike Swoosh, Nokia sound, Film Stars as with Lux, signature tune Ting-tingta-ding with Britannia, Blue colour with Pepsi, etc. Associations are not reasons-to-buy but provide acquaintance and differentiation thats not replicable. It is relating perceived qualities of a brand to a known entity. For instance- Hyatt Hotel is associated with luxury and comfort; BMW is associated with sophistication, fun driving, and superior engineering. Most popular brand associations are with the owners of brand, such as - Bill Gates and Microsoft, Reliance and Dhirubhai Ambani.
18 Brand association is anything which is deep seated in customers mind about the brand. Brand should be associated with something positive so that the customers relate your brand to being positive. Brand associations are the attributes of brand which come into consumers mind when the brand is talked about. It is related with the implicit and explicit meanings which a consumer relates/associates with a specific brand name. Brand association can also be defined as the degree to which a specific product/service is recognized within its product/service class/category. While choosing a brand name, it is essential that the name chosen should reinforce an important attribute or benefit association that forms its product positioning. For instance - Power book. Brand associations are formed on the following basis: Customers contact with the organization and its employees; Advertisements; Word of mouth publicity; Price at which the brand is sold; Celebrity/big entity association; Quality of the product; Products and schemes offered by competitors; Product class/category to which the brand belongs; POP ( Point of purchase) displays; etc
Positive brand associations are developed if the product which the brand depicts is durable, marketable and desirable. The customers must be persuaded that the brand possess the features and attributes satisfying their needs. This will lead to customers having a positive impression about the product. Positive brand association helps an organization to gain goodwill, and obstructs the competitors entry into the market. Brand Promise - Our brand is a promise of what we deliver Brand evokes the responses. There are many people who love their Apple iPod or love their car etc. There are certain feelings that come to your mind when you think about your favorite brands. People expect that these brands should demonstrate brand promises every time whenever they are, encountered. Inconsistencies in the performance of services can lead to damage in further relations. This can cause a customer to select some other brand.
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Brand promise is what you say to the customer and what is to be delivered. If you are not able to meet the expectations of the customer, your business will either flounder or die. If you are not able to deliver the brand promise you will not be able to meet the expectations that have been created in the customers mind. There are three major mistakes that the business leaders make while executing and developing the brand promise: The first mistake is when you refuse to recognize the customer expectations that are created in customers mind before it comes in contact with that particular brand. The customers are very easily able to realize your brand promise by the business you are dealing with. For example, if you have a gourmet restaurant then the customers will have a image in their mind that it will different from the local restaurant. This is one of the major reason, why one should work for every smallest detail. For example, the image of a gourmet restaurant does not include plastic menus or paper placemats. The second major mistake is to implement a system which gives a negative experience to the customer. Business leaders work on creating efficient results for saving time and money. Human beings are self-centered creatures with a thought in their mind to save money and time for us. For example, a customers asks do you accept credit card? Do you accept all credit cards or only master card and visa? If you dont accept these cards, does it make any difference in the cost? Its just that you are losing sales. Then what are the other services you are giving to the customer in place which is the attraction for the customers. Any small inconvenience which will force the customer to say that you are not completely service oriented and encourages the customer to some other brand. The third major mistake is that when you are not able to hire the best candidate. You easily hire anyone who applies and dont even put some efforts to train them gives a really terrible experience to the customers. Brand promises are delivered by the staff. If your goal is to be a business leader you will invest time to train the staff. If you select a person who is very polite and does not even know how to dress up for an interview then you competition should send a thank you card for all the business you will send his way. People who want to become the business leader understand they are a great product brands. They are authentic, dependable and reliable. Their icon is their name. Delivering the best of themselves is their brand promise. Do you want to become winner at working? Then, deliver the brand promise. Steps in Building a Brand Name Product or Service At times, organizations are often inspired by a variety of ideas to create products and services which can be offered locally or globally. Generally, such products or services require the establishment of a brand or company name. Often these brands include both logo and lettering and can do a long way in advertising such products or services. Therefore, one of the most important steps in building a Brand is decide upon a brand name for the product or service one wishes to sell.
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Branding is a process that allows an individual or a group of individuals the ability to provide a brand image and lettering to an idea. Upon doing so, one has a better chance of selling such items to a broader audience whether that be on a local or global level. Therefore, while the old adage nothing happens until somebody sells something, still stands true to some extent, at times almost seems as if the process of advertising and branding has overtaken the desire to sell. Although branding generally identifies the company and philosophies behind same, it can also be representative of those working for such a company. This is a good thing as it generates the right type of audience to the product or service being sold based on personal relationships with those running the company. Therefore, benefiting both the organizations selling the branded product or service and the dealers buying same.
One of the most important steps in selling any product or service is the belief one holds in relation to the item. Therefore, only those who strongly believe in the products and services offered by the company are going to be good at selling same. Otherwise, one may want to work from an advertising or graphic artist perspective in relation to advertising rather than sales when it comes to time to market same.
Another step is to build a brand that maintains loyalty with its customer base and has a strong customer service department. For, having such a department in today's world where one is both experienced and knowledgeable when it comes to helping others can be a rare find. So, companies who represent oneself has having a strong customer base and even stronger customer service department are often more successful than those who do not. A very important step in marketing a brand is to identify the target audience before creating the logo and lettering in relation to marketing. This is because different age groups react differently to a variety of logo and lettering especially as so much is misrepresented by a variety of gangs and others using such material inappropriately. Therefore, if one can define the brand name, logo and lettering and present same to a marketing research review panel or the like, one may be able to gain a better understanding of which audience one needs to direct their product or service to in order to create the most sales. Still, if one can communicate the use of their product or service clearly, establish trust within the community, be that locally or globally, aim marketing at the right audience, build a base of buyers and customer loyalty and offer great customer service, then one is on their way to not only creating and advertising an excellent brand but selling one as well. Therefore, when looking for steps in building a brand, there are many steps which one can complete to help make the creation of such brand an easier task. These include, knowing your audience, building your brand, finding a great logo and lettering to represent same, targeting the appropriate audience and
21 placing a number of ads in as many online and offline advertising venues one can find. For, after doing so, one may just find that they are selling even more products and services than one had ever dreamed possible. Brand Equity - Meaning and Measuring Brand Equity Brand Equity is the value and strength of the Brand that decides its worth. It can also be defined as the differential impact of brand knowledge on consumers response to the Brand Marketing. Brand Equity exists as a function of consumer choice in the market place. The concept of Brand Equity comes into existence when consumer makes a choice of a product or a service. It occurs when the consumer is familiar with the brand and holds some favourable positive strong and distinctive brand associations in the memory. Brand Equity can be determined by measuring: Returns to the Share-Holders. Evaluating the Brand Image for various parameters that are considered significant. Evaluating the Brands earning potential in long run.
By evaluating the increased volume of sales created by the brand compared to other brands in the same class. The price premium charged by the brand over non-branded products.
From the prices of the shares that an organization commands in the market (specifically if the brand name is identical to the corporate name or the consumers can easily co-relate the performance of all the individual brands of the organization with the organizational financial performance. OR, An amalgamation of all the above methods.
Factors contributing to Brand Equity Brand Awareness Brand Associations Brand Loyalty Perceived Quality: refers to the customers perception about the total quality of the brand. While evaluating quality the customer takes into account the brands performance on factors that are significant to him and makes a relative analysis about the brands quality by evaluating the competitors brands also. Thus quality is a perceptual factor and the consumer analysis about quality varies. Higher perceived quality might be used for brand positioning. Perceived quality affect the pricing decisions of the organizations. Superior quality products can be charged a price premium. Perceived quality gives the customers a reason to buy the product. It also captures the channel members interest. For instance American Express.
22 Other Proprietary Brand Assets: Patents, Trademarks and Channel Inter-relations are proprietary assets. These assets prevent competitors attack on the organization. They also help in maintaining customer loyalty as well as organizations competitive advantage. Brand Equity & Customer Equity Brand Equity is defined as value and strength of the Brand that decides its worth whereas Customer Equity is defined in terms of lifetime values of all customers. Brand Equity and Customer Equity have two things in common- customer loyalty to the brand Both stress on significance of
Both stress upon the face that value is created by having as many customers as possible paying as high price as possible. But conceptually both brand equity and customer equity differ. While customer equity puts too much emphasis on lower line financial value got from the customers, brand equity attempts to put more emphasis on strategic issues in managing brands. Customer Equity is less narrow alternative. It can overlook a brands optional value and their capacity effect revenues and cost beyond the present marketing environment. Just as customer equity can persist without brand equity, brand equity may also exist without customer equity. For instance I may have positive attitude towards brands - McDonald and Burger King, but I may only purchase from McDonalds brand consistently.
23 To conclude, we can say brands do not exist without consumer and consumer do not exist without brands. Brands serve as a temptation that utilizes other intermediaries to lure the customers from whom value is extracted. Customers serve as a profit-medium for brands to encash their brand value. Both the concepts are highly co-related. Brand Extension - Meaning, Advantages and Disadvantages Brand Extension is the use of an established brand name in new product categories. This new category to which the brand is extended can be related or unrelated to the existing product categories. A renowned/successful brand helps an organization to launch products in new categories more easily. For instance, Nikes brand core product is shoes. But it is now extended to sunglasses, soccer balls, basketballs, and golf equipments. An existing brand that gives rise to a brand extension is referred to as parent brand. If the customers of the new business have values and aspirations synchronizing/matching those of the core business, and if these values and aspirations are embodied in the brand, it is likely to be accepted by customers in the new business. Extending a brand outside its core product category can be beneficial in a sense that it helps evaluating product category opportunities, identifies resource requirements, lowers risk, and measures brands relevance and appeal. Brand extension may be successful or unsuccessful. Instances where brand extension has been a success areWipro which was originally into computers has extended into shampoo, powder, and soap. Mars is no longer a famous bar only, but an ice-cream, chocolate drink and a slab of chocolate.
Instances where brand extension has been a failure areIn case of new Coke, Coca Cola has forgotten what the core brand was meant to stand for. It thought that taste was the only factor that consumer cared about. It was wrong. The time and money spent on research on new Coca Cola could not evaluate the deep emotional attachment to the original CocaCola. Rasna Ltd. - Is among the famous soft drink companies in India. But when it tried to move away from its niche, it hasnt had much success. When it experimented with fizzy fruit drink Oranjolt, the brand bombed even before it could take off. Oranjolt was a fruit drink in which carbonates were used as preservative. It didnt work out because it was out of synchronization with retail practices. Oranjolt need to be refrigerated and it also faced quality problems. It has a shelf life of three-four weeks, while other soft- drinks assured life of five months. Advantages of Brand Extension
24 Brand Extension has following advantages: It makes acceptance of new product easy. It increases brand image. The risk perceived by the customers reduces. The likelihood of gaining distribution and trial increases. An established brand name increases consumer interest and willingness to try new product having the established brand name. The efficiency of promotional expenditure increases. Advertising, selling and promotional costs are reduced. There are economies of scale as advertising for core brand and its extension reinforces each other. Cost of developing new brand is saved. Consumers can now seek for a variety. There are packaging and labeling efficiencies. The expense of introductory and follow up marketing programs is reduced. There are feedback benefits to the parent brand and the organization. The image of parent brand is enhanced. It revives the brand. It allows subsequent extension. Brand meaning is clarified. It increases market coverage as it brings new customers into brand franchise. Customers associate original/core brand to new product, hence they also have quality associations. Disadvantages of Brand Extension Brand extension in unrelated markets may lead to loss of reliability if a brand name is extended too far. An organization must research the product categories in which the established brand name will work. There is a risk that the new product may generate implications that damage the image of the core/original brand. There are chances of less awareness and trial because the management may not provide enough investment for the introduction of new product assuming that the spin-off effects from the original brand name will compensate.
25 If the brand extensions have no advantage over competitive brands in the new category, then it will fail. Co-branding - Meaning, Types and Advantages and Disadvantages What is Co-branding Co branding is the utilization of two or more brands to name a new product. The ingredient brands help each other to achieve their aims. The overall synchronization between the brand pair and the new product has to be kept in mind. Example of co-branding - Citibank co-branded with MTV to launch a cobranded debit card. This card is beneficial to customers who can avail benefits at specific outlets called MTV Citibank club. Types of Co-branding Co-branding is of two types: Ingredient co-branding and Composite co-branding. Ingredient co-branding implies using a renowned brand as an element in the production of another renowned brand. This deals with creation of brand equity for materials and parts that are contained within other products. The ingredient/constituent brand is subordinate to the primary brand. For instance - Dell computers has co-branding strategy with Intel processors. The brands which are ingredients are usually the companys biggest buyers or present suppliers. The ingredient brand should be unique. It should either be a major brand or should be protected by a patent. Ingredient co-branding leads to better quality products, superior promotions, more access to distribution channel and greater profits. The seller of ingredient brand enjoys long-term customer relations. The brand manufacture can benefit by having a competitive advantage and the retailer can benefit by enjoying a promotional help from ingredient brand. Composite co-branding refers to use of two renowned brand names in a way that they can collectively offer a distinct product/ service that could not be possible individually. The success of composite branding depends upon the favourability of the ingredient brands and also upon the extent on complementarities between them. Advantages and Disadvantages of Co-branding Co-branding has various advantages, such as - risk-sharing, generation of royalty income, more sales income, greater customer trust on the product, wide scope due to joint advertising, technological benefits, better product image by association with another renowned brand, and greater access to new sources of finance. But co-branding is not free from limitations. Co-branding may fail when the two products have different market and are entirely different. If there is difference in visions and missions of the two companies, then also composite branding may fail. Co-branding may affect partner brands in adverse manner. If the customers associate any adverse experience with a constituent brand, then it may damage the total brand equity.
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Strategic Brand Management

Meaning and its importance Brand does not carry a definite and absolute definition but it is relative. Some observers would term products or services characteristics, which differentiate it from competitors as brand, where as some would consider standing of ones product or services in market as brand. In all these, value of product or service for what it stands and attributes which identifies them can be considered as brand. Branding or Brand is considered important not only for companies but they carry equal importance for customers or consumers also. From consumer or customer point of view, brand becomes important for various reason let us explore some of them. Brand for a customer will indicate commitment towards quality from sellers there by reducing time spent in coming to a purchase decision. Brand for companies will indicate a sort of benchmark in quality as well as customer expectation, a point of differentiation from competitors and a steady stream of profit. Normally we associate branding from point of view common mass; and products or service displayed in malls and supermarket. However there exists another market where branding is equally important and that is business to business market. This is referred as corporate branding, which is again a challenge as decision making process for purchase order is way different compare to individual. Here survival of organization as well as individual will be at stake. The key lies in developing a brand for corporation where in which other business can be confident of. Modern globalized, technology driven world has thrown new challenges to branding. Customers/consumers have more access to information than ever before. Internet has become a strong tool through which product information proliferate raising expectation bar for companies. Companies have responded to this challenge by improvising in the way they run their marketing campaigns, by exploring new avenues to showcase their products. Like for example; sponsorship of events and teams or association with social cause.
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In a given market innumerable products and services are offered by different companies. The identity developed for this product and services over a period of time, through marketing strategies, sturdy performance etc is referred to as brand. A stage is reached where brand become synonymous with product e.g. - coffee-Starbucks, donut-Dunkin Donuts, online retail-Ebay etc. This process is called strategic brand management.
Customer Based Brand Equity Imagine walking in aisle of a typical super market (Shaws, Costco etc) to purchase salt, there are many offerings but choice is Morton. It is a simple example but a great situation to understand brand and brand equity. Companies already know that identity of product created over period of time through strategic marketing is brand, but now what is Brand Equity. From customers point of view, association created which results in favorable and positive action towards a brand, in context with other product can be referred as brand equity. If that action is in favor of any brand than is positive brand equity and that action is not favorable than its negative brand equity. Therefore in the above example, action of consumer in purchasing Morton is suggesting positive brand equity. And since this brand equity is from customers perspective, Customer Based Brand Equity.
Brand equity is a good barometer to understand past action and future course of action for marketers, who are active in formulating strategies for a given brand. If in present, customer has developed favorable attitude towards the brand then it is a clear indication that past investment (time, money, etc) have found there mark.
28 The present also leads the way how marketers should plan future course, as to achieve desired results. But one aspect is absolutely clear that brand knowledge is a key factor in establishing brand equity. To further stress point of brand knowledge, an experiment was conducted by Larry Percy with respect to brand equity using Beer as product. Aim was to understand consumer response for the same brands under two different set ups. The first set up was where consumer had no knowledge about the brand and in the second next set up, brand name was not disclosed. Result showed that consumer were highly critical of preferred beer when they were not aware of brand. A favorable response was recorded after brand disclosure, leading to conclusion that brand knowledge contributes a lot in understanding customer based brand equity. Brand knowledge which is crucial in evolution of brand equity consists of brand awareness and brand image. Here brand awareness means the ability created by brand with which consumer can recall and recognize in any given environment. On the other hand brand image are visuals, logo, style etc with which brand is associated. Customer based brand equity results in creation of strong brand and this is achieved when brand awareness and image are at high level. But how to create a strong brand based brand equity ?
29 A thing to understand here is that brand equity resides in the mind of the customer, so conviction has to be brought in strategy as to permanently occupy consumer mind space. The process is like climbing a ladder, one step at a time. And at each step an objective is achieved creating leading to a strong brand. First step is to establish a relation between customer need and product offering, meaning for given product the brand is the best customer can get. This is done by appropriate brand awareness and image. Second step is connection, by churning out predictable, reliable and quality performance during each purchase. This establishes imprint in customers mind which further can be cemented by visual, logos, packaging, quality, customer service, warranty, etc. Next create emotional connection with customer using brand offering and brand image as to generate response from the customer. The emotional level response in form of positive reaction or opinion brand creates long term, sustainable and healthy relationship.
A classic example here would be of Google and Apple. Both these brands have become synonymous with search engine and entertainment in mind of customers.
When brand is able to achieve sense of oneness with its consumer then it can be said that strong brand has been created. Companies tend to benefit a lot, in terms loyalty as consumer will stick to the brand no matter what price premium they have to shell out. These consumers become sort of brand ambassador and recommending usage of brand. There by creating consumer based brand equity. Brand Positioning Strategy Brand knowledge comprises of brand awareness and brand image contribute to establishing of customer based brand equity. The process is gradual and requires in-depth understanding of consumer mind. Connection between brand and consumer leads to long term partnership and loyalty. And, continued support to marketing efforts of the company. So when a company is trying to build up brand knowledge, Brand Positioning becomes very much relevant. For example, Apple and Windows both are well known brand. Consumers are aware that they both are computer brands dealing in entertainment, but Apple stands for style, cool quotient, iPod etc where as Windows stands for world class operating system, quality etc. Consumer can easily identify point of similarities and points of difference between the two brands. This process of creating point of similarities and points of difference in consumers mind is called Brand Positioning. Brand positioning strategy is about finding a right place for a brand in market place as well consumer mind. A consumer should easily identify that for a given need or want this is the brand. If brand fails to do this, it simply becomes just another product or commodity on supermarket or mall shelf. So for successful brand positioning, following points are of utmost importance for companies; target consumer, main competitors, point of similarity with competitors and point of difference with competitors.
30 So, to identify target consumer we must narrow down target market. A market comprises of cluster of individual with similar behavior, referred to as segments. These segments can be defined on basis of personal consumption profile, which includes marital status, consumption of product, usage rate of product and expectation from product. Another is demographic which includes age, sex, income level, race and family. Further segmentation can be done on location, if consumer, that is whether they are local or global. Other segmentation can be done on basis of emotional profile, which includes personal belief and values, chosen lifestyle, religious affiliation etc. Another market which is important is business market. Segmentation of business market is starts with product class, meaning target industry (chemical, agriculture etc). Another segment is buying decision, that is, through tender process, bidding process. By end customer (government, not profit organization etc). Finally segmentation is done on basis of company profile, which includes financial strength and geographical location. Knowing your competitor is very essential for survival in market. SWOT analysis is definitely good starting point. Competition may not be coming from the same product class but maybe from substitute, such as, tea v/s coffee. The point here is that not to narrow down competition too much as to lose focus. In recent time apparel industry has facing competition from consumer electronics industry, as people are willing to spend buck on iPod, HDTV to make style statement and not clothes. Point of difference could be defining in terms of the way consumer thinks for a given brand. These are the points which will make the brand stand out from competition. Point of difference is like unique selling proposition and this difference can be in form of appearance, predictable performance, quality, better customer service. For example Wal-Mart, faces competition not only from Target but also from Macys and Shaws. But point of difference is the product range it can offer at competitive prices compared to other stores. Points of similarity are common traits essential to make sure that consumer understand the product. It helps in enforcing a simple point of identifying product within product class. This becomes important especially if brand is in extension mode and looking to enter another category. This is more prevalent in consumer goods industry, such as Old Spice earlier it was focus on shaving product but later moved to grooming products like deodorants. Brand positioning is very important step in establishing customer based brand equity. Target market, Knowing competitors, Point of difference and Point of similarity together add to strategic branding process. Choosing Brand Elements to Build Brand Equity Brand equity is the result of a process which leads to a creation of a unique and distinct brand identity. These brand identifiers are referred to as brand identifiers. Brand identification can be done through various ways; for example, Unique Selling Proposition (USP), Logo, Style, Brand Ambassador, Etc. Brand elements facilitate the process of consumer brain mapping and play a key role in building brand equity. Consumers over period of time are able to identify the brand through brand elements. The idea is to
31 develop brand elements, which can properly communicate about brand and its point of difference from competing brands. There are various factors, which add to a good brand element. Brand element should be such that they can have a great recall power; for example, half eaten apple, it steadily identifies with brand Apple. These sort of logo stays in memory for long time. So the brand element should be such that it can be easily recalled. Another factor is significance and application, is brand element conveying either of this two for consumer? Significance here means that brand element should be suitable for that given product category. Consumer should not be left guessing about brand by looking at the element. Another factor for a good brand element is design and appearance, of course it depends on product category company is operating (industrial product v/s consumer products). For example, Apple products I-pod and Mac, design and appearance are such; anyone would be attracted towards them. Another factor is the application of brand element. For example, Virgin, this brand is applicable to airlines as much as to financial services, on other hand, Toys r us, this brand can only be valid to sell toys, games, etc. In this globalize world it is very important to respect diversity and culture. A word or symbol can have various meanings, for example, Swastika symbol is associated with Nazi's movement but in India symbol means luck. So the choice of word or symbol should not be without research. Another factor is flexibility; an openness to change. This flexibility could be in the form of demographic, society, etc., for example, TV ads during the super bowl show Asian, African American, Hispanic drinking beer together, even though football is all American game. The reason been American society has a good mix of people from different race and culture but has a strong passion for the game. Ads15 years never showed this kind of mix of different race and culture. The last important factor is intellectual property rights, brand element should have a legal cover from piracy and copiers in which countries they operate.
The most elementary part of brand element to achieve brand equity is the brand name. For example, in meeting a stranger, a formal introduction starts with name, so that next time you see person again you greet her by name. Similarly brand name can convey much about brand itself, example, Pepsi-cola or common name Pepsi. Brand name is easy to remember and recall making pronunciation easy for nonEnglish speaker. Brand name could also be suggestive into what brand is offering, for example, Kentucky Fried Chicken. The brand name itself is sufficient in conveying that for fried chicken KFC is the brand.
Another elementary part is the brand slogan because it can again convey the whole existence of brand. For example, Wal-Marts slogan is Save Money Live Better; it conveys lot about offering at brand stores. But again as time change slogan also have to evolve. Earlier Wal-Marts slogan was Always Low Price, but in tough economic times the new slogan is more relevant. Packaging also plays important part as brand element in building brand equity. For example Kelloggs cereals; its packaging as evolved responding to modern needs (healthy diet) to new technologies.
32 It can be easily concluded from above the importance of brand element in creation of brand equity. Various elements like brand name, packaging, slogan symbol individually and collectively play important in creating long lasting impression and relation with consumer. Designing Marketing Programs to Build Brand Equity At core of building brand equity is marketing programs or strategies. Marketing activities can facilitate in increasing brand awareness as well as in creating the right brand image. Marketing activities can be weaved around product, pricing and distribution channel. But the way these marketing activities are carried out has gone under revolutionary change owing to the modern technological driven world. Reason why modern world is different can be understood from consumer as well as companys perspective. Todays consumer is well informed about the product or service she is purchasing, reason been digital connectivity through internet, mobile etc. Product reviews are readily available forums or social networking sites, where in consumer can read understand experience of other consumers. Consumer have more access to customized products, there are websites which lets you design your own t-shirts or hoodies. Many of consumer purchase decision are made online; internet along with technology has given convenience to consumer. From companies perspective new technology frontiers has improved the way they understand consumer. Companies maintain large database storing consumption behavior; analyze this database to create consumer expectation matching products and services. Marketing tactics can be implemented by emails, forums on social networking sites etc. Internet retailing has created new supply chain model for companies, which is a challenge as well convince, because traditional distributes and agents have made way to courier services. For example products ordered from Dell are design, assembled in companys warehouse and then sent to customers. Traditional marketing activities revolve around product, pricing and channel distribution. However, efforts are always on to make sure marketing activities truly reflect brand image and develop strong brand equity. One the marketing concept developed is called experiential marketing. This unique concept is associated with brands and experience consumer has with it. For example American Express, has been sponsor of US open for years, they have created marketing plan especially for their card holders. The card holders are part of daily draws, where winner are eligible to court side seats among many other freebies. Another marketing technique popular among markets is a form of direct marketing. Brands like Amway and Avon have followed this technique for some time now. In this form of marketing focus is on individual consumer and not a large group, their habits are recorded and on that basis other products are suggested. Flora 2000 is online florist who deliver flowers all around the globe, time to time they send reminders of important events like mothers day or valentine day with special deals to consumer, knowing consumer had previously made purchase around that period. Online retailer Amazon uses another marketing technique where they suggest a product to consumer after getting nod from them. Amazon takes permission from consumer before sending recommendation. This permission marketing enables companies to build unique brand image leading to strong brand equity.
33 Product remains first frontier for consumer to create opinion for brand. Marketing strategy around product is to highlight not only core benefits but also process or easy by which purchase is done there by creating a long term relationship with consumer where periodical information exchange can occur. Pricing is crucial for brand image. To establish price, product cost should not be the only consideration. But consumer perception for potential product value and sensitivity to price is also of equal importance. Competitors price also cannot be ignored because price war will not benefit anyone in the market. An effort has to be made to educate the consumer about cost of serving them, for them to understand price of product. Products are sold either through direct marketing channels or indirect marketing channels. These channels also play an important role in building brand equity. Again channel choice is dependent on product. Industrial product preferred way would be direct channel. But there are various factors like product category, customization, price, complexity which play a role in deciding marketing channel. Marketers have to develop marketing programs keeping in mind above discuss points to build a strong consumer based brand equity. Integrating Marketing Communication to Build Brand Equity Marketing programs play an important role in building up of brand equity. These marketing programs are related to product, price and distribution channels. And these programs are necessary to create brand image and also to build brand awareness. This task is done through medium of marketing communication, in its most form is advertising. Marketing communication is essential in establishing point of similarity, as well point of difference with competition, making an impression in consumers mind leading to development of strong consumer based brand equity and also to develop long- lasting relationship. Marketing communication needs to be flexible in current technology driven environment where consumer are internet savvy and have access to information. Traditional communication avenues like TV ads have to undergo subtle changes. Advent of digital video recorders has seen consumer watching their favorite program post actual telecast. But a trend observed here is that consumes tend to skip ads in recorded program. If that is the case than fortune spent of getting spots wont translate into effective communication. Todays youth tend to spend more time playing video games and not on watching television. So communication developed should follow certain criteria to prove its effectiveness. For marketing communication to be effective in conveying its message a simple cycle has to be understood. Marketers need to understand the present state of brand awareness and brand image within consumers mind and then ask question, do they want to be in current state. Now design communication in whatever form required that will take to desired level, while clearly stating similarity and difference from competitors. Finally, research consumers to understand whether desire effect or brand knowledge has been created.
34 But what factors need to be considered in designing this marketing communication? The intended consumers should be able to get a chance to experience the communication. So if consumers watch cartoon network and ad is not ESPN then end consequences are already written. Next communication needs to be catchy so consumer would stop and look through it. Once consumer is all attention then communication should be properly designed to pass the message across. Consumer should not be left wandering about meaning. The important part is measure, effectiveness of communication that is whether there is change in direction for consumer as intended. Looking at above steps, it is easy to conclude that it is challenging and difficult to design and execute marketing communication process. There are various marketing options available to marketers. Each option has its own strength and weakness. Advertisement is one the most common form of marketing communication; this can be done through television, radio, magazines, newspaper, direct approach, etc. Television is good medium to target large audience and greater geographical area, thereby reducing dollar cost per customer. However this medium can be expensive and may not create a strong impact. Radio on other hand has lesser geographical coverage and audience, thereby creating focus on selective audience and reducing cost. However radio again can only have audio and cannot grab attention the way visuals can. Magazines and newspaper can provide good coverage with greater information content. However it is just visual and may not generate desirable consumer response. Other form of marketing communication are direct marketing which includes door to door, phone calls and mail, then, marketing at point of purchase through cut outs and display, another way through billboards which can have both visual as well as audio. Marketers also extensively use promotional activity for marketing communications. These are of two types, consumer promotion and trade promotion. Consumer promotion can be in form of sampling, evident at malls and super market, another way by providing coupons and various other schemes. Trade promotion is targeted for channel partner like retailers, distributors and these could be in form cash incentives etc. To design a complete marketing communication program, marketers have to ensure that they are able to establish connection with consumer and able to effectively communicate about brand, there by creating a strong brand awareness and image. This will ensure in creating a strong consumer based brand equity. Leveraging Secondary Brand Association to Build Brand Equity There are various ways to create brand equity. Brand elements offer many alternatives style, logo unique selling proposition etc. Then there are marketing strategies aimed at product, price and distribution network. Here focus is on product and its attributes, correct and convincing price structure, and finally choice of product reaches consumer. Marketing communication is also strategic with respect to build brand equity with choice of medium (TV, radio, etc) and sales/consumer promotion. But what would be course of brand building for brand extension? Here brand has to draw some brand elements and brand knowledge from already developed brand, which has already created impression in consumers mind, thereby leveraging secondary brand association to create brand equity.
35 Marketers have various options available to them to facilitate leveraging process. These options are association with companies, countries and distribution channel. Next set of options relate to brand image and they are in form of brand ambassador, event sponsorship and other related activities. Secondary brand association has its importance when consumers are not aware of the new or upcoming brand. This leads to indifferent approach from customer towards brand. However, if consumers do not have knowledge of associating company than there could be no knowledge transfer and cannot translate into benefit for the brand. Even if the consumers have brand knowledge how much relevance it holds for the current brand also has to be ascertained. If a company is to introduce a new brand the first step of association is with corporate brand if it exists. For example, Nokia, when it introduce mini laptop it was referred as Nokia 3G Booklet there are creating association, as consumer are already aware Nokia mobile phones. Along with company, country of origin can also be relevant source for brand association, for example BMW and its association with Germany. Top class and renowned German engineering process gets linked to brand BMW or other car coming out of Germany. Another valuable association is through channel distribution; if company already has a strong retail level penetration then introduction of new brand will have its benefit. But here question is raised concerning brand positioning, if retail network is catering to high end brand, that distribution network will not relevant for low end brand. Above listed of association within current companys infrastructure, however association can also be developed with brand from different company. This concept is called co-branding, for example branding of airlines referred to as Star Alliance consisting of 16 airlines. Benefit with this kind of association is that there definite decrease in cost of introducing of brand plus positioning becomes easier. However, companies lose charge or control to the overall brand development process as it is peg with other brands. Lost in the crowd is another problem leading from brand associations. Another way of association is through usage of logos, characters from brands, franchise of other product category. For example, Sonys PSP coming out with console featuring characters from Star Wars. But strategy has a drawback, sometimes popularity character may last just for a movie or a season, in that case, brand has to undergo another round of association. So choice of right character as shown by Sony is important. Celebrity endorsement is another way of association, for example, Tiger Woods endorsing product Gatorade. However this also has challenges if that celebrity is involved endorsement many other brands. This could lead to dilution or recall value of brand. Also if fortunes of celebrity goes turtle brand are also in for some pounding. Event sponsorship is another way for brand association but again right choice of event is very essential to make the brand relevant among consumer. Another form of endorsement is from third party for example dental association certifying toothpaste brand.
Marketers some come up with right mix of above strategies to convey right brand knowledge to consumers. It has its challenges but overall success of secondary association in building strong brand equity cannot be ignored.
36 Developing a Brand Equity Measurement and Management System Marketers have various tools at their disposal to build a strong consumer based brand equity. Through this tool, they have developed many strategically important marketing communication programs. It is important for survival of brand to understand how effective these programs have been. If these programs have been able to induce a positive image and increased brand knowledge among consumer then, it can be concluded that strategy employed is successful. A deliberate effort has to be carried out to measure success of marketing communication programs. This deliberate effort should be in direction of effective and efficient measurement system and also ways to manage these systems. There are two ways forward in designing measurement system. One such measurement system relies on indirect method, where in emotional level changes in consumer are sorted and recorded. Other system rather relies on direct measurement method where in consumer response towards brand in terms of sales etc are measured and analyzed. A system design to effectively measure source and outcome of branding strategies there by providing a set of information, which can be delivered to concern decision makers to act on, is called a brand equity measurement system. Although there is a broad consensus among marketers for need to measure brand equity, not many of them are aware and among them very few actually know how to make full use of it. In a normal course measurement is done by return on investment basis. This ROI measure definitely considers a very short term measure of marketing programs and activities. But marketing programs and activities design to build as strong brand activity on a long term basis. But this does not mean there should not be short term analysis to confirm path towards long term goal. Therefore, brand measurement should be able to project future cash flow associated with brand which can lead overall value of the company. Other part, which needs to be strongly put forward, is that marketing programs are looking to change consumer action. The whole process starting from finalizing of marketing program to end result in form of financial cash flow is evaluate through the brand value chain. It basically sets out chart of build up to brand equity. First value step is to set up marketing investment where the current brand equity is analyzed and program designed. Here particular attention is given to quality of program design by asking relevant questions. After the execution of the program, consumer mind set in new environment is analyzed to see whether there has been any expected impact. Another interesting point would be look at the competitors reaction and to understand how market has reacted to program. The immediate action would be seen in consumer behavior towards brand; positive if marketing program has hit the mark and vice-versa. If positive then it leads to definite creation of shareholder value in terms of improved profit and increase in stock price. It is always good to conduct an audit of whatever process developed to track efficiency and measure proper utilization of investor money. This tracking can be done with respect to product brand, usually in form of survey after any purchase. This is tracking for brand awareness, brand image, brand performance and brand appeal with respect to consumer. Next it tracks overall feeling associated with brand purchase and specific attributes which has created an impression. Another form of tracking is
37 corporate brand tracking a sort of umbrella tracking where you track everyone in the family. This sort of tracking tries to understand tracking in co-relation between individual brand and consumer perception of the company. If the company is global in nature then you want to track way the brand is performing as market could vary from infant stage to a mature market. These tracking activities are likely to generate great amount of data which has to be converted into information for decision making process. This information will lead to setting up of brand equity report and creating responsibility centers to oversee development of efficient marketing department, thereby creating a perfect brand equity measurement and management system. Measuring Sources of Brand Equity For any marketers, it is of supreme importance to understand a consumer mind and also current level of brand knowledge among consumers because this understanding lays foundation for formulation of marketing communication strategies. Hypothetically, marketers should be able to construct such mind print; but as this knowledge resides in consumer mind, task become difficult. Marketers should be able to measure how much marketing programs have succeeded in changing customer buying habits. The solution is to develop techniques, which can convert emotional data into qualitative and quantitative data for analysis. A particular attention is required to design measurement system for source of brand equity. One of the primary measurement system is capturing the response of customer in a basic questionnaire format, where in, they are asked to express feeling with regards to particular feature of brand and overall experience in using a service. Another qualitative research technique looks to capture consumer behavior in understanding her purchase decision. Here question are asked, to understand how the consumer came to purchase decision, what factors they consider, is there a particular time of the year do they make this purchase, etc. Marketers, profile brand association by asking open end questions, like what first comes to your mind when the brand name is mentioned. Here response from consumer can be a good indicator of individual emotional connection with the brand. Important points to be considered in deploying this free association technique is question design, that is they should start from overall brand image and then moving on to questions with precise reference. Another consequential point to remember here is related with coding of information, as questions are moving from general to very exact. A drawback using open ended information gathering process is that there could be instance where a consumer may not speak their mind and not disclose a true feeling associated with the purchase decision, for example, they bought brand to get them social status, but they may want to portray as a casual purchase. Furthermore, unfamiliarity with the person could as well prevent consumer from speaking her mind. To counter this problem projective technique is employed where in a situation are shown to consumer, and they are required to fill in details as per their liking. However, this technique is also not foolproof. Another projective technique tries to compare brands with characters or any unrelated object or a person and once done, marketers would try and analyze the response.
38 Quantitative techniques are much prevalent as a research alternative. In quantitative techniques consumer are usually given option to rank a direct question. Quantitative techniques are used to check brand awareness part of brand knowledge and try to dig deep in understanding consumer perception of the brand. Recognition is essential part of brand awareness, meaning consumer should be able to identify the brand under different circumstances, for example, for a given brand some part of packaging may be shown to consumer and task is to identify that brand and also provide their confidence rating in guess the brand. Another part of brand awareness is brand recall, which means to evoke thoughts of consumer under a possible clue like list brand for portable music players or been specific like what beer brand you would associate as a foreign brand. Other quantitative techniques are developed to understand the brand image, brand response in terms of purchase decision, brand relationship with regards to customer loyalty and long term commitment. Qualitative and quantitative research techniques are design to understand the source of brand equity from consumers perspective. Qualitative techniques are used to research and analyze brand association consumer has towards the brand, using techniques like free association, story-telling, etc.; it can bring out true feelings. On another hand quantitative research techniques are used to understand brand awareness in respect to recognition and recall and also through scaling precise measurement for source of brand equity is done. Measuring Outcomes of Brand Equity There are two types of method employed to measure brand equity at source. These two methods are qualitative research methods and quantitative research methods. Qualitative research methods are ideal for measuring brand association where in consumer perceptions towards brand are captured. Quantitative research methods are perfect to understand brand awareness within consumer. Both above mention methods are only able to capture and measure one dimension of brand equity at a time. But brand equity is multi-dimensional and therefore it is important to measure each as it will help in taking tactical as well as strategically important decision. Comparative methods and holistic methods are designed to directly analyze brand equity. Comparative methods tend to analyze effects of consumer perception towards brand in respect to marketing programs, in terms of change in brand awareness. Holistic methods are designed to analyze the total effect of brand equity. These methods will provide necessary tools to measure outcome of brand equity. Consumer bases brand equity will lead to loyal customer base, point of differentiation against competitors get better margins, more acceptances of marketing communication, strong standing in distribution channel and also support any form of brand extension. Comparative methods are research methods which measure brand equity associated with brand association and high level of brand awareness. Comparative methods are again of different types depending on usage of marketing. Brand based comparative methods looks to measure consumer response against same marketing program for different brands. Marketing based comparative method looks to measure consumer response for same brand under different marketing program. Conjoint
39 comparative method looks to combine both brand based comparative method and marketing based comparative method. Each method has its application and drawbacks. Brand based comparative method, as mentioned, tries to examine consumers response to identical marketing response to different brand in the same product category. This could be competitors brand, any non-existing brand or preferred brand in that category. A classic example of such comparative method is experiment conducted by Larry Percy; in which consumer were ask to map beer taste and preference. In one first instance brand name were disclosed whereas on second instance brand name was not disclosed. Consumer showed more loyalty when brand name was disclosed. Brand based method really isolated true value of brand name and this concept especially holds true when there is a change in marketing program from past efforts. Marketing based method tries to understand consumer response under different marketing promotions. Here focus is to understand how much influence marketing program has on brand performance. One such experiment would be to understand consumer response at different price levels; this will reveal level of tolerance before consumer switch to another brand. Marketing based method would also be effective in understanding consumer response to similar marketing program across various geographical locations. The main advantage of marketing based method is that it can be applicable to any marketing program. However drawback of this method is that it is difficult to separate whether consumer preference is towards the brand or product category in general, meaning the price premium discovered may applicable to other brand in similar product category also. Conjoint method allows simultaneously study of brand as well as marketing program. This method also employs statistical calculation making it possible to study many attributes or association at one time. Disadvantage of this method is that too much experimentation will may increase consumer expectation with respect to the brand. Holistic method is used to determine financial value or definite utility value of the brand. Holistic method looks to measure consumer brand preference over consumer brand response. Residual holistic approach measures brand equity after subtracting physical attributes of the brand. Valuation holistic approach looks to measure brand equity in financial term which is important during valuation of whole firm in activities of merger/acquisition, fund raising etc. Comparative method and Holistic method are employed to measure benefit of consumer based brand equity. Comparative method measures consumer response where as holistic method measure consumer brand consumer preference. These methods are relevant to calculate return of investment for marketing activities. Designing and Implementing Branding Strategies Customer based brand equity is created when brand knowledge comprising of brand awareness and brand image are at highest level in customer mind. Brand awareness level is raised in customer by first understanding consumer taste, preference and present level of awareness. This analysis leads to designing of marketing programs and outcomes of those programs are also recorded. Designing of
40 marketing programs is a complex process as it may have to encompass wide range of product and brands. Purpose of all marketing program is to maximize brand equity and also to capture or create long lasting impression in consumer mind. Branding strategies deal with creating brand names, logos, style etc. for it to be distinguished from competitors and also whether product brand should be separate from corporate brand or a separate brand away from other individual brands. Implication of branding strategies is that it creates brand awareness for consumer to ascertain point of difference and point of similarity with competitors. Second implication is brand image for association of brand equity from brand to product. Brand-product matrix looks to explain brand portfolio and brand extension strategies. In the matrix all products offered under different brands are represented by a row. This helps marketers understand the current brand line and explore further opportunity in expanding the product line. In the matrix all current existing brand are represented in form of column referred to as brand portfolio. The brand portfolio analysis is essential to design and develop new marketing strategies to target a given product category. Product line facilitates marketers to devise strategy with regards to future treatment for a given brand. This strategy focuses on decision, as to whether product line can be extended or new variants of existing product should be introduced. When taking brand extension decision companies needs to carry SWOT (Strength, Weakness, Opportunity, Threat) analysis to fully understand market conditions, current category structure and environmental( economic, social, political, regulatory) dynamics. This analysis will give companies product line and categories to follow active branding strategy. Active branding strategy with respect to product line involves creating multiple brands; this provides depth to the branding process. For example- car maker General Motors, it created multiple brands to expand the product class category from SUV to sports car. This sort of strategy is also used by consumer goods giant P & G and Unilever. By creating individual brands companies can create different marketing strategies. This strategy ensures no market in given industry remains un-tapped. Brand product matrix helps in showcasing different brand in any given product category. In that respect Brand Hierarchy is graphical representation of companys products and its brands. Hierarchical structure starts with corporate brand and then showcases different product category and below brands. This sort of presentation helps devise marketing strategy at many levels and forms. There is no fix way to go about formulating marketing strategy but generally it can fit into 3 categories. First strategy gives more importance to corporate brand and less prominence to product brand. Second strategy sees importance been given to two or more product brands and some highlighting to the corporate brand. Third strategy looks at promoting only the product brand and there is no mention of corporate entity at all. Another brand building strategy which has gain prominence in recent times is cause marketing or social responsibility marketing. In cause marketing company contributes some amount of revenue generate from product sales towards designated cause. For example- American Express started RED campaign along with U2 singer Bono where in 1 percent of card charges were dedicated to fight AIDS in Africa. This
41 sort of marketing improves brand awareness as well as brand image and it can generate sense of pride not only for consumers but also for employees. There are various ways through which a successful brand build strategy can be created, maintained and enhanced. But one things which comes out from exploring different strategies is that companies have to proactive in designing marketing campaign and react accordingly to challenges of dynamic environment. Identifying Market Segments and Selecting Target Markets Market for product is big and diverse making it difficult for companies to be able to satisfy every customer. Companies need to identify a certain set of customer within a market and work towards satisfying them. This set of identification is market segment. Companies further need to understand the intricacy of how this segment behaves and operates. An approach known as target marketing is gaining prominence where companies identify the market segment on similar needs and wants, select one of the market segments and then focus in developing products and marketing program. Earlier business operation was in the form of mass marketing. In mass marketing companies produce a product in large quantities and serve this product to as many consumers as possible. This made sense as markets were developing and not much variety was on offering. Now product offerings have under gone radical change thanks to advertising and communication reach. Therefore, companies look forward to marketing at segment, niches, local and individual level. In segment marketing companies identify consumer with similar needs and wants. For example, an airline is looking forward to providing no frills connectivity between metro cities on US east coast compare. This segment is within airline industry but needs of customer is different. T target audience is low budget travelers. However, customers within the segment look for different attributes, for example, lunch or beverages as part of travel. Here companies can offer this by charging the customer. In niche marketing, companies target limited customer set. A niche market is worth exploring where customers are willing to pay a premium for product, entry barriers are high and market has growth potential. In local marketing, customers are local neighborhood, trading stores, etc. For example, many banks prefer local marketing for better understanding of client and provide them right type of service. In individual marketing, companies look forward to satisfying needs and wants of individual customer. Internet is facilitating the process of individual marketing, where in customer log on to the site and creates products from available options. This process is not feasible for high technology products like automobiles. The market segmentation task has to follow a scientific process. The first task is to group customer according to product and service they want. The second task is to analyze customer by summarizing demographic, lifestyle and usage pattern, which helps in the definition of market segment. The third task is due diligence of the market for growth potential, competition and other factors.
42 The fourth task is to profitability of market segment. The fifth task is to undertake positioning activity for pricing and marketing programs. The sixth task is to explore different positioning and marketing strategies to explore the market to its full potential. There are various factors, which affect segmentation in a consumer market. Geographic is one such factor, where a country is segmented on basis region, city, urban, rural and climate. Demographically market is segmented on the basis of age, family size, gender, household income, life stage, occupation, education, religion, race, generation and social class. Further, segmentation can be done on the basis of lifestyle and personality traits. On an individual level market can be segmented on the basis of attitude, belief and perception of products, product awareness and usage pattern. There are various factors, which affect segmentation in the business market. Demographic is one such factor, which consists of type of industry, size of company and geographical location of the company. Operational segmentation is on the technology class, customer consumption and customer requirements. Purchasing methodology includes segmentation based on purchase policy, purchase department structure, relation with companies and market positioning of companies. The order Requirements lets segmentation be based on nature of requirement and size of order. Personality trait segmentation looks at loyalty and risk profile. Companies have to finalize target market in which it wants to operate. After which segments have to be identified based of various factors as discussed. Once segments are identified, in-depth evaluation analysis has to be done come for a conclusion, whether to target one or several segments. Introducing and Naming New Products and Brand Extension For a given company, there can be variety of product and services under different brands. Brandproduct matrix is used to better understand current offering of the company. This matrix helps companies understand product line (product category) and brand portfolio (brands for different products). Similarly, brand hierarchy concept helps companies understand association among offered brands. Brand product matrix and brand hierarchy are essential tools for companies when they are looking for brand extension or launching new products. But they are factors which affect brand extension and naming of product. Typically, any given company would fall in any of the following four categories in terms future expansion strategies; with current products and current market companies deal with market penetration strategy; with new products and current market companies deal with product development strategies; with current products and new market companies deal with market development strategy; and with new products and new market companies deal with diversification strategy. Clearly companies have to tackle tactical and strategically brand extension and naming of new products almost at any stage of growth. For a given brand extension, it can be in form, where companies decide to expand product category under current parent brand family. This sort of extension may be through adding new flavor, different
43 size packing. Another form of brand extension is category extension, here companies introduce new product category this may or may not be under the parent brand. Companies while introducing new brand has option either to create a new brand altogether or extend the current parent brand or combination of parent brand as well as new brand. Although there is high rate of failure for introduction of new brands, companies do try to expand product category or introduce new product category at some point. Success of this has many advantages for the company. It enhances how consumer look at brand, if brand has strong consumer brand equity then new product would have high rate acceptance to further strengthen brand image. If a corporate brand or product brand, known for quality and robustness introduces a new product then this product has more recognition in consumer as they are aware of credibility thereby reducing risk associated with new product. If brand extension is due to great demand for the brand among consumers, then even distribution channel is more welcoming for the new product. Cost associated with marketing communication and sales promotion for new product as brand extension is reduced as consumers are already aware of the parent brand. Brand extension again helps eliminating cost associated with research and development of altogether new product and packaging of the new product. Brand extensions also facilitates in different ways process of firming position of parent brand in mind of consumer. It helps parent brand state its true positioning in the market. It helps cater to new customers there by creating exposure for parent brand in consumer mind. It helps rejuvenate the parent brand, meaning it increases brand awareness and brand image and lead way to further brand extension programs. Brand extension also has share of disadvantages. First with increase in available product it can create uncertainty in consumer mind as to which product is right for her. Second, distribution channel maybe overwhelmed with product offering from different brands that they may not encourage introduction of another brand extension. Third, if brand extension is too much success then it may jump on current sales of parent brand, if brand extension fails position of parent brand would also suffer in the market. From the above it is clear that brand extension have advantages as well as disadvantages. But for any brand extension strategy to succeed companies need to comprehend current brand knowledge and also undertake market research to clearly understand consumer expectation before coming to brand extension decision. Managing Brands Over Time
44 The markets in which companies operate are highly dynamic in nature. There is constant evolution in products, introduction of new technology, government rules, regulatory framework, consumer taste and preference. Between all these companies have to devise marketing communication and branding programs, which look forward to maintaining consumer based brand equity. For example, consumer promotion activity like providing 20% extra for the said product will not create the same response but may raise expectations of 20% during the normal purchase also. Companies have to balance brand management that they are able to understand the future preference of consumer. This calls for companies to be pro-active and thinking standing on their feet. One way of brand management over time is to strengthen brand equity by developing marketing programs, which express brand knowledge consistently as not to confuse the consumer. For example, Apple, their programs are developed to reinforce their commitment to offer world class full entertainment and communication devices, so introduction Iphone had ready acceptance from consumers. Market leader like coca-cola has constantly run marketing program even after been market leaders. However, this does not imply that same campaign is running repeatedly, rather coming up innovative strategies to reinforce brand knowledge. Brand knowledge comes from brand attributes and brand association; if companies try to fiddle with these sources of brand equity consequences can be disastrous. In early 90s Intel microprocessor had a technical flaw but the company was not swift enough to rectify the problem, thereby damaging brand equity source of power and safety. Intel realized the importance source of brand equity and was quick in solving the problem by offering replacement. Another dilemma for companies is of choosing the right way to use the developed brand equity, normal course is to generate maximum price premium, but that should not be at cost of brand equity. Innovation is one of the keys in managing brand and ensuring that brand remains ahead of the competition curve. If companies operating in entertainment category or matter of fact insurance do not innovate then value of their brand is lost as these categories are product driven. For example, Apple, without its innovation in the form of ipod mp3 player, apple would have found it difficult facing completion from Sony. If the companys category is not a product driven marketing campaigns associated with brand image play an important role in sustaining the brand. For example, Pepsi, it is operating in highly competitive carbonated drinks' category, over the years their marketing campaign is focused on their highlighting their brand position as a drink for young generation. Every brand faces challenges as it moves in the product life cycle and at some point faces saturation. At this point, it is important to focus on expanding brand awareness that is looking for ways to generate more consumption by highlighting instance of consumption. For example, toothpaste revitalized consumption by highlighting advantages of twice daily usage. Another way to increase consumption is by highlighting diverse ways and occasion where brand can be consumed. This is more prevalent in food and beverages industry.
45 Along with brand awareness brand image also plays a pivotal role in revitalizing brand performance. This can be done by highlighting pointing of difference, which may have been lost in all other marketing campaigns. Another way to enhance the brand image is by adopting new brand elements like brand symbol, logos, etc., For example, Federal Express modify to FedEx as a move generating more interest in face of competition from UPS. For companies to sustain a brand over long period of time, it is absolute essential that marketing program look at strategies around effective brand management. Effective brand management strategies constantly assess the consumer perceptions towards the brand and strive to attract her attention. Strategies have to be flexible as to maintain the pace with the dynamic environment. Only then it is possible have a successful brand Managing Brands over Geographic Boundaries and Market Segments In current times every company is wanting to be a global player, some companies this out of compulsion, for some its natural extension, whatever the case companies need to have marketing programs, which can create and sustain brand equity across geographical boundaries and market segments. However, before studying the global view for marketing strategies, it is important to understand regional market segments, profile, etc. An interesting phenomenon has raised its head in recent time where companies are focusing on regional markets in an effort to counter globalization. In this regionalization, companies focus on geographic locations treating them as market segments. For example, Pepsi has created four regions within USA to focus on individual market segment and designing a marketing program. The reason why companies are employing a regional approach is that mass markets have to cease to exist, as diversity in form of culture; demographics, etc. are in the forefront. A typical large US city has Asian, Hispanic and African American population, there are by creating a need for marketing programs, which can make products and services reachable to this audience. The world is becoming flat just no in terms of communication power but also in terms of migration and movement of labor across the globe. Globalization is here to stay and every company is in the fray to take advantage of this phenomenon. There could many reasons for which companies may decide to be a global player. Bigger markets like China and India provide unending opportunities not only as a market but also as production hubs there by reducing overall cost for to be global players. Furthermore, by catering to different markets, companies can reduce the risk as a result of diversification. It is clear there are many reasons for becoming global player, but there are outright advantages also for global marketing programs. Looking at the production side, as production increases per unit cost of the product will decrease, thereby reducing cost of the marketing program. As standardization increases in packaging, distribution and other marketing activities cost associated with them would decrease. For example, Sony its marketing campaign has universal appeal thereby assigning equal cost to products and geographies. Another advantage is that with global presence and acceptance confidence with consumer reaches altogether a different level. It creates a sense of pride and ownership looking at the universal demand for the product. With the uniform marketing program across geographical boundaries,
46 companies can have consistent brand knowledge, this is especially important for mobile consumers. Furthermore, another advantage for companies is the ability to sell a good product universally at one go, thereby gaining a complete first mover advantage. But with advantages in operating on a global there are also challenges and disadvantages. With standardization companies are unable to satisfy needs of consumer, which comes with different culture, demographics, etc., For example, consumption of carbonated drinks and beer is much more in USA, Australia in comparison to that of India and China. As perception and needs vary from culture to culture, consumer response to a standard marketing program may not equally have felt as per company acceptation. Every product undergoes a life cycle which begins from the day it is launch in the market, so every geographical location may be having different product life cycle stage, so marketing programs also accordingly have to vary. Other challenge companies face is that of environmental like social, political and regulatory. Therefore, a brand to succeed across geographical boundaries companies need to device marketing programs, which can create global consumer based brand equity. And for that marketing programs have to highlight point of differences and point of similarities across boundaries. Furthermore, companies should understand brand building is tedious and time consuming. Brand name, logos, symbol has to be designed in a way that it properly communicates brand knowledge and not creates confusion in consumers mind. And at the same time construct and execute a global brand equity measurement system so that focus always remains of develop a strong consumer based brand equity.

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THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

Strategic Brand Management

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

THE HINDU COLLEGE MBA, MACHILIPATNAM-V.V.S.K. PRASAD

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