CHAPTER 1:

BRANDS & BRAND MANAGEMENT

 What is a brand?

For the American Marketing

Association (AMA),

…..a brand is a “name, term, sign,

symbol, or design, or a combination of
them, intended to identify the goods
and services of one seller or group of
sellers and to differentiate them from
those of competition.”
 Brands vs. Products

A product is anything we can offer to

a market for attention, acquisition, use,
or consumption that might satisfy a
need or want.
 Five Levels of Meaning for a Product
The core benefit level
is the fundamental need or want

The generic product level

is a basic version of the product containing
only those attributes or characteristics absolutely
necessary for its functioning

The expected product level

is a set of attributes or characteristics that
buyers normally expect and agree to when they
purchase a product.

The augmented product level

includes additional product attributes,
benefits, or related services

The potential product level

includes all the augmentations and
transformations that a product might ultimately
undergo in the future.
Why do brands matter?
Importance of Brands to Consumers

Identification of the source of the

product

Assignment of responsibility to
product maker

Risk reducer

Search cost reducer

Promise, bond, or pact with product

maker

Symbolic device

Signal of quality
Reducing the Risks in Product Decisions

Functional risk—The product does not

perform up to expectations.

Physical risk—The product poses a

threat to the physical well-being or
health of the user or others.

Financial risk—The product is not

worth the price paid.

Social risk—The product results in

embarrassment from others.

Psychological risk—The product

affects the mental well-being of the
user.

Time risk—The failure of the product

results in an opportunity cost of finding
another satisfactory product.
 Importance of Brands to Firms

Identification to simplify handling or

tracing

Legally protecting unique features

Signal of quality level

Endowing products with unique

associations

Source of competitive advantage

Source of financial returns

 Can everything be branded?

Physical goods

Services

Retailers and distributors

Online products and services

People and organizations

Sports, arts, and entertainment

Geographic locations

Ideas and causes

What are the strongest brands?
 Top Ten Global Brands

Brand 2006 2005 ($

($Billion) Billion)
1. Coca-Cola 67.00 67.53
2. Microsoft 56.93 59.94
3. IBM 56.20 53.38
4. GE 48.91 47.00
5. Intel 32.32 35.59
6. Nokia 30.13 26.45
7. Toyota 27.94 24.84
8. Disney 27.85 26.44
9. McDonald’s 27.50 26.01
10. Mercedes- 21.80 20.00
Benz
Branding Challenges & opportunities

Savvy customers

Brand proliferation

Media fragmentation

Increased competition

Increased costs

Greater accountability
 The Brand Equity Concept

 Differential effect

 Brand knowledge

 Consumer response to marketing

Strategic Brand Management Process

Steps Key Concepts

Mental maps
Identify and establish
Competitive frame of reference
brand positioning and values
Points-of-parity and points-of-difference
Core brand values
Brand mantra

Plan and implement

brand marketing programs Mixing and matching of brand elements
Integrating brand marketing activities
Leveraging of secondary associations

Measure and interpret

Brand value chain
brand performance
Brand audits
Brand tracking
Brand equity management system

Grow and sustain Brand-product matrix

brand equity Brand portfolios and hierarchies
Brand expansion strategies
Brand reinforcement and revitalization
 1. Identify and establish brand positioning
and values

 Mental maps: Visual depiction of

different type of associations linked to
the brand in the mind of customer

 Competitive frame of reference:

Creating brand superiority in the mind
of customer.

 Points-of-parity and points-of-

difference: POD …..is not available in
other brand, POP….is similar to other
brand

 Core brand values: Attributes and

benefits of brand.

 Brand mantra: Core brand promise.

2.Plan and implement brand marketing
programs

 Mixing and matching of brand elements:

Name.logos symbols
characters,packaging and slogans.

 Integrating brand marketing activities:

Marketing programs can create
strong,favorable and unique brand
association.

 Leveraging of secondary associations:

Brand may be linked to

*Company *Character *Spokepeople

*Country *Sonsorship *Awards
3.Measure & interpret brand performance

 Brand value chain: Value creation Process

 Brand Audit: A comprehensive

examination of a brand to discover its
sources of brand equity.

 Brand Tracking: Collecting continuous

information from customer.

 Brand equity management system:

*Brand equity charter *Brand equity
report *Brand equity responsibility
4.Grow and sustain brand equity

 Defining the Branding Strategy

 Managing Brand Equity Over Time

 Managing Brand Equity Over Geographic

Boundaries, Cultures, and Market
Segments.