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Brand Management.

Brand Management.

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Published by keyur

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Published by: keyur on Aug 29, 2012
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07/06/2014

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1-What is Brand?
A brand is a name, term, sign, symbol or a combination of them intended to identify the goodsand services of one seller or group of sellers and to differentiate them from those of competition.For example, Coke, Nestle and Microsoft are well renowned brands. In technical speakingwhenever a marketer creates a name logo symbol he or she has created a brand.
2-Why do Brands matters?
Brands really matter for both consumer and manufacturer.
From consumer’s point of view
:Identification of source of productAssignment of responsibility to product makerRisk reducerSearch cost reducerPromise, bond, or pact with maker of productSymbolic deviceSignal of qualityBrands identify the source or maker of a product and allowconsumers to assign responsibility to a particular manufacturer. From an economic perspective,brands allow consumers to lower search costs for products both internally and externally.Consumers offer their trust and loyalty with the implicitunderstanding that the brand will behave in certain ways and provide them utility throughconsistent product performance and appropriate pricing, promotion, and distribution programsand actions. Brands can serve as symbolic devices, allowing consumers to project their self-image.Certain brads are associated with being used by certain types of people and thus reflect different values or traits. Researched haveclassified products and their associated attributes into three majorcategories: search goods, experience goods and credence goods. There is difficulty in assessingand interpreting product attributes and benefits so with experience and credence goods, brandsmay be particularly important signals of quality. Brands can reduce the risk in product decisions.These risks involve functional, physical, financial, social psychological and time risk.
 
From manufacturer’s point of view:
Means of identification to simplify handlingMeans of legally protecting unique featuresSignal of quality level to satisfied customersMeans of endowing products with unique associationsSource of competitive advantageSource of financial returnsBrands help manufacturers to organize inventory and accounting records. A brand also offers thefirm legal protection for unique features of the product. A brand can retain intellectual propertyrights, giving legal title to the brand owner. Brands can signal a certain level of quality so thatsatisfied buyers can easily choose the product again. This brand loyalty provides predictabilityand security of demand for the firm and creates barriers of entry that make it difficult for otherfirms to enter the market.
The annual list of the world’s most valuable brands, published byInterbrand and
Business Week,indicates that the market value of companies often consists largely of brand equity. Research byMcKinsey & Company, a global consulting firm, in 2000 suggested that strong, well-leveragedbrands produce higher returns to shareholders than weaker, narrower brands. Taken together, thismeans that brands seriously impact shareholder value, which ultimately makes branding a CEOresponsibilityCompanies sometimes want to reduce the number of brands that they market. This process isknown as "Brand rationalization." Some companies tend to create more brands and productvariations within a brand than economies of scale would indicate. Sometimes, they will create aspecific service or product brand for each market that they target. In the case of productbranding, this may be to gain retail shelf space (and reduce the amount of shelf space allocated tocompeting brands). A company may decide to rationalize their portfolio of brands from time totime to gain production and marketing efficiency, or to rationalize a brand portfolio as part of corporate restructuring.
Customer Based Brand Equity
Customer based brand equity model is that the power of a brand lies in what customers havelearned, felt, seen, and heard about the brand as a result of their experience over time. Customer-based brand equity is defined as the differential effect that brand knowledge has on consumerresponse to the marketing of that brand. There are three key ingredients of this definition: (1)
“differential effect,”
 
(2) “brand knowledge,” (3) “consumer response to marketing.”
 Brand Equity as a Bridge
 
The power of a brand lies in the minds of consumers and what they have experienced andlearned about the brand over time. Consumer knowledge drives the differences that manifestthemselves in terms of brand equity. This realization has important managerial implications.According to this view, brand equity provides marketers with a vital strategic bridge from theirpast to their future. Brand equity can provide marketers with a means to interpret their pastmarketing performance and design their future marketing programs.
Building a strong Brand
There are four steps of building a strong brand. These are as follows:1. Ensure identification of the brand with customers and as association of the
 brand in customers’ minds with a specific product class or customer need.
 2. Firmly establish the totality of brand meaning in the minds of customers bystrategically linking a host of tangible and intangible brand associationswith certain properties.3. Elicit the proper customer responses to this brand identification and brandmeaning.4. Convert brand response to create an intense, active loyalty relationshipbetween customers and the brand.These steps represent fundamental questions that customers can ask aboutbrands as follow:1. Who are you? (Brand identity)2. What are you? (Brand meaning)3. What about you? (Brand responses)4. What about you and me? (Brand relationship)
Brand Building Blocks
To provide some structure, it is useful to think of sequentially establishing six brand buildingblocks with customers. These brand building blocks can be assembled in terms of a brandpyramid. Each brand building block will be examined in the following section.
Brand Salience
Achieving the right brand identity involves creating brand salience with customers. It relates tothe aspects of the awareness of the brand, for example how often and easily the brand is evokedunder various situations? Brand
awareness refers to customers’ ab
ility to recall and recognize thebrand, as reflected by their ability to identify the brand under different conditions.

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