CHAPTER 1:

BRANDS & BRAND MANAGEMENT

 What is a brand?

 For the American Marketing Association (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.”
 Brands vs. Products

 A product is anything we can offer to a market for

attention, acquisition, use, or consumption that might
satisfy a need or want.
 Five Levels of Meaning for a Product
The core benefit level
is the fundamental need or want

The generic product level

is a basic version of the product containing only those attributes
or characteristics absolutely necessary for its functioning

The expected product level

is a set of attributes or characteristics that buyers normally
expect and agree to when they purchase a product.

The augmented product level

includes additional product attributes, benefits, or related
services
The potential product level
includes all the augmentations and transformations that a
product might ultimately undergo in the future.
Why do brands matter?
 Importance of Brands to Consumers

 Identification of the source of the product

 Assignment of responsibility to product maker

 Risk reducer

 Search cost reducer

 Promise, bond, or pact with product maker

 Symbolic device

 Signal of quality
 Reducing the Risks in Product Decisions

 Functional risk—The product does not perform up to

expectations.

 Physical risk—The product poses a threat to the physical

well-being 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.
 Importance of Brands to Firms

 Identification to simplify handling or tracing

 Legally protecting unique features

 Signal of quality level

 Endowing products with unique associations

 Source of competitive advantage

 Source of financial returns

 Can everything be branded?

 Physical goods

 Services

 Retailers and distributors

 Online products and services

 People and organizations

 Sports, arts, and entertainment

 Geographic locations

 Ideas and causes

What are the strongest brands?
 Top Ten Global Brands

Brand 2006 ($Billion) 2005 ($ Billion)

1. Coca-Cola 67.00 67.53
2. Microsoft 56.93 59.94
3. IBM 56.20 53.38
4. GE 48.91 47.00
5. Intel 32.32 35.59
6. Nokia 30.13 26.45
7. Toyota 27.94 24.84
8. Disney 27.85 26.44
9. McDonald’s 27.50 26.01
10. Mercedes-Benz 21.80 20.00
Branding Challenges & opportunities

 Savvy customers

 Brand proliferation

 Media fragmentation

 Increased competition

 Increased costs

 Greater accountability
 The Brand Equity Concept

 Differential effect

 Brand knowledge

 Consumer response to marketing

 Strategic Brand Management Process

Steps Key Concepts

Identify and establish Mental maps

brand positioning and values Competitive frame of reference
Points-of-parity and points-of-difference
Core brand values
Brand mantra

Plan and implement

brand marketing programs Mixing and matching of brand elements
Integrating brand marketing activities
Leveraging of secondary associations

Measure and interpret

brand performance Brand value chain
Brand audits
Brand tracking
Brand equity management system

Grow and sustain Brand-product matrix

brand equity
Brand portfolios and hierarchies
Brand expansion strategies
Brand reinforcement and revitalization
1. Identify and establish brand positioning and values

 Mental maps: Visual depiction of different type of

associations linked to the brand in the mind of customer

 Competitive frame of reference: Creating brand

superiority in the mind of customer.

 Points-of-parity and points-of-difference: POD …..is not

available in other brand, POP….is similar to other brand

 Core brand values: Attributes and benefits of brand.

 Brand mantra: Core brand promise.

2.Plan and implement brand marketing programs

 Mixing and matching of brand elements:

Name.logos symbols characters,packaging and slogans.

 Integrating brand marketing activities: Marketing programs

can create strong,favorable and unique brand association.

 Leveraging of secondary associations: Brand may be linked

to

*Company *Character *Spokepeople

*Country *Sonsorship *Awards
3.Measure & interpret brand performance

 Brand value chain: Value creation Process

 Brand Audit: A comprehensive examination of a brand to

discover its sources of brand equity.

 Brand Tracking: Collecting continuous information from

customer.

 Brand equity management system:

*Brand equity charter *Brand equity report *Brand
equity responsibility
4.Grow and sustain brand equity

 Defining the Branding Strategy

 Managing Brand Equity Over Time

 Managing Brand Equity Over Geographic Boundaries,

Cultures, and Market Segments.