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Brand: derived from the old Norse word “brandr” which means “to burn.”
Vocalized part of the brand... Tide, Avon, Chevrolet, Disneyland, AMEX
Symbol, design, color, letters Pillsbury doughboy, MGM Lion, K on Kodak box
Part of the brand given legal protection to brand name or brand mark
Legal right to reproduce, publish and sell the matter and form of a literary musical or artistic work
The process of branding encompasses all elements of the brand...
Brand Introductions and Growth The level of marketing effort supporting brand introduction depends on ...
Product quality Growth rate of the market Firm familiarity with the market
Size of the market
Low market concentration
Findings on Brand introductions
Managers should expect better results in terms of market share in markets where a limited number of brands hold a large share which renders such market more attractive to new brands A new brand should be supported with a larger effort when introduce into a fast growing market than when the market is mature The amount of communication effort used to introduce a brand depends on only one manufacturer characteristic--the availability of resources
Why does branding become critical ?
Involvement in purchase
Consumer sees differences in brands
Complex buying behaviour
Variety seeking buying behaviour
Consumer does not see differences in brands
Dissonance reducing buying behaviour
Habitual buying behaviour
In which of these quadrants is branding most critical? And why?
Branding and its economic sense
‘‘brands are created because buyers crave information. They see a huge range of products that look the same and seem to perform similar . . . . . . brands offer a route through the confusion.’’ Economist,1994
Branding is manufacturer “signaling” which can create a “separating” equilibrium
Making marketing sense out of branding Help Process / Retrieve Information Summarize a set of facts/specifications that are difficult for the customer to process/access. Reason to buy increases credibility & confidence Basis for brand extensions Generates more opportunities in other product categories through brand extensions . and expensive to communicate Differentiate Image differentiation Generates confidence in the product attributes. customer benefits.
What does the consumer see as the significance of brand? Who should brand and own the brand? Salience / strengths of the brand The reputation of the firm & Buyer image What risks does the consumer see? What information does the consumer needs? The risk could be high price .. product failure. Reputation . lack of after sales etc..Strategic question in branding. past sales. comparative brand price and service etc .
allowing us to predict that: (1) consumers will not detect a change in the weight of the larger 50-ounce economy bottle of the soap unless at least 5 ounces are added to or removed from it or (2) consumers will be able to detect a 3-pound addition to a 20-pound portable television . This would yield a constant of proportionality of Awareness level Sub-optimal stimulus generation K = 1/10 = 0.1.5 ounce 1 ounce Stimulus weight Stimulus gets noticed beyond 10% weight of starting value .Weber’s law effect on brand awareness and effect of sound brands JND for brand launch and building consumer acceptance Weber's Law states that the stimulus change needed to reach the differential threshold (produce a “just noticeable difference”) is a constant proportion of the starting stimulus value for any brand to “get noticed” Assume that through testing we found that. 1 ounce (ABSOLUTE STIMULUS = 1) had to be added to a 10-ounce container of liquid soap (STARTING value ~ 10) before consumers detected a change in its weight.
however.How does the mechanics of branding work? A typical communication build up High Action Involvement in the decision Desire Interest Awareness Low Awareness is an Advertising based activity ... branding focuses on building Interest and Desire to try the product Low Transactional completeness High .
Strong brands v/s Weak brands The level of memory recall Memory Top of the mind Unaided recall for the brand Aided recall for the brand Memory of the brand drives purchase .
How culture values influence purchase decisions Product class choice criteria (critical product attributes) Beliefs and attitudes about product class Product class selection Brand class selection Brand choice criteria (critical brand attributes) Beliefs and attitudes about brand class Terminal values Instrumental values .
Levels of brand exposure – Brand power Power Brands Power Brands – – Brands Brands Names Names Local / Regional National Global Market presence Sustained effort will create not just names . . . but brands .
. .Identity is on the sender’s side.Image is on the receiver’s side.The image refers to the manner in which the public decodes all the signals emitted by the brand through its products.It is a reception concept.In brand management terms identity precedes image. .Identity and Image Identity Image . .Branding concepts . . intention and vocation of the brand. services and communication program .The sender’s duty is to specify the meaning.
BRANDS .Identity and Image Sending Media Receiving Brand Identity Signals Transmitted Brand Image Competition and Noise .
Kissan Anapurna atta . Dove soap from HLL Individual brand . Coca Cola Private brand brand name placed on products marketed by wholesalers & retailers e.. biscuits etc.g.g. Xerox.g. with no clear differentiation e.Brand Types Generic product item characterized by plain label. jams .g.g. Stop garments from Shoppers Stop Family brand brand name that identifies several related products e. Bisleri Manufacturers’ brand brand name owned by a manufacturer or other producer e. (Food category) unique brand name that identifies a specific offering within a firm’s product line and that is not grouped under a family brand e.
Brand power in degree Brand insistence stage of brand where the customer refuses to accept any other brand except the preferred brand Brand preference stage of brand acceptance at which the consumer selects one brand over competing offerings based on previous experiences with that brand Market universe (All potential buyers of the product Target buyers (Buyers who (Buyers who start preferring start preferring a brand) a brand) Brand recognition Brand champions Brand recognition stage of brand acceptance at which the consumer knows of a brand but does not prefer it to competing brands Brand preference Brand insistence Decreasing size of the market .
Committed Customer Club. Database marketing etc .Creating Loyalty for the brand Varying degrees of brand loyalty Non-consumers Price switchers Fence sitters/ neutrals Passively loyal Enhancing Loyalty Frequent-Buyer Programs.
The Hierarchy of effects model of advertising Brand loyalty Belief reinforcement Attitude reinforcement Beliefs Trials Attitudes Expectations Awareness Unawareness .
Branding realities on loyalty Managerial Implications Journal of Marketing. Winter 1985 A Brand seeking to improve market position needs to rely heavily on customer retention efforts while increasing share of users. Volume 49. If only a smaller fraction of customers attracted are retained as loyal customers. allocation efforts are likely to be more even between attraction and retention efforts .
Branding realities Managerial Implications Journal of Marketing. Volume 49. which necessitates more marketing effort in retention Research show that large market share business have lower advertising to sales ratio. loyalty levels decline sharply at first and then begin to level off . It also implies that as number of brands increases. Winter 1985 For Brands with smaller user shares the retained fraction of new customers has to be higher.
Brand equity affects buyer behavior Recommends the brand to other buyers No Yes Buys the brand Brand deserter Brand champion Target buyer Does not buy the brand Non Trier Brand apostle Strongest branding effects are seen in the “brand apostle” stage .
Brand Equity is a set of assets.Brand Equity Brand Equity is a set of assets (& liabilities) linked to the brand name & symbol that adds to Brand Equity is a set of assets (& liabilities) linked to the brand name & symbol that adds to (or subtracts from) the value provided by a product (or subtracts from) the value provided by a product Brand Equity is a set of assets. thus management of thus management of brand equity involves investment brand equity involves investment to create and enlarge these assets to create and enlarge these assets Brand Equity adds value to the Brand Equity adds value to the consumer and the firm consumer and the firm .
Consumer-Based Brand Equity Pyramid Consumer Acceptance Cycle ConsumerBrand Resonance 4 Intense. Active Loyalty Consumer Judgement Consumer Feelings 3 Positive Accessible Reactions Brand Performance Brand Imagery 2 Points of Difference Brand Salience 1 Deep Broad Brand Awareness .
Self-Respect 4 Brand Relationships (WHAT About You AND ME?) Judgement Quality Credibility Consideration Superiority Feelings 3 Brand Response (WHAT About You?) Performance Brand Characteristics & Secondary Features Product Reliability. Security. & Experiences Imagery 2 Brand Meaning (WHAT Are You?) Category Identification Needs Satisfied 1 Brand Identity (WHO Are You?) Salience . Fun Excitement.Consumer-Based Brand Equity Pyramid Resonance Loyalty Attachment Community Engagement Warmth. Social Approval. Efficiency & Empathy Style and Design. Durability & Serviceability Service Effectiveness. Heritage. Price User Profiles Purchase and Usage Situations Personality & Values History.
How does the brand relate to the customer? Differentiation Relevance Esteem Knowledge How distinctive is the brand is in the market place? Is it meaningful to him or her ? Is it personally appropriate ? Is the brand held in high regard and considered the best in its class? Does the customer understand as to what a brand stands for? Brand Power = Differentiation x Relevance X Esteem X Knowledge .
g. but worth it” B A o ss ot io at ci Em ns io What the brand offers Functional “easy in driving” Brand benefits R io at l na n be Brand identity nc e Who the brand is Activities “Sponsors premier racing events” “Dealer network that knows my profile wherever I go”(Toyota) Pr es e Process Relationship “Has related affinity programs I like” (Mercedes Clubs) it s ef Presentation “has distinct logo incorporated into select design elements (e.McKinsey & Co. Internal “makes me feel pampered” Origin “European / Japanese” External en ef “tells others that I am successful” Reputation “Design and performance” In ib ng ta its Evolution “Will become the leader in highperformance machines”” le na l Perceived value ”very expensive.Wheels of the car) .Brand Equity elements : Luxury car .
This means relatively few people understand what the brand stands for. >> Relevance comes next. Esteem X Knowledge = Brand Stature. . it will not attract a large customer base. but relatively few hold it in high regard. Comparing Esteem & Knowledge: >> Some brands rank higher in esteem than in knowledge. >> Esteem combines perceived quality with perceptions of a growth or decline in popularity. >> Conversely a brand may have high knowledge but low esteem. a brand’s value will be low. >> If there is no point of difference. >> Knowledge indicates that the customer not only is aware of the brand but also understands what the brand stands for. but those who do hold it in high regard.This means that more people know what the brand stands for. Unless a brand is relevant to a significant segment.The three variables in the brand anatomy (Young and Rubicam model) Differentiation X Relevance = Brand Strength.
The Y&R grid Brand Stature (Knowledge and Esteem) Low High High Brand Differentiation and relevance Low Swatch watches Disney Sony Starbucks coffee Bayer Oldsmobile .
.Inter brand (UK) valuation of brands 500 brands were evaluated under these criteria and rated for maximum value under these criteria . & the fourth place brands Stability: Long lived brands with identities that have become part of fabric of the market and even the culture are particularly powerful and valuable Market : Brands are more valuable when they are in markets with growing or stable sales levels and a price structure in which successful firms can be profitable International : Brands that are international are more valuable than national or regional brands. third. . Leadership: A brand that leads its market sector is more stable and powerful than the second. in part because of economies of scale .
Inter brand (UK) valuation of brands Trend : The overall long-term trend of the brand in terms of sales can be expected to reflect future prospects Support : Brands that have received consistent investment and focused support are regarded as stronger than those who have not Protection : The strength and breadth of a brands legal trademark protection is critical to the brand’s strength. .
. ROI and Stock Return. Price Premium The amount a customer will pay for the brand in comparison with another brand offering similar or fewer benefits. b ) Best in category v/s Worst in category. >> Perceived Quality can be measured with scales such as following. >> The price premium can be determined by simply asking customers how much more they would be willing to pay for the brand (This is called Dollar Metric) Customer Satisfaction / Loyalty Perceived Quality Perceived Quality directly affects both Satisfaction (or liking) is a direct measure of how willing customers are to stick to a brand. a ) High quality v/s Shoddy quality. c ) Consistent quality v/s Inconsistent Quality ..Aaker’s Brand equity is based on understanding of the following critical areas .
... People want to be apart of the bandwagon and are uneasy against the flow A brand can move head technologically LG leader in Plasma TV It reflects in part the “number one syndrome”.Aaker’s Brand equity is based on understanding of the following critical areas .. Leadership / Popularity Brand Leadership has three key dimensions . .
Aaker’s Brand equity is based on understanding of the following critical areas ... Perceived value Perceived value is mentioned along the following dimensions ... Whether the brand proves good value for the money No Yes Yes Whether there is a reason to buy this brand over others No Comparatively superior brands Winner brands Loser brands Non differentiated brands .
Aaker’s Brand equity is based on understanding of the following critical areas .. Brand Personality Organizational Associations This brand is made by an organization I would trust Brand Personality provides links to the brand’s emotional and self expressive benefits as well as a basis for brand-customer relationship and differentiation I admire the brand “X” organization I would be proud (or pleased) to do business with the brand TATA’s as an organization ..
Aaker’s Brand equity is based on understanding of the following critical areas . • Brand knowledge or salience: “ you have an opinion about the brand ”. • Recall: “ What brands of car can you recall ? ” • Graveyard statistics: “recall level of those who recognize the brand”... • Top-of-Mind : “the first named brand in a recall task”. Brand Awareness Awareness reflects the presence of the brand in the mind of Customers • Recognition: “Have you heard of the Buick Roadmaster”. • Brand dominance : “ the only brand recalled ”. “How much do you recall?” Fully or Partially. • Brand Familiarity : “ the brand is familiar ”. .
.. .Aaker’s Brand equity is based on understanding of the following critical areas . Market Share Market share Market share = ƒ (Brand equity) Major brands in the category who have large equities usually tend to have large market shares Brand Equity Market Price And Distribution Coverage: • Market share can be a particularly deceptive brand equity measure when it increases as a result of reduced prices or price promotions. • Thus it is important to measure the relative market price at which the brand is being sold.
Brand Extensions and growth of the portfolio .
Brand Extensions Products Existing New Existing Product Line extensions Brand Extensions Brands New Multi brands Single brands The portfolio can leverage itself if it can extend the brand to other categories .
. Cars etc. Brand extensions represent an opportunity for firms to use the equity built up in the names of existing brands in order to enhance marketing productivity . Brand Extensions Pure Brand Extensions Tata’s leveraging their corporate brand equity in Chemicals. Salt.. Soup etc..Brand extensions are in the following categories.. Related category (Brand line extensions) Knorr is staple product from HLL It is a mother brand in the category that covers Atta.
• Certain extensions have a neutral effect. . The product sells thanks to the brand’s contribution.Impact of extensions on equity? Brand extensions can affect the brand and its equity in one of the three different ways: • Certain brands exploit the brand capital. • Certain extensions destroy the brand’s equity. This is the case when the concerned product scarcely differs from existing market competition. If the new product introduced under an existing brand has no relationship with the core values of parent brand then the brand equity can get eroded. Here the brand simply falls in line with what is expected of the brand.
• Transfer Complementary products. • Fit serves as a signal or cue that the consumers use to make inferences about a new product. . • Attitude (Consumer opinion)towards the extension was higher when there was a fit between the • Attitude (Consumer opinion)towards the extension was higher when there was a fit between the extension and the parent product classes along one of the dimensions extension and the parent product classes along one of the dimensions • Transfer // Complementary products. there is a fit between the parent and the extension categories. • Fit serves as a signal or cue that the consumers use to make inferences about a new product.How does the brand extension logic work ? Category Based Affect Transfer Category Based Affect Transfer • The affect associated with the parent brand is transferred to the brand extension only when • The affect associated with the parent brand is transferred to the brand extension only when there is a fit between the parent and the extension categories.
How does the brand extension logic work . product category. Brand has a positive impact on the success of an extension if the extension is in a similar Brand has a positive impact on the success of an extension if the extension is in a similar product category. when it offered extensions consistent with its brand concept. Effective brand extensions The prestige brand concept also seemed to have greater extendibility to dissimilar product classes than functional brand concepts. . . . Extension evaluation was enhanced only when there was brand concept consistency and product feature similarity between extension and parent categories.
Two reasons for brand extensions to enter late are 4the high-product failure rates in young markets will subject an extension’s parent brand to risk.Good to be early or better to be late ? There are several factors that can affect the brand extension’s timing of entry decision. Two reasons for brand extensions to extend early are 4the possibility of gaining early mover advantages. . and 4the extension’s known brand name may reduce the new product’s chance of failing. and 4extensions may have positioning difficulties in young markets. The results indicate that early-entering brand extensions do not perform as well on average as either early-entering new-name products or late-entering brand extensions.
. 3) the brand extensions earned higher market shares on average than the new-name products. 2) the early brand extensions had a lower probability of surviving than either the early-entering new-name products or late-entering brand extensions. 1) the brand extensions were introduced later on average than the new-name products.Good to be early or better to be late ? This conclusion is based on four findings. 4) the extensions obtained smaller market share from entering early than did new-name products.
The extensions of brands Market based possibilities Extensions are successful and unsuccessful in all categories Related (High Fit) Upward extension Esteem brand Downward extension Brand extensions Average brand Upward extension Downward extension Esteem brand Unrelated (Low Fit) Average brand Upward extension Downward extension Upward extension Downward extension .
and any previous extensions and the perceptions about the fit between those products and the proposed extensions affect the evaluation of the extensions Findings: Findings: •• High quality brands stretch farther than average quality brands. Dr Aaker & Dr.The Effects of Sequential Introduction of Brand Extensions The use of established brand names to enter new product categories or classes can substantially reduce introductory marketing expenses and enhance the prospects of success by helping gain retailer and customer acceptance. but an unsuccessful intervening extension did not affect evaluation of the core brand. but an A successful intervening extension increased evaluations of an average quality core brand. •• Successful intervening extensions improved evaluations of a proposed extension for an average quality Successful intervening extensions improved evaluations of a proposed extension for an average quality core brand: core brand: •• Unsuccessful intervening extensions decreased evaluations of a proposed extension for a high quality Unsuccessful intervening extensions decreased evaluations of a proposed extension for a high quality core brand. High quality brands stretch farther than average quality brands. . unsuccessful intervening extension did not affect evaluation of the core brand. core brand. Keller on sequential entry Study aimed at finding out : how is the knowledge about the core brand. •• A successful intervening extension increased evaluations of an average quality core brand.
. •• Multiple intervening extensions can have different effects than a single intervening extension. An unsuccessful extension does not prevent the firm from backtracking. •• The relative similarity of intervening extensions had little differential impact on evaluations of a The relative similarity of intervening extensions had little differential impact on evaluations of a proposed extension.The Effects of Sequential Introduction of Brand Extensions Dr Aaker & Dr. extension than those of a single successful intervening extension. Multiple intervening extensions can have different effects than a single intervening extension. evaluations of a proposed extension. proposed extension. •• An unsuccessful extension does not prevent the firm from backtracking. Findings Findings •• Perceived company credibility and fit appear to mediate the effects of intervening extensions on Perceived company credibility and fit appear to mediate the effects of intervening extensions on evaluations of a proposed extension. •• Intervening extensions of mixed success have effects more like those of a single failed intervening Intervening extensions of mixed success have effects more like those of a single failed intervening extension than those of a single successful intervening extension. .. Keller on sequential entry .
Brand positioning and advertising thrust for share maintenance .
It refers to what product segment does the brand belong and what is its specific difference.Brand Positioning Brand Positioning applies to a process of emphasizing the brands distinctive and motivating attributes in the light of competition. It is based on an analysis of response to the following 4 questions Why? For Whom? When? Against Whom? .BRANDS .
.g.Brand Positioning 1) Why or for what? What is the specific consumer benefit or exclusive motivating attribute justifying the brand. e.g. those brands from one whom the one aspires to capture the clientele.g..7 Up. Sony . e.Teenagers. 4) Opposed to Whom? Points to the main competition.g. gift.Innovation 2) For Whom? This indicates a target. Titan as . Canada DryAdults 3)When? Indicates the occasion on which to use the product.7Up e. e.BRANDS .Pepsi Challenge and the Uncola campaign.
SOV / SOM effect on branding strategy High Find a defensible niche and decrease advertising for the brand Increase advertising and defend position for brand Competitors share of Voice Attack with large SOV premium to generate brand effects Maintain modest advertising premium to maintain brand salience Low Low Your share of market High .
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