CHAPTER 1

BRAND MANAGEMENT

A SOURCE OF VALUE FOR CUSTOMER

Is it always so? What if you are buying pen,

pencil, bread, socks, photocopy paper.? Brands exist because of Perceived risk Perceived risk greater for
Higher priced g&s
Critical g&s like medicines & hospitals

Perceived risk evolves overtime depending upon

Consumers level of involvement

Credence qualities

Functions of the brand

Function IDENTIFICATION Consumer benefit To be clearly seen, to make sense of offer, identify sought after products

PRACTICALITY GUARANTEE
OPTIMISATION CHARACTERISATION CONTINUITY HEDONISTIC ETHICAL

To allow savings of time & energy thru identical repurchasing & loyalty To be sure of finding the same quality no matter where or when you buy the product or service
To be sure of buying the best product in its category, the best performer for a particular purpose To have confirmation of your self image or the image that you present to others Satisfaction brought about thru familiarity & intimacy with the brand that you have been consuming for years Satisfaction linked to the attractiveness of the brand, to its logo, to its communication Satisfaction linked to responsible behaviour of brand in relationship to society

From Brand Assets to Financial Value

Brand awareness + Image+

Perceived quality +
Evocations + Familiarity, Liking

Brand Added value, perceived by consumers

Costs of branding Cost of invested capital =

Brand financial Value (Brand Equity)

Principal generators of Brand profitability

Price differential allowed as compared to a

non-branded product Differential of attraction & loyalty Differential margin coming from economies of scale & also a consequence of being market leader

Thumb rules
Brand is not just a name on a product Its a constant investment in
know-how Remaining reference of quality Implying promise of tangible & intangible benefits

Brand is therefore a prerogative of companies

which can invest in

R&D Productivity Total quality control Visibility & proximity in distributors shelves Market research Communication