BRANDING AND

MARKETING PROMOTION
STRATEGIES (Part I)
Core Text:

Strategic Brand Management

by

Kevin Lane Keller (2nd Edition)

Presented by:
PROF. HIMMAT ADISARE

BRANDS AND BRAND

MANAGEMENT
Ref: Chapter 1 of Core Text

What is a Brand?
Definition: A brand is a product that
adds other dimensions that differentiates
it in some way from other products
designed to satisfy the same need.
Ref: Chapter 1 of Core Text

Why Do Brands Matter?

CONSUMERS:

Identification of
Source of Product
Assignment of
Responsibility to
Product Maker
Risk Reducer

Ref: Chapter 1 of Core Text

Search cost Reducer

Promise, Bond, or
Pact with Maker of
Product
Symbolic Device
Signal of Quality

Why Do Brands Matter? (2)

MANUFACTURERS:
Means of Identification
to Simplify Handling or
Tracing
Means of Legally
Protecting Unique
Features
Signal of Quality Level
to Satisfied Customers

Ref: Chapter 1 of Core Text

Means of Endowing
Products with Unique
Associations
Source of Competitive
Advantage
Source of Financial
Returns

Can Anything Be Branded?

Physical

Goods

Services
Retailers

and
Distributors
Online Products
and Services
Ref: Chapter 1 of Core Text

People

and
Organizations
Sports, Art and
Entertainment
Geographic
Locations
Ideas and Causes

Branding Challenges And

Opportunities
Savvy

Customers
Brand Proliferation
Media Fragmentation
Increased Competition
Increased Costs
Greater Accountability
Ref: Chapter 1 of Core Text

The Brand Equity Concept

Basic Principles of Branding and Brand Equity:

Differences in outcomes arise from the added value

endowed to a product as a result of past marketing activity
for the brand.
This value for a brand can be created in many different
ways.
Brand equity provides a common denominator for
interpreting marketing strategies and assessing the value
of a brand.
There are many different ways in which the value of a
brand can be manifested or exploited to benefit the firm.

Ref: Chapter 1 of Core Text

Strategic Brand Management

Process
Identifying

and Establishing Brand

Positioning and Values
Planning and Implementing Brand
Marketing Programs
Measuring and Interpreting Brand
Performance
Growing and Sustaining Brand Equity
Ref: Chapter 1 of Core Text

CHAPTER 2

CUSTOMER-BASED BRAND
EQUITY

Ref: Chapter 2 of Core Text

Sources Of Brand Equity

Brand Awareness
Consequences of
Brand Awareness
Learning advantages

Consideration

advantages
Choice Advantages

Establishing Brand
Awareness

Ref: Chapter 2 of Core Text

Brand Image
Strength of Brand
Associations
Favorability of
Brand Associations
Uniqueness of Brand
Associations

Building A Strong Brand

The

1.
2.
3.
4.

Four Steps of Brand Building:

Identity (Who are you?)

Meaning (What are you?)
Response (What about you?)
Relationship (What about you & me?)

Ref: Chapter 2 of Core Text

Customer-based Brand Equity

Pyramid
Relationship
Resonance
Judgments

Response

Feelings
Meaning

Performance

Imagery

Salience
Ref: Chapter 2 of Core Text

Identity

Customer-based Brand Equity Pyramid (2)

Brand Salience: This

relates to aspects of
awareness of the brand
Brand Performance: This
relates to ways in which
product/ service meets
customers needs
Brand Imagery: Its how
customers visualize a
brand abstractly, with no
relevance to what the
brand actually does

Ref: Chapter 2 of Core Text

Brand Judgments: The

customers personal
opinions and evaluations
with regard to the brand
Brand Feelings: The
customers emotional
responses and reactions
with respect to the brand
Brand Resonance: The
ultimate relationship &
level of identification that
the customer has with the
brand

CHAPTER 3

BRAND POSITIONING AND

VALUES

Ref: Chapter 3 of Core Text

Identifying and Establishing

Brand Positioning
Basic

Concepts
Target Market
Nature of Competition
Points of Parity and Points of Difference
Ref: Chapter 3 of Core Text

Identifying and Establishing

Brand Positioning (2)
Basic

Concepts: According to the CBBE

model, it is necessary to decide:-

1. Who the target consumer is

2. Who the main competitors are
3. How the brand is similar to these
competitors, and
4. How the brand is different from these
competitors

Ref: Chapter 3 of Core Text

Identifying and Establishing

Brand Positioning (3)
Target

Market:
Segmentation Bases:
a) Behavioral b) Demographic
c) Psychographic d) Geographic
Segmentation Criteria:
a) Identifiability b) Size
c) Accessibility d) Responsiveness
Ref: Chapter 3 of Core Text

Identifying and Establishing

Brand Positioning (4)
Nature

of Competition:
Channels of Distribution
Competitors Resources
Competitors Capabilities
Competitors Likely Intentions
Other Competitive Factors (Porters 5Force Model refers)
Ref to Chapter 3 of Core Text

Identifying and Establishing

Brand Positioning
Points

of Parity and Points of Difference:

1. Points of Difference Associations
2. Points of Parity Associations
3. Points of Parity versus Points of
Difference
Ref: Chapter 3 of Core Text

Positioning Guidelines
1.

Defining and Communicating the

Competitive Frame of Reference
2. Choosing Points of Parity and Points
of Difference
3. Establishing Points of Parity and
Points of Difference
4. Updating Positioning Over Time
Ref: Chapter 3 of Core Text

Positioning Guidelines (1)

Defining

and Communicating the

Competitive Frame of Reference:
A starting point in defining a competitive frame of
reference for brand positioning is to determine
Category Membership. Membership indicates the
products or set of products with which a brand
competes. Communicating category membership
informs the consumer about the goals that they
might achieve by using a product or service.

Ref: Chapter 3 of Core Text

Positioning Guidelines (2)

Choosing Points of Parity and Points of Difference:

Points of Parity: These are driven by the needs of
category membership and the necessity of negating
competitors PODs.
Points of Difference: These are based on the
following criteria:
1. Desirability: In terms of a) Relevance
b) Distinctiveness, and c) Believablity
2. Deliverability: In terms of a) Feasibility
b) Communicability, and c) Sustainability

Ref: Chapter 3 of Core Text

Positioning Guidelines (3)

Establishing Points of Parity and Points of
Difference:
1. Separate the attributes: Launch two marketing
campaigns, each one devoted to a different brand
attribute or benefit.
2. Leverage Equity of another Entity: Link the
brand with a well-liked celebrity, cause or event.
3. Redefine the Relationship: Use attitude change
strategies to convert negative perspectives about
the brand to positive ones.

Ref: Chapter 3 of Core Text

Positioning Guidelines (4)

Updating

Positioning Over Time:

1. Laddering: This strategy is to deepen
the meaning of the brand to tap into core
brand values or other more abstract
considerations.
2. Reacting: This could imply no reaction
to moderate or significant reactions
depending on level of competitive threat.
Ref: Chapter 3 of Core Text

CHAPTER 4

CHOOSING BRAND
ELEMENTS TO BUILD
BRAND EQUITY
Ref: Chapter 4 of Core Text

Criteria for Choosing Brand

Elements
1.

Memorability
2. Meaningfulness
3. Likability
4. Transferability
5. Adaptability
6. Protectability
Ref: Chapter 4 of Core Text

Options and Tactics for

Brand Elements
1.

Brand Names
2. URLs (Uniform Resource Locators)
3. Logos and Symbols
4. Characters
5. Slogans
6. Jingles
7. Packaging
Ref: Chapter 4 of Core Text

CHAPTER 5

DESIGNING MARKETING
PROGRAMS TO BUILD
BRAND EQUITY
Ref: Chapter 5 of Core Text

New Perspectives on
Marketing

Five Major Drivers of the New Economy:

Philip Kotler identifies them as under:
1. Digitalization and connectivity
2. Disintermediation and Reintermediation
3. Customization and Customerization
4. Industry Convergence
5. New Customer and Company Capabilities
(Remaining topic is for Self-study)
Ref: Chapter 5 of Core Text

Product Strategy
Perceived Quality and Value:
1. Brand Intangibles
2. TQM and Return on Quality
3. Value Chain
Relationship Marketing:
1. Mass Customization
2. Aftermarketing
3. Loyalty Programs

Ref: Chapter 5 of Core Text

Pricing Strategy
Consumer Price Perceptions:
Price Band strategies
Value-based Pricing Strategies
Setting Prices to Build Brand Equity:
Value Pricing based on: a) Product design and
delivery b) Product costs, and c) Product prices
Everyday Low Pricing (EDLP): A strategy based
on low pricing as well as discounts and
promotions to consumers at regular intervals.

Ref: Chapter 5 of Core Text

Channel Strategy
Channel Design: Broadly, channel types can be
classified into Direct and Indirect channels.
Direct Channels: a) Company-owned stores b)
Leased/Rented shopping-space in larger
department stores.
Indirect Channels: a) Distributors and Dealers b)
Retailers c) other middlemen
Web Strategies: Today, these are extremely
powerful channels if supported by efficient
physical brick & mortar channels.

Ref: Chapter 5 of Core Text

CHAPTER 7

LEVERAGING SECONDARY
BRAND KNOWLEDGE TO
BUILD BRAND EQUITY
Ref: Chapter 7 of Core Text

Conceptualizing the
Leveraging Process

Creation of New Brand Associations:

By making a connection between the brand and another
entity, consumers may form a mental association from the
brand to this entity and, consequently, to any or all
associations, judgments, feelings and the like linked to that
entity
Effects on Existing Brand Knowledge: Three factors are
important in predicting the extent of leverage resulting from
linking the brand to another entity:
i) Awareness and knowledge of the entity
ii) Meaningfulness of the knowledge of the entity, and
iii) Transferability of the knowledge of the entity

Ref: Chapter 7 of Core Text

Company

The branding strategies adopted by a company

that makes a product or offers a service are an
important determinant of the strength of
association from the brand to the company and
any other existing brands. Three main
branding options exist for a new brand:
1. Create a new brand
2. Adapt or modify an existing brand
3. Combine an existing and new brand

Ref: Chapter 7 of Core Text

Country of Origin
Besides the company that makes the product,
the country or geographic location from which
it is seen as originating may also become linked
to the brand and generate secondary
associations. Thus, a customer may choose to
wear Italian suits, exercise in American sports
shoes, drive a German car, and drink English
beer.
Ref: Chapter 7 of Core Text

Channels of Distribution
Channels of distribution can directly
affect the equity of the brands they sell
by the supporting actions that they take.
Retail stores can indirectly affect the
brand equity of the products they sell by
influencing the nature of associations
that are inferred about these products on
the basis of the associations linked to the
retail stores in the minds of consumers.
Ref: Chapter 7 of Core Text

Co-Branding
Co-branding: Also called brand bundling or
brand alliances-occurs when two or more
existing brands are combined into a joint
product or are marketed together in some
fashion.
Ingredient branding: This is a special case of cobranding that involves creating brand equity
for materials, components, or parts that are
necessarily contained within other branded
products.

Ref: Chapter 7 of Core Text

Licensing
Licensing involves contractual
arrangements whereby firms can use the
names, logos, characters, and so forth of
other brands to market their own brands
for some fixed fee. Because it can be a
shortcut means of building brand equity,
licensing has gained popularity in recent
years.
Ref: Chapter 7 of Core Text

Celebrity Endorsement (1)

Using well-known and admired people to

promote products is a widespread phenomenon
with a long marketing history. The rationale
behind these strategies is that a famous person
can:
1. Draw attention to a brand, and
2. Shape the perceptions of the brand by virtue
of the inferences that consumers make based on
the knowledge they have about the famous
person.

Ref: Chapter 7 of Core Text

Celebrity Endorsement (2)

Potential Problems:
1. Celebrity endorsers can be overused by endorsing so
many products that they lack any specific product
meaning or are just seen as overly opportunistic or
insincere.
2. There must be a reasonable match between the
celebrity and the product.
3. Celebrity endorsers can lose popularity thus
diminishing their market value to the brand.
4. Many consumers feel that celebrities are doing the
endorsement only for money.

Ref: Chapter 7 of Core Text

Sporting, Cultural, or Other Events

1. A brand may seem more likable or even

trustworthy by becoming linked to an

event.
2. Sponsored events can contribute to
brand equity by becoming associated to
the brand and improving brand
awareness, adding new associations, or
improving the strength, favorability, and
uniqueness of associations.
Ref: Chapter 7 of Core Text

CHAPTER 8

DEVELOPING A BRAND
EQUITY MEASUREMENT
AND MANAGEMENT
SYSTEM
Ref: Chapter 8 of Core Text

The Brand Value Chain

Value

Stages:

1.

Marketing Program Investment

2. Customer Mindset
3. Market Performance
4. Shareholder Value
Ref: Chapter 8 of Core Text

Value Stages (1)

Marketing Program Investment: The ability of
a marketing program investment to transfer or
multiply further down the chain will depend on
qualitative aspects of the marketing program
via the program multiplier.
The Program Multiplier: Four factors are
important:
1. Clarity
2. Relevance
3. Distinctiveness, and
4. Consistency

Ref: Chapter 8 of Core Text

Value Stages (2)

Customer Mindset: Five dimensions have emerged

from research as important measures of the customer
mindset:
1. Brand Awareness 2. Brand Associations
3. Brand Attitudes 4. Brand Attachment

5. Brand Activity
Customer Multiplier: Three essential factors are:
1. Competitive Superiority 2. Channel and other
intermediary support 3. Customer size and profile

Ref: Chapter 8 of Core Text

Value Stages (3)

Market Performance: Six dimensions need to
be addressed:
1. Price Premiums 2. Price Elasticities
3. Market Share 4. Brand Expansion
5. Cost Structure 6. Brand Profitability
Market Multiplier: Following factors need to be
considered:
1. Market Dynamics 2. Growth Potential
3. Risk Profile 4. Brand Contributions

Ref: Chapter 8 of Core Text

Value Stages (4)

Stakeholder Value: Based on all available and

forecasted information about a brand and many
other considerations, the financial marketplace
then formulates opinions and makes various
assessments that have direct financial
implications for the brand value. Three
important indicators are:
1. Stock price
2. Price/earnings multiple, and
3. Overall market capitalization of the firm

Ref: Chapter 8 of Core Text

The Brand Value Chain

Implications:
1. A necessary condition for value creation is a wellfunded, well-designed, and well-implemented marketing
program.
2. Value creation involves more than just the initial
marketing investment.
3. Each of the three multipliers can increase or decrease
market value from stage to stage.
4. The brand value chain provides a detailed roadmap for
tracking value creation enabling market research and
intelligence efforts.

Ref: Chapter 8 of Core Text

Designing Brand Tracking

Studies
What to Track:
1. Product Brand Tracking
2. Corporate or Family Brand Tracking
3. Global Tracking
How to Conduct Tracking Studies:
1. Who to track
2. When and where to track
How to Interpret Tracking Studies

Ref: Chapter 8 of Core Text

Designing Brand Tracking Studies (1)

What to Track: Three distinct surveys can be

conducted for:
1. Product-Brand Tracking: The six-block pyramid for
brand-building can be used as a basis for design of the
questionnaire.
2. Corporate or Family Brand Tracking: Some
additional questions may be added to establish levels of
corporate credibility and corporate brand associations.
3. Global Tracking: A broader set of background
measures are needed to put brand development in those
markets in the right perspective .

Ref: Chapter 8 of Core Text

Designing Brand Tracking Studies (2)

Who to Track:
1. Current Customers
2. Potential Customers
3. Channel Members
4. Frontline Employees (Services sector)
When and Where to Track: Options are:
Continuous Tracking Studies
Based on Stage of Product Life Cycle
Based on depth of Brand Equity

Ref: Chapter 8 of Core Text

Designing Brand Tracking Studies (3)

How to Interpret Tracking Studies: For tracking measures to

facilitate actionable insights and recommendations, they must
be reliable and sensitive as possible. This may require framing
of questions in a comparative or temporal manner. It is also
necessary to decide on appropriate cutoffs. For example:

What is a sufficiently high level of brand awareness?

When are brand associations sufficiently strong, favorable, and
unique?
How positive should brand judgments and feelings be?
What are reasonable expectations for the amount of brand
resonance?

Ref: Chapter 8 of Core Text

Establishing a Brand Equity

Management System

Brand Equity Charter

Brand Equity Report

Brand Equity Responsibilities:

1. Overseeing Brand Equity
2. Organizational Design and Structure
3. Managing Marketing Partners

Ref: Chapter 8 of Core Text

Establishing a Brand Equity

Management System (1)
Brand Equity Charter: A formalized document should
spell out the following:
The firms view of the brand equity concept.
The scope of the key brands of the firm.
Specify the actual and desired equity for a brand at all
relevant levels i.e. at individual product level and corporate
level.
Strategies for managing brand equity.
Outline specific tactical guidelines for marketing programs.
Trademark usage, packaging & communications

Ref: Chapter 8 of Core Text

Establishing a Brand Equity

Management System (2)
Brand

Equity Report: Important market

information that should be included:
1. Product shipments and movement
through channels of distribution.
2. Relevant cost breakdowns
3. Price and discount schedules
4. Sales and market share information
5. Profit assessments
Ref: Chapter 8 of Core Text

Establishing a Brand Equity

Management System (3)

Brand Equity Responsibilities:

1. Overseeing Brand Equity: Aspects that are
important:
a) Review brand sensitive material
b) Review the status of key brand initiatives
c) Review brand sensitive projects
d) Review new product and distribution strategies
with respect to core brand values
e) Resolve brand positioning conflicts
Ref: Chapter 8 of Core Text

Establishing a Brand Equity

Management System (3-contd)

Brand Equity Responsibilities:

2. Organizational Structure & Design: The
current market trends are redefining job
requirements and duties. The traditional
marketing department is disappearing from a
number of companies that are exploring other
ways to conduct their marketing functions
through business groups, multidisciplinary teams
and so on.

Ref: Chapter 8 of Core Text

Establishing a Brand Equity

Management System (3-contd)

Brand Equity Responsibilities:

3. Managing Marketing Partners: The
performance of a brand also depends on the
actions taken by outside suppliers and marketing
partners. Hence, these relationships must be
managed carefully. Many leading global firms
have been consolidating their marketing
partnerships and reducing the number of outside
suppliers. (Ex: Levi Strauss value chain)

Ref: Chapter 8 of Core Text

(END OF PART I)