Brand Management BasicsBrand + As per American Marketing Associate (AMA), a brand is a “name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller, or group of sellers and to differentiate them from those of competition.” (p. 2) * Viewpoints: + Purely technical + Practice: Awareness, Reputation, Prominence * What constitutes a brand? + Difference between - a commodity and distinctive offering + Components that help identity and differentiate the brand - Brand Elements Source: Kells, Swaminathan, Parameswaran, & Jacob (2020)Different Strategies * General Electric and Samsung * Procter & Gamble (P&G) + Brand Name Forms: + People’s Names * Places + Birds/Animals/Fruits * Others + Brands versus Products Source: Kelley Swaminathan, ParamesnEvolution of Branding + Ancient times: + Pottery, clay lamp, and stonemason’s marks * 1266 - English law for bakers + Europeans migrating to North America + By early 1800s: Branding early starters in US - medicines * 1898 - Uneeda biscuits branding * 1915 - Well established brands in US Source: Kelley Swaminathan, Parameswaran, & Jacob (2020)Evolution of Branding * 1929 - Great Depression + Price sensitive consumers + The role of retailers + P&G: First brand management system * Brand managers for each brand * Owners of the respective brand * 1940 to 1980 - Economic growth, Demand for Brands grew * Mid 1980s - Mergers and acquisitions Source: Kelley Swaminathan, Parameswaran, & Jacob (2020)Product A physical good: cereal, tennis racquet, or automobile +A service: an airline, bank, or insurance company «A retail outlet: department store, specialty store, or super market +A person: political figure, professional entertainer, or athlete +A place: city or country + An idea or a social cause *Competition is not between factory output but what factories add to their output - Ted Levitt «“Products are made in the factory, but brands are created in the mind” - Walter Landor Source: Kells, Swaminathan, Parameswaran, & Jacob (2020)Five levels of meaning for a product -Core benefit level: “Fundamental need or want that consumers satisfy by consuming the product or service” (p.3). + AC - Cooling and Comfort +Generic product level: “Basic version of the product containing only those attributes or characteristics absolutely necessary for its functioning but with no distinguishing features” (p.3). * Sufficient cooling capacity +Expected product level: “Set of attributes or characteristics that buyers normally expect and agree to when they purchase a product” (p.3). + Cooling speed, Warranty Source: Kells, Swaminathan, Parameswaran, & Jacob (2020)Five levels of meaning for a product *Augmented product level: “Additional product attributes, benefits, or related services that distinguish the product from competitors” (p.3). « Automatic Temperature Adjuster, Smart ACs with Wi-Fi access *Potential product level: “All the augmentations and transformations that a product might ultimately undergo in the future” (p.3). + Cooling completely balanced throughout the room, Completely silent AC Source: Kelley Swaminathan, Parames 2, & Jacob (2020)Brand Is more than a product ¢Can have dimensions that differentiate it in some way from other products designed to satisfy the same need *Differences may be rational and tangible—related to product performance of the brand *Differences may be more symbolic, emotional, and intangible—related to what the brand represents Source: Kells, Swaminathan, Parameswaran, & Jacob (2020)Products oA physical good: cereal, tennis racquet, or automobile + A service: an airline, bank, or insurance company + Aretail outlet: department store, specialty store, or super market * A person: political figure, professional entertainer, or athlete + Aplace: city or country + An idea or a social cause Brands * A physical good: Kelloge’s Corn Flakes... + Aservice: Indigo... * Aretail outlet: Big Bazaar... * A person: Sachin Tendulkar... + Aplace: London... * An idea ora social cause: Sustainability. Source: Keller, Swaminathan, Parameswaran, & Jacob (2020)Competitive Advantage for Some Brands *Steady investments in R&D ¢Continual innovation ¢Non product-related means + Understand consumer motivation, desires, and what do consumers value? + Intangible image associations + Brands will carry and consumers will associated with *Strong brands must account for all such associations while making marketing decisions. + Coca-Cola's failure (1985) Source: Kells, Swaminathan, Parameswaran, & Jacob (2020)Roles that Brands Play (Consumer perspective) + Identify the source or maker of the product * Product responsibility assigned to product maker * Simplify product decisions + Risk reduction + Functional, physical, financial, social, psychological, and time * Lower the search costs * Maker’s promise * Signal of quality * Symbolic devise Source: Kells, Swaminathan, Parameswaran, & Jacob (2020)Roles that Brands Play (Manufacturer perspective) * Simplify product handling and tracing ¢ Help organizing inventory and accounting records + Legal protection + Provide predictability and security of demand for the firm ¢ Entry barrier for competitors * Means to secure competitive advantage * Source of financial gains Source: Kelley Swaminathan, ParanProduct classification based on associated attributes or benefits * Search goods: * Evaluated on the basis of attributes such as “sturdiness, size, color, style, design, weight, and ingredient composition by visual inspection” (p.7). + Example - Grocery + Experience goods: + Evaluation on the basis of “durability, service quality, safety, and ease of handling” can’t be easily done by inspection + Actual product trial and experience required * Example - Automobile tires * Credence goods: + “Consumers may rarely learn attributes” + Example - Insurance Source: Kells, Swaminathan, Parameswaran, & Jacob (2020)How do you “brand” a product? * Teach consumers: « “Who” the product is - + Label for the product + “What” the product does - + Here’s what product can do for consumers? « “Why” should consumer care? - * Because it is different / special Source: Kells, Swaminathan, Parameswaran, & Jacob (2020)What can be branded? * Physical Goods - B2C and B2B Products, Services; Commodities; High-Tech products * B2B Branding: * Understanding and support of entire organization required + Adopt corporate branding strategy « Frame value perceptions « Link relevant non-product related brand associations + Link relevant emotional associations * Careful customer segmentation * Use of digital technologies Source: Keller Swaminathan, Parameswaran, & Jacob (2020)What can be branded? * Services * Retailers, Distributors * People and Organizations * Sports, Arts, Entertainment * Geographic Locations * Ideas and Causes Source: Kelley Swaminathan, ParanBranding Challenges and Opportunities * Unparalleled access to information and new technologies * Many alternative sources of information + Pricing issues, Lower costs of information search * Universal connectivity and the consumer backlash « Apple mobile - Do Not Disturb while Driving + Ad blocking services - AdGuard, AdBlock Sharing information on social media, Scrutiny of social media * Sharing economy + Zoomcar - Self drive car rental Source: Kelle, Swaminathan, Parameswaran, & Jacob (2020)Branding Challenges and Opportunities + Unexpected sources of competition + Netflix and Amazon Movies + Disintermediation (reduction or elimination of intermediaries) + Travel agents * Reintermediation (introduction of new intermediaries that perform some of the same functions or have additional roles in the channel of distribution) « Influencers + Alternative source of information + Winner-takes-all markets * Media transformation * The importance of customer-centricity, Negative news spreads easily Source: Kells, Swaminathan, Parameswaran, & Jacob (2020)Customer-Based Brand Equity and Brand PositioningBrand Equity “Brand equity is a measure of brand’s value to the firm” (Keinan & Avery, 2022, p.5).. “Brand equity is commonly identified as the value added to a brand due to its name” (Higgins, 2011, p.1). “Brand equity explains why different outcomes result from marketing of a branded product or service than if it were not branded” (Keller et al., p.30). Examples: J.K. Rowling's Chair - $3,94,000 Justine Timberlake's unfinished French toast from breakfast - $1,025 Wizard of Oz (lion costume) - $3 million Source: Higgins (2011) Source: Keinan & Avery (202) ‘Source: Kelles Swaminathan, Parameswaran, & Jacob (2020)