Brand Management

What is a Product?
• Kotler’s Potential Product
Five
levels to Augmented Product
a
product: Expected Product

Generic Product

CORE BENEFIT
 What is a Product?
• Kotler’s Potential Product
Five
levels to Augmented Product
a
product: Expected Product
The
Fundamental
Need or
Generic Product Want that
consumers
satisfy by
CORE BENEFIT consuming
the product
or service
 What is a Product?
• Kotler’s Potential Product
Five
levels to Augmented Product
Basic Version
a of the product
containing only
product: Expected Product those elements
absolutely
necessary to
Generic Product function. No
distinguishing
features.
CORE BENEFIT
 What is a Product?
• Kotler’s Potential Product Attributes and
Five Characteristics
that buyers
levels to Augmented Product normally
a expect and
agree to when
product: Expected Product they purchase a
product

Generic Product

CORE BENEFIT
 What is a Product?
• Kotler’s Potential Product Additional
Five product
attributes,
levels to Augmented Product benefits, or
related services
a that distinguish
product: Expected Product
the product
from
competitors

Generic Product

CORE BENEFIT
 What is a Product?
• Kotler’s Potential Product All the
Five augmentations
and
levels to Augmented Product transformations
that a product
a might
product: Expected Product
ultimately
undergo in the
future

Generic Product

CORE BENEFIT
 What is a Product?
All the augmentations and
• Kotler’s Potential Product
transformations that a product
might ultimately undergo in the

Five future

Additional product attributes,

levels to Augmented Product benefits, or related services that
distinguish the product from

a competitors

product: Expected Product

Attributes and Characteristics that
buyers normally expect and agree
to when they purchase a product

Basic Version of the product

containing only those elements
Generic Product absolutely necessary to function.
No distinguishing features.

The Fundamental Need or Want

CORE BENEFIT that consumers satisfy by
consuming the product or service
 What is a Brand?
• Not simply a product -- anything offered to a
market for attention, acquisition, use, or
consumption that might satisfy a need or
want.
• A product can be:
– Physical good
– Service
– Retail Store
– Person
– Organization
– Place
– Idea
 What is a Brand?
Product = Commodity
A product is a produced item always
possessing these characteristics:
• Tangibility
•Attributes and Features

Brand = “Mind Set”

The sum of all communications and experiences received
by the consumer and customer resulting in a distinctive
image in their “mind set” based on perceived emotional
and functional benefits.
 What is a Brand?
• Keller’s Definition:
– A product, but one that adds other dimensions that
differentiate it in some way from other products
designed to satisfy the same need.
• Rational and tangible
• Symbolic, emotional and intangible

• The psychological response to a brand can

be as important as the physiological
response.
Brand
 Brands

Brand (Our working definition):

A brand is a product that provides
functional benefits plus added values
that some consumer value enough to
buy”
 Why Does A Brand Matter?
MANUFACTURERS
• ID to simplify handling
or tracing
• Legal protection of
unique features
• Signal of quality level to
satisfied customers
• Means of endowing
products w/unique
associations
• Competitive Advantage
• Financial Returns
CONSUMERS
• ID Product Source
• Assignment of
responsibility to maker
• Risk reducer
• Search cost reducer
• Promise, bond, or pact
w/make of product
• Symbolic Device
• Signal of Quality
 What is a Brand?
• Products don’t exist in a void…
• They are bought because consumers
have found something they relate to in
them, something which they value
• Brand = Credible Guarantee
 What is a Brand?
• Relative Brand Distinction
– The more distinctive or different a brand is
in the consumers “mind set”, the stronger
brand preference becomes. This is critical
to keeping competition from the
consumer’s consideration.
Products Brand Strong Brand
(Commodities) Name Brand
Perceived by the
No Difference Well Known Distinctive Consumer as
Except Price But Similar Unique
 What is a Brand?
• Relative Brand Distinction
– A brand’s preference is primarily built
through differentiation and relevance
– Insulate product from competition
– OWN Something
Products Brand Strong Brand
(Commodities) Name Brand
Perceived by the
No Difference Well Known Distinctive Consumer as
Except Price But Similar Unique
 What is a Brand?
Kotler’s Five Levels
Potential Product
of A Product

Augmented Product
BRAND DISTINCTION

Products Brand Strong Brand

(Commodities) Name Brand
Expected Product No Difference Well Known Distinctive
Perceived by the
Consumer as
Except Price But Similar Unique

Generic Product

CORE BENEFIT
 What is a Brand?
Kotler’s Five Levels
Potential Product
of A Product

Augmented Product
BRAND DISTINCTION

Products Brand Strong Brand

(Commodities) Name Brand
Expected Product No Difference Well Known Distinctive
Perceived by the
Consumer as
Except Price But Similar Unique

Generic Product

CORE BENEFIT
The World's 10 Most Valuable Brands - 2006

Interbrand’s Assessment
is of Brand Power – the
fullest possible view of
each brand’s strengths
and potential as a
marketing and financial
asset.
 What is a Strong Brand

• Brand assets
• Brand Strength
 Brand Assets Brand Strength
Brand Awareness Market Share
Brand Reputation Market Leadership
Brand Values Market Penetration Brand Value
Brand Loyalty Share of
Brand preference Requirements
Cash accruing
User Imagery Growth Rate
from the Brand
Loyalty Rate
Price premium
 POWER BRANDS
• The Successful Brands
– Don’t JUST sell products
– Communicate Clear Values
– Stretch Across a Number of Products
– Attached to Consumers/ NOT Products
– Individualized Relationships
 POWER BRANDS
• Allow Consumers to clearly identify and
specify products which genuinely offer
added value.
• Deep respect for the way products fit
into consumer’s lives = “core” of
success
• Consumer Relationship = Loyalty
• Social Changes in their favor
 POWER BRANDS
• Assessing BRAND POWER

BRAND DEPTH

BRAND LENGTH POWER BRAND BREADTH

BRAND WEIGHT

Interbrand
 POWER BRANDS
• Assessing BRAND POWER

The influence or dominance

that a brand has over its
category or market (more than
just market share)

BRAND WEIGHT

Interbrand
 POWER BRANDS
• Assessing BRAND POWER

The stretch or extension that

the brand has achieved in the
past or is likely to achieve in
BRAND LENGTH the future (especially outside
its original category)

Interbrand
 POWER BRANDS
• Assessing BRAND POWER

The breadth of franchise that

the brand has achieved both in
terms of age spread, consumer
types and international appeal BRAND BREADTH

Interbrand
 POWER BRANDS
• Assessing BRAND POWER

BRAND DEPTH

The degree of commitment that

the brand has achieved among its
customer base and beyond. The
proximity, the intimacy and the
loyalty felt for the brand.

Interbrand
 POWER BRANDS
• Assessing BRAND POWER

BRAND DEPTH

BRAND LENGTH POWER BRAND BREADTH

BRAND WEIGHT

Interbrand