BRAND MANAGEMENT

By
Sivakami
Rajalakshmi engineering college c
Àhat is a Brand?

ƥ A 3
 is a name, term, sign, symbol, or

design which is intended to identify the
goods or services of one seller or group of
sellers and to differentiate them from
those of competitors.

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|ew Branding Challenges
ƥ Brands are important as ever
ƛ Consumer need for simplification
ƛ Consumer need for risk reduction
ƥ Brand management is as difficult as ever
ƛ Savvy consumers
ƛ Increased competition
ƛ Decreased effectiveness of traditional
marketing tools and emergence of new
marketing tools
ƛ Complex brand and product portfolios
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„he Customer/Brand Challenge
ƥ In this difficult environment, marketers
must have a keen understanding of:
ƛ customers
ƛ brands
ƛ the relationship between the two

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„he Concept of Brand Equity

ƥ „he brand equity concept stresses the

importance of the brand in marketing
strategies.
ƥ Brand equity is defined in terms of the
marketing effects uniquely attributable
to the brand.
ƛ Brand equity relates to the fact that different
outcomes result in the marketing of a product or
service because of its brand name, as compared
to if the same product or service did not have
that name. ÿ
„he Concept of
Customer--Based Brand Equity
Customer

ƥ ^
 3

 3
  

ƛ Differential effect
ƛ Customer brand knowledge
ƛ Customer response to brand marketing

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Determinants of
Customer--Based Brand Equity
Customer

ƛ Customer is aware of and familiar with the

brand

ƛ Customer holds some strong, favorable, and

unique brand associations in memory

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Building
Customer--Based Brand Equity
Customer
ƥ Brand knowledge structures depend on . . .
ƛ „he initial choices for the brand elements
ƛ „he supporting marketing program and the
manner by which the brand is integrated into it
ƛ Other associations indirectly transferred to the
brand by linking it to some other entities

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Benefits of
Customer--Based Brand Equity
Customer
ƥ Enjoy greater brand loyalty, usage, and
affinity
ƥ Command larger price premiums
ƥ Receive greater trade cooperation & support
ƥ Increase marketing communication
effectiveness
ƥ Yield licensing opportunities
ƥ Support brand extensions.
 
Customer-Based Brand Equity
Customer-
as a ƠBridgeơ

ƥ Customer
Customer--based brand equity
represents the Ơadded valueơ endowed
to a product as a result of past
investments in the marketing of a
brand.
ƥ Customer
Customer--based brand equity provides
direction and focus to future marketing
activities
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„he Key to Branding
ƥ For branding strategies to be successful,
consumers must be convinced that there
are meaningful differences among brands
in the product or service category.
ƥ Consumer must not think that all brands in
the category are the same.
ƥ PERCEP„IO| = VALUE

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Strategic Brand Management

ƥ Strategic brand management involves the design

and implementation of marketing programs and
activities to build, measure, and manage brand
equity.
ƥ „he strategic brand management process is
defined as involving four main steps:
1) Identifying and establishing brand positioning and values
2) Planning and implementing brand marketing programs
3) Measuring and interpreting brand performance
4) Growing and sustaining brand equity
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 Strategic Brand Management Process

STEPS KEY CONCEPTS

Mental maps


  Competitive frame of reference
 


 Points-of-parity and points-of-difference
Core brand values
Brand mantra


 Mixing and matching of brand elements
  

  Integrating brand marketing activities
Leveraging of secondary associations

Brand Value Chain

  
  
Brand audits
  
 Brand tracking
Brand equity management system

Brand-product matrix
V

 Brand portfolios and hierarchies
  
 Brand expansion strategies
Brand reinforcement and revitalization
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Motivation for
Customer--Based Brand Equity Model
Customer
ƥ Marketers know strong brands are
important but arenƞt always sure how to
build one.
ƥ CBBE model was designed to be Ʀ
ƛ comprehensive
ƛ cohesive
ƛ well-
well-grounded
ƛ up-
up-to
to--date
ƛ actionable
cº
Rationale of
Customer--Based Brand Equity Model
Customer
ƥ Basic premise: Power of a brand resides in the
minds of customers
ƥ Challenge is to ensure customers have the right
types of experiences with products & services
and their marketing programs to create the right
brand knowledge structures:
ƛ „houghts
ƛ Feelings
ƛ Images
ƛ Perceptions
ƛ Attitudes
cÿ
Building
Customer--Based Brand Equity
Customer
ƥ Building a strong brand involves a series of steps
as part of a Ơbranding ladderơ
ƥ A strong brand is also characterized by a logically
constructed set of brand Ơbuilding blocks.ơ
ƛ Identifies areas of strength and weakness
ƛ Provides guidance to marketing activities

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CUSTOMER-BASED BRAND EQUITY PYRAMID

4. RELATIONSHIPS =
RESONANCE What about you & me?

3. RESPONSE =
JUDGMENTS FEELINGS
What about you?

2. MEANING =
PERFORMANCE IMAGERY What are you?

1. IDENTITY =
SALIENCE
Who are you?

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Salience Dimensions

ƥ Depth of brand awareness

ƛ Ease of recognition & recall
ƛ Strength & clarity of category membership

ƥ Breadth of brand awareness

ƛ Purchase consideration
ƛ Consumption consideration

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Performance Dimensions

ƥ Primary characteristics & supplementary

features
ƥ Product reliability, durability, and
serviceability
ƥ Service effectiveness, efficiency, and
empathy
ƥ Style and design
ƥ Price c 
Imagery Dimensions
ƥ User profiles
ƛ Demographic & psychographic characteristics
ƛ Actual or aspirational
ƛ Group perceptions -- popularity
ƥ Purchase & usage situations
ƛ „ype of channel, specific stores, ease of purchase
ƛ „ime (day, week, month, year, etc.), location, and context of
usage
ƥ Personality & values
ƛ Sincerity, excitement, competence, sophistication, & ruggedness
ƥ History, heritage, & experiences
ƛ |ostalgia
ƛ Memories
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ludgment Dimensions
ƥ Brand quality
ƛ Value
ƛ Satisfaction

ƥ Brand credibility
ƛ Expertise
ƛ „rustworthiness
ƛ Likability

ƥ Brand consideration
ƛ Relevance

ƥ Brand superiority
ƛ Differentiation

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Feelings Dimensions
ƥ Àarmth
ƥ Fun
ƥ Excitement
ƥ Security
ƥ Social approval
ƥ Self
Self--respect

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Resonance Dimensions
ƥ Behavioral loyalty
ƛ Frequency and amount of repeat purchases
ƥ Attitudinal attachment
ƛ Love brand (favorite possessions; Ơa little pleasureơ)
ƛ Proud of brand
ƥ Sense of community
ƛ Kinship
ƛ Affiliation
ƥ Active engagement
ƛ Seek information
ƛ loin club
ƛ Visit web site, chat rooms

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^
 B

 B
 E  M

Consumer- INTENSE, ACTIVE

LOYALTY
Brand
Resonance

RATIONAL &
Consumer Consumer EMOTIONAL
Judgments Feelings REACTIONS

POINTS-OF-
PARITY &
Brand Brand POINTS-OF-
Performance Imagery DIFFERENCE

DEEP, BROAD
Brand Salience BRAND
AWARENESS
©º
Brand Positioning
ƥ D
 c

 

 c
ƛ „arget market
ƛ |ature of competition

ƥ D
 
  3
 k 

 c 

ƛ Points-
Points-of
of--parity
ƥ necessary
ƥ competitive
ƛ Points-
Points-of
of--difference
ƥ strong, favorable, and unique brand associations
©ÿ
Issues in Implementing
Brand Positioning
ƥ Establishing Category Membership
ƥ Identifying & Choosing POPƞs & PODƞs
ƥ Communicating & Establishing POPƞs &
PODƞs
ƥ Sustaining & Evolving PODƞs & POPƞs

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Establishing Category
Membership
ƥ Product descriptor
ƥ Exemplar comparisons

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Identifying & Choosing
POPƞs & PODƞs
ƥ D

3  c  
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ƛ Personally relevant
ƛ Distinctive & superior
ƛ Believable & credible
ƥ D 
3  c  
(
 

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ƛ Feasible
ƛ Profitable
ƛ Pre-
Pre-emptive, defensible & difficult to attack
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Major Challenges in Positioning
ƥ A c  & 
c







 c (M
cM
 & McG




HBR ƌ97
HBR
ƛ How do people become aware of their need for your
product and service?
ƛ How do consumers find your offering?
ƛ How do consumers make their final selection?
ƛ How do consumers order and purchase your product
or service?
ƛ Àhat happens when your product or service is
delivered?
ƛ How is your product installed? © 

ƛ How is your product or service paid for?

Major Challenges in Positioning

ƥ A c  & 
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 c (c


ƛ How is your product stored?

ƛ How is your product moved around?
ƛ Àhat is the consumer really using your product for?
ƛ Àhat do consumers need help with when they use
your product?
ƛ Àhat about returns or exchanges?
ƛ How is your product repaired or serviced?
ƛ Àhat happens when your product is disposed of or no
longer used? G
Communicating & Establishing
POPƞs & PODƞs
ƥ ^ 
 POPƍ

 PODƍ
 

c 

 3  & 3

 




ƛ Price & quality
ƛ Convenience & quality
ƛ „aste & low calories
ƛ Efficacy & mildness
ƛ Power & safety
ƛ Ubiquity & prestige
ƛ Comprehensiveness (variety) & simplicity
ƛ Strength & refinement

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Strategies to Reconcile
Attribute & Benefit „rade-
„rade-Offs
ƥ Establish separate marketing programs
ƥ Leverage secondary association (e.g., co-
co-
brand)
ƥ Re
Re--define the relationship from negative to
positive

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Sustaining & Evolving
POPƞs & PODƞs
ƥ Core Brand Values &
Core Brand Proposition

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Core Brand Values
ƥ Set of abstract concepts or phrases that
characterize the 5-
5-10 most important
dimensions of the mental map of a brand.
ƥ Relate to points-
points-of
of--parity and points-
points-of
of--
difference
ƥ Mental Map M Core Brand Values M Brand Mantra

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Brand Mantras

ƥ A brand mantra is an articulation of the

Ơheart and soulơ of the brand.
ƛ Brand mantras are short three to five word
phrases that capture the irrefutable essence or
spirit of the brand positioning and brand values
values
ƥ Nik
ik
ƛ Authentic Athletic Performance
ƥ isn
ƛ Fun Family Entertainment
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G-
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Outline
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 Àhat Makes an Ad
Effective?
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„he Àorld of Advertising
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„ypes of Advertising
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„he Roles of Advertising

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Functions of Advertising

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„he Five Players of Advertising
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„he Evolution of Advertising

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Current Advertising Issues

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 How Brands Àork

ƥ Brand personalities
ƥ Branding
ƥ „rust
ƥ Brand image
ƥ Brand relationships
ƥ Brand equity
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 MARKETING PLANNING PROCESS

Complex,
Varied
Marketing
Activity

Detailed, Comprehensive,
Rich Robust
Marketing Marketing
Models Measures

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Role of Integrated Marketing
Communications

ƥ Marketing communications Ʀ
ƛ are the Ơvoiceơ of the brand and are a means
by which it can establish a dialogue and build
relationships with consumers.
ƛ allow marketers to inform, persuade, incent,
and remind consumers directly or indirectly
ƛ can contribute to brand equity by establishing
the brand in memory and linking strong,
favorable, and unique associations to it.

ÿ
Role of Integrated Marketing
Communications (Cont.)
ƛ Consumers can be told or shown how and why a
product is used, by what kind of person, and where
and when;
ƛ Consumers can learn about who makes the product
and what the company and brand stand for
ƛ Consumers be given an incentive or reward for trial or
usage
ƛ Brands can be linked to other Ʀ
ƥ People
ƥ Places
ƥ Events
ƥ Brands
ƥ Experiences
ƥ Feelings
ƥ „hings ÿc
Simple „est for
Marketing Communications

1. 3. 2.
Current Desired
Brand Brand
Knowledge Knowledge

ÿ©
Integrated Marketing Communications
and Customer-
Customer-Based Brand Equity
ƥ One implications of the CBBE framework is
that the manner in which brand
associations are formed does not matter --
only the resulting strength, favorability,
and uniqueness

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Designing Integrated Marketing
Communications Programs
ƥ From the perspective of customer-
customer-based brand
equity, marketers should evaluate all possible
communication options available to create
knowledge structures according to effectiveness
criteria as well as cost considerations.
ƥ Different communication options have different
strengths and can accomplish different
objectives.

ÿº
Alternative Communication Options
(Consumer)

ƥ Media Advertising („V, radio, newspapers, magazines)

ƥ Direct Response Advertising
ƥ Interactive (on-
(on-line) Advertising & Àeb Sites
ƥ Outdoor Advertising (billboards, posters, cinema)
ƥ Point--of
Point of--Purchase Advertising
ƥ „rade Promotions
ƥ Consumer Promotions
ƥ Sponsorship of Event Marketing
ƥ Publicity or Public Relations

ÿÿ
Alternative Communication Options
(Business--to
(Business to--Business)
ƥ Media Advertising („V, radio, newspaper, magazines)
ƥ „rade lournal Advertising
ƥ Interactive (on-
(on-line) Advertising & Àeb Sites
ƥ Directories
ƥ Direct Mail
ƥ Brochures & Sales Literature
ƥ Audio--Visual Presentation „apes
Audio
ƥ Giveaways
ƥ Sponsorship or Event Marketing
ƥ Exhibitions, „rade Shows, Conventions
ƥ Publicity or Public Relations
ÿ-
Print Ad Evaluation Criteria
ƥ Is the message clear at a glance?
ƥ Is the benefit in the headline?
ƥ Does the illustration support the headline?
ƥ Does the first line of the copy support or
explain the headline and illustration?
ƥ Is the ad easy to read and follow?
ƥ Is the product easily identified?
ƥ Is the brand or sponsor clearly identified?
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Ad Campaign Considerations
ƥ Campaigns make brands -- not single ads
ƥ Be creative and develop creative themes
ƛ Avoid slavishly sticking to executional formulas
ƥ Brand communications should sing like a choir
ƛ Multiple voices
ƛ Multiple notes
ƥ Find fresh consumer insights & compelling brand
truths
ƥ Productively conduct ad research

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IMC Case Study
CMPB Success Factors
ƥ Smart strategy
ƛ Relative deprivation
ƥ Imaginative creative
ƛ Funny but relevant
ƥ Clever hook
ƛ ƠGot milk?ơ slogan
ƥ „imely secondary media
ƛ In store
ƥ Right partners
ÿ 
Common Mistakes in
Developing Advertising
ƥ Failure to distinguish ad positioning (what
you say) from ad creative (how you say it)
ƥ Mistaken assumptions about consumer
knowledge
ƥ Improperly positioned
ƥ Failure to break through the clutter
ƥ Distracting, overpowering creative in ads
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Common Mistakes in
Developing Advertising
(cont.)

ƥ Under
Under--branded ads
ƥ Failure to use supporting media
ƥ Changing campaigns too frequently
ƥ Substituting ad frequency for ad quality

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^

  ^

 
  
   


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^

Note: Circles represent the market segments reached by various communication options.
Shaded portions represent areas of overlap in communication options. -©
Evaluating IMC Programs
ƥ ^
  what proportion of the target
audience is reached by each
communication option employed, as well as
how much overlap exists among options
ƥ ^
  what is the per capita expense

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Evaluating IMC Programs (cont.)
ƥ ^ 3  - the collective effect on
brand equity in terms of
ƛ enhancing depth & breadth of awareness
ƛ improving strength, favorability, & uniqueness
of brand associations

ƥ ^
 - the extent to which

information conveyed by different
communication options share meaning
-º
Evaluating IMC Programs (cont.)
ƥ ^ 
 - the extent to which
different associations and linkages are
emphasized across communication options
ƥ 

  - the extent to which
information contained in a communication
option works with different types of
consumers
ƥ Different communications history
ƥ Different market segments

-ÿ
ƠKeller Beƞsơ
ƥ B

c
:


c
: Use frameworks of consumer behavior
and managerial decision-
decision-making to develop well-
well-
reasoned communication programs
ƥ B c 
:
: Fully understand consumers by using all
forms of research and always be thinking of how you
can create added value for consumers
ƥ B
  :: Focus message on well-

  well-defined
target markets (less can be more)
ƥ B 
:

: reinforce your message through
consistency and cuing across all communications

--
ƠKeller Beƞsơ
ƥ B c 


:: State your message in a unique
fashion; use alternative promotions and media
to create favorable, strong, and unique brand
associations
ƥ B 3
 
:

: Monitor competition,
customers, channel members, and employees
through tracking studies
ƥ B 

c


c:: Understand the complexities
involved in marketing communications
ƥ B 
:

: „ake a long-
long-term view of
communication effectiveness to build and
manage brand equity -[
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