Brand

Manage
ment Session 1

Brands and Brand

Management

January 15th, 2017

 Todayys
Ageda
Introduction
Some Housekeeping Rules
Course Outline and Overview
Text Book and Reference Books
Grading Plan
Term Report and Presentation
Overview of Brands and Brand
Management
A Reminder!
Please put your phones
to silent

Penalty:
Rs.500/-
Giving Treat to the whole
class
 my
INTRODUCTION
A Business Professional with 23 years
post MBA
Experience

Farooq Profile Summary Updated.doc

 my
MBA
EDUCATION
IBA 199
Karachi 3
Bachelor of Commerce
Govt. National College Karachi
1991
Text, Reference Books &
Contact Details
Text Books
Strategic Brand Management, Building,
Measuring and Managing Brand Equity
4thEdition - (Global Edition)
by Kevin Lane Keller

Reference Books
The 22 Immutable Laws of Branding by Al Ries
and Laura Ries
Building Strong Brands by David Aaker

Contact Details
In case of any problem, e-mail me at
shaikhfhs@gmail.com or SMS me at 0333-
 Course
Ses
sion
Topic Outline Learning Outcomes
s
1 Overview of Brands and Brand What is a brand? - Importance of Brands (for Seller &
Management Consumers),
Attributes of a Strong Brand - What is Brand
Management? Brand, Branding & Brand Management -
Purpose of Brand Management
2 Customer Based Brand Equity and Outline the sources and outcomes of Customer based
Brand Positioning Brand Equity, Brand Positioning and its development
process, Brand Mantra and how it is developed?
3 Brand Resonance and Brand Value Understand the Brand Resonance, Steps in Building
Chain Brand Resonance, Brand Value Chain and contrast Brand
and Customer Equity
4 Choosing Brand Elements to Build Identification of Brand Elements, criteria for choosing
Brand Equity brand elements and understand the rationale for "Mixing
and Matching" brand elements
5 Marketing Programs to Build Identify new Perspectives and Developments in
Brand Equity marketing, rationale for Value Pricing, and Direct and
Indirect channels
6 First Hourly Examination
6 Integrating Marketing Understand the changes in the new Media Environment,
Communications and Brand outline the major Marketing Communication Options and
 Course
Ses Topic Outline Learning Outcomes
sion
s
9 Measuring Sources and Understand the effective Qualitative and Quantitative
Outcomes of Brand Equity research techniques for tapping into Consumer Brand
Knowledge and Advocacy Ladder
10 Brand Portfolio and Architecture Outline the guidelines for developing a good Brand
Strategies Portfolio, components of the Brand Architecture and
understand the assembly of a basic brand hierarchy
for a brand.
11 Second Hourly Examination
11 Naming New Product and Brand Brand Name - Importance and Characteristics,
Extensions Selection of Brand Name and Brand Attributes.
Understand the different types of brand extensions
with main advantages and disadvantages and their
contribution to the parent Brand Equity
12 Managing Brands over Time Understand the important considerations in brand
reinforcement, the range of brand revitalization
options to a company with strategies to improve
brand awareness
13 Managing Brands over Understand the rationale for developing a global
 Assessm
Activity Mark Duration Frequenc Selectio Weight

Quiz 5
s
ent
Max. minutes
y
2 -3
n
Best 1
age
5%
Hourlies 30 One Hour 2 One 30%
Course Term 15 Whole Term 1 One 15%
Project
Report 10 10 -12 Minutes One One 10%
Presentation
Final 40 3 hours One One 40%
 Report /

Presentation
Launching a New Brand
Repositioning of an existing
brand
 Key
Concepts
A Snapshot of Marketing, Brand and
Branding
What is a Brand?
What is Brand and Brand
Management?
Why do Brands Matter?
Brands for Consumers and Sellers
Pros and Cons of Customer based
Brand Equity
What can be Branded?
What makes a Brand Strong?
Strategic Brand Management Process
 What is a
brand?
A brand is a product, service, or concept that is publicly
distinguished from other products, services, or concepts so
that it can be easily communicated and marketed
A strong brand differentiates your products from the
competitors
It gives a quality image to your business
It includes developing a promise, making that promise
and maintaining it
Brands are different from products in a way that brands are
what the
osuers uyy, while products are what
oer/opaies akey
Brand is an accumulation of emotional and functional
associations
 What is a Brand?
On the other hand a name
becomes a brand when
consumers associate it with a
set of tangible and intangible
benefits that they obtain from
the product or service.
Brands are
not the
same as
Products.
Bad is the selles poise
to delie the same bundle of
benefits/services consistently
to buyers.
A product is any offering
by a company to a market
that serves to satisfy
customer needs and
wants. A product can be
an object, service, idea,
etc.
 What is a Brand?
Nokia brand promises trust y and strog
tehologyy
The popular Starbucks has earned its brand image
from the
opinions of its customers.
The brand Starbucks stands for bolder, more
flavorful
coffee.

Thus, you can see that Brands are what the

osuers uyy, hile poduts ae hat
oe/opaies akee.

Brand is a promise that the product will perform as

per
ustoes epetatios.
It is a name,
term, sign, symbol or a
combination of all these which
differentiate the goods/services of one seller or
group of sellers from those of competitors.
Some examples of well known brands are
Wrangler, Audi, Samsung, Coca Cola, etc.
 What is a
Brand?
Aeia Maketig Assoiatios defiitio

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.

Attributes that identify the brand are called

Brand Elements (based on people, place, objects,
animals, etc.)

Practicing managers define brands as more than

that. This distinction is important since it can lead

to confusion.
 What is a
Brand?
Brand versus Product
Product is anything that can be offered to a market for
attention, acquisition, use or consumption that may
satisfy a need or a want (goods, services, retail store,
person, organization, idea)
Kotler defines 5 levels of a product
Core benefit level fundamental need or want that is
satisfied
Generic product level basic version attributes
necessary for
functioning (stripped down level)
Expected product level hat ustoes oall
epet
Augmented product level additional attributes,
benefits that distinguish it from competition
 What is a
Brand?
A Brand is therefore a Product that also has
dimensions that differentiates it from other
products designed to satisfy the same need
(competition)
Differences may be
Rational and tangible : related to product
performance (3M, Sony, Gillette)
Symbolic, emotional, intangible: related to
what the brand represents (Coca Cola, Calvin
Kline, Marlboro)

What distinguishes a brand from a

commodity gives it equity - the sum total of
consumer perceptions and feelings about how it
performs (3M, Sony, Gillette)
The name and what it stands for
 What is
Branding?
Branding is assembling of various marketing
mix medium
into a whole so as to give you an identity
It is nothing but capturing your customers
mind with your brand name
Branding makes customers committed to
your business
It is all about capturing the niche market for
your product
/ service and about creating a confidence in the
current ad pospetie ustoes ids
that ou ae the unique solution to their
problem
What is Brand
Management?
Now, that you have
learnt aout ads,
let us see what is
brand management.

Brand management is
the process of building,
managing and
improving a brand.

It begins by having a
thorough
koledge of the te
ade.

Hence, brand
management includes
developing a promise,
making that promise
and maintaining it.
 What is Brand
Management?
The tangibles for product
brands include the product The intangibles are made
itself, its characteristics, up of the emotional
features, price, packaging, connections with the
etc. product / service.
Branding is assembling of
various marketing mix
medium into a whole so as
to give the product an
identity.

The tangible and Whereas, in case of Thus, you can see It is building a
intangible service ads, the that brand brand name
characteristics of ustoes management is all that captures
brand are managed experience forms the about Branding. the
through Brand tangibles. ustoes
management. id.
 What is Brand
Management?
Brand management is nothing but an art
of creating and sustaining the brand
It means defining the brand, positioning
the brand,
and delivering the brand
Brand management includes managing
the tangible and intangible
characteristics of brand
In case of product brands, the tangibles
include the product itself, price,
packaging, etc. While in case of service
brands, the tagiles ilude the
ustoersy experience
The intangibles include emotional
Purpose of Brand
Management
The ai ai of adig is to diffeetiate a
opas poduts
and services from its competitors.

Branding aims to convey a brand message vividly,

create customer loyalty, persuade the buyer for the
product, and establish an emotional connectivity with
the customers and form customer perceptions about the
product.

Brand management plays a crucial role to form brands.

The brand management strategies also provide good
support to the brand so that it can sustain itself in long
run.

Also, through brand management, brands are managed

and brand equity is built over a period of time. It helps in
building a corporate image. Thus, only a competent
brand management system can create a successful
brand.
 Why do Brands
Matter?
Brand Value created translates to
financial profits
for the firm as:
Creates perceived differences through
branding
Develops a loyal consumer franchise

The brand is an intangible valued asset

that needs to
be handled carefully.
 Why Do Brands
Matter?
It creates a relationship between brand and
consumer
a od / pat. tust ad loalt ad i etu .
expect consistent product performance, appropriate
price, distribution and other actions
Brands take on a special meaning and change
the experience
and perception of a product that leads to greater
satisfaction
Customers with past experience learn more about
the brand
The advantages
Lowers search cost internally and externally
The value may not be only functional in nature
They are symbolic devices allowing them to project
Why Do Brands
Matter? The main A brand A brand
make a mark and
strong
reason makes
helps Brands
consumers A Brand is a differentiate
people aware help
Brands have flock to some a good or of what the
promise customers
become brands and that the service from company to connect
important ignore others others in represents
product will to the
drivers of is that behind perform as marketplace and about product or
growth for any the brand . the
pe service on
organization, stands an different
ustoes an
good or unspoken offerings of
expectation emotional
service. promise of the
s. level.
value. company.

N
R S
B A D
Why Do Brands
Matter?

Thus, you can see Customers use

that people brands as a
connect means to show
emotionally with This is hat I
brands that stand stad foe ad
for things that are hee, use
important to brands to express
them. themselves.

IDDIsoitesaeotilprbtheuTrs
brands and they
BpELe oO
hls
elceagbecome iukgennrlm
iga ecnr
nnbeavg
uonfv hNiegoeiearsri
drnceeimaefutnyodstadir
g
aq svloketdao
thnbobasnued iaaen mirns??
ocg
?r?smMvi?
adaehneuo
d nldrirdiitfus
vee
et
o yelcyerat
anr tlcteekik
ivfs esleidkfm
dhniet
 Why Do Brands
Customers
Matter?
Risk reducer
Search cost reducer
Signal of quality
Symbolic device for self expression
Promise, bond, pact, with maker of the product
Means of identification of source of product for
assignment of responsibility to product maker

Manufacturer
Means of identification for handling, tracing
Signal of quality level to satisfied customers
Competitive advantage
Financial return
Legal protection of unique features
 Brands for Consumers
and Sellers
Source
of
produc
t

Lower risk

The od Bad sigifies diffeet thigs to

consumers and sellers.
Less cost
Consum of
searching
ers for a
choice

Symbol
of
Quality

Symbol
ic
devic
e
 Brands for Consumers
and Sellers
Source
of
Consumers can easily make a purchase
decision based on brands. Consumers
produc usually find brands which satisfy their need.
t

Lower risk

The od Bad sigifies diffeet thigs to

consumers and sellers.
Less cost
Consum of
ers searching
for a
choice

Symbol
of
Quality

Symbol
ic
devic
e
 Brands for Consumers
and Sellers
Source
of
produc
t

Brands mean lower purchase risk to

Lower consumers as they are dealing with a
risk product or organization that they trust.

Less cost The od Bad sigifies diffeet

Consum of
thigs to
ers searching
for a consumers and sellers.
choice

Symbol
of
Quality

Symbol
ic
devic
e
 Brands for Consumers
and Sellers
Source
of
produc
t

Lower The od Bad sigifies diffeet

risk thigs to
consumers and sellers.
If the consumers recognize a particular
Less cost brand and have knowledge about it, they
Consum of make quick purchase decision and save lot
ers searching
of time. Also, they save search costs for
for a
choice product.

Symbol
of
Quality

Symbol
ic
devic
e

The od Bad sigifies diffeet thigs to

 Brands for Consumers
and Sellers
Source
of
produc
t

Lower risk

The od Bad sigifies diffeet thigs to

consumers and sellers.
Less cost
Consum of
ers searching
for a
choice
Cosues see ads as a sol of ualit ad
Symbol eai committed and loyal to a brand as long as
of
Quality
they believe that the brand will continue meeting
their expectations and perform in the desired manner
consistently.

Symbol
ic
devic
e

The od Bad sigifies diffeet thigs to

 Brands for Consumers
and Sellers
Source
of
produc
t

Lower risk

The od Bad sigifies diffeet thigs to

consumers and sellers.
Less cost
Consum of
ers searching
for a
choice

Symbol
of
Quality

Symbol Brands play a significant role in signifying

ic certain product features to consumers.
devic
e

The od Bad sigifies diffeet thigs to

 Brands for Consumers
and Sellers
Means of
Competiti
ve
Advantag
e

Legal
protection
of
poduts
features

Seller

Satisfied
customer

Means
of
Profits

The od Bad sigifies diffeet thigs to

 Brands for Consumers
and Sellers
Means of A brand helps the firms to provide
Competiti consistently a unique set of characteristics,
ve advantages, and services to the
Advantag buyers/consumers.
e
Legal
protection The od Bad sigifies diffeet
of
poduts thigs to
features consumers and sellers.
Seller

Satisfied
customer

Means
of
Profits
 Brands for Consumers
and Sellers
Means of
Competiti
ve
Advantag
e
Legal
protection Brands help to protect the unique
of features/traits of products by legal
poduts copyrights.
features
Sell
er The od Bad sigifies diffeet
Satisfie thigs to
d consumers and sellers.
custom
er

Means
of
Profits

The od Bad sigifies diffeet thigs to

 Brands for Consumers
and Sellers
Means of
Competiti
ve
Advantag
e
Legal
protection The od Bad sigifies diffeet
of
poduts thigs to
features consumers and sellers.
Sell
er
Satisfie Brand represents values, ideas and even
d personality and hence leads to an
custom assortment of memories in ustoes
er id ad hee satisfied ustoes.

Means
of
Profits

The od Bad sigifies diffeet thigs to

 Brands for Consumers
and Sellers
Means of
Competiti
ve
Advantag
e
Legal
protection The od Bad sigifies diffeet
of
poduts thigs to
features consumers and sellers.
Seller

Satisfied
customer

Means Brands form the basis of purchase

of decision among consumers and thus are a
Profits means of financial profits.

The od Bad sigifies diffeet thigs to

 Anything Can Be
Branded
Branding is possible
for
B to B products
High-tech products
Services
Retailers and Distributors
Online products and
services
People and Organizations
Sports
Arts, Entertainment
Geographic location
Ideas and causes
 Anything Can Be
Branded
To brand a product what needs to be done is
Consumer has to be
Taught to identify the brand label, name
and other elements
Learn the brand meaning - functional,
emotional and
symbolical
Know the brand difference from other
similar product brands (performance / image
and non-product related considerations)

Commodities have been branded atta, salt

 The Key to Successful
Branding
For branding strategies to be successful
Consumers must be convinced that
there are
meaningful differences among
brands
Consumer must not think that all
brands in the category are the same
PERCEPTION = VALUE
 What makes a Brand
Strong?
It is important that in order to make a strong impact, a brand should be
strong. There are
a fe haateistis that ake a stog ad, hih ae as follos:
A strong brand is a major driver of shareholder value.

A strong brand is like an asset. It can be used as collateral for financial loans ,
buying and selling as an asset.

A strong brand has strong attributes, values and personality that the consumers
associate with the brand.

A strong brand is a means of attaining higher customer loyalty.

A strong brand always delivers the benefits that customers truly desire.

A strong brand makes use of and coordinates full range of marketing activities to
build equity.
A strong brand has the right blend of product quality, design, features, costs and
prices.
A strong brand is properly positioned and occupies a particular niche in
consumers' minds.
A strong brand compels consumers to willingly pay a substantial and consistent
premium price for the brand versus a competing product and service.
Gillette as a
Strong Brand
Gillette is oe of the stogest ads i the aket of e s
pesoal ae poduts.
It has tied the actual quality of its products to various intangible
factors such as:

User Imagery
The type of person who uses Gillette, the type of situations in which
the brand is used, the type of personality Gillette portrays etc.

Technology
Its razor blades are as technologically advanced as possible through
continuously spending millions of dollars in R&D.

Sub-branding
It has developed several sub brands such as Trac II, Altra, Sensor,
Mach3 to remain on top of its competitors.

Enhancements
It makes constant improvements with modifiers like Altra Plus,
Sensor Excel.
 Gillette as a Strong
Brand
Gillettes taglie, 'The Best A
Ma Ca Get, shoased i its
ads though the years has
created a consistent, intangible
sense of product superiority.

Gillette has created a strong

brand image in totality -
that is, all the different
perceptions, beliefs,
attitudes and behaviors
customers associate with
their brand.

To keep this strong brand

presence, Gillette is very
protective of the name carried
by its razors, blades and
associated toiletries. Hence,
Braun is used for the
company's electric razors and
its oral care products are
marketed under the name,
Oral B.
 Strategic Brand
Management
Strategic Brand Management involves
design and implementation of marketing
programs and activities
to build,
measure,
manage BE
Strategic brand management process involves four
main steps:

1. Identify and establish brand positioning and

values
Plan and implement brand marketing programs
Measure and interpret brand performance
4
Grow and sustain Brand Equity 5
 Strategic Brand
Management Process
The Strategic Brand Management Process cons sts of the
following four steps:

Strategic
Brand
Managem
ent
Process
 Strategic Brand
Management Process
STE KEY CONCEPTS
PS
Identify and Establish
Mental maps
Competitive frame of reference
Points-of-parity and points-of-difference
Brand Positioning and Values
Core brand values
Brand mantra

Plan and Implement Integrating brand marketing activities

Brand Marketing Programs Leveraging of secondary associations

Measure and Interpret Brand Brand Value Chain Brand audits Brand
Performance tracking
Brand equity management system

Brand-product matrix
Grow and Sustain Brand Brand portfolios and hierarchies
Equity Brand expansion strategies
Brand reinforcement and revitalization

47
 New Branding
Challenges
Brands are important as ever
Consumer need for simplification
Consumer need for risk reduction
Brand management is as difficult as
ever
Savvy consumers
Increased competition
Decreased effectiveness of traditional
marketing tools and emergence of new
marketing tools
Complex brand and product portfolios

4
8
 The Customer/Brand
Challenge
In this difficult environment,
marketers must
have a keen understanding of:
customers
brands
the relationship between the two

4
9