Week 2: Key Concepts in Brand

Management

CS4034 Brand Management

Instructor: Hyunjin Kang
Announcement
• Mystery Shopper Exercise– 3 member groups
• Members, Brand, and Presentation date will be
determined by draw on 29 Jan, Week 3.

• Group Project – 4 (5) member groups (Students will

form the groups) : Due Week 3, 29 Jan
- Proposal by Week 4, 7 Feb
Learning Objectives
• To understand the meaning, importance, and function of brands

• To understand the key criteria of successful brands

• In-class activity: Interbrand Best Global Brands 100

• To understand the concept of brand equity and the Consumer-Based

Brand Equity (CBBE) model

• To understand the elements of Brand Equity based on CBBE

• In-class activity: Consumer-based brand equity of Harley Davidson
What is a brand?
What is a brand?
• “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”
-American Marketing Association (AMA)
• It’s more than that.
• …something that has actually
created a certain amount of
awareness, reputation,
prominence, and so on in the
marketplace.
What is branding?
• Creation of value (perceived or actual) over and above the
utilitarian function of a product
What is a product?
• A product is anything we can offer to a market for
attention, acquisition, use, or consumption that might
satisfy a need or want.

• A product may be a physical good, a service, a retail

outlet, a person, an organization, a place, or even an idea.
Five levels of meaning for a product
1) The core benefit level
The fundamental need or want that consumers satisfy by consuming the product
or service.
2) The generic product level
A basic version of the product. No-frills version of the product.
3) The expected product level
A set of attributes or characteristics that buyers normally expect and agree to
when they purchase a product.
4) The augmented product level
Additional product attributes, benefits, or related services that distinguish the
product from competitors and exceed customer expectations (e.g., optional
features).
5) The potential product level
All the augmentations and transformations that a product might ultimately
undergo in the future.
 So, what is brand?

A brand is a name, symbol, design or mark that enhances the value of a

product beyond its functional purposes (Farquhar, 1989)

A brand is therefore more than a product, as it can have dimensions that

differentiate it in some way from other products designed to satisfy the
same need.
• Some brands create competitive advantages with product performance.
• Other brands create competitive advantages through non-product-related means.
Brands vs. Products (Laforet, 2010)

Personality
Associations
Attributes/
features/usage
Quality/value Symbols
Imagery
Functional benefits

Emotional/self-expressive benefits CRM

Country of origin
 Brands vs. Products
Product/brand halo effect (Kapferer, 2004)

Brand Product

• Design
• Value • Performance
• Brand image • Ingredients/
• Image of stores
components
where sold • Size/shape
• Perceptions of
brand users Brand’s intangibleHaloProduct’s visible • Price
and differentiating • Marketing
effect
values and imagery
characteristics

Brand Product satisfactions

aspiration
Expectations
 Why do brands matter?

What functions do brands perform that make

them so valuable to marketers?
Importance of brands to consumers

• Identification of the source of the product

• Signal of quality
• Search cost reducer
• Risk reducer

• Symbolic device
• Promise, bond, or pact with product maker
Importance of brands to firms
• To firms, brands represent enormously valuable pieces of legal property,
capable of influencing consumer behavior, being bought and sold, and
providing the security of sustained future revenues.

• Brands are the primary competitive differentiator for products, services,

and organizations that build ongoing relationships with customers and
consumers.

• A brand is therefore one of the most valuable assets of a company.

• Huge amounts are invested in the development and maintenance of

brands.
In-class activity: Evaluating Global Brands

• Review Global Brand 2019 (by InterBrand)

• https://www.interbrand.com/best-brands/best-global-brands/2019/ranking/

• Overall, do you agree with the rankings? Can you see any interesting
patters in this ranking?

• By clicking the brand assigned to you, review the brand information,

and find recent news and information about the brand.

• Based on the brand report card, discuss why the brand ranking has
increased /or decreased in 2019.
Strong brands’ key attributes (HBR, K.
Keller)
1. Excel at delivering the benefits customers truly desire.
2. Stay relevant.
3. The pricing strategy is based on customers’ perception of value.
4. Properly positioned.
5. Consistent.
6. The brand portfolio and hierarchy make sense.
7. Make use of and coordinate a full repertoire of marketing activities to
build equity.
8. Understand what the brand means to consumers.
9. The brand is given proper support, and that support is sustained over
a long time.
10. The company monitors sources of brand equity
The brand equity concept

• Aaker (1991): “a set of assets and liabilities linked to the brand, its
name and symbol, that add value or subtract from the value provided
by a product or service to a firm and/or to that firm’s customers.”

• “In the twenty-first century, branding ultimately will be only unique

differentiator between companies. Brand equity is now a key asset.”
– Fortune Magazine, 1997
Customer-Based Brand Equity (CBBE)

• “The power of a brand lies in what resides in the minds and hearts of
customers”
• “The differential effect that brand knowledge has on consumer response
to the marketing of that brand”

Brand knowledge (antecedents)

• Differences in response are a result of consumers’ knowledge about the brand

Differential consumer response to marketing (outcomes)

• Choice of a brand
• Recall of copy points from an ad
• Response to a sales promotion
• Evaluations of a proposed brand extension
 Making a brand strong: Brand
knowledge
• Brand knowledge is the key to creating brand equity.
Why?

• Brand knowledge has two components

• Brand awareness
• Brand image
Sources of brand equity

• Brand awareness
• Brand recognition (aided brand recall)
• Brand recall (unaided brand recall)

• Brand image
• Strong, favorable, and unique brand associations
Brand awareness advantages
• Learning advantages
• Register the brand in the minds of consumers
• The very first step

• Consideration advantages
• Likelihood that the brand will be a member of the consideration set
• Top-of-mind awareness: the first brand that comes to mind when a
customer is asked an unprompted question about a category.

• Choice advantages
• Affect choices among brands in the consideration set
 Creating a positive brand image

• Linking favorable, strong, and unique

associations to the brand in memory

• Brand associations may be brand

attributes or/and brand benefits
• Brand attributes: descriptive features
that characterize a product or service
• Brand benefits: personal value and
meaning that consumers attach to the
product or services.
 Ensure identification of the brand
Identity with customers and an association of
the brand in customers’ minds.

Four Establish the totality of brand

Meaning meaning in the minds of consumers.
steps of
brand Elicit the proper customer responses
building Response to the brand identification and brand
meaning.

Convert brand response to create an

Relationship intense, active loyalty relationship
between customers and the brand.
Customer-Based Brand Equity Pyramid

https://www.mindtools.com/pages/article/kelle
r-brand-equity-model.htm
1. Salience dimension
• Depth of brand awareness
• Ease of recognition and recall
• Strength and clarity of category
membership
• “Top of mind”
• Breadth of brand awareness
• Purchase consideration
• Consumption consideration
• “The range”
• “Any situation” “any time” “across a
variety of situation”
https://www.philadelphia.co.uk/recip
https://www.armandhammer.com/article
s/8-ways-baking-soda-cleans-for-less
2-1.Performance
dimension

• Primary characteristics and

supplementary features
• Product reliability, durability,
and serviceability
• Service effectiveness,
efficiency, and empathy
• Style and design
• Price
2-2. Imagery dimension

• User imagery
• Type of person or organization who uses the brand
• Demographics: Gender, age, race, income
• Psychographics: Attitude toward life, careers, possessions, social issues, etc.

• Purchase and usage imagery

• Under what conditions/situations consumers can/should buy/use the brand

• Brand personality and values

• Brand may takes personality traits such as sincerity (e.g., Campbell’s soup), excitement (e.g.,
MTV), competence (e.g., Wall Street Journal), sophistication (e.g., Mercedes), and ruggedness
(e.g., Marlboro)

• History, heritage, and experiences

• Nostalgia
• Memories
Customer-Based Brand Equity Pyramid

https://www.mindtools.com/pages/article/kelle
r-brand-equity-model.htm
3-1. Judgment dimension (Thinking)

• Brand quality • Brand consideration

• Value • Relevance
• Satisfaction
• Brand superiority
• Brand credibility • Differentiation
• Expertise
• Trustworthiness
• Likeability
3-2. Feelings
dimension
(Feeling)
• Warmth
• Fun
• Excitement
• Security
• Social approval
• Self-respect
4. Resonance dimensions

• Behavioral loyalty
• Frequency and amount of repeated purchases
• Attitudinal attachment
• “Love” the brand
• Proud of the brand
• Sense of community
• Kinship
• Affiliation
• Active engagement
• Seek information
• Join club
• Visit website
• Exchange correspondence with other users
 Sub-Dimensions of CBBE Pyramid

LOYALTY
ATTACHMENT
COMMUNITY
ENGAGEMENT

WARMTH
QUALITY FUN
CREDIBILITY EXCITEMENT
CONSIDERATION SECURITY
SUPERIORITY SOCIAL APPROVAL
SELF-RESPECT

• PRIMARY CHARACTERISTICS & • USER PROFILES

SECONDARY FEATURES • PURCHASE & USAGE
• PRODUCT RELIABILITY, DURABILITY &
SITUATIONS
SERVICEABILITY • PERSONALITY & VALUES
• SERVICE EFFECTIVENESS, EFFICIENCY & • HISTORY, HERITAGE
EMPATHY • & EXPERIENCES
• STYLE AND DESIGN
• PRICE

CATEGORY IDENTIFICATION
NEEDS SATISFIED
In-class activity: Evaluating Harley-
Davidson based on CBBE model

• How is Harley Davidson different from other motorcycle brands?

• What are the key sources of its brand equity based on the customer-
based brand equity model, why?

• In the second video, why the Harley Davidson customers felt

‘betrayed’? Try to link the concepts we learned.