STRATEGIC BRAND MANAGEMENT

BUILDING, MEASURING, AND MANAGING BRAND EQUITY Chapter 1 Brands & Brand Management

Product VS Brand
A product is anything that can be offered to the market for attention , acquisition, use, or consumption that might satisfy a need or want. Thus, a product can be a physical good, service, organization, person, place, experience, event, property or ideas. A brand is a product but adds other dimensions that differentiate it in some way from other products designed to satisfy the same need. A brand is therefore more than a product.

Five Levels of Meaning for a Product

1.

The core benefit level is the fundamental need or want that consumers satisfy by consuming the product or service.

2. The generic product level is a basic version of the product containing only those attributes or characteristics absolutely necessary for its functioning but with no distinguishing features. This is basically a stripped-down, no-frills version of the product that adequately performs the product function. 3. The expected product level is a set of attributes or characteristics that buyers normally expect and agree to when they purchase a product. 4. The augmented product level includes additional product attributes, benefits, or related services that distinguish the product from competitors. 5. The potential product level includes all the augmentations and transformations that a product might ultimately undergo in the future.
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What is a Brand?

A brand is a name, term, sign, symbol, or design which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. (For the American
Marketing Association-AMA)

The legal term for brand is trademark. A brand may identify one item, a family of items, or all items of that seller. If used for the firm as a whole, the preferred term is trade name."

What is a Brand?

A trademark may be designated by the following symbols: (for an unregistered trade mark, that is, a mark used to promote or brand goods) (for an unregistered service mark, that is, a mark used to promote or brand services) (for a registered trademark)

Examples of brands of computer products

Brand Management

Brand management is the application of marketing techniques to a specific product, product line, or brand.
The discipline of brand management was started at Procter & Gamble as a result of a famous memo by Neil H. McElroy.
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Brand Elements

A variety of brand elements can be chosen that inherently enhance brand awareness or facilitate the formation of strong, favorable, and unique brand associations:

Brand Name:

Company, Individual, Peoples, Birds or Animal & etc.

Logo: A logo is a graphic mark or

emblem commonly used by commercial enterprises, organizations and even individuals to aid and promote instant public recognition.
LOGO OF Red Cross

Brand Elements

Symbol: A symbol is something which represents

an idea, a physical entity or a process but is distinct from it.

Character
Disney Nike Symbol

Packaging:

Packaging is the science, art, and technology of enclosing or protecting products for distribution, storage, sale, and use.

Slogan:

A slogan is a memorable motto or phrase used in a political, commercial, religious and other context as a repetitive expression of an idea or purpose. (Basundhara Group-For the people, for the Country)
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Why do brand matter? Importance of Brands To consumers

Identification of sources of product Assignment of responsibility to product maker. Risk reducer Search cost reducer Symbolic device Signal of quality Promise or bond with product or maker

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Product Classification and their associated benefits

Search Goods: Consumers can evaluate product attributes or benefits like size, color, style, design, weight and ingredient composition by visual inspection. (Ex: Grocery items ) Experience Goods: It cannot be assessed so easily by inspection, and actual product trial and experience is necessary to judge durability, service quality, safety, and ease of handling or use. (Ex: Automobile Tire) Credence Goods: Consumer may rarely learn product attributes. (Ex: Insurance Coverage, Medical Surgery)
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Reducing the Risks in Product Decisions

Consumers may perceive many different types of risks in buying and consuming a product:
Functional Risk The product does not perform up to expectations. Physical Risk The product poses a threat to the physical wellbeing or health of the user or others.

Financial Risk The product is not worth the price paid.

Social Risk The product results in embarrassment from others. Psychological Risk The product affects the mental well-being of the user. Time Risk The failure of the product results in an opportunity cost of finding another satisfactory product.

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Why do brand matter? Importance of Brands To Manufacturer

Means of identification to simplifying handling and tracing. Means of legally protecting unique feature. Signal of quality Means of endowing products with unique associations. Sources of competitive advantage Sources of financial returns.

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Can anything be branded?

Ultimately a brand is something that resides in the minds of consumers. The key to branding is that consumers perceive differences among brands in a product category. Commodity is a product so basic that it cannot be physically differentiated in the minds of consumers. Even commodities can be branded:

Coffee (Maxwell House), bath soap (Ivory), flour (Gold Medal), beer (Budweiser), salt (Morton), oatmeal (Quaker), pickles (Vlasic), bananas (Chiquita), chickens (Perdue), pineapples (Dole), and even water (Perrier)

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Can anything be branded?

Physical goods (Coca-Cola, Nescafe, Sony) Services (American Express, British Airways, Hotel Radisson) Retailers (Wal-mart, Agora, PQS) On-line product or Services (Google) People (Madona, Farzana Shakil) Organization (National Geographic) Sports, Arts, Entertainment (Man U, Star Wars, Basundhara Cineplex) Geographic location (City of Las Vegas, Coxs Bazar, ) Ideas (AIDS Ribbons)
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Source of Brands Strength

The real causes of enduring market leadership are

vision and will.

Enduring market leaders have a revolutionary and inspiring vision of the mass market, and They exhibit an indomitable will to realize that vision. They persist under adversity, innovate relentlessly, Commit financial resources, and leverage assets to realize their vision.
Source: Gerald J. Tellis and Peter N. Golder, First to Market, First to Fail? Real Causes of Enduring Market Leadership, MIT Sloan Management Review, 1 January 1996

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What are the strongest brands?

Top Ten Global Brands
Brand
Coca-Cola Microsoft IBM GE Intel Nokia Toyota Disney McDonalds Mercedes-Benz

2006 ($Billion)
67.00 56.93 56.20 48.91 32.32 30.13 27.94 27.85 27.50 21.80

2005 ($ Billion)
67.53 59.94 53.38 47.00 35.59 26.45 24.84 26.44 26.01 20.00

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What are the strongest brands?

Its easy to identify a number of other brands with amazing staying power that have been market leaders in their categories for decades. Similarly, many brands that were number one in the United Kingdom in 1933 also remain strong today. (Keloggs Corn Flakes, Cadbury Chocolates, Gillette Razors, Brooke Bond Tea, Colgate Toothpaste) At the same time, just as many brands have lost their market leadership. (Winston Cigarette) Besides, Levi-Strauss, General Motors, Xerox have run into difficulties and seen their market preeminence challenged or ever lost. Failure Factors that beyond the control of the firm such as Technological advances or shifting consumer preferences. The bottom line is that any brandno matter how strong at one point in timeis vulnerable, and susceptible to poor brand management.
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Branding Challenges & Opportunities

Savvy consumers. Brand Proliferation Media Fragmentation Increased competition Increased costs of introducing new product or supporting existing product. Greater accountability
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Branding Challenges & Opportunities

Savvy consumers:
More Experienced with marketing More knowledgeable More Demanding

Rise in product line Brand Extension

Brand Proliferation:

Cost Clutter Fragmentation Technology

Media Fragmentation:

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Branding Challenges & Opportunities

Increased competition:
Globalization Low-priced Competitors Brand Extensions Deregulation

Increased costs of introducing new product or supporting existing product:

Advertising costs increased due to increase in competition Development and Marketing cost

Greater accountability:

Short term profit targets because of financial pressures and senior management imperatives

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Strategic Brand Management Process

It involves the design and implementation of marketing programs and activities to build, measure, and manage brand equity.
The Strategic Brand Management Process is defined as involving four main steps:

1. Identifying brand vision, core brand values and brand positioning. 2. Planning and implementing brand marketing programs 3. Measuring brand performance 4. Growing and sustaining brand equity
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Strategic Brand Management

Brand Vision Brand Values & Brand Positioning Brand Marketing objectives Brand Marketing strategies

Brand Marketing Programs Implementing brand marketing program

Measuring brand performance

Growing and sustaining brand equity

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Strategic Brand Management Process

STEPS KEY CONCEPTS
Mental maps Competitive frame of reference (Ch# 3) Points-of-parity and points-of-difference (Ch# 3) Core brand values Brand mantra Mixing and matching of brand elements (Ch# 4) Integrating brand marketing activities (Ch# 5, 6) Leveraging of secondary associations (Ch# 7)

Identify and Establish Brand Positioning and Values

Plan and Implement Brand Marketing Programs

Measure and Interpret Brand Performance

Brand Value Chain (Ch# 9) Brand audits Brand tracking Brand equity management system (Ch# 10) Brand-product matrix (Ch# 11) Brand portfolios and hierarchies (Ch# 11) Brand expansion strategies (Ch# 12) Brand reinforcement and revitalization

Grow and Sustain Brand Equity

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Brand Vision Core brand value & Positioning

Brand Vision What the brand should stand for in the future. Core Brand Values set of abstract associations that characterize a brand. Mental Map is a visual depiction of the different types of association linked to the brand in the minds of consumer. Core Brand associations are that subset of associations (attributes or benefits) that best characterized a brand. Brand Mantra is a short 3-5 words expression of the most important aspect of a brand and its core brand values. (brand essence or core brand promise) Nikes Mantra_ Authentic Athletic Performance
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Brand Vision Core brand value & Positioning

Brand Positioning the act of designing the companys offer and image so that it occupies a distinct and values placed in the target consumers mind. The goal is to locate the brand in the minds of consumers. Competitive brand positioning creating brand superiority in the minds of consumers. Brand Positioning is a specification of brand core values and brand mantra.
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Measuring & Interpreting Brand Performance

Brand Audit is a comprehensive examination of a brand to assess its health, uncover its sources of equity, and suggest ways to improve and leverage that equity. Brand Value Chain is a means to trace the value creation process for brands, to better understand the financial impact of brand marketing expenditures and investments. Brand Equity Measurement System is a set of research procedures designed to provide timely, accurate, and actionable information for marketers so that they can make the best possible tactical decisions in the short run and best strategic decisions in the long run.
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Growing and sustaining Brand Equity

Brand-Product Matrix is a graphical representation of all the brands and products sold by the firm. Brand Hierarchy displays the number and nature of common and distinctive brand components across the firms products. Brand Portfolio is the set of all brands and brand lines that a particular firm offers for sale to buyers in a particular category.
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