What is a Brand?

Definition:
A Brand is a name, term,sign,symbol and
design or a combination of them, intended
to identify the goods and services of one
seller or group of sellers to differentiate
them from those of competition.
A brand is a product that adds other
dimensions that differentiates it in some
way from other products designed to
satisfy the same need.

Why Do Brands Matter?

CONSUMERS:
Identification of

Source of Product
Assignment of
Responsibility to
Product Maker
Risk Reducer

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

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

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

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.

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

CHAPTER 2

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 Four Steps of Brand Building:
1. Identity (Who are you?)
2. Meaning (What are you?)
3. Response (What about you?)
4. Relationship (What about you & me?)

Ref: Chapter 2 of Core Text

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

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
Basic Concepts: According
Positioning
(2) 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
Target Market:
Positioning
(3)

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
Nature of Competition:
Positioning
(4)
Channels of Distribution
Competitors Resources
Competitors Capabilities
Competitors Likely Intentions
Other Competitive Factors (Porters 5-

Force Model refers)

Ref to Chapter 3 of Core Text

Identifying and
Establishing Brand
Points of Parity and Points of
Positioning

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)and Points of
Choosing Points of Parity

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

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

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

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 co-branding 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

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 well-funded, well-designed, and wellimplemented 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
Brand Equity Charter
System
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 (3contd)
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 (3contd)
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)