Topic

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Connecting with customers:
Brand management
(Lambin 2012: Chapter 14 & Kotler 2019: Chapter 12)

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 BRAND MANAGEMENT
Strategic brand management:
• Brand positioning (identity and meaning)
• Brand vision that offers a clear and consistent message
about the value of the brand (value proposition)
• Long-term effort to create loyal customers

Brand management implementation:

• Creating and managing brand identities (names, logos,
slogans and images)
• Managing individual or house brands
• Managing grand extensions
• Brand reinforcing and revitalizations
• Growing and sustaining Brand equity 3
 What Is a Brand?

A brand is a name, term, sign, symbol or design or a

combination of them, intended to identify the product or
services and to differentiate them from those of
competitors.

(Definition of AMA – American Marketing Association)

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 What Is a Brand?
• Set of strong rational and emotional associations.

• Asset that can provide strong competitive advantage (source of

increased profit performance linked to customer loyalty)

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 What is Brand Equity

Brand equity is the value added to the functional

product or service by associating it with the brand name

(Aaker 1991)

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A brand has value on its own...
 Brand Elements
• Brand name: part of the brand that can be pronounced

• Brand logo: part of the brand that can be recognized but

that can’t be pronounced. It can be a symbol, a design or a
combination of distinctive letters and colors.

• Trade Mark: brand or part of the brand that has legal

protection

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 Brand Knowledge

Understanding consumers brand

knowledge – all the different things
that become linked to the brand in
the minds of consumers – is of
paramount importance because it is
the foundation of brand equity.

The power of a brand resides in the consumers minds, what they have
learned, felt, saw and heard. It is the result of experiences over time
and how they feel about the brand
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 Difference between
Brand Identity and Brand Image

Brand identity is the way a company aims to identify or

position itself or its product or service in the mind of the
consumer.

Brand image is the way the consumer actually perceives

the visual and verbal expressions of a brand, which leads
to the psychological or emotional associations that the
brand aspires to maintain in the mind of the consumer.

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 Brand Identity (Kapferer)

Brand identity consist of 6 elements:

• Physique - Brand’s tangible attributes

• Relationship - Style of relationship with consumers
• Reflection - Way consumers using brand are ideally seen
(brand perspective)

• Personality - Described in human personality traits

• Culture - Values that brand is built on
• Self-image - Image consumers have of themselves when
using the brand (consumer perspective)
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Example: Brand Identity Prism of Lacoste

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Brand Personality (Aaker)

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What personality do you associate with the
following brands?

Apple
BMW
The Economist
Mercedes
Google

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 Emotional Branding

Emotional branding is engaging the consumer on the

level of senses and emotions; forging a deep, lasting,
intimate emotional connection to the brand that
transcends material satisfaction.

Coca-Cola: http://www.youtube.com/watch?v=ogetBqMgau0

Cartier: http://www.youtube.com/watch?v=kVXm9JOl1XA

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 17
http://www.youtube.com/watch?v=3jFVDGNmo9Y
 Brand Slogans (taglines)
Help to further distinguish from competitors and establish associations

General Electric
“Imagination at work”

Rolex
“The Crown of
Achievement”
-

“A crown for every

achievement”

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 Brand mantras
Articulation of the heart and soul of the brand
internal focus: useful to guide employees

Nike
“authentic athletic performance”

Disney
“Fun, Family and entertainment”
-

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Brand associations

Key
benefits

Personality

Projective factors

Emotional benefits

Functional benefits

Descriptive attributes 20
Brand associations

Key
benefits

Personality

Projective factors

Emotional benefits

Functional benefits

Descriptive attributes 21
 Descriptive
attributes:
innovative
product and
design

Functional:
High-tech
Personality: Superiority, in all sports shoes
Herotic that enhance
Succesful
fields performance
and offer
comfort
NIKE
Improving people's
lives through physical
activity.

Projective: Emotional:
sports ideals joy of
and high excellence,
performance feeling healthy
athletes and active.
 5 Functions of Brands for Consumers
1. Landmarking
Well promoted brands are easier to identify

2. Decision simplification
Easy to remember brand characteristics, thus facilitating the buying
decisions.

3. Quality guarantee
The brand protects consumers by delivering consistent quality

4. Pleasure-giving function
Brands satisfy certain needs that can’t be satisfied by generic product.

5. Personalization 23
Way to express own values and personality
 6 Functions of Brands for Companies
1. Positioning tool
A brand helps to differentiate the products by claiming distinctive characteristics.
2. Communication
Direct communication with consumers.
3. Protection
Property rights protect brand against imitations/counterfeit products
4. Capitalization
Benefits of past investments into brand image and reputation. A Strong brand is
relatively stable and valuable asset.
5. Loyalty
A brand creates relationship with consumers, promotes repeated purchasing and
loyal consumers
6. Entry barrier
By creating strong brand awareness and strong image 24
 Brand religion model
Involvement

Quantitative value
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 Positioning
Product characteristics

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 Positioning
Benefits or solutions

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Positioning
Usage

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Positioning
Type of users

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 Positioning
Relationship with other brands

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 Positioning
Dissociation with the product category

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 Positioning
With a negative tone

The taste that you hate, two times a day

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 Brand Name Styles
• An acronym (SEAT: sociedad española de automóviles de turismo,
NYLON: New-York-London)
• A word that suggest a product advantage (Whole Foods, Whirlpool,
Prudential, Panrico).
• Alliterations and rhyme: fun to say and they are sticky (LuluLemon,
TED Talks, Range Rover)
• A person’s name (founder, famous individual, mythological,
historical): Ford, Hewlett-Packard, Citröen, Iberia…
• A common word, not connected with the product (Malibu,
Kingfisher, North Pole…)
• Names derived from company name:
Philishave (from Philips). Nescafé, Nesquik, Nestea (from Nestlé)
• A number: 7Up, Chanel nº 5
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 Brand Name
Important criteria when naming a brand:

1. Imply something on the associated benefits.

2. Suggest product qualities
3. Easy to pronounce, recognize and remember (URL,
websites, jingles, etc.)
4. Unique and distinctive
5. Should not mean anything negative in other languages
or countries.

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 Brand elements choice criteria

• Memorable (easy to recall and recognize)

• Meaningful (credible and suggestive)

• Likeable (appealing: visually, verbally, etc)

• Transferable (applicable to new products)

• Adaptable (and updatable)

• Protectable

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 Brand Architecture
Branded House Strategy
Single brand (Adidas, Siemens, Nivea, Sony)

Advantages: - Brand prestige translated to every products.

- Economies of scale in communication.
- Corporative image creation.

Disadvantages: - New products that fail can adversely

impact the brand image.
- No different identities for different markets.

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 Brand Architecture
House of Brands Strategy
Multiple brand (P&G: Ariel, Dash, Panten, Vidal Sasson)

Advantages: - Uses segmentation (market share)

- More space in the distributors’ shelves
- More possibilities of promotions
- Non-loyal consumers attraction
- Failure does not affect other brands

Disadvantages: - Higher costs (management, promotion,

distribution)
- Weaker corporative image

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 Brand Architecture
Endorsed Brands Strategy

• Strong endorsements – Independent brands endorsed by corporate

brand or name (Sony PlayStation; Kit-Kat Nestle)

• Linked name – Common name origin (Nesttea, Nescafe, Nesquick)

• Token endorsement – Logo or other sign of mother-brand (Nestle

“seal of guarantee” on Maggi packages: "All Maggi products benefit from
Nestlé's experience in producing quality foods all over the world“)

• Shadow endorsement – No visible, but known connection (Lexus

from Toyota)
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 Brand Extension
• Brand Extension – using established
brand name to enter another segment of
the same market.
Example:
Apple watch is a brand extension of Iphone,
moving the brand closer to wearable
technology and watch market.

• Brand Stretching – using established

brand name to enter completely different
and unrelated category:
Example:
Adidas
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 Co-Branding
Co-branding, also called dual branding or brand bundling,
refers to the combination of two or more brands to launch a
new product or promotion.

Result is: a single product or service is associated with more

than one brand

LU & Côte d'Or

Philips & Douwe Egberts Gillette & Duracell
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 Advantages and Risks of Co-Branding

• Advantages:

• Access to customers of other brand

• Access to knowledge of other party

• Development costs can be shared

• Potential risks:

• Brands should be equally strong

• Difficult to determine which benefits should be shared

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 Brand reinforcement and revitalizations
(managing value so that it does not depreciate)

Reinforcement
Reinforcing brand equity through actions that consistently convey
the meaning of the brand to customer (core benefits and satisfied
needs). Why the brand is superior and unique.
Nivea: mild, gentle and caring.

Revitalization
Due to changes in preferences, emergence of new competitors or
technologies, new developments
• Lost sources of brand equity are recaptured
• New sources of brand equity are identified or established

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Growing, sustaining and managing brand equity
• Different methods to understand and measures it:
• Brand audit
• Brand tracking (included online sentiment tracking and analysis)
• Brand resonance model (Keller):

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 Trends in brand management

1. The packaging reinforces the brand

2. Product labels add value to the brand

3. Branded content

4. Personalization

5. Place marketing

6. Personal branding

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1. Packaging Reinforces Brand
 2. Product Labels Add Value

Informative
Descriptive

Origin
Sustainable labels
 3. Branded Content

A strategy in which the brand is just another part of the experience. It

seeks to entertain or educate the consumer and not to sell him a
product.

• Focused on the values of the brand, not on its products or its

services

• Seeks to generate conversation

• Uses storytelling. Focus on more abstract values and the brand

story.
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4. Personalization
5. Place Marketing
6. Personal branding

It is a concept of personal development

that consists of considering oneself as a
brand that, like commercial brands, must
be elaborated, transmitted and protected,
with the aim of differentiating oneself and
achieving greater success in social and
professional relationships.

CV!

Developing a personal brand consists of

identifying and communicating the
characteristics that make us stand out, be
relevant, different and visible in a
homogeneous, competitive and changing
environment.
 Marketing management

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