Branding and

Brand
Positioning
 Lecture Outline
 What is a Brand/Branding?
 Brand Role and Advantages
 Brand Elements/Brand Element Choice Criteria
 Brand Equity

◦ Measuring Brand Equity/The Brand Value Chain

◦ Managing Brand Equity

 Devising a Branding Strategy
 Brand Portfolios
 Brand Positioning /Requirements
 PODs & POPs
What is a Brand?
A name, term, sign, symbol or design, or a
combination of them, intended to identify the goods or
services of one seller or group of sellers and to
differentiate them from those of competitors.

What is Branding?
Providing goods and services with the power of the brand. It’s all
about creating differences between products.
The Role of Brands
 Advantages of Strong Brands
 Improved perceptions of  More inelastic consumer
product performance response to price increases
 Greater  Greater trade cooperation
loyalty
 Less vulnerability to  Increased marketing

competitive marketing communications effectiveness

actions  Possible licensing opportunities

 Less vulnerability to crises  Additional brand extension
 Larger margins opportunities
 Greater financial market  Improved employee recruiting
returns and retention
 Brand Elements
Brand elements are devices which can be trademarked, that
identify and differentiate the brand. Most strong brands employ
multiple brand elements. Nike has the distinctive “swoosh” logo,
the empowering “Just Do It” slogan, and “Nike”
the from the Greek winged name of
goddess victory.
 Brand Element Choice Criteria
 Memorable—How easily do consumers recall and
recognize the brand element both at purchase and
consumption such as Tide, Crest, etc
 Meaningful—Is the brand element credible? Does ti
suggest the corresponding category and a product
ingredient or the type of person who might use the
brand? Examples are Die Hard auto batteries, Mop & Glo
floor wax
 Likable—How aesthetically appealing is the brand
element? Examples are Flickr photo sharing, Wikipedia
and Motorola’s ROKR, etc
 Brand Element Choice Criteria
 Transferable—Can the brand element introduce new
products in the same or different categories? The Amazon
is famous as the world’s biggest river, and the name
suggests the wide variety of goods that could be shipped
 Adaptable—How adaptable and updatable is the brand
element?
 Protectable—How legally protectable is the brand
element? How competitively protectable?
 Brand Naming
 Individual names
 Blanket family names
 Separate family names
 Corporate name/individual name combo
What is Brand Equity?
 Brand equity is the added value endowed on
products and services. It may be reflected in the
way consumers think, feel, and act with respect to
the brand, as well as in the prices, market share,
and profitability the brand commands.
 Managing Brand Equity
 Brand Valuation
Determining total financial value of the brand (Brand
Value is the net value(NPV) of the
present forecasted Brand
Earnings).
 Brand Reinforcement
Continuous product improvement. Innovation and
marketing support.
 Brand Revitalization
◦ Change in Positioning (The place in the consumers mind
that you want your brand to own. It is the benefit you want your
consumer to perceive when they think of your brand)
◦Overhaul the Brand (The impression in
consumers'
Image mind of a brand's thepersonality (real
total
imaginary qualities and shortcomings). and
 Devising a Branding Strategy
A firm’s branding strategy—often called the brand
architecture—reflects the number and nature of both
common and distinctive brand elements. A firm has
three main choices:

 I t can develop new brand elements for the new

product.

 I t can apply some of its existing brand elements.

 I t can use a combination of new and existing brand

elements.
 Devising a Branding Strategy
 Brand Extension. When a firm uses an established brand
to introduce a new product, the product is called a brand
extension.When marketers combine a new brand with an
existing brand, the brand extension can also be called a
sub-brand, such as Hershey Kisses candy, Adobe
Acrobat software, Toyota Camry atomobiles.
 In a Line Extension, the parent brand covers a new
product within a product category it currently serves, such
as with new flavors, forms, colors, ingredients, and
package sizes.
 Devising a Branding Strategy
 In a Category Extension, marketers use the parent brand
to enter a different product Honda has used its company
name to cover such different products as automobiles,
motorcycles ,etc
 A Brand Line consists of all products—original as well as
line and category extensions—sold under a particular
brand.
 A Brand Mix (or brand assortment) is the set of all brand
lines that a particular seller makes.
 Brand Portfolios
 The brand portfolio is the set of all brands and
brand lines a particular firm offers for sale in a
particular category or market segment.
 Advantages

◦ Increasing shelf presence and

retailer dependence in the store

◦ Attracting consumers seeking variety

◦ Increasing internal competition within the firm

◦ Yielding economies of scale in advertising, sales,

merchandising, and distribution
 Brand Positioning
 The act of designing the company’s offering and
image to occupy a distinctive place in the mind of the
target market. The result of positioning is the
successful creation of a customer-focused value
proposition, a logical reason why the target market
should buy the product.

Value Proposition
A good hot pizza, delivered to your
door within 30 minutes of ordering, at
a moderate price
 Defining Associations
Points-of-difference
Points-of-parity (POPs)
(PODs)

Attributes
•• Attributes or benefits
benefits Associations that
•• Associations that are
are
or
consumers strongly not
not necessarily
necessarily unique
unique
associate
consumers
associate with
with aastrongly
brand,
brand, to
to the
the brand
brand but
but may
may
positively
positively evaluate,
evaluate, and
and be
be shared
shared with
with other
other
believe
believe they
they could
could not
not brands
brands
find
find to
to the
the same
same extent
extent
with
with aa competitive
competitive brand
brand
 PODs Success Criteria
Three criteria determine whether a brand association
can truly function as a point-of-difference—desirability,
deliverability, and differentiability.
•Desirable to consumer. Consumers must see the brand

association as personally relevant to them. Consumers

must also be given a compelling reason to believe and
an understandable rationale for why the brand can
deliver the desired benefit.
 PODs Success Criteria
• Deliverable by the company. The company must have
the internal resources and commitment to feasibly and
profitably create and maintain the brand association in
the minds of consumers.The product design and
marketing offering must support the desired
association
• Differentiating from competitors. Consumers must see
the brand association as distinctive and superior to
relevant competitors
 Forms of POPs
• Category points-of-parity are attributes or benefits
that consumers view as essential to a legitimate and
credible offering within a certain product or service
category.
• Competitive points-of-parity are associations
designed to overcome perceived weaknesses of the
brand. A competitive point-of-parity may be required
to either
• negate competitors’ perceived points-of-
difference or
• negate a perceived vulnerability of the brand as a
Brand Identity and Brand Image
Brand Identity is how you want the consumer to
perceive your product or brand. It helps to shape the
personality of the product, service or company. It’s
the voice you give your product or service.

Brand Image is the perception of your product or

brand by consumers. It’s what they hear.
Kapferer’s Identity Prism
Kapferer (2009) categorized brand identity into six
dimensions, which may be represented by the six
faces of a ‘hexagonal prism’. The six facets are
broadly categorized under two perspectives—internal
and external
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Queries ?