BRAND MANAGEMENT PART 1
Word BRAND is derived from old word BRANDR means TO BURN specially for the livestock. According to AMA Brand means, “It is a name, sign, term, symbol or design or a combination of them, intended to identify the goods, and services of one seller or group and to differentiate them from those of the competition.” • BRAND vs PRODUCT
Product is any thing that can be offered to a market fir attention, acquisition, use or consumption. Five (5) levels of products are: 1. Core benefit level: it is a fundamental need or want that consumers satisfy by consuming the product or service. For example, hotel guest is buying rest and sleep. 2. Generic product level: when different versions are available and having the same attributes, customers have the choice. For example, beds, towels, closet etc. 3. Expected product level: the attributes that buyers normally expect and agree to when they purchase a product. For example, clean bed, fresh towel, working lamps, calmness, etc. 4. Augmented product level: includes additional product attributes, benefits, or related services. For example, TV, fresh flowers, fine dining etc. 5. Potential product level: augmentation and transformation that a product might ultimately undergo in the future; e.g. hotel suites etc. BRAND is therefore a product, but one that adds other dimensions that differentiate it in some way from other products designed to satisfy the same need. A successful brand must have: CHARACTERISTICS a. high quality b. appropriate to customer need c. brand name must be appealing d. packaging e. promotion etc. WHY ARE BRANDS IMPORTANT? • Consumers point of view: o Identification of the source of product o Assignment of responsibility to the product maker o Risk reducer Types of Risks 1) Functional Risk, 2) Physical Risk, 3) Financial Risk, 4) Social Risk, 5) Psychological Risk, 6) Time Risk
Brand is something that resides in the minds of the customers. To brand a product it is necessary to teach the customers. bond. or pact with maker of product. urbanization
. o Signal of quality • Manufacturers’ point of view: o Means of identification to simplify handling or tracing o Means of legally protecting unique features o Signal of quality level to satisfied customers o Means of endowing products with unique associations o Source of competitive advantage o Source of financial returns
BRANDS FOR FIRMS: • Brands help in firms’ identification • Operationally brands help to organize inventory and accounting • Legal protection • Ensures that the firm can safely invest in the brand Brand can signal a certain level of quality to satisfy the customers and choose the product easily. Brand can be seen as a powerful means to secure a competitive advantage. FACTORS THAT DETERMINE THE BRAND LEADERS: • • • • • Vision of the market Managerial persistence Financial commitment Relentless innovation Asset leverage
FORCES THAT MADE PRODUCTS A PROFITABLE VENTURE: • • • • • • • Improvement in transportation. This provides meaning for the brand. This creates brand loyalty and also creates barriers for the competition. communication Improvement in production process Improvement in packaging Advertising Retail institutions Immigration Increased industrialization.o Search cost reducer o Promise. Marketers provide label for the product identification.
A brand can change peoples’ opinions—and the prices they are willing to pay for products. E.
. It provides focus for managerial interest and research activity. Support for interpreting marketing strategies and assessing the value of the brand. Branding is all about creating differences in: 1. Outcome 2.
“The positive differential effect that knowing the brand name has on
customer response to the product or service. Brand Equity consists of marketing effects uniquely attributable to a brand.•
QUALITIES/ FACTORS FOR STRONG BRAND MANAGERS: • • • • • • • Dedication to the brand Ability to assess a situation and see alternative solutions Talent for generating creative ideas and a willingness to be open to others’ ideas Ability to make decisions in highly ambiguous environment Good communication skills High energy level Capacity for handling many tasks simultaneously
MARKETING ADVANTAGES OF STRONG BRANDS: • • • • • • • • • • Improved perception of product performance Greater loyalty Less vulnerability to competitive marketing actions Less vulnerability to marketing crises Large margins More inelastic consumer response to price increase More elastic consumer response to price decrease Greater trade cooperation and support Increased marketing communication effectiveness Additional brand extension opportunities
BRAND EQUITY CONCEPT
This concept emerged in 1980’s. Brand equity has elevated the importance of the brand in marketing strategy.
bat of Imran khan. Javed Miandad. belongings of celebrities are sold in auction