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THE HINDU COLLEGE –MBA MACHILIPATNAM
THE HINDU COLLEGE –MBA, MACHILIPATNAM-V.V.S.K. PRASAD
Brand management begins with having a thorough knowledge of the term “brand”. It includes developing a promise, making that promise and maintaining it. It means defining the brand, positioning the brand, and delivering the brand. Brand management is nothing but an art of creating and sustaining the brand. Branding makes customers committed to your business. A strong brand differentiates your products from the competitors. It gives a quality image to your business. Brand management includes managing the tangible and intangible characteristics of brand. In case of product brands, the tangibles include the product itself, price, packaging, etc. While in case of service brands, the tangibles include the customers’ experience. The intangibles include emotional connections with the product / service. Branding is assembling of various marketing mix medium into a whole so as to give you an identity. It is nothing but capturing your customers mind with your brand name. It gives an image of an experienced, huge and reliable business. It is all about capturing the niche market for your product / service and about creating a confidence in the current and prospective customers’ minds that you are the unique solution to their problem. The aim of branding is to convey brand message vividly, create customer loyalty, persuade the buyer for the product, and establish an emotional connectivity with the customers. Branding forms customer perceptions about the product. It should raise customer expectations about the product. The primary aim of branding is to create differentiation. Strong brands reduce customers’ perceived monetary, social and safety risks in buying goods/services. The customers can better imagine the intangible goods with the help of brand name. Strong brand organizations have a high market share. The brand should be given good support so that it can sustain itself in long run. It is essential to manage all brands and build brand equity over a period of time. Here comes importance and usefulness of brand management. Brand management helps in building a corporate image. A brand manager has to oversee overall brand performance. A successful brand can only be created if the brand management system is competent. An organization’s Brand is among its most valuable assets. As such, smart organizations understand the importance of building, nurturing and leveraging a strong brand, just as they do other assets, making it a central strategic priority.
The terms brand and branding is thrown around a lot these days, usually with a very limited knowledge of what the process of brand development is really about. The process is simultaneously both an art and a discipline which, like most disciplined artful pursuits, takes practice to master.
THE HINDU COLLEGE –MBA, MACHILIPATNAM-V.V.S.K. PRASAD
When we talk about branding and brand management, we are really talking about a process with several central facets. It involves defining the brand essence; what the brand stands for. It involves definition of the brand personality; the brand’s character and imagery. It involves development of brand architecture; the central tool in defining the scope and depth of the brand’s extension across the enterprise it represents. And, it involves brand positioning; differentiating and giving relevance to the brand. At the center of the process is the all-important essence of the brand. This is usually a product of solesearching, looking deep within the organization for that handful of distinguishing characteristics which truly define its culture and the points of distinction which make it what it is. Defining a brand’s essence is not an afternoon’s task. It is more typically an interactive, group process of evolution and refinement that takes place over an extended period of time.
Effective brand management usually starts with a retrospective process of discovery and analysis. Unless the brand’s been well-managed, this process will almost always uncover what I call “brand creep,” the outgrowth of well-intentioned leaders within the organization who view their program, product or services as the center of the organizational universe and overlay the brand accordingly. The result is undisciplined brand extension and a multi-centered organizational universe.
THE HINDU COLLEGE –MBA, MACHILIPATNAM-V.V.S.K. PRASAD
Down the left-hand side of the diagram are internal disciplines which serve to anchor the brand and avoid brand creep. It is vital to formally document the parameters within which an organization’s brand will be developed and that those parameters be purposefully endorsed by the organization’s executive leadership, including the CEO. It has been my practice of seeking agreement from the organization’s executive team that no changes will be made to the organization’s brand architecture without each change being reviewed with and approved by that group, reflecting the value and importance of the discipline. Down the right-hand side of the diagram are external aspects of brand expression. It is the unifying aspects of a well-managed brand architecture that allows an organization to effectively position itself as an enterprise showcase its promise and creatively tell its story. At the bottom of the diagram is the intersection of the internal disciplines and external expressions, joined through internal communications. Building ownership of the brand and its essence on the part of staff and stakeholders is a vital step toward fulfillment of the brand promise extended to the marketplace through its marketing program. It is through the practice of discipline brand management and the artful portray of a brand’s essence, reflected in the actions of an engaged workforce, that organizations effectively live their brand. Following are the important concepts of brand management: ü ü ü ü ü ü ü ü ü ü ü ü Definition of Brand Brand Name Brand Attributes Brand Positioning Brand Identity Sources of Brand Identity Brand Image Brand Identity vs Brand Image Brand Personality Brand Awareness Brand Loyalty Brand Association
THE HINDU COLLEGE –MBA, MACHILIPATNAM-V.V.S.K. PRASAD
THE HINDU COLLEGE –MBA. To a consumer. Over a period of time. If the consumers recognize a particular brand and have knowledge about it. Also. A strong brand is a means of making people aware of what the company represents and what are it’s offerings.S. Brands also play a crucial role in signifying certain product features to consumers. good or service. consumers discover the brands which satisfy their need. Brand is a promise that the product will perform as per customer’s expectations. brand means and signifies: Source of product Delegating responsibility to the manufacturer of product Lower risk Less search cost Quality symbol Deal or pact with the product manufacturer Symbolic device Brands simplify consumers purchase decision. they will more likely continue to buy that brand.5 ü ü ü ü ü Building a Brand Brand Equity Brand Equity & Customer Equity Brand Extension Co-branding Understanding Brand . they make quick purchase decision and save lot of time. differentiating it from others in marketplace. Brand is an accumulation of emotional and functional associations. Brands usually have a trademark which protects them from use by others. MACHILIPATNAM-V.V. Consumers remain committed and loyal to a brand as long as they believe and have an implicit understanding that the brand will continue meeting their expectations and perform in the desired manner consistently.What is a Brand ? Brands are different from products in a way that brands are “what the consumers buy”. they save search costs for product. while products are “what concern/companies make”. A brand gives particular information about the organization. PRASAD . As long as the consumers get benefits and satisfaction from consumption of the product.K. Brand carries an assurance about the characteristics that make the product or service unique. It shapes customer’s expectations about the product.
employees. MACHILIPATNAM-V. Mercedes-Benz. It is a name. advantages. Kingfisher. PRASAD . Sony. Some examples of well known brands are Mc Donald’s’. etc. symbol or a combination of all these planned to differentiate the goods/services of one seller or group of sellers from those of competitors. management and shareholders. Benefits are the basis for purchase decision. The Nokia sound.V. ideas and even personality. A brand connects the four crucial elements of an enterprise. such as. brand means and signifies: Basis of competitive advantage Way of bestowing products with unique associations Way of identification to easy handling Way of legal protection of products’ unique traits/features Sign of quality to satisfied customer Means of financial returns A brand. It is a set of functional. Brand is nothing but an assortment of memories in customers mind. The Nike Swoosh. term. etc.K. Associations are nothing but the images and symbols associated with the brand or brand benefits. can be defined as a seller’s promise to provide consistently a unique set of characteristics.customers. Coca Cola. in short.S. THE HINDU COLLEGE –MBA. and services to the buyers/consumers. emotional and rational associations and benefits which have occupied target market’s mind. Brand represents values. sign.6 To a seller.
Kodak.Features of a Good Brand Name A good brand name should have following characteristics: It should be unique / distinctive (for instance. people (Louise Phillips.7 Brand Name Brand name is one of the brand elements which helps the customers to identify and differentiate one product from another. PRASAD . animals or birds (Dove soap. MACHILIPATNAM-V. Mustang) It should be extendable. THE HINDU COLLEGE –MBA. Allen Solly). Brand names are not necessarily associated with the product. It should be chosen very carefully as it captures the key theme of a product in an efficient and economical manner.K. British Airways).S. LG). Choice of a brand name requires a lot of research. Puma). brand names can be based on places (Air India. the company name is used for all products (General Electric.V. In some instances. It can easily be noticed and its meaning can be stored and triggered in the memory instantly. For instance.
should be easily pronounceable. management and employees. It should be easily convertible into foreign languages. PRASAD . Conducting consumer research . Generation of multiple names . (For instance-Tide) It should give an idea about product’s qualities and benefits (For instance. Consumers can be shown actual 3-D packages as well as animated advertising or boards. It should be capable of legal protection and registration. agencies and professional consultants. Screening of names on the basis of branding objectives and marketing considerations so as to have a more synchronized list . classical. Quickfix. organization. On the basis of the above steps.S. MACHILIPATNAM-V. because in Spanish it means “doesn’t go”). Lipguard). It should indicate concrete qualities (For instance Firebird). Process of Selecting a renowned and successful Brand Name Define the objectives of branding in terms of six criterions . The features of the product. suggestive. should meet the legal requirements etc. current or potential customers. (For instance NOVA is a poor name for a car to be sold in Spanish country. It should suggest product/service category (For instance Newsweek). arbitrary and fanciful. management can finalize the brand name that maximizes the organization’s branding and marketing objectives and then formally register the brand name.K. Several samples of consumers must be surveyed depending on the niche market involved. These searches are at times done on a sequential basis because of the expense involved.Swift. compound.8 It should be easy to pronounce.The brand names must not have connotations. It Is essential to recognize the role of brand within the corporate branding strategy and the relation of brand to other brand and products.Consumer research is often conducted so as to confirm management expectations as to the remembrance and meaningfulness of the brand names. its price and promotion may be shown to the consumers so that they understand the purpose of the brand name and the manner in which it will be used. It should not portray bad/wrong meanings in other categories.V. identified and memorized.Any potential source of names can be used. Gathering more extensive details on each of the finalized names . It is also essential to understand the role of brand within entire marketing program as well as a detailed description of niche market must be considered.There should be extensive international legal search done.descriptive. THE HINDU COLLEGE –MBA.
A strong brand should be different and unique. Uniqueness. MACHILIPATNAM-V.Nike transcendent Jersey Polo Shirt. Brand attributes are a bundle of features that highlight the physical and personality aspects of the brand.A strong brand should do what it promises. or presumptions. competitors ? Is it significant and encouraging to the niche market ? THE HINDU COLLEGE –MBA. The way you communicate your brand to the audience/ customers should be realistic. directed and delivered by the brand’s benefits/reasons to buy.A strong brand should transcend/ inspire the category it is famous for. Inspirational. For example. A sustainable brand drives an organization towards innovation and success. Example of sustainable brand is Marks and Spencer’s. and it focusses at all points of contact with the consumer.S. Brand attributes help in creating brand identity.9 Brand Attributes Brand Attributes portray a company’s brand characteristics.A strong brand must be relevant. Sustainable.A strong brand should be positioned so that it makes a place in target audience mind and they prefer it over other brands.A strong brand makes a business competitive.A strong brand should be attractive. is guided. It should not fail to deliver what it promises. It should set you apart from other competitors in market. A consistent brand is where the company communicates message in a way that does not deviate from the core brand proposition. PRASAD . Brand positioning must make sure that: Is it unique/distinctive vs.Definition and Concept Brand positioning refers to “target consumer’s” reason to buy your brand in preference to others. Credibility. Do not exaggerate as customers want to believe in the promises you make to them. It must meet people’s expectations and should perform the way they want it to.V. A good job must be done to persuade consumers to buy the product. A strong brand must have following attributes: Relevancy. actions. Attributes are developed through images.K. They signify the basic nature of brand.A consistent brand signifies what the brand stands for and builds customers trust in brand. Consistency. Appealing. Customers should be attracted by the promise you make and by the value you deliver Brand Positioning . else inspite of your product being unique. It is ensures that all brand activity has a common aim. people will not buy it. Proper positioning.
Definition and Concept Brand identity stems from an organization. Brand Positioning is the key of marketing strategy. It intends to stay with the proposition of “Think Investments. an organization is responsible for creating a distinguished product with unique characteristics. For instance. a niche market has to be carefully chosen and a differential advantage must be created in their mind. PRASAD . Positioning is the base for developing and increasing the required knowledge and perceptions of the customers. Brand positioning is a medium through which an organization can portray it’s customers what it wants to achieve for them and what it wants to mean to them. There are various positioning errors.Kingfisher stands for youth and excitement.This is a scenario in which the customers have a confused opinion of the brand.This is a scenario in which customers do not accept the claims of a brand. such asUnder positioning.This is a scenario in which the customers have too limited a awareness of the brand. Over positioning. Double Positioning. It has an unaided top of mind recall.can it be delivered constantly across all points of contact with the consumer ? Is it helpful for organization to achieve its financial goals ? Is it able to support and boost up the organization ? In order to create a distinctive place in the market. Confused positioning. A strong brand positioning directs marketing strategy by explaining the brand details. The positioning you choose for your brand will be influenced by the competitive stance you want to adopt. Brand Identity . appropriate and original products ? Is it sustainable . Brand Positioning can be defined as an activity of creating a brand offer in such a manner that it occupies a distinctive place and value in the target customer’s mind. It represents how an organization wants to be perceived in the market. For instance-Kotak Mahindra positions itself in the customer’s mind as one entity. the uniqueness of brand and it’s similarity with the competitive brands. It represents brand in full flight.which can provide customized and onestop solution for all their financial services needs. i. MACHILIPATNAM-V.K. Brand Positioning involves identifying and determining points of similarity and difference to ascertain the right brand identity and to create a proper brand image. Think Kotak”. as well as the reasons for buying and using that specific brand.This is a scenario in which the customer’s have a blurred and unclear idea of the brand. It is how an organization seeks to identify itself. It is the single feature that sets your service apart from your competitors.V.e.“Kotak ”.S. An organization communicates its THE HINDU COLLEGE –MBA..10 Is it appropriate to all major geographic markets and businesses ? Is the proposition validated with unique. Brand positioning forms customer’s views and opinions.
It includes the thinking. Brand identity is a basic means of consumer recognition and represents the brand’s distinction from it’s competitors. Associations are not “reasons-to-buy” but provide familiarity and differentiation that’s not replicable getting it. a personality.V. It assures the customers again that you are who you say you are. It should reflect the durable qualities of a brand. Symbols are easier to memorize than the brand names as they are visual images. A brand is unique due to its identity. trademark colours (for example .Trademark colour. Brand identity is the noticeable elements of a brand (for instance .e. a set of values. people. brand preference. It is a way of externally expressing a brand to the world. name. high credibility. Brand identity should be sustainable.Blue colour with Pepsi). It is a means of identifying and distinguishing an organization from another. It helps the organization to express to the customers and the target market the kind of organization it is. symbol) that identify and differentiates a brand in target audience mind. It is a crucial means to grow your company’s brand. THE HINDU COLLEGE –MBA.S. and presentations. It is an organizations mission. Brand identity should be futuristic. tagline (for example . motivated team of employees who feel proud working in a well branded organization. Fed Ex has an arrow. Sources of Brand Identity SYMBOLS. cartoon images. personality. PRASAD . Brand identity is the aggregation of what all you (i. It is crucial so that the consumers instantly correlate with your product/service.Britannia “ting-ting-ta-ding”). an organization) do. brand culture. and a position it occupies in consumer’s minds. Pillsbury has its Poppin’ Fresh doughboy. Brand identity is the total proposal/promise that an organization makes to consumers. personality. and corporate style. For instance. It establishes an immediate connection between the organization and consumers. These associations can include signature tune(for example . good prices and good financial returns.etc. It is a feature linked with a specific company. Brand identity leads to brand loyalty. They help us correlate positive attributes that bring us closer and make it convenient for us to purchase those products and services. Mc Donald has Ronald. Marlboro has its famous cowboy. Symbols emphasize our brand expectations and shape corporate images. service or individual. logo (for example .Apple’s tagline is “Think different”).K. positioning. and Nike’s swoosh. relationships. All these symbols help us remember the brands associated with them. geometric shapes. it should reveal the associations aspired for the brand. Brand identity is all that an organization wants the brand to be considered as. active buyers. anything.Brand vision. Symbols become a key component of brand equity and help in differentiating the brand characteristics. product. These can include logos.Nike).e. Brand identity includes following elements .Symbols help customers memorize organization’s products and services. Duracell has its bunny rabbit. feelings and expectations of the target market/consumers. promise to the consumers and competitive advantages. logo. An organization having unique brand identity have improved brand awareness. Brand identity is a bundle of mental and functional associations with the brand. i. MACHILIPATNAM-V. The brand can be perceived as a product.11 identity to the consumers through its branding and marketing strategies.
The elements of a logo are: Logotype . Features of a good logo are : It should be simple. product. or any form of identification that helps people recognize a brand. mission and objectives. It is due to logo that customers form an image for the product/service in mind. It should differentiate itself. It should be easily identifiable in full colours. i.It can be a simple or expanded name. TRADEMARKS. It should be easy to correlate by the customers and should develop customers trust in the organization.It is best way of conveying company’s message to the consumers.A logo is a unique graphic or symbol that represents a company.. It represents an organization very well and make the customers well-acquainted with the company. It should be functional so that it can be used widely. MACHILIPATNAM-V. Also. It should be a perfect reflection/representation of the organization.Nike’s slogan “Just Do It”. or in black and white. or other entity. It should be memorable. UTI ’kalash’. service.e. future. design. Adidas’s “Three Stripes” is a famous brand identified by it’s corporate logo. LOGOS. It should portray company’s values. Slogan .S. youth. limited colour palettes.K. the symbol of LG symbolize the world. A renowned brand has a popular trademark and that helps consumers purchase THE HINDU COLLEGE –MBA. It is feasible to learn the relationship between symbol and brand if the symbol is reflective/representative of the brand. humanity. It should not loose it’s integrity when transferred on fabric or any other material. It should be effective.12 Brand symbols are strong means to attract attention and enhance brand personalities by making customers like them. Examples of logotypes including only the name are Kellogg’s. it must have an impact on the intended audience. For instance. For example-LIC ’hands’. Hyatt. and technology. PRASAD .V.Trademark is a unique symbol. It should be distinguished/unique. Icon . etc. it represents LG’s efforts to keep close relationships with their customers.It is a name or visual symbol that communicates a market position. For instance.
It signifies what the brand presently stands for. Trademark name should be original. Brand Image Brand image is the current view of the customers about a brand. escalator and thermos. Based on these associations.K. Trademark contribute in brand equity formation of a brand. It is the manner in which a specific brand is positioned in the market. slogan describing organization’s business in brief and brand identifier supporting the key values. Use correct trademark spelling. it is nothing but the consumers’ perception about the product. Toyota is associated with reliability. Brand image conveys emotional value and not just a mental image.S. THE HINDU COLLEGE –MBA. It is an accumulation of contact and observation by people external to an organization. Always use it as an adjective. It should highlight an organization’s mission and vision to all. Registration of trademark is essential in some countries to give exclusive rights to it. PRASAD .unique logo reflecting organization’s image. Challenge each misuse of trademark. Brand image is the overall impression in consumers’ mind that is formed from all sources. SM (denotes unregistered service mark) ® (denotes registered trademark). specifically by competitors in market. Never use trademark as a noun or verb. that is. The goodwill of the dealer/maker of the product also enhances by use of trademark. It can be defined as a unique bundle of associations within the minds of target customers. In short. Brand image is nothing but an organization’s character. MACHILIPATNAM-V. a mark used to promote or brand goods).V. It is a set of beliefs held about a specific brand. they form brand image. ensure that it stands out from surrounding text. Some guidelines for trademark protection are as follows: Go for formal trademark registration. Volvo is associated with safety. A trademark is chosen by the following symbols: ™ (denotes unregistered trademark. Capitalize first letter of trademark. The main elements of positive brand image are. Without adequate trademark protection.13 quality products. Trademark totally indicates the commercial source of product/service. If a trademark appears in point. An image is formed about the brand on the basis of subjective perceptions of associations bundle that the consumers have about the brand. Generic names are never protectable as was the case with Vaseline. Consumers develop various associations with the brand. brand names can become legally declared generic.
etc. fame. The general meaning of brand identity is “who you really are?” It’s nature is that it is substance oriented or strategic.how do you make me feel better (than others).emotional benefits . Image is passive.S. When the consumers purchase the product. Brand identity symbolizes firms’ reality. Brand image develops and conveys the product’s character in a unique manner different from its competitor’s image. Brand attributes are consumers overall assessment of a brand. It is total consumers’ perception about the brand. Image is looking back. Identity is active. Brand Image Brand image is perceived by the receiver or the consumer. and rational benefits/support why do I believe you(more than others). It is total promise that a company makes to consumers. unique and instant. It signifies “where you want to be”. Benefits are the rationale for the purchase decision. It is enduring. Brand message is untied by the consumer in the form of brand image. It signifies “what you have got”. other promotional tools. Identity is looking ahead. Brand attributes are the functional and mental connections with the brand that the customers have.K. There are three types of benefits: Functional benefits . Positive brand image enhances the goodwill and brand value of an organization. packaging. Brand image is actually brand content.attributes.what do you do better (than others ). The brand image consists of various associations in consumers’ mind . word of mouth publicity. but is automatically formed. ease of use. Brand image is the objective and mental feedback of the consumers when they purchase a product. PRASAD . The brand image includes products' appeal. Brand image has not to be created. they are also purchasing it’s image. Brand Identity vs Brand Image Brand Identity Brand identity develops from the source or the company. Brand identity represents “your desire”. The general meaning of brand image is “How market perceives you?” It’s nature is that it is appearance oriented or tactical.V. Positive brand image is exceeding the customers expectations. benefits and attributes. 1 2 3 4 5 6 7 8 9 10 11 THE HINDU COLLEGE –MBA. functionality. Brand images should be positive. Brand images can be strengthened using brand communications like advertising. MACHILIPATNAM-V. Brand message is tied together in terms of brand identity. Brand image symbolizes perception of consumers Brand image represents “others view” It is superficial.14 The idea behind brand image is that the consumer is not purchasing just the product/service but also the image associated with that product/service. and overall value. They can be specific or conceptual.
feminist and optimist. etc. in sense that. Trustworthy celebrity ensures immediate awareness. brand personality indicates emotional associations of the brand. Infosys represents uniqueness. It is a key input into the look and feel of any communication or marketing activity by the brand.e.Dove as honest.Shahrukh Khan and Airtel. Brand personality not only includes the personality features/characteristics. It sets the brand attitude. competency and influence). For instance .K. Brand personality differentiates among brands specifically when they are alike in many attributes. These characteristics signify brand behaviour through both individuals representing the brand (i.Hampstead. i. It is unique and long lasting. Brand personality is used to make the brand strategy lively. It is a means by which a customer communicates his own identity. A brand is expressed either as a personality who embodies these personality traits (For instance . For instance . Hewlett Packard brand represents accomplishment.Sony versus Panasonic. If brand image is comprehensive brand according to consumers’ opinion.S. packaging.15 What is Brand Personality ? Brand personality is the way a brand speaks and behaves. Brand personality is the result of all the consumer’s experiences with the brand. Brand personality is nothing but personification of brand. to implement brand strategy. Brand personality indicates the kind of relationship a customer has with the brand. Personality traits are what the brand exists for. gender or class and psychographic features. For instance . It is the degree to which consumers precisely associate the brand with the specific product. It helps in gaining thorough knowledge of customers feelings about the brand. Brand personality and celebrity should supplement each other. international line of premium shirts. while brand image denote the tangible (physical and functional) benefits and attributes of a brand. This will influence consumers’ purchase decision and also create brand loyalty. brand personality is that aspect of comprehensive brand which generates it’s emotional character and associations in consumers’ mind. Brand personality must be differentiated from brand image. It is THE HINDU COLLEGE –MBA. and intellectualism. it’s employees) as well as through advertising. John Abraham and Castrol) or distinct personality traits (For instance . It means assigning human personality traits/characteristics to a brand so as to achieve differentiation. When brand image or brand identity is expressed in terms of human traits.Allen Solley brand speaks the personality and makes the individual who wears it stand apart from the crowd.V.e. MACHILIPATNAM-V. Brand personality develops brand equity. value. What is Brand Awareness ? Brand awareness is the probability that consumers are familiar about the life and availability of the product. but also the demographic features like age. it is called brand personality. PRASAD .Bollywood actress Priyanka Chopra is brand ambassador for J. acceptability and optimism towards the brand.
sponsorships. brand recognition is more crucial as the brand will be physically present. Brand awareness is improved to the extent to which brand names are selected that is simple and easy to pronounce or spell. brand trust.S. and unique as well as distinct. It is measured through methods like word of mouth publicity. slogans and taglines. etc. There are two types of brand awareness: Aided awareness. Brand awareness includes both brand recognition as well as brand recall. It includes use of various renowned channels of promotion such as advertising.Coca Cola has come to be known as Coke. Top of mind awareness (Immediate brand recall).In a store. Brand loyalty is the extent to which a consumer constantly buys the same brand within a product category. The consumers remain loyal to a specific brand as long as it is available. They do not buy from other suppliers within the product category. While brand recall is the potential of customer to recover a brand from his memory when given the product class/category. social media like blogs. Strong brand awareness leads to high sales and high market share. Brand awareness can be regarded as a means through which consumers become acquainted and familiar with a brand and recognize that brand. the customers recognize your brand from the lists of brands shown. the first brand that customer recalls from his mind is your brand. the consumers can clearly differentiate the brand as having being earlier noticed or heard. i. Building brand awareness is essential for building brand equity. needs satisfied by that category or buying scenario as a signal.16 measured as ratio of niche market that has former knowledge of brand. Brand loyalty exists when the consumer feels that the brand consists of right product THE HINDU COLLEGE –MBA. it refers that consumers should correctly recover brand from the memory when given a clue or he can recall the specific brand when the product category is mentioned. For instance ..This means that on mentioning the product category. word of mouth publicity. MACHILIPATNAM-V.This means that on mentioning the product category.K. Brand recognition is the ability of consumer to recognize prior knowledge of brand when they are asked questions about that brand or when they are shown that specific brand. brand recall is more significant (as in case of services and online brands). In other words. commitment. PRASAD .V. For instance . It is generally easier to recognize a brand rather than recall it from the memory. etc. repetitive buying. it is important to create reliable brand image. customer satisfaction. In a scenario where brands are not physically present.e. The brand message to be communicated should also be consistent. known and expressive. Brand Loyalty Brand Loyalty is a scenario where the consumer fears purchasing and consuming product from another brand which he does not trust. To create brand awareness. launching events. The relative importance of brand recall and recognition will rely on the degree to which consumers make product-related decisions with the brand present or not. price sensitivity.
As brand loyalty increases. Blue colour with Pepsi. Nokia sound. It also restrains new competitors in the market. Film Stars as with “Lux”. an organization should know their niche market. continuous improvement. but are images and symbols associated with a brand or a brand benefit. This is because the brand loyal customers are less reluctant to shift to other brands. A company having brand loyal customers will have greater sales. Brand loyalty can be defined as relative possibility of customer shifting to another brand in case there is a change in product’s features.Hyatt Hotel is associated with luxury and comfort.promote the brand as they perceive that their brand have unique value which is not provided by other competitive brands. Brand Association Brand Associations are not benefits. ensure easy access of their product. etc. and they will minutely consider any other alternative brand as a replacement.friendly menu system used by Nokia phones. Most popular brand associations are with the owners of brand.Bill Gates and Microsoft.S. the brand loyal consumer will stick to his brand. price or quality. BMW is associated with sophistication. For example. respond less to price changes and self. and superior engineering. fun driving. It is relating perceived qualities of a brand to a known entity. When consumers are brand loyal they love “you” for being “you”. Brand loyal consumers are the foundation of an organization. Even if the other brands are available at cheaper price or superior quality.V. customers will respond less to competitive moves and actions. To develop brand loyalty. MACHILIPATNAM-V. Reliance and Dhirubhai Ambani. such as . Similarly in Finland. it acts as a means of launching and introducing more products that are targeted at same customers at less expenditure.The Nike Swoosh. Examples of brand loyalty can be seen in US where true Apple customers have the brand's logo tattooed onto their bodies. and best pricing. For instance. Nokia customers remained loyal to Nokia because they admired the design of the handsets or because of user. PRASAD . Brand loyal customers remain committed to the brand. provide customer satisfaction.17 characteristics and quality at right price. ensuring quality products. Brand loyalty is a key component of brand equity. Brand loyalty can be developed through various measures such as quick service. signature tune Ting-tingta-ding with Britannia. less marketing and advertising costs.K. bring constant innovation in their product and offer schemes on their product so as to ensure that customers repeatedly purchase the product. support their product. wide distribution network. are willing to pay higher price for that brand. Associations are not “reasons-to-buy” but provide acquaintance and differentiation that’s not replicable. Greater loyalty levels lead to less marketing expenditure because the brand loyal customers promote the brand positively. THE HINDU COLLEGE –MBA. Also. target them. Brand loyalty is always developed post purchase. etc. and will promote their brand always.
etc Positive brand associations are developed if the product which the brand depicts is durable. While choosing a brand name. People expect that these brands should demonstrate brand promises every time whenever they are. and obstructs the competitor’s entry into the market. POP ( Point of purchase) displays.18 Brand association is anything which is deep seated in customer’s mind about the brand. The customers must be persuaded that the brand possess the features and attributes satisfying their needs. For instance .S. Quality of the product. This can cause a customer to select some other brand. Brand association can also be defined as the degree to which a specific product/service is recognized within it’s product/service class/category. Celebrity/big entity association.V. Brand associations are the attributes of brand which come into consumers mind when the brand is talked about.Power book. This will lead to customers having a positive impression about the product. THE HINDU COLLEGE –MBA.Our brand is a promise of what we deliver Brand evokes the responses. Positive brand association helps an organization to gain goodwill. Brand associations are formed on the following basis: Customers contact with the organization and it’s employees. Product class/category to which the brand belongs. Products and schemes offered by competitors. marketable and desirable. Word of mouth publicity.K. it is essential that the name chosen should reinforce an important attribute or benefit association that forms it’s product positioning. There are certain feelings that come to your mind when you think about your favorite brands. It is related with the implicit and explicit meanings which a consumer relates/associates with a specific brand name. PRASAD . encountered. Advertisements. Brand Promise . Inconsistencies in the performance of services can lead to damage in further relations. MACHILIPATNAM-V. There are many people who love their Apple iPod or love their car etc. Price at which the brand is sold. Brand should be associated with something positive so that the customers relate your brand to being positive.
organizations are often inspired by a variety of ideas to create products and services which can be offered locally or globally. Delivering the best of themselves is their brand promise. one of the most important steps in building a Brand is decide upon a brand name for the product or service one wishes to sell. THE HINDU COLLEGE –MBA. If you select a person who is very polite and does not even know how to dress up for an interview then you competition should send a thank you card for all the business you will send his way. deliver the brand promise. the image of a gourmet restaurant does not include plastic menus or paper placemats. The customers are very easily able to realize your brand promise by the business you are dealing with. Generally. PRASAD . Their icon is their name. There are three major mistakes that the business leaders make while executing and developing the brand promise:ü The first mistake is when you refuse to recognize the customer expectations that are created in customers mind before it comes in contact with that particular brand. Then what are the other services you are giving to the customer in place which is the attraction for the customers. For example. You easily hire anyone who applies and don’t even put some efforts to train them gives a really terrible experience to the customers. For example. your business will either flounder or die. If your goal is to be a business leader you will invest time to train the staff. Human beings are self-centered creatures with a thought in their mind to save money and time for us. Often these brands include both logo and lettering and can do a long way in advertising such products or services. dependable and reliable. Steps in Building a Brand Name Product or Service At times. does it make any difference in the cost? Its just that you are losing sales.V. Do you want to become winner at working? Then. ü The third major mistake is that when you are not able to hire the best candidate. People who want to become the business leader understand they are a great product brands. For example. ü The second major mistake is to implement a system which gives a negative experience to the customer. Brand promises are delivered by the staff. Any small inconvenience which will force the customer to say that “you are not completely service oriented” and encourages the customer to some other brand. MACHILIPATNAM-V. If you are not able to deliver the brand promise you will not be able to meet the expectations that have been created in the customers mind. why one should work for every smallest detail. They are authentic.19 Brand promise is what you say to the customer and what is to be delivered. such products or services require the establishment of a brand or company name. a customers asks do you accept credit card? Do you accept all credit cards or only master card and visa? If you don’t accept these cards. If you are not able to meet the expectations of the customer.K. if you have a gourmet restaurant then the customers will have a image in their mind that it will different from the local restaurant.S. Business leaders work on creating efficient results for saving time and money. Therefore. This is one of the major reason.
” still stands true to some extent. targeting the appropriate audience and THE HINDU COLLEGE –MBA. one has a better chance of selling such items to a broader audience whether that be on a local or global level. So.S. establish trust within the community. having such a department in today's world where one is both experienced and knowledgeable when it comes to helping others can be a rare find.V. while the old adage “nothing happens until somebody sells something. aim marketing at the right audience. One of the most important steps in selling any product or service is the belief one holds in relation to the item. Otherwise. Therefore. A very important step in marketing a brand is to identify the target audience before creating the logo and lettering in relation to marketing. then one is on their way to not only creating and advertising an excellent brand but selling one as well. knowing your audience. one may be able to gain a better understanding of which audience one needs to direct their product or service to in order to create the most sales. Therefore. Therefore. it can also be representative of those working for such a company. Still. finding a great logo and lettering to represent same. PRASAD . This is because different age groups react differently to a variety of logo and lettering especially as so much is misrepresented by a variety of gangs and others using such material inappropriately. Therefore. when looking for steps in building a brand. MACHILIPATNAM-V. logo and lettering and present same to a marketing research review panel or the like. Upon doing so. at times almost seems as if the process of advertising and branding has overtaken the desire to sell. benefiting both the organizations selling the branded product or service and the dealers buying same. companies who represent oneself has having a strong customer base and even stronger customer service department are often more successful than those who do not. if one can define the brand name. Therefore. building your brand. Although branding generally identifies the company and philosophies behind same. Another step is to build a brand that maintains loyalty with its customer base and has a strong customer service department. only those who strongly believe in the products and services offered by the company are going to be good at selling same. if one can communicate the use of their product or service clearly. there are many steps which one can complete to help make the creation of such brand an easier task.K. These include. build a base of buyers and customer loyalty and offer great customer service. This is a good thing as it generates the right type of audience to the product or service being sold based on personal relationships with those running the company. one may want to work from an advertising or graphic artist perspective in relation to advertising rather than sales when it comes to time to market same. be that locally or globally.20 Branding is a process that allows an individual or a group of individuals the ability to provide a brand image and lettering to an idea. For.
THE HINDU COLLEGE –MBA.V. Perceived quality affect the pricing decisions of the organizations. It also captures the channel member’s interest. ü OR. While evaluating quality the customer takes into account the brands performance on factors that are significant to him and makes a relative analysis about the brand’s quality by evaluating the competitors brands also.Meaning and Measuring Brand Equity Brand Equity is the value and strength of the Brand that decides its worth. It occurs when the consumer is familiar with the brand and holds some favourable positive strong and distinctive brand associations in the memory. MACHILIPATNAM-V. ü The price premium charged by the brand over non-branded products. Superior quality products can be charged a price premium. Brand Equity .K. Thus quality is a perceptual factor and the consumer analysis about quality varies. An amalgamation of all the above methods. Brand Equity exists as a function of consumer choice in the market place. Perceived quality gives the customers a reason to buy the product. Higher perceived quality might be used for brand positioning. after doing so. PRASAD . Evaluating the Brand’s earning potential in long run. For. ü From the prices of the shares that an organization commands in the market (specifically if the brand name is identical to the corporate name or the consumers can easily co-relate the performance of all the individual brands of the organization with the organizational financial performance. Factors contributing to Brand Equity Brand Awareness Brand Associations Brand Loyalty Perceived Quality: refers to the customer’s perception about the total quality of the brand.21 placing a number of ads in as many online and offline advertising venues one can find. For instance American Express. It can also be defined as the differential impact of brand knowledge on consumers response to the Brand Marketing. ü ü Evaluating the Brand Image for various parameters that are considered significant. The concept of Brand Equity comes into existence when consumer makes a choice of a product or a service. ü By evaluating the increased volume of sales created by the brand compared to other brands in the same class.S. one may just find that they are selling even more products and services than one had ever dreamed possible. Brand Equity can be determined by measuring:ü Returns to the Share-Holders.
brand equity may also exist without customer equity.22 Other Proprietary Brand Assets: Patents. Trademarks and Channel Inter-relations are proprietary assets. They also help in maintaining customer loyalty as well as organization’s competitive advantage. For instance I may have positive attitude towards brands . Brand Equity and Customer Equity have two things in common-ü customer loyalty to the brand Both stress on significance of ü Both stress upon the face that value is created by having as many customers as possible paying as high price as possible. MACHILIPATNAM-V. ü Just as customer equity can persist without brand equity. brand equity attempts to put more emphasis on strategic issues in managing brands. But conceptually both brand equity and customer equity differ. PRASAD .McDonald and Burger King.V. It can overlook a brands optional value and their capacity effect revenues and cost beyond the present marketing environment.S. ü Customer Equity is less narrow alternative.K.ü While customer equity puts too much emphasis on lower line financial value got from the customers. but I may only purchase from McDonald’s brand consistently. THE HINDU COLLEGE –MBA. These assets prevent competitors attack on the organization. Brand Equity & Customer Equity Brand Equity is defined as value and strength of the Brand that decides its worth whereas Customer Equity is defined in terms of lifetime values of all customers.
soccer balls.S. it hasn’t had much success. and measures brand’s relevance and appeal. lowers risk. basketballs. powder. Oranjolt need to be refrigerated and it also faced quality problems.Is among the famous soft drink companies in India. It thought that taste was the only factor that consumer cared about. This new category to which the brand is extended can be related or unrelated to the existing product categories. Brand extension may be successful or unsuccessful. PRASAD . But it is now extended to sunglasses. It has a shelf life of three-four weeks. while other soft. chocolate drink and a slab of chocolate. Advantages and Disadvantages Brand Extension is the use of an established brand name in new product categories. Brand Extension .Meaning. When it experimented with fizzy fruit drink “Oranjolt”.K. Extending a brand outside its core product category can be beneficial in a sense that it helps evaluating product category opportunities. Both the concepts are highly co-related. and if these values and aspirations are embodied in the brand. If the customers of the new business have values and aspirations synchronizing/matching those of the core business. it is likely to be accepted by customers in the new business. MACHILIPATNAM-V. and soap. Advantages of Brand Extension THE HINDU COLLEGE –MBA. For instance. Instances where brand extension has been a success areWipro which was originally into computers has extended into shampoo. A renowned/successful brand helps an organization to launch products in new categories more easily. It didn’t work out because it was out of synchronization with retail practices. Nike’s brand core product is shoes. identifies resource requirements. we can say brands do not exist without consumer and consumer do not exist without brands.drinks assured life of five months. The time and money spent on research on new Coca Cola could not evaluate the deep emotional attachment to the original CocaCola. Instances where brand extension has been a failure areIn case of new Coke. but an ice-cream. the brand bombed even before it could take off. An existing brand that gives rise to a brand extension is referred to as parent brand. Coca Cola has forgotten what the core brand was meant to stand for. But when it tried to move away from its niche. Oranjolt was a fruit drink in which carbonates were used as preservative. It was wrong. . Rasna Ltd.V. Mars is no longer a famous bar only. Customers serve as a profit-medium for brands to encash their brand value.23 To conclude. and golf equipments. Brands serve as a temptation that utilizes other intermediaries to lure the customers from whom value is extracted.
There are economies of scale as advertising for core brand and its extension reinforces each other. THE HINDU COLLEGE –MBA. There is a risk that the new product may generate implications that damage the image of the core/original brand. There are feedback benefits to the parent brand and the organization. The risk perceived by the customers reduces. There are chances of less awareness and trial because the management may not provide enough investment for the introduction of new product assuming that the spin-off effects from the original brand name will compensate. PRASAD . There are packaging and labeling efficiencies. Brand meaning is clarified. Cost of developing new brand is saved. It revives the brand. The image of parent brand is enhanced.S. The efficiency of promotional expenditure increases. It increases market coverage as it brings new customers into brand franchise. It increases brand image. It allows subsequent extension. Advertising. The likelihood of gaining distribution and trial increases. selling and promotional costs are reduced. MACHILIPATNAM-V.K. Customers associate original/core brand to new product.V. An established brand name increases consumer interest and willingness to try new product having the established brand name.24 Brand Extension has following advantages: It makes acceptance of new product easy. An organization must research the product categories in which the established brand name will work. Disadvantages of Brand Extension Brand extension in unrelated markets may lead to loss of reliability if a brand name is extended too far. The expense of introductory and follow up marketing programs is reduced. hence they also have quality associations. Consumers can now seek for a variety.
Example of co-branding . Co-branding may fail when the two products have different market and are entirely different.risk-sharing. technological benefits. and greater access to new sources of finance. generation of royalty income. more access to distribution channel and greater profits. such as . The ingredient brand should be unique. Ingredient co-branding implies using a renowned brand as an element in the production of another renowned brand. Advantages and Disadvantages of Co-branding Co-branding has various advantages. wide scope due to joint advertising. The ingredient/constituent brand is subordinate to the primary brand. This deals with creation of brand equity for materials and parts that are contained within other products. This card is beneficial to customers who can avail benefits at specific outlets called MTV Citibank club. then also composite branding may fail.Citibank co-branded with MTV to launch a cobranded debit card.Dell computers has co-branding strategy with Intel processors.Meaning. Co-branding may affect partner brands in adverse manner. Types of Co-branding Co-branding is of two types: Ingredient co-branding and Composite co-branding.V. The brand manufacture can benefit by having a competitive advantage and the retailer can benefit by enjoying a promotional help from ingredient brand.25 If the brand extensions have no advantage over competitive brands in the new category. If there is difference in visions and missions of the two companies. If the customers associate any adverse experience with a constituent brand. But co-branding is not free from limitations.S. Ingredient co-branding leads to better quality products. Co-branding . The overall synchronization between the brand pair and the new product has to be kept in mind. The seller of ingredient brand enjoys long-term customer relations. then it may damage the total brand equity. For instance . The brands which are ingredients are usually the company’s biggest buyers or present suppliers.K. The ingredient brands help each other to achieve their aims. MACHILIPATNAM-V. superior promotions. better product image by association with another renowned brand. more sales income. THE HINDU COLLEGE –MBA. Types and Advantages and Disadvantages What is Co-branding Co branding is the utilization of two or more brands to name a new product. The success of composite branding depends upon the favourability of the ingredient brands and also upon the extent on complementarities between them. It should either be a major brand or should be protected by a patent. then it will fail. Composite co-branding refers to use of two renowned brand names in a way that they can collectively offer a distinct product/ service that could not be possible individually. PRASAD . greater customer trust on the product.
which is again a challenge as decision making process for purchase order is way different compare to individual. THE HINDU COLLEGE –MBA.26 Strategic Brand Management Meaning and its importance Brand does not carry a definite and absolute definition but it is relative. where as some would consider standing of one’s product or services in market as brand. Normally we associate branding from point of view common mass. Some observers would term products or services characteristics. technology driven world has thrown new challenges to branding. Companies have responded to this challenge by improvising in the way they run their marketing campaigns. a point of differentiation from competitors and a steady stream of profit. The key lies in developing a brand for corporation where in which other business can be confident of. and products or service displayed in malls and supermarket. Brand for a customer will indicate commitment towards quality from sellers there by reducing time spent in coming to a purchase decision.K. which differentiate it from competitors as brand. brand becomes important for various reason let us explore some of them. Branding or Brand is considered important not only for companies but they carry equal importance for customers or consumers also.V. In all these. PRASAD . Here survival of organization as well as individual will be at stake. From consumer or customer point of view.S. by exploring new avenues to showcase their products. Customers/consumers have more access to information than ever before. However there exists another market where branding is equally important and that is business to business market. Brand for companies will indicate a sort of benchmark in quality as well as customer expectation. Modern globalized. value of product or service for what it stands and attributes which identifies them can be considered as brand. Internet has become a strong tool through which product information proliferate raising expectation bar for companies. Like for example. sponsorship of events and teams or association with social cause. This is referred as corporate branding. MACHILIPATNAM-V.
in context with other product can be referred as brand equity. MACHILIPATNAM-V. A stage is reached where brand become synonymous with product e. but now what is “Brand Equity”.g. And since this brand equity is from customer’s perspective. From customer’s point of view. Customer Based Brand Equity. It is a simple example but a great situation to understand brand and brand equity. etc) have found there mark. action of consumer in purchasing “Morton” is suggesting positive brand equity.V. money. Therefore in the above example. The identity developed for this product and services over a period of time. sturdy performance etc is referred to as brand.coffee-Starbucks. online retail-Ebay etc. If in present. . association created which results in favorable and positive action towards a brand. This process is called strategic brand management.27 In a given market innumerable products and services are offered by different companies. customer has developed favorable attitude towards the brand then it is a clear indication that past investment (time.K. PRASAD . Brand equity is a good barometer to understand past action and future course of action for marketers. THE HINDU COLLEGE –MBA.S. there are many offerings but choice is “Morton”. donut-Dunkin Donuts. Companies already know that identity of product created over period of time through strategic marketing is brand. through marketing strategies. Costco etc) to purchase salt. who are active in formulating strategies for a given brand. If that action is in favor of any brand than is positive brand equity and that action is not favorable than its negative brand equity. Customer Based Brand Equity Imagine walking in aisle of a typical super market (Shaw’s.
But how to create a strong brand based brand equity ? THE HINDU COLLEGE –MBA.K. Result showed that consumer were highly critical of preferred beer when they were not aware of brand. But one aspect is absolutely clear that brand knowledge is a key factor in establishing brand equity. To further stress point of brand knowledge.S. Brand knowledge which is crucial in evolution of brand equity consists of brand awareness and brand image. leading to conclusion that brand knowledge contributes a lot in understanding customer based brand equity. logo. MACHILIPATNAM-V. The first set up was where consumer had no knowledge about the brand and in the second next set up. On the other hand brand image are visuals. an experiment was conducted by Larry Percy with respect to brand equity using Beer as product. A favorable response was recorded after brand disclosure. brand name was not disclosed.V. style etc with which brand is associated. Here brand awareness means the ability created by brand with which consumer can recall and recognize in any given environment. Aim was to understand consumer response for the same brands under two different set ups. PRASAD . as to achieve desired results.28 The present also leads the way how marketers should plan future course. Customer based brand equity results in creation of strong brand and this is achieved when brand awareness and image are at high level.
sustainable and healthy relationship. in terms loyalty as consumer will stick to the brand no matter what price premium they have to shell out. When brand is able to achieve sense of oneness with its consumer then it can be said that strong brand has been created. This is done by appropriate brand awareness and image. And. following points are of utmost importance for companies. A consumer should easily identify that for a given need or want this is the brand.K. but Apple stands for style.29 A thing to understand here is that brand equity resides in the mind of the customer. meaning for given product the brand is the best customer can get. by churning out predictable. so conviction has to be brought in strategy as to permanently occupy consumer mind space. quality etc. And at each step an objective is achieved creating leading to a strong brand. Consumers are aware that they both are computer brands dealing in entertainment. target consumer. Both these brands have become synonymous with search engine and entertainment in mind of customers. iPod etc where as Windows stands for world class operating system. For example. A classic example here would be of “Google” and “Apple”. Connection between brand and consumer leads to long term partnership and loyalty. Apple and Windows both are well known brand. point of similarity with competitors and point of difference with competitors. Companies tend to benefit a lot. So when a company is trying to build up brand knowledge. Brand Positioning becomes very much relevant. logos. The process is gradual and requires in-depth understanding of consumer mind. If brand fails to do this.S. These consumers become sort of brand ambassador and recommending usage of brand. it simply becomes just another product or commodity on supermarket or mall shelf. main competitors. So for successful brand positioning. Next create emotional connection with customer using brand offering and brand image as to generate response from the customer. There by creating consumer based brand equity. First step is to establish a relation between customer need and product offering. The emotional level response in form of positive reaction or opinion brand creates long term. customer service. THE HINDU COLLEGE –MBA. Second step is connection. This process of creating point of similarities and points of difference in consumer’s mind is called Brand Positioning. The process is like climbing a ladder. reliable and quality performance during each purchase.V. This establishes imprint in customer’s mind which further can be cemented by visual. quality. continued support to marketing efforts of the company. Consumer can easily identify point of similarities and points of difference between the two brands. packaging. PRASAD . Brand positioning strategy is about finding a right place for a brand in market place as well consumer mind. one step at a time. etc. Brand Positioning Strategy Brand knowledge comprises of brand awareness and brand image contribute to establishing of customer based brand equity. warranty. cool quotient. MACHILIPATNAM-V.
MACHILIPATNAM-V. through tender process. not profit organization etc). Segmentation of business market is starts with product class. These brand identifiers are referred to as brand identifiers. Choosing Brand Elements to Build Brand Equity Brand equity is the result of a process which leads to a creation of a unique and distinct brand identity. such as. tea v/s coffee. This is more prevalent in consumer goods industry.S. as people are willing to spend buck on iPod. Etc. By end customer (government. consumption of product. quality. Brand Ambassador. Point of difference could be defining in terms of the way consumer thinks for a given brand.30 So. Other segmentation can be done on basis of emotional profile. In recent time apparel industry has facing competition from consumer electronics industry. Another segment is buying decision. religious affiliation etc. It helps in enforcing a simple point of identifying product within product class. that is whether they are local or global. Finally segmentation is done on basis of company profile. Brand elements facilitate the process of consumer brain mapping and play a key role in building brand equity. predictable performance. that is. Style. such as Old Spice earlier it was focus on shaving product but later moved to grooming products like deodorants. Point of difference is like unique selling proposition and this difference can be in form of appearance. Further segmentation can be done on location. better customer service. which includes financial strength and geographical location. But point of difference is the product range it can offer at competitive prices compared to other stores. SWOT analysis is definitely good starting point. Competition may not be coming from the same product class but maybe from substitute. Logo. for example. if consumer. bidding process. Knowing competitors. Points of similarity are common traits essential to make sure that consumer understand the product. PRASAD . agriculture etc). to identify target consumer we must narrow down target market.V.K. The idea is to THE HINDU COLLEGE –MBA. faces competition not only from Target but also from Macy’s and Shaw’s. which includes marital status. A market comprises of cluster of individual with similar behavior. which includes personal belief and values. HDTV to make style statement and not clothes. This becomes important especially if brand is in extension mode and looking to enter another category. usage rate of product and expectation from product. Brand positioning is very important step in establishing customer based brand equity. Brand identification can be done through various ways. race and family. income level. referred to as segments. meaning target industry (chemical. Knowing your competitor is very essential for survival in market. Point of difference and Point of similarity together add to strategic branding process. Another is demographic which includes age. Target market. These are the points which will make the brand stand out from competition. These segments can be defined on basis of personal consumption profile. The point here is that not to narrow down competition too much as to lose focus. chosen lifestyle. Unique Selling Proposition (USP). For example Wal-Mart. sex. Another market which is important is business market. Consumers over period of time are able to identify the brand through brand elements.
half eaten apple. Similarly brand name can convey much about brand itself. The brand name itself is sufficient in conveying that for fried chicken KFC is the brand. for example. For example. on other hand. it conveys lot about offering at brand stores. etc. For example Kellogg’s cereals. Consumer should not be left guessing about brand by looking at the element. Virgin. design and appearance are such. Packaging also plays important part as brand element in building brand equity. So the brand element should be such that it can be easily recalled. The most elementary part of brand element to achieve brand equity is the brand name. for example. Ads15 years never showed this kind of mix of different race and culture. this brand can only be valid to sell toys. it steadily identifies with brand Apple. a formal introduction starts with name. PRASAD . society. Apple products I-pod and Mac. which add to a good brand element. Swastika symbol is associated with Nazi's movement but in India symbol means luck. The last important factor is intellectual property rights. Toys r us. for example. Wal-Mart’s slogan is “Save Money Live Better”. This flexibility could be in the form of demographic. Pepsi-cola or common name Pepsi.S. an openness to change. These sort of logo stays in memory for long time. Brand element should be such that they can have a great recall power. of course it depends on product category company is operating (industrial product v/s consumer products). TV ads during the super bowl show Asian. for example. For example. even though football is all American game. For example. is brand element conveying either of this two for consumer? Significance here means that brand element should be suitable for that given product category.K. African American. anyone would be attracted towards them.31 develop brand elements. example. brand element should have a legal cover from piracy and copiers in which countries they operate. games. Brand name is easy to remember and recall making pronunciation easy for nonEnglish speaker. etc. Another factor is significance and application. In this globalize world it is very important to respect diversity and culture. which can properly communicate about brand and its point of difference from competing brands.. A word or symbol can have various meanings. so that next time you see person again you greet her by name. Another factor for a good brand element is design and appearance. Another factor is flexibility. Earlier Wal-Mart’s slogan was “Always Low Price”. For example. Kentucky Fried Chicken. THE HINDU COLLEGE –MBA. There are various factors. Another factor is the application of brand element. but in tough economic times the new slogan is more relevant. Brand name could also be suggestive into what brand is offering. it’s packaging as evolved responding to modern needs (healthy diet) to new technologies. Another elementary part is the brand slogan because it can again convey the whole existence of brand. MACHILIPATNAM-V. Hispanic drinking beer together. The reason been American society has a good mix of people from different race and culture but has a strong passion for the game.V. But again as time change slogan also have to evolve. this brand is applicable to airlines as much as to financial services. in meeting a stranger. So the choice of word or symbol should not be without research.
pricing and channel distribution. assembled in company’s warehouse and then sent to customers. This permission marketing enables companies to build unique brand image leading to strong brand equity. PRASAD . For example American Express. Marketing tactics can be implemented by emails. efforts are always on to make sure marketing activities truly reflect brand image and develop strong brand equity. analyze this database to create consumer expectation matching products and services. packaging. where winner are eligible to court side seats among many other freebies. Product reviews are readily available forums or social networking sites. MACHILIPATNAM-V. mobile etc. But the way these marketing activities are carried out has gone under revolutionary change owing to the modern technological driven world. Another marketing technique popular among markets is a form of direct marketing. Internet retailing has created new supply chain model for companies. they have created marketing plan especially for their card holders. there are websites which lets you design your own t-shirts or hoodies. which is a challenge as well convince. Designing Marketing Programs to Build Brand Equity At core of building brand equity is marketing programs or strategies. Flora 2000 is online florist who deliver flowers all around the globe.S. Various elements like brand name. For example products ordered from Dell are design. because traditional distributes and agents have made way to courier services. knowing consumer had previously made purchase around that period.K. has been sponsor of US open for years. Consumer have more access to customized products. Online retailer Amazon uses another marketing technique where they suggest a product to consumer after getting nod from them. where in consumer can read understand experience of other consumers. reason been digital connectivity through internet. Traditional marketing activities revolve around product.V. time to time they send reminders of important events like mother’s day or valentine day with special deals to consumer. Brands like Amway and Avon have followed this technique for some time now.32 It can be easily concluded from above the importance of brand element in creation of brand equity. forums on social networking sites etc. However. THE HINDU COLLEGE –MBA. pricing and distribution channel. Reason why modern world is different can be understood from consumer as well as company’s perspective. Companies maintain large database storing consumption behavior. In this form of marketing focus is on individual consumer and not a large group. Today’s consumer is well informed about the product or service she is purchasing. Amazon takes permission from consumer before sending recommendation. One the marketing concept developed is called experiential marketing. Marketing activities can be weaved around product. slogan symbol individually and collectively play important in creating long lasting impression and relation with consumer. From companies perspective new technology frontiers has improved the way they understand consumer. internet along with technology has given convenience to consumer. their habits are recorded and on that basis other products are suggested. Marketing activities can facilitate in increasing brand awareness as well as in creating the right brand image. This unique concept is associated with brands and experience consumer has with it. The card holders are part of daily draws. Many of consumer purchase decision are made online.
THE HINDU COLLEGE –MBA. And these programs are necessary to create brand image and also to build brand awareness. research consumers to understand whether desire effect or brand knowledge has been created. MACHILIPATNAM-V. Traditional communication avenues like TV ads have to undergo subtle changes. But consumer perception for potential product value and sensitivity to price is also of equal importance. Again channel choice is dependent on product. PRASAD . Advent of digital video recorders has seen consumer watching their favorite program post actual telecast. while clearly stating similarity and difference from competitors. Finally. Pricing is crucial for brand image. This task is done through medium of marketing communication. in its most form is advertising. for them to understand price of product. For marketing communication to be effective in conveying its message a simple cycle has to be understood. If that is the case than fortune spent of getting spots won’t translate into effective communication. So communication developed should follow certain criteria to prove its effectiveness. customization. But a trend observed here is that consumes tend to skip ads in recorded program. do they want to be in current state. To establish price.V. Products are sold either through direct marketing channels or indirect marketing channels. An effort has to be made to educate the consumer about cost of serving them. Industrial product preferred way would be direct channel. as well point of difference with competition.S. But there are various factors like product category. Marketing communication is essential in establishing point of similarity.K. Marketers have to develop marketing programs keeping in mind above discuss points to build a strong consumer based brand equity. Now design communication in whatever form required that will take to desired level. These channels also play an important role in building brand equity. Marketing communication needs to be flexible in current technology driven environment where consumer are internet savvy and have access to information. price and distribution channels. Marketing strategy around product is to highlight not only core benefits but also process or easy by which purchase is done there by creating a long term relationship with consumer where periodical information exchange can occur. Integrating Marketing Communication to Build Brand Equity Marketing programs play an important role in building up of brand equity. Today’s youth tend to spend more time playing video games and not on watching television. price. making an impression in consumer’s mind leading to development of strong consumer based brand equity and also to develop long.33 Product remains first frontier for consumer to create opinion for brand. product cost should not be the only consideration. complexity which play a role in deciding marketing channel. Marketers need to understand the present state of brand awareness and brand image within consumer’s mind and then ask question. Competitor’s price also cannot be ignored because price war will not benefit anyone in the market. These marketing programs are related to product.lasting relationship.
price and distribution network. Trade promotion is targeted for channel partner like retailers. However it is just visual and may not generate desirable consumer response. newspaper. which has already created impression in consumer’s mind. it is easy to conclude that it is challenging and difficult to design and execute marketing communication process. direct approach. Radio on other hand has lesser geographical coverage and audience. However radio again can only have audio and cannot grab attention the way visuals can. etc. Magazines and newspaper can provide good coverage with greater information content. consumer promotion and trade promotion. radio. So if consumers watch cartoon network and ad is not ESPN then end consequences are already written. These are of two types’. Marketers also extensively use promotional activity for marketing communications. thereby reducing dollar cost per customer. Each option has its own strength and weakness. evident at malls and super market.S. There are various marketing options available to marketers. magazines. Consumer promotion can be in form of sampling.K. marketers have to ensure that they are able to establish connection with consumer and able to effectively communicate about brand. Then there are marketing strategies aimed at product. another way through billboards which can have both visual as well as audio. etc) and sales/consumer promotion. distributors and these could be in form cash incentives etc. phone calls and mail. thereby creating focus on selective audience and reducing cost. The important part is measure. THE HINDU COLLEGE –MBA. Looking at above steps. there by creating a strong brand awareness and image. Other form of marketing communication are direct marketing which includes door to door.34 But what factors need to be considered in designing this marketing communication? The intended consumers should be able to get a chance to experience the communication. correct and convincing price structure.V. To design a complete marketing communication program. Consumer should not be left wandering about meaning. Advertisement is one the most common form of marketing communication. PRASAD . Leveraging Secondary Brand Association to Build Brand Equity There are various ways to create brand equity. effectiveness of communication that is whether there is change in direction for consumer as intended. marketing at point of purchase through cut outs and display. Here focus is on product and its attributes. thereby leveraging secondary brand association to create brand equity. then. Television is good medium to target large audience and greater geographical area. However this medium can be expensive and may not create a strong impact. radio. logo unique selling proposition etc. Brand elements offer many alternatives style. This will ensure in creating a strong consumer based brand equity. MACHILIPATNAM-V. Once consumer is all attention then communication should be properly designed to pass the message across. But what would be course of brand building for brand extension? Here brand has to draw some brand elements and brand knowledge from already developed brand. this can be done through television. Marketing communication is also strategic with respect to build brand equity with choice of medium (TV. Next communication needs to be catchy so consumer would stop and look through it. another way by providing coupons and various other schemes. and finally choice of product reaches consumer.
This could lead to dilution or recall value of brand.S. PRASAD . Event sponsorship is another way for brand association but again right choice of event is very essential to make the brand relevant among consumer. This concept is called co-branding. So choice of right character as shown by Sony is important. Benefit with this kind of association is that there definite decrease in cost of introducing of brand plus positioning becomes easier. companies lose charge or control to the overall brand development process as it is peg with other brands. For example. However. Another way of association is through usage of logos. Celebrity endorsement is another way of association. that distribution network will not relevant for low end brand. But here question is raised concerning brand positioning. However. Top class and renowned German engineering process gets linked to brand BMW or other car coming out of Germany. if retail network is catering to high end brand. Also if fortunes of celebrity goes turtle brand are also in for some pounding. Nokia. when it introduce mini laptop it was referred as Nokia 3G Booklet there are creating association. event sponsorship and other related activities. For example. countries and distribution channel. in that case. Another valuable association is through channel distribution. Above listed of association within current company’s infrastructure. Lost in the crowd is another problem leading from brand associations. Another form of endorsement is from third party for example dental association certifying toothpaste brand. brand has to undergo another round of association. as consumer are already aware Nokia mobile phones. franchise of other product category. Sony’s PSP coming out with console featuring characters from Star Wars. Along with company. if consumers do not have knowledge of associating company than there could be no knowledge transfer and cannot translate into benefit for the brand. If a company is to introduce a new brand the first step of association is with corporate brand if it exists.K. These options are association with companies. characters from brands. sometimes popularity character may last just for a movie or a season. for example branding of airlines referred to as Star Alliance consisting of 16 airlines. however association can also be developed with brand from different company. Tiger Woods endorsing product Gatorade. for example BMW and its association with Germany. MACHILIPATNAM-V. if company already has a strong retail level penetration then introduction of new brand will have its benefit. Next set of options relate to brand image and they are in form of brand ambassador. It has its challenges but overall success of secondary association in building strong brand equity cannot be ignored. However this also has challenges if that celebrity is involved endorsement many other brands. Marketers some come up with right mix of above strategies to convey right brand knowledge to consumers. country of origin can also be relevant source for brand association. THE HINDU COLLEGE –MBA. Secondary brand association has its importance when consumers are not aware of the new or upcoming brand.V. Even if the consumers have brand knowledge how much relevance it holds for the current brand also has to be ascertained. But strategy has a drawback.35 Marketers have various options available to them to facilitate leveraging process. This leads to indifferent approach from customer towards brand. for example.
There are two ways forward in designing measurement system.V. Another form of tracking is THE HINDU COLLEGE –MBA. Other system rather relies on direct measurement method where in consumer response towards brand in terms of sales etc are measured and analyzed. First value step is to set up marketing investment where the current brand equity is analyzed and program designed. Other part. But marketing programs and activities design to build as strong brand activity on a long term basis. not many of them are aware and among them very few actually know how to make full use of it. MACHILIPATNAM-V. brand measurement should be able to project future cash flow associated with brand which can lead overall value of the company.S. This tracking can be done with respect to product brand. If positive then it leads to definite creation of shareholder value in terms of improved profit and increase in stock price. But this does not mean there should not be short term analysis to confirm path towards long term goal. is that marketing programs are looking to change consumer action. It is always good to conduct an audit of whatever process developed to track efficiency and measure proper utilization of investor money. Another interesting point would be look at the competitors’ reaction and to understand how market has reacted to program. Through this tool. It is important for survival of brand to understand how effective these programs have been. This is tracking for brand awareness.K. Next it tracks overall feeling associated with brand purchase and specific attributes which has created an impression. A deliberate effort has to be carried out to measure success of marketing communication programs. where in emotional level changes in consumer are sorted and recorded. The immediate action would be seen in consumer behavior towards brand. If these programs have been able to induce a positive image and increased brand knowledge among consumer then. is called a brand equity measurement system. PRASAD . it can be concluded that strategy employed is successful. they have developed many strategically important marketing communication programs. consumer mind set in new environment is analyzed to see whether there has been any expected impact. Here particular attention is given to quality of program design by asking relevant questions. A system design to effectively measure source and outcome of branding strategies there by providing a set of information. brand image. positive if marketing program has hit the mark and vice-versa. In a normal course measurement is done by return on investment basis. which needs to be strongly put forward. which can be delivered to concern decision makers to act on. brand performance and brand appeal with respect to consumer. Although there is a broad consensus among marketers for need to measure brand equity. The whole process starting from finalizing of marketing program to end result in form of financial cash flow is evaluate through the brand value chain. After the execution of the program. usually in form of survey after any purchase. This ROI measure definitely considers a very short term measure of marketing programs and activities.36 Developing a Brand Equity Measurement and Management System Marketers have various tools at their disposal to build a strong consumer based brand equity. It basically sets out chart of build up to brand equity. One such measurement system relies on indirect method. Therefore. This deliberate effort should be in direction of effective and efficient measurement system and also ways to manage these systems.
what factors they consider. Another qualitative research technique looks to capture consumer behavior in understanding her purchase decision. they bought brand to get them social status. However. like what first comes to your mind when the brand name is mentioned. Marketers’. they are asked to express feeling with regards to particular feature of brand and overall experience in using a service. These tracking activities are likely to generate great amount of data which has to be converted into information for decision making process. Another projective technique tries to compare brands with characters or any unrelated object or a person and once done. Here question are asked. Furthermore. Marketers should be able to measure how much marketing programs have succeeded in changing customer buying habits. This information will lead to setting up of brand equity report and creating responsibility centers to oversee development of efficient marketing department. as questions are moving from general to very exact.V. to understand how the consumer came to purchase decision. thereby creating a perfect brand equity measurement and management system. Hypothetically. for example. A drawback using open ended information gathering process is that there could be instance where a consumer may not speak their mind and not disclose a true feeling associated with the purchase decision. If the company is global in nature then you want to track way the brand is performing as market could vary from infant stage to a mature market. One of the primary measurement system is capturing the response of customer in a basic questionnaire format. This sort of tracking tries to understand tracking in co-relation between individual brand and consumer perception of the company. Important points to be considered in deploying this free association technique is question design.S. which can convert emotional data into qualitative and quantitative data for analysis. profile brand association by asking open end questions. Another consequential point to remember here is related with coding of information. is there a particular time of the year do they make this purchase. A particular attention is required to design measurement system for source of brand equity. Measuring Sources of Brand Equity For any marketers. but they may want to portray as a casual purchase. THE HINDU COLLEGE –MBA. unfamiliarity with the person could as well prevent consumer from speaking her mind. where in. Here response from consumer can be a good indicator of individual emotional connection with the brand. it is of supreme importance to understand a consumer mind and also current level of brand knowledge among consumers because this understanding lays foundation for formulation of marketing communication strategies. The solution is to develop techniques. and they are required to fill in details as per their liking. but as this knowledge resides in consumer mind. PRASAD . MACHILIPATNAM-V.37 corporate brand tracking a sort of umbrella tracking where you track everyone in the family. this technique is also not foolproof. etc. marketers should be able to construct such mind print.K. that is they should start from overall brand image and then moving on to questions with precise reference. task become difficult. To counter this problem projective technique is employed where in a situation are shown to consumer. marketers would try and analyze the response.
Qualitative research methods are ideal for measuring brand association where in consumer perceptions towards brand are captured.V. strong standing in distribution channel and also support any form of brand extension. But brand equity is multi-dimensional and therefore it is important to measure each as it will help in taking tactical as well as strategically important decision. Comparative methods tend to analyze effects of consumer perception towards brand in respect to marketing programs. Qualitative techniques are used to research and analyze brand association consumer has towards the brand. it can bring out true feelings. Marketing based comparative method looks to measure consumer response for same brand under different marketing program.. These two methods are qualitative research methods and quantitative research methods. brand relationship with regards to customer loyalty and long term commitment. meaning consumer should be able to identify the brand under different circumstances. Both above mention methods are only able to capture and measure one dimension of brand equity at a time. Comparative methods and holistic methods are designed to directly analyze brand equity. Conjoint THE HINDU COLLEGE –MBA. for a given brand some part of packaging may be shown to consumer and task is to identify that brand and also provide their confidence rating in guess the brand. for example. Qualitative and quantitative research techniques are design to understand the source of brand equity from consumer’s perspective. Consumer bases brand equity will lead to loyal customer base. Quantitative techniques are used to check brand awareness part of brand knowledge and try to dig deep in understanding consumer perception of the brand. MACHILIPATNAM-V. which means to evoke thoughts of consumer under a possible clue like list brand for portable music players or been specific like what beer brand you would associate as a foreign brand. Holistic methods are designed to analyze the total effect of brand equity. Measuring Outcomes of Brand Equity There are two types of method employed to measure brand equity at source. more acceptances of marketing communication. In quantitative techniques consumer are usually given option to rank a direct question. story-telling. PRASAD . Comparative methods are research methods which measure brand equity associated with brand association and high level of brand awareness. Other quantitative techniques are developed to understand the brand image. etc. point of differentiation against competitors get better margins. On another hand quantitative research techniques are used to understand brand awareness in respect to recognition and recall and also through scaling precise measurement for source of brand equity is done. Recognition is essential part of brand awareness.S. Quantitative research methods are perfect to understand brand awareness within consumer. using techniques like free association. in terms of change in brand awareness.38 Quantitative techniques are much prevalent as a research alternative. brand response in terms of purchase decision. Comparative methods are again of different types depending on usage of marketing. Another part of brand awareness is brand recall.K. Brand based comparative methods looks to measure consumer response against same marketing program for different brands. These methods will provide necessary tools to measure outcome of brand equity.
S. any non-existing brand or preferred brand in that category. Holistic method is used to determine financial value or definite utility value of the brand. Valuation holistic approach looks to measure brand equity in financial term which is important during valuation of whole firm in activities of merger/acquisition. Marketing based method would also be effective in understanding consumer response to similar marketing program across various geographical locations. A classic example of such comparative method is experiment conducted by Larry Percy. Disadvantage of this method is that too much experimentation will may increase consumer expectation with respect to the brand. Here focus is to understand how much influence marketing program has on brand performance. These methods are relevant to calculate return of investment for marketing activities. Comparative method and Holistic method are employed to measure benefit of consumer based brand equity. Residual holistic approach measures brand equity after subtracting physical attributes of the brand. Designing of THE HINDU COLLEGE –MBA. Brand based method really isolated true value of brand name and this concept especially holds true when there is a change in marketing program from past efforts. meaning the price premium discovered may applicable to other brand in similar product category also. Each method has its application and drawbacks. fund raising etc. Designing and Implementing Branding Strategies Customer based brand equity is created when brand knowledge comprising of brand awareness and brand image are at highest level in customer mind. This could be competitor’s brand. The main advantage of marketing based method is that it can be applicable to any marketing program. Marketing based method tries to understand consumer response under different marketing promotions. as mentioned. Conjoint method allows simultaneously study of brand as well as marketing program. Brand awareness level is raised in customer by first understanding consumer taste. MACHILIPATNAM-V. Holistic method looks to measure consumer brand preference over consumer brand response. In one first instance brand name were disclosed whereas on second instance brand name was not disclosed.V. This analysis leads to designing of marketing programs and outcomes of those programs are also recorded. this will reveal level of tolerance before consumer switch to another brand. Comparative method measures consumer response where as holistic method measure consumer brand consumer preference. This method also employs statistical calculation making it possible to study many attributes or association at one time. Brand based comparative method. preference and present level of awareness.K. Consumer showed more loyalty when brand name was disclosed. in which consumer were ask to map beer taste and preference. tries to examine consumer’s response to identical marketing response to different brand in the same product category. One such experiment would be to understand consumer response at different price levels. However drawback of this method is that it is difficult to separate whether consumer preference is towards the brand or product category in general.39 comparative method looks to combine both brand based comparative method and marketing based comparative method. PRASAD .
regulatory) dynamics. Brand-product matrix looks to explain brand portfolio and brand extension strategies. Weakness. PRASAD . For example.S. current category structure and environmental( economic. Threat) analysis to fully understand market conditions. Third strategy looks at promoting only the product brand and there is no mention of corporate entity at all.American Express started RED campaign along with U2 singer Bono where in 1 percent of card charges were dedicated to fight AIDS in Africa.K. There is no fix way to go about formulating marketing strategy but generally it can fit into 3 categories.V. Brand product matrix helps in showcasing different brand in any given product category. political. First strategy gives more importance to corporate brand and less prominence to product brand.car maker General Motors. Another brand building strategy which has gain prominence in recent times is cause marketing or social responsibility marketing. Implication of branding strategies is that it creates brand awareness for consumer to ascertain point of difference and point of similarity with competitors. Opportunity. Active branding strategy with respect to product line involves creating multiple brands. In cause marketing company contributes some amount of revenue generate from product sales towards designated cause. Product line facilitates marketers to devise strategy with regards to future treatment for a given brand. Hierarchical structure starts with corporate brand and then showcases different product category and below brands. social. This strategy ensures no market in given industry remains un-tapped. In that respect Brand Hierarchy is graphical representation of company’s products and its brands. as to whether product line can be extended or new variants of existing product should be introduced. In the matrix all current existing brand are represented in form of column referred to as brand portfolio. This analysis will give companies product line and categories to follow active branding strategy. style etc. it created multiple brands to expand the product class category from SUV to sports car. Purpose of all marketing program is to maximize brand equity and also to capture or create long lasting impression in consumer mind. This strategy focuses on decision. this provides depth to the branding process. for it to be distinguished from competitors and also whether product brand should be separate from corporate brand or a separate brand away from other individual brands. The brand portfolio analysis is essential to design and develop new marketing strategies to target a given product category. This THE HINDU COLLEGE –MBA. By creating individual brands companies can create different marketing strategies. Branding strategies deal with creating brand names. Second implication is brand image for association of brand equity from brand to product. This sort of strategy is also used by consumer goods giant P & G and Unilever. When taking brand extension decision companies needs to carry SWOT (Strength. For example. logos. In the matrix all products offered under different brands are represented by a row. This helps marketers understand the current brand line and explore further opportunity in expanding the product line. This sort of presentation helps devise marketing strategy at many levels and forms.40 marketing programs is a complex process as it may have to encompass wide range of product and brands. Second strategy sees importance been given to two or more product brands and some highlighting to the corporate brand. MACHILIPATNAM-V.
entry barriers are high and market has growth potential. For example. T target audience is low budget travelers. Here companies can offer this by charging the customer. The third task is due diligence of the market for growth potential. Identifying Market Segments and Selecting Target Markets Market for product is big and diverse making it difficult for companies to be able to satisfy every customer. Now product offerings have under gone radical change thanks to advertising and communication reach. where in customer log on to the site and creates products from available options. lunch or beverages as part of travel. an airline is looking forward to providing no frills’ connectivity between metro cities on US east coast compare. local and individual level. customers are local neighborhood. A niche market is worth exploring where customers are willing to pay a premium for product. select one of the market segments and then focus in developing products and marketing program. The first task is to group customer according to product and service they want. But one things which comes out from exploring different strategies is that companies have to proactive in designing marketing campaign and react accordingly to challenges of dynamic environment. Companies further need to understand the intricacy of how this segment behaves and operates. The market segmentation task has to follow a scientific process. This process is not feasible for high technology products like automobiles. etc. PRASAD . In individual marketing. competition and other factors. Companies need to identify a certain set of customer within a market and work towards satisfying them. An approach known as target marketing is gaining prominence where companies identify the market segment on similar needs and wants. In local marketing. This segment is within airline industry but needs of customer is different. Earlier business operation was in the form of mass marketing. companies look forward to marketing at segment. lifestyle and usage pattern. For example. The second task is to analyze customer by summarizing demographic. In segment marketing companies identify consumer with similar needs and wants. THE HINDU COLLEGE –MBA. In mass marketing companies produce a product in large quantities and serve this product to as many consumers as possible. many banks prefer local marketing for better understanding of client and provide them right type of service. which helps in the definition of market segment. companies look forward to satisfying needs and wants of individual customer. This made sense as markets were developing and not much variety was on offering. maintained and enhanced.S.41 sort of marketing improves brand awareness as well as brand image and it can generate sense of pride not only for consumers but also for employees. This set of identification is market segment. In niche marketing. for example. However. Therefore. niches.V. companies target limited customer set. Internet is facilitating the process of individual marketing. customers within the segment look for different attributes. There are various ways through which a successful brand build strategy can be created. trading stores.K. MACHILIPATNAM-V.
V. There are various factors. size of company and geographical location of the company. The order Requirements lets segmentation be based on nature of requirement and size of order. PRASAD . household income. urban. where a country is segmented on basis region. Once segments are identified. it can be in form. Clearly companies have to tackle tactical and strategically brand extension and naming of new products almost at any stage of growth. Purchasing methodology includes segmentation based on purchase policy. Typically. Operational segmentation is on the technology class. religion. Brandproduct matrix is used to better understand current offering of the company. gender. product awareness and usage pattern. Introducing and Naming New Products and Brand Extension For a given company. which affect segmentation in the business market. race. Similarly. family size. occupation. After which segments have to be identified based of various factors as discussed. Demographic is one such factor. where companies decide to expand product category under current parent brand family. life stage. with current products and current market companies deal with market penetration strategy. But they are factors which affect brand extension and naming of product. The fifth task is to undertake positioning activity for pricing and marketing programs. belief and perception of products. which affect segmentation in a consumer market. customer consumption and customer requirements. This matrix helps companies understand product line (product category) and brand portfolio (brands for different products).K. and with new products and new market companies deal with diversification strategy. Geographic is one such factor. segmentation can be done on the basis of lifestyle and personality traits. education. city. purchase department structure. in-depth evaluation analysis has to be done come for a conclusion. On an individual level market can be segmented on the basis of attitude. Companies have to finalize target market in which it wants to operate. different THE HINDU COLLEGE –MBA. which consists of type of industry. whether to target one or several segments.S. Further. The sixth task is to explore different positioning and marketing strategies to explore the market to its full potential. relation with companies and market positioning of companies. MACHILIPATNAM-V. with current products and new market companies deal with market development strategy. There are various factors. Demographically market is segmented on the basis of age. rural and climate.42 The fourth task is to profitability of market segment. with new products and current market companies deal with product development strategies. generation and social class. Brand product matrix and brand hierarchy are essential tools for companies when they are looking for brand extension or launching new products. This sort of extension may be through adding new flavor. brand hierarchy concept helps companies understand association among offered brands. Personality trait segmentation looks at loyalty and risk profile. For a given brand extension. any given company would fall in any of the following four categories in terms future expansion strategies. there can be variety of product and services under different brands.
Second. if brand extension fails position of parent brand would also suffer in the market.43 size packing. if brand has strong consumer brand equity then new product would have high rate acceptance to further strengthen brand image. if brand extension is too much success then it may jump on current sales of parent brand. It helps rejuvenate the parent brand. From the above it is clear that brand extension have advantages as well as disadvantages. Cost associated with marketing communication and sales promotion for new product as brand extension is reduced as consumers are already aware of the parent brand. Success of this has many advantages for the company. It helps parent brand state its true positioning in the market. It enhances how consumer look at brand. Brand extensions also facilitates in different ways process of firming position of parent brand in mind of consumer. distribution channel maybe overwhelmed with product offering from different brands that they may not encourage introduction of another brand extension.S.K. Brand extension also has share of disadvantages. First with increase in available product it can create uncertainty in consumer mind as to which product is right for her. Although there is high rate of failure for introduction of new brands. Third. It helps cater to new customers there by creating exposure for parent brand in consumer mind. companies do try to expand product category or introduce new product category at some point. Managing Brands Over Time THE HINDU COLLEGE –MBA. known for quality and robustness introduces a new product then this product has more recognition in consumer as they are aware of credibility thereby reducing risk associated with new product. Brand extension again helps eliminating cost associated with research and development of altogether new product and packaging of the new product. then even distribution channel is more welcoming for the new product. Companies while introducing new brand has option either to create a new brand altogether or extend the current parent brand or combination of parent brand as well as new brand. But for any brand extension strategy to succeed companies need to comprehend current brand knowledge and also undertake market research to clearly understand consumer expectation before coming to brand extension decision. If a corporate brand or product brand.V. If brand extension is due to great demand for the brand among consumers. PRASAD . here companies introduce new product category this may or may not be under the parent brand. meaning it increases brand awareness and brand image and lead way to further brand extension programs. Another form of brand extension is category extension. MACHILIPATNAM-V.
normal course is to generate maximum price premium. MACHILIPATNAM-V. rather coming up innovative strategies to reinforce brand knowledge. For example. Every brand faces challenges as it moves in the product life cycle and at some point faces saturation.K. over the years their marketing campaign is focused on their highlighting their brand position as a drink for young generation. their programs are developed to reinforce their commitment to offer world class full entertainment and communication devices. PRASAD . There is constant evolution in products. if companies try to fiddle with these sources of brand equity consequences can be disastrous. This is more prevalent in food and beverages industry. For example. but that should not be at cost of brand equity. which express brand knowledge consistently as not to confuse the consumer. For example. Innovation is one of the keys in managing brand and ensuring that brand remains ahead of the competition curve. it is important to focus on expanding brand awareness that is looking for ways to generate more consumption by highlighting instance of consumption. For example. consumer promotion activity like providing 20% extra for the said product will not create the same response but may raise expectations of 20% during the normal purchase also. without its innovation in the form of ipod mp3 player. thereby damaging brand equity source of power and safety. THE HINDU COLLEGE –MBA. Another way to increase consumption is by highlighting diverse ways and occasion where brand can be consumed. For example. which look forward to maintaining consumer based brand equity. so introduction Iphone had ready acceptance from consumers. Apple. In early 90s Intel microprocessor had a technical flaw but the company was not swift enough to rectify the problem. At this point. Apple. introduction of new technology. apple would have found it difficult facing completion from Sony. Market leader like coca-cola has constantly run marketing program even after been market leaders. Brand knowledge comes from brand attributes and brand association. this does not imply that same campaign is running repeatedly. Pepsi. Between all these companies have to devise marketing communication and branding programs. One way of brand management over time is to strengthen brand equity by developing marketing programs. consumer taste and preference.V. Another dilemma for companies is of choosing the right way to use the developed brand equity. toothpaste revitalized consumption by highlighting advantages of twice daily usage. regulatory framework. However. Intel realized the importance source of brand equity and was quick in solving the problem by offering replacement. government rules. This calls for companies to be pro-active and thinking standing on their feet.S. it is operating in highly competitive carbonated drinks' category. Companies have to balance brand management that they are able to understand the future preference of consumer.44 The markets in which companies operate are highly dynamic in nature. If companies operating in entertainment category or matter of fact insurance do not innovate then value of their brand is lost as these categories are product driven. If the company’s category is not a product driven marketing campaigns associated with brand image play an important role in sustaining the brand.
it is important to understand regional market segments. whatever the case companies need to have marketing programs. thereby reducing cost of the marketing program. companies focus on geographic locations treating them as market segments. A typical large US city has Asian. Hispanic and African American population. The world is becoming flat just no in terms of communication power but also in terms of migration and movement of labor across the globe. Pepsi has created four regions within USA to focus on individual market segment and designing a marketing program. Only then it is possible have a successful brand Managing Brands over Geographic Boundaries and Market Segments In current times every company is wanting to be a global player. some companies this out of compulsion. In this regionalization. For example.S. Strategies have to be flexible as to maintain the pace with the dynamic environment. For example. logos.45 Along with brand awareness brand image also plays a pivotal role in revitalizing brand performance. which may have been lost in all other marketing campaigns. Another advantage is that with global presence and acceptance confidence with consumer reaches altogether a different level. Sony its marketing campaign has universal appeal thereby assigning equal cost to products and geographies. demographics. etc. There could many reasons for which companies may decide to be a global player. Globalization is here to stay and every company is in the fray to take advantage of this phenomenon. etc. are in the forefront.V. there are by creating a need for marketing programs.. It creates a sense of pride and ownership looking at the universal demand for the product. before studying the global view for marketing strategies. companies can reduce the risk as a result of diversification. for some its natural extension. As standardization increases in packaging. For companies to sustain a brand over long period of time. THE HINDU COLLEGE –MBA.K. but there are outright advantages also for global marketing programs. as diversity in form of culture. Effective brand management strategies constantly assess the consumer perceptions towards the brand and strive to attract her attention. An interesting phenomenon has raised its head in recent time where companies are focusing on regional markets in an effort to counter globalization. However. For example. which can make products and services reachable to this audience. MACHILIPATNAM-V. it is absolute essential that marketing program look at strategies around effective brand management. by catering to different markets. Another way to enhance the brand image is by adopting new brand elements like brand symbol. PRASAD . profile. Federal Express modify to FedEx as a move generating more interest in face of competition from UPS. With the uniform marketing program across geographical boundaries. as production increases per unit cost of the product will decrease. This can be done by highlighting pointing of difference. The reason why companies are employing a regional approach is that mass markets have to cease to exist. Furthermore. Looking at the production side. It is clear there are many reasons for becoming global player. which can create and sustain brand equity across geographical boundaries and market segments. Bigger markets like China and India provide unending opportunities not only as a market but also as production hubs there by reducing overall cost for to be global players. etc. distribution and other marketing activities cost associated with them would decrease.
companies should understand brand building is tedious and time consuming. PRASAD . logos. consumption of carbonated drinks and beer is much more in USA. With standardization companies are unable to satisfy needs of consumer. Other challenge companies face is that of environmental like social. Brand name. And at the same time construct and execute a global brand equity measurement system so that focus always remains of develop a strong consumer based brand equity. For example.K. thereby gaining a complete first mover advantage. so every geographical location may be having different product life cycle stage. MACHILIPATNAM-V. As perception and needs vary from culture to culture. etc. so marketing programs also accordingly have to vary. And for that marketing programs have to highlight point of differences and point of similarities across boundaries. another advantage for companies is the ability to sell a good product universally at one go. political and regulatory.V. But with advantages in operating on a global there are also challenges and disadvantages. which can create global consumer based brand equity. Furthermore. Every product undergoes a life cycle which begins from the day it is launch in the market. this is especially important for mobile consumers. a brand to succeed across geographical boundaries companies need to device marketing programs. THE HINDU COLLEGE –MBA. consumer response to a standard marketing program may not equally have felt as per company acceptation.S. which comes with different culture.46 companies can have consistent brand knowledge. demographics. Furthermore. symbol has to be designed in a way that it properly communicates brand knowledge and not creates confusion in consumer’s mind.. Australia in comparison to that of India and China. Therefore.
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