A Brand is: name, term, sign, symbol, design, or combination of these.

Brand

Brand: derived from the old Norse word brandr which means to burn.

Brand Name

Brand mark

Trademark

Copyright

Vocalized part of the brand... Tide, Avon, Chevrolet, Disneyland, AMEX

Symbol, design, color, letters Pillsbury doughboy, MGM Lion, K on Kodak box

Part of the brand given legal protection to brand name or brand mark

Legal right to reproduce, publish and sell the matter and form of a literary musical or artistic work

The process of branding encompasses all elements of the brand...

Brand Introductions and Growth The level of marketing effort supporting brand introduction depends on ...

Product quality Growth rate of the market Firm familiarity with the market

Size of the market

Firms resources

Low market concentration

Findings on Brand introductions

Managers should expect better results in terms of market share in markets where a limited number of brands hold a large share which renders such market more attractive to new brands A new brand should be supported with a larger effort when introduce into a fast growing market than when the market is mature The amount of communication effort used to introduce a brand depends on only one manufacturer characteristic--the availability of resources

Why does branding become critical ?

High

Involvement in purchase

Low

Consumer sees differences in brands

Complex buying behaviour

Variety seeking buying behaviour

Consumer does not see differences in brands

Dissonance reducing buying behaviour

Habitual buying behaviour

In which of these quadrants is branding most critical? And why?

Branding and its economic sense

brands are created because buyers crave information. They see a huge range of products that look the same and seem to perform similar . . . . . . brands offer a route through the confusion. Economist,1994

Branding is manufacturer signaling which can create a separating equilibrium

Making marketing sense out of branding

Help Process / Retrieve Information

Summarize a set of facts/specifications that are difficult for the customer to process/access, and expensive to communicate

Differentiate

Image differentiation

Generates confidence in the product attributes, customer benefits, Reason to buy increases credibility & confidence

Basis for brand extensions

Generates more opportunities in other product categories through brand extensions

Strategic question in branding...

What does the consumer see as the significance of brand? Who should brand and own the brand?

Salience / strengths of the brand The reputation of the firm & Buyer image

What risks does the consumer see? What information does the consumer needs?

The risk could be high price , product failure, lack of after sales etc. Reputation , past sales, comparative brand price and service etc

Webers law effect on brand awareness and effect of sound brands JND for brand launch and building consumer acceptance
Weber's Law states that the stimulus change needed to reach the differential threshold (produce a just noticeable difference) is a constant proportion of the starting stimulus value for any brand to get noticed
Assume that through testing we found that; 1 ounce (ABSOLUTE STIMULUS = 1) had to be added to a 10-ounce container of liquid soap (STARTING value ~ 10) before consumers detected a change in its weight. This would yield a constant of proportionality of

Awareness level
Sub-optimal stimulus generation

K = 1/10 = 0.1, allowing us to predict that:

(1) consumers will not detect a change in the weight of the larger 50-ounce economy bottle of the soap unless at least 5 ounces are added to or removed from it or (2) consumers will be able to detect a 3-pound addition to a 20-pound portable television

.5 ounce

1 ounce

Stimulus weight
Stimulus gets noticed beyond 10% weight of starting value

How does the mechanics of branding work?

A typical communication build up

High

Action

Involvement in the decision

Desire Interest

Awareness
Low

Awareness is an Advertising based activity ... however, branding focuses on building Interest and Desire to try the product

Low

Transactional completeness

High

Strong brands v/s Weak brands

The level of memory recall

Memory

Top of the mind Unaided recall for the brand Aided recall for the brand

Memory of the brand drives purchase

How culture values influence purchase decisions

Product class choice criteria (critical product attributes) Beliefs and attitudes about product class Product class selection Brand class selection Brand choice criteria (critical brand attributes) Beliefs and attitudes about brand class

Terminal values

Instrumental values

Levels of brand exposure

Brand power

Power Brands Power Brands

Brands Brands

Names Names

Local / Regional

National

Global

Market presence

Sustained effort will create not just names . . . but brands

Branding concepts - Identity and Image

Identity

Image

- Identity is on the senders side.

- Image is on the receivers side.

- The senders duty is to specify the meaning, intention and vocation of the brand.

- The image refers to the manner in which the public decodes all the signals emitted by the brand through its products, services and communication program

- In brand management terms identity precedes image.

- It is a reception concept.

BRANDS - Identity and Image

Sending

Media

Receiving

Brand Identity

Signals Transmitted

Brand Image

Competition and Noise

Brand Types

Generic product

item characterized by plain label, with no clear differentiation e.g. Xerox, Bisleri

Manufacturers brand

brand name owned by a manufacturer or other producer e.g. Coca Cola

Private brand

brand name placed on products marketed by wholesalers & retailers e.g. Stop garments from Shoppers Stop

Family brand

brand name that identifies several related products e.g. Kissan Anapurna atta , jams , biscuits etc.. (Food category) unique brand name that identifies a specific offering within a firms product line and that is not grouped under a family brand e.g. Dove soap from HLL

Individual brand

Brand power in degree

Brand insistence stage of brand where the customer refuses to accept any other brand except the preferred brand

Brand preference stage of brand acceptance at which the consumer selects one brand over competing offerings based on previous experiences with that brand

Market universe
(All potential buyers of the product

Target buyers
(Buyers who (Buyers who start preferring start preferring a brand) a brand)

Brand recognition

Brand champions

Brand recognition stage of brand acceptance at which the consumer knows of a brand but does not prefer it to competing brands

Brand preference Brand insistence

Decreasing size of the market

Creating Loyalty for the brand

Varying degrees of brand loyalty

Non-consumers Price switchers

Fence sitters/ neutrals Passively loyal

Enhancing Loyalty Frequent-Buyer Programs,

Committed

Customer Club, Database marketing etc

The Hierarchy of effects model of advertising

Brand loyalty Belief reinforcement Attitude reinforcement

Beliefs Trials

Attitudes

Expectations

Awareness

Unawareness

Branding realities on loyalty Managerial Implications

Journal of Marketing, Volume 49, Winter 1985

A Brand seeking to improve market position needs to rely heavily on customer retention efforts while increasing share of users.

If only a smaller fraction of customers attracted are retained as loyal customers, allocation efforts are likely to be more even between attraction and retention efforts

Branding realities Managerial Implications

Journal of Marketing, Volume 49, Winter 1985

For Brands with smaller user shares the retained fraction of new customers has to be higher, which necessitates more marketing effort in retention

Research show that large market share business have lower advertising to sales ratio. It also implies that as number of brands increases, loyalty levels decline sharply at first and then begin to level off

Brand equity affects buyer behavior

Recommends the brand to other buyers

No Yes

Buys the brand

Brand deserter

Brand champion

Target buyer
Does not buy the brand

Non Trier

Brand apostle

Strongest branding effects are seen in the brand apostle stage

Brand Equity

Brand Equity is a set of assets (& liabilities) linked to the brand name & symbol that adds to Brand Equity is a set of assets (& liabilities) linked to the brand name & symbol that adds to (or subtracts from) the value provided by a product (or subtracts from) the value provided by a product

Brand Equity is a set of assets, Brand Equity is a set of assets, thus management of thus management of brand equity involves investment brand equity involves investment to create and enlarge these assets to create and enlarge these assets

Brand Equity adds value to the Brand Equity adds value to the consumer and the firm consumer and the firm

Consumer-Based Brand Equity Pyramid

Consumer Acceptance Cycle

ConsumerBrand Resonance

4 Intense, Active Loyalty

Consumer Judgement

Consumer Feelings

3 Positive Accessible Reactions

Brand Performance

Brand Imagery

2 Points of Difference

Brand Salience

1 Deep Broad Brand Awareness

Consumer-Based Brand Equity Pyramid

Resonance

Loyalty Attachment Community Engagement Warmth, Fun Excitement, Security, Social Approval, Self-Respect

4 Brand Relationships (WHAT About You AND ME?)

Judgement

Quality Credibility Consideration Superiority

Feelings
3 Brand Response (WHAT About You?)

Performance

Brand Characteristics & Secondary Features Product Reliability, Durability & Serviceability Service Effectiveness, Efficiency & Empathy Style and Design; Price

User Profiles Purchase and Usage Situations Personality & Values History, Heritage, & Experiences

Imagery
2 Brand Meaning (WHAT Are You?)

Category Identification Needs Satisfied

1 Brand Identity (WHO Are You?)

Salience

How does the brand relate to the customer?

Differentiation Relevance Esteem Knowledge

How distinctive is the brand is in the market place? Is it meaningful to him or her ? Is it personally appropriate ? Is the brand held in high regard and considered the best in its class? Does the customer understand as to what a brand stands for?

Brand Power = Differentiation x Relevance X Esteem X Knowledge

Brand Equity elements : Luxury car - McKinsey & Co.

Internal
makes me feel pampered

Origin
European / Japanese

External
en ef
tells others that I am successful

Reputation
Design and performance

In ib ng ta

its

Evolution
Will become the leader in highperformance machines

le

na l

Perceived value
very expensive, but worth it

A o ss

ot io

at ci

Em

ns io

What the brand offers

Functional
easy in driving

Brand benefits
R io at l na n be

Brand identity
nc e

Who the brand is

Activities
Sponsors premier racing events

Dealer network that knows my profile wherever I go(Toyota)

Pr es e

Process

Relationship
Has related affinity programs I like (Mercedes Clubs)

it s ef

Presentation

has distinct logo incorporated into select design elements (e.g.Wheels of the car)

The three variables in the brand anatomy (Young and Rubicam model)

Differentiation X Relevance = Brand Strength. >> If there is no point of

difference, a brands value will be low.

Esteem X Knowledge = Brand Stature.

>> Esteem combines perceived quality with perceptions of a growth or decline in popularity.

Comparing Esteem & Knowledge: >> Some brands rank higher in

esteem than in knowledge. This means relatively few people understand what the brand stands for, but those who do hold it in high regard.

>> Relevance comes next. Unless a brand is relevant to a significant segment, it will not attract a large customer base.

>> Knowledge indicates that the customer not only is aware of the brand but also understands what the brand stands for.

>> Conversely a brand may have high knowledge but low esteem.This means that more people know what the brand stands for, but relatively few hold it in high regard.

The Y&R grid

Brand Stature (Knowledge and Esteem)

Low High

High Brand Differentiation and relevance Low

Swatch watches

Disney Sony

Starbucks coffee

Bayer Oldsmobile

Inter brand (UK) valuation of brands

500 brands were evaluated under these criteria and rated for maximum value under these criteria . . .
Leadership: A brand that leads its market sector is more stable and powerful than the second, third, & the fourth place brands

Stability: Long lived brands with identities that have become part of fabric of the market and even the culture are particularly powerful and valuable

Market : Brands are more valuable when they are in markets with growing or stable sales levels and a price structure in which successful firms can be profitable

International : Brands that are international are more valuable than national or regional brands, in part because of economies of scale

Inter brand (UK) valuation of brands

Trend : The overall long-term trend of the brand in terms of sales can be expected to reflect future prospects Support : Brands that have received consistent investment and focused support are regarded as stronger than those who have not

Protection : The strength and breadth of a brands legal trademark protection is critical to the brands strength.

Aakers Brand equity is based on understanding of the following critical areas ...

Price Premium The amount a customer will pay for the brand in comparison with another brand offering similar or fewer benefits. >> The price premium can be determined by simply asking customers how much more they would be willing to pay for the brand (This is called Dollar Metric)

Customer Satisfaction / Loyalty

Perceived Quality

Perceived Quality directly affects both Satisfaction (or liking) is a direct measure of how willing customers are to stick to a brand. ROI and Stock Return. >> Perceived Quality can be measured with scales such as following.
a ) High quality v/s Shoddy quality. b ) Best in category v/s Worst in category. c ) Consistent quality v/s Inconsistent Quality

Aakers Brand equity is based on understanding of the following critical areas ...

Leadership / Popularity Brand Leadership has three key dimensions ...

People want to be apart of the bandwagon and are uneasy against the flow A brand can move head technologically LG leader in Plasma TV

It reflects in part the number one syndrome.

Aakers Brand equity is based on understanding of the following critical areas ...

Perceived value Perceived value is mentioned along the following dimensions ... Whether the brand proves good value for the money
No Yes

Yes Whether there is a reason to buy this brand over others No

Comparatively superior brands

Winner brands

Loser brands

Non differentiated brands

Aakers Brand equity is based on understanding of the following critical areas ...

Brand Personality

Organizational Associations This brand is made by an organization I would trust

Brand Personality provides links to the brands emotional and self expressive benefits as well as a basis for brand-customer relationship and differentiation

I admire the brand X organization

I would be proud (or pleased) to do business with the brand TATAs as an organization

Aakers Brand equity is based on understanding of the following critical areas ...

Brand Awareness
Awareness reflects the presence of the brand in the mind of Customers

Recognition: Have you heard of the Buick Roadmaster. Recall: What brands of car can you recall ? Graveyard statistics: recall level of those who recognize the brand. How much do you recall? Fully or Partially. Top-of-Mind : the first named brand in a recall task. Brand dominance : the only brand recalled . Brand Familiarity : the brand is familiar . Brand knowledge or salience: you have an opinion about the brand .

Aakers Brand equity is based on understanding of the following critical areas ...

Market Share
Market share

Market share = (Brand equity)

Major brands in the category who have large equities usually tend to have large market shares

Brand Equity

Market Price And Distribution Coverage: Market share can be a particularly deceptive brand equity measure when it increases as a result of reduced prices or price promotions. Thus it is important to measure the relative market price at which the brand is being sold.

Brand Extensions and growth of the portfolio

Brand Extensions

Products
Existing New

Existing

Product Line extensions

Brand Extensions

Brands
New

Multi brands

Single brands

The portfolio can leverage itself if it can extend the brand to other categories

Brand extensions are in the following categories...

Related category (Brand line extensions)

Knorr is staple product from HLL It is a mother brand in the category that covers Atta, Soup etc..

Brand Extensions

Pure Brand Extensions

Tatas leveraging their corporate brand equity in Chemicals, Salt, Cars etc..

Brand extensions represent an opportunity for firms to use the equity built up in the names of existing brands in order to enhance marketing productivity

Impact of extensions on equity?

Brand extensions can affect the brand and its equity in one of the three different ways: Certain brands exploit the brand capital. The product sells thanks to the brands contribution. This is the case when the concerned product scarcely differs from existing market competition. Certain extensions destroy the brands equity. If the new product introduced under an existing brand has no relationship with the core values of parent brand then the brand equity can get eroded. Certain extensions have a neutral effect. Here the brand simply falls in line with what is expected of the brand.

How does the brand extension logic work ?

Category Based Affect Transfer Category Based Affect Transfer

The affect associated with the parent brand is transferred to the brand extension only when The affect associated with the parent brand is transferred to the brand extension only when there is a fit between the parent and the extension categories. there is a fit between the parent and the extension categories.

Fit serves as a signal or cue that the consumers use to make inferences about a new product. Fit serves as a signal or cue that the consumers use to make inferences about a new product.

Attitude (Consumer opinion)towards the extension was higher when there was a fit between the Attitude (Consumer opinion)towards the extension was higher when there was a fit between the extension and the parent product classes along one of the dimensions extension and the parent product classes along one of the dimensions Transfer // Complementary products. Transfer Complementary products.

How does the brand extension logic work . . .

Brand has a positive impact on the success of an extension if the extension is in a similar Brand has a positive impact on the success of an extension if the extension is in a similar product category. product category. Extension evaluation was enhanced only when there was brand concept consistency and product feature similarity between extension and parent categories.

Effective brand extensions

The prestige brand concept also seemed to have greater extendibility to dissimilar product classes than functional brand concepts, when it offered extensions consistent with its brand concept.

Good to be early or better to be late ?

There are several factors that can affect the brand extensions timing of entry decision. Two reasons for brand extensions to enter late are 4the high-product failure rates in young markets will subject an extensions parent brand to risk, and 4extensions may have positioning difficulties in young markets. Two reasons for brand extensions to extend early are 4the possibility of gaining early mover advantages, and 4the extensions known brand name may reduce the new products chance of failing. The results indicate that early-entering brand extensions do not perform as well on average as either early-entering new-name products or late-entering brand extensions.

Good to be early or better to be late ?

This conclusion is based on four findings. 1) the brand extensions were introduced later on average than the new-name products. 2) the early brand extensions had a lower probability of surviving than either the early-entering new-name products or late-entering brand extensions. 3) the brand extensions earned higher market shares on average than the new-name products, 4) the extensions obtained smaller market share from entering early than did new-name products.

The extensions of brands

Market based possibilities

Extensions are successful and unsuccessful in all categories Related (High Fit)

Upward extension Esteem brand Downward extension

Brand extensions

Average brand

Upward extension Downward extension

Esteem brand Unrelated (Low Fit) Average brand

Upward extension Downward extension Upward extension Downward extension

The Effects of Sequential Introduction of Brand Extensions

The use of established brand names to enter new product categories or classes can substantially reduce introductory marketing expenses and enhance the prospects of success by helping gain retailer and customer acceptance.

Dr Aaker & Dr. Keller on sequential entry

Study aimed at finding out : how is the knowledge about the core brand, and any previous extensions and the perceptions about the fit between those products and the proposed extensions affect the evaluation of the extensions

Findings: Findings: High quality brands stretch farther than average quality brands. High quality brands stretch farther than average quality brands. Successful intervening extensions improved evaluations of a proposed extension for an average quality Successful intervening extensions improved evaluations of a proposed extension for an average quality core brand: core brand: Unsuccessful intervening extensions decreased evaluations of a proposed extension for a high quality Unsuccessful intervening extensions decreased evaluations of a proposed extension for a high quality core brand. core brand. A successful intervening extension increased evaluations of an average quality core brand, but an A successful intervening extension increased evaluations of an average quality core brand, but an unsuccessful intervening extension did not affect evaluation of the core brand. unsuccessful intervening extension did not affect evaluation of the core brand.

The Effects of Sequential Introduction of Brand Extensions

Dr Aaker & Dr. Keller on sequential entry . ..

Findings Findings Perceived company credibility and fit appear to mediate the effects of intervening extensions on Perceived company credibility and fit appear to mediate the effects of intervening extensions on evaluations of a proposed extension. evaluations of a proposed extension. The relative similarity of intervening extensions had little differential impact on evaluations of a The relative similarity of intervening extensions had little differential impact on evaluations of a proposed extension. proposed extension. Multiple intervening extensions can have different effects than a single intervening extension. Multiple intervening extensions can have different effects than a single intervening extension. Intervening extensions of mixed success have effects more like those of a single failed intervening Intervening extensions of mixed success have effects more like those of a single failed intervening extension than those of a single successful intervening extension. extension than those of a single successful intervening extension. An unsuccessful extension does not prevent the firm from backtracking. An unsuccessful extension does not prevent the firm from backtracking.

Brand positioning and advertising thrust for share maintenance

BRANDS - Brand Positioning

Brand Positioning applies to a process of emphasizing the brands distinctive and motivating attributes in the light of competition. It refers to what product segment does the brand belong and what is its specific difference. It is based on an analysis of response to the following 4 questions

Why?

For Whom?

When?

Against Whom?

BRANDS - Brand Positioning

1) Why or for what? What is the specific consumer benefit or exclusive motivating attribute justifying the brand. e.g. Sony - Innovation 2) For Whom? This indicates a target. e.g.- 7 Up- Teenagers, Canada DryAdults 3)When? Indicates the occasion on which to use the product. gift. 4) Opposed to Whom? Points to the main competition, those brands from one whom the one aspires to capture the clientele. e.g.- Pepsi Challenge and the Uncola campaign- 7Up e.g. Titan as

SOV / SOM effect on branding strategy

High
Find a defensible niche and decrease advertising for the brand Increase advertising and defend position for brand

Competitors share of Voice

Attack with large SOV premium to generate brand effects Maintain modest advertising premium to maintain brand salience

Low

Low

Your share of market

High

End of Current Deck