Product and brand management

Session 3 Joel Cyclo Xavier

Why do brands matter?

To whom do brands matter?
Consumers Manufacturers

Why do brands matter?

To whom do brands matter?
Consumers
Identification of source of product Assignment of responsibility to product maker Search cost reducer Promise bond or pact with maker of product Symbolic device Signal of quality

Why do brands matter?

To whom do brands matter?
Consumers as a risk reducer
Functional risk Physical risk Financial risk Social risk Psychological risk Time risk

Why do brands matter?

To whom do brands matter?
Manufacturers
Identification to simplify handling or tracing Legally protecting unique features Signal of quality level to satisfied customers Endowing products with unique associations Competitive advantage Source of financial returns

Strategic brand management process

Identify and establish brand positioning and values Plan and implement brand marketing programs Measure and interpret brand performance Grow and sustain brand equity

CBBE
Consumer based brand equity
Differential effect that brand knowledge has on consumer response to the marketing of that brand.
Positive Brand equity Negative Brand equity

Three key elements

Differential effect Brand knowledge Marketing of that brand

 Brand knowledge
Memory: a network of nodes and connecting links
Nodes represent stored information Links represent strength of associations
[Associative network memory model]

 Brand Knowledge
Brand node in memory
Brand awareness Brand image

Brand strength?
Customers ability to identify the brand under different circumstances

Brand image
Perceptions about a brand as reflected by the brand associations held in consumer memory
Number of nodes in memory linked to brand node

So what is the source of CBBE?

It occurs when the consumer has a high level of awareness and familiarity with the brand and holds some strong, favourable and unique brand associations in memory.

 "An image is not simply a trademark, a design, a slogan or an easily remembered picture. It is a studiously crafted personality profile of an individual, institution, corporation, product or service."
Daniel J. Boorstin

Brand awareness
Brand awareness
Brand recognition
Consumers ability to confirm prior exposure to the brand when the brand is given as a cue.

Brand recall performance

Brand recall Consumers ability to retrieve the brand from memory given the
product category Needs fulfilled by category Purchase or usage decision

 Key to successful branding?

The consumers differentiate between brands
All the attribute nodes must not link to all the brand nodes

Consequences of brand awareness

Learning advantages
Already established brand node
It is easier to simply link new attributes to an existing node Compared to creating a new node

Consideration advantages
Making the brand a member of the consideration set Recall of one piece of information inhibits recall of other.

Consequences of brand awareness

Choice advantages
Consumers tend to buy more familiar well established brands in some cases Purchase motivation [petrol purchase] Purchase ability [not enough knowledge to make a choice]
I have heard about this brand

Establishing brand awareness

Brand awareness
Increasing familiarity repeated exposure
More effective for? Recall or Recognition?
Brand recognition

Making a customer experience the brand

Need something that actively pairs the brand with the appropriate category or purchase or consumption cues?
Slogan Jingle, and others

Establishing brand awareness

Brand awareness
Strong linking of brand and category important over time Shock advertising
Example?
Bingo

Why do they fail?

Failure to create strong associations with product

Brand image
Brand equity does not care about the
source of brand association Manner in which they are formed

What matters is?

Resulting
Favourability Strength Uniqueness of brand associations

Hence the importance of?

Other sources of customer information
Like other customers word of mouth

Strength of brand associations

Factors facilitating strength of associations
Personal relevance Consistency of information

Brand attributes
Descriptive features

Brand benefits
Personal value and meaning that consumers attach to the attributes

Factors affecting associations

Environmental performance Rating in consumer reports Well known/advertised Personal recommendations Quality Price Past experience

Favourability of associations
Desirability of brand depends on?
How relevant How distinctive How believable the brand association

Uniqueness of brand associations

Shared associations critical for establishing category membership Unique are not possible unless you have no competition Noncomparable alternatives and abstract shared associations
Duronto competing with airlines

Building a strong brand

Who are you?
[brand identity]

What are you?

[brand meaning]

What about you? What do I think or feel about you?

[brand response]

What about you and me?

[brand relationship]

 Master brand builders have a deep respect for the way their products fit into the lives of consumers. This was the core of their brands success"
Nancy F Koehn

end

Brand architecture
Purpose
Number of separately named entities Criteria to be separate Levels of relationships beween separately named entities Naming and other brand identity conventions for each level Nature of relatinships between named entities at various levels

Trade dress
Packaging? Identity of the brand in the market Legal protection trade marks

Brand portfolio
Mix of brands owned by a company

 Corporate brand :Brand bearing company name

Always the highest in the hierarchy

Master brand:
Dominant highest level brand in a brand hierarchy

Parent brand:
Brand that is extended into more than one product category

 Sub brand:
a brand with its own name that uses the name of its parent brand in some capacity to bolster equity Endorsers
Bajaj pulsar

Co-drivers
Kawasaki bajaj caliber

Descriptors
LG sampoorna Hair n care silk n- shine

 Brand extension:
Existing brand in new product category