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Strategic Brand Management

Chapter 1
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What is a Brand?
Old Norse word brandr to burn.

AMA Name, term, sign, symbol, or design, or a combination of them, intended to
identify the goods and services of one seller or group of sellers and to differentiate
them from those of the competition.

Branding basis people, place, animal or bird, scientific term, and things or objects.

Branding contain inherent product meaning, and attributes or benefits.

Branding could be done for product (physical good, retail store, person, organization,
place, or an idea.

Brand = product + other differentiating dimensions (physiological and
psychological)
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Product Levels?
Core benefits fundamental need or want.

Generic product basic offering.

Expected product normal expectation from a product in the market.

Augmented product differentiating and distinguishing attributes, benefits, or
related service.

Potential product ideal and in future.
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Branding - benefits?
Consumers Manufacturers
Identification of source Means of identification for handling or
tracing
Assignment of responsibility Legal protection
Risk reducer functional,
physical, financial, social,
psychological, and time
Signal of quality to consumers
Search cost reducer Endowing product with unique association
Promise, bond, or pact Competitive advantage
Symbolic, cultural Source of financial return
Signal of quality
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Branding is Universal (anything can be branded)
Commodity Chicken, Coffee, salt, fruits, vegetables, water, etc.
Physical good - Consumer products; Business to Business; High-tech products.
Services KPMG, Citi, Airlines, Energy firms, etc.
Retailers and distributors Sears, Wal-Mart, private or store brands.
On-line product and services google, e-bay, etc.
People and Organizations Paul Newman.
Sports, Arts, and Entertainment Cowboys?
Geographic Locations Australia, Alaska.
Ideas and Causes Red Cross, NRA.
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Determinants of Brand Longevity
Vision of the mass market?
Managerial persistence?
Financial commitment?
Relentless Innovation?
Asset leveraging.
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Some Challenges
Savvy consumers, maturing market, decreasing brand loyalty.
Brand proliferation, complex brand families, .
Media fragmentation, eroding traditional media, new options,
changes in advertising and promotional expenditures.
Increased competition, difficulty differentiating, private
labels.
Increased cost, increasing trade power.
Increased accountability, job turn-over.
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Next?
Brand Equity financial value, intangible value, loyalty,
consumer perception, consistent behavior???

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Why Brand Equity?
Positive brand equity leads to:
Loyalty
Larger Margins
Greater Trade Support
More Efficient Communications / Marketing
Resiliency to Crises
Licensing Opportunities
Brand Extension Opportunities
Reduced Vulnerability to Competition
Greater financial returns
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The Value of Brand Equity
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Brand Equity
Sources of Brand Knowledge
Associative node model of memory
Brand awareness
Brand image
Strength of brand associations
Favorability of brand associations
Uniqueness of brand associations
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Corporate Awareness
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Brand Associations
Stolichnaya
Experienced
Self-assured
Successful
Male
Lexus
Not-trendy
Absolut
Young
Contemporary
Flashy
Male
Bars
Advertising or arts
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Evolution of Brand Elements,
GE
1876-1960s electronics
1900 trademarks logo
1900 slogan Better Living Electronically
1960s General Electric -> GE
1970s slogan Progress for People
1979 slogan We Bring Good Things to Life
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Brand Equity
But how does one develop brand equity?
The goal of this course is to learn how to manage
brands (via marketing programs) in order to create
brand equity - that is, create an enduring
advantage for your brands.
Strategic Brand Management Process:
1. Identifying and Establishing brand position and values.
2. Planning and Implementing brand marketing programs.
3. Measuring and interpreting brand performance.
4. Growing and sustaining brand equity.

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Greater loyalty

Less vulnerability to competitive
marketing actions and crises

Larger margins

More elastic response to price
increases

More inelastic response to
price increases

Increased marketing communica-
tion efficiency and effectiveness

Possible licensing opportunities

More favorable brand extension
evaluations
Building Customer-Based Brand Equity
TOOLS AND OBJECTIVES KNOWLEDGE EFFECTS BENEFITS
Choosing Brand Elements (4)
Brand name
Logo Memorability
Symbol Meaningfulness
Character Transferability
Packaging Adaptability
Slogan Protectability
Brand Awareness (2)
Possible Outcome
Brand Associations (2&3)
Developing Marketing Programs (5 & 6)
Leverage of Secondary Associations (7)

Depth Recall
Recognition

Breadth Purchase
Consumption
Strong Relevance
Consistency

Favorable Desirable
Deliverable

Unique Point of parity
Point of difference
Product Functional & symbolic benefits
Price Value perceptions
Distribution channels Integrate Push & Pull
Communications Mix and match options
Company
Country of origin
Channel of distribution Awareness
Other brands Meaningfulness
Endorsor Transferability
Event
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Building Equity
1. Determine brand knowledge structures
a. Breadth of awareness (brand salience)
b. Positioning (points of parity/difference)
c. Image (strong & favorable brand associations)
2. Develop marketing programs
3. Integrate across product lines and geographies
4. Measure and control
a. Feelings/judgments/loyalty
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Brand Value:
Brand Hierarchy Pyramid
Beliefs &
Core
Values
Benefits
Features &
Attributes
The emotional beliefs and
values that consumers feel
are being addressed by our
brand (CENTRAL)
The functional and emotional
benefits that our
product/services provides to
the consumer
(EXPRESSIVE)
Product/Service features
and/or attributes that must be
addressed (FUNCTIONAL)

Very meaningful in
differentiating our Brand but
very difficult to deliver
consistently to our
consumers
Easy to deliver and explain
to consumers but also easy to
imitate
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Brand Management
Brand management is the act of
designing and implementing
marketing programs to build and
maintain brand equity.
Product
Price
Distribution
Communications
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The Role of a Brand or
Product Manager
Prepare Marketing Plan
Develop Copy, Programs, and Campaigns
Stimulate Sales and Distribution
Market Intelligence
Product Improvements
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Pluses
- Cost effective mix, quick market reaction,
attention for small brands, good training for
executives
Minuses
- Conflict and frustration (responsibility and no
authority), administrative work with executive
expectations, learns products not functions,
short horizon, costs of associates and assistants

The Role of a Brand or
Product Manager
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A Product Manager -
Computer Software Firm
Typical day
Meetings - new product line, marketing mix,
marketing staff, organizational design and
integration
E-mail/Phone - 3rd party developers, sales
force, product support
Marketing planning - drafting the marketing
plan
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A Product Manager
Computer Software Firm
Marketing mix - recommends price to
corporate committee, manages advertising,
conducts focus groups for product positioning
and development, decides on channels
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A Product Manager -
Consumer Packaged Goods Firm
Typical day
75% fighting fires, 25% planning
Marketing planning - key is volume forecasting
since unsold inventory is perishable
Mix - 1/3 on pricing issues (list & trade), 20%
on consumer promotions, president handles
ads, 15% on distribution, little on sales and
service
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A Product Manager
Packaged Goods Firm
Marketing mix - recommends price to
corporate committee, manages advertising,
conducts focus groups for product positioning
and development, decides on channels.
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Brand Management Issues
Product
Manager
Manufacturing
R&D
Legal
Fiscal
Market
Research
Salesforce
Publicity
Purchasing
Packaging
Promotion
Services
Media
Advertising
Agency
Distribution
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The Nature of the Job
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Project
Staring Point:
Brand perception about:
Brand features and attributes - awareness?
Brand benefits needs & expectations?
Brand values - associations?
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PRODUCT LEVEL
LEVEL ???
BRAND
Name/Positioning
Potential Product
Augmented Product
Expected Product
Generic Product
Core Benefit