CHAPTER 1

BRAND AND
BRAND
MANAGEMENT
by Kevin Lane Keller
 MARKETING PROCESS – CONTROLLABLE &
UNCONTROLLABLE VARIABLES : EMERGING TREND
 Bottom Line of All Marketing Activities
• Creating Difference
• For Value Delightment
• To Have Competitive Edge
• Leading To Building Brands
• Building Brand Equity
• Creating & Retaining Consumer / Customer

Creating Value Competitive Creating Retaining

Difference Delightment Edge Consumers Consumers
 PRODUCT

“PRODUCT IS A CLUSTER OF
VALUE DELIGHTMENT FOR WHICH
CONSUMERS ARE WILLING TO
EXCHANGE MONEY”
 Product levels
Figure: Five Product
– Core benefit Levels
– Basic product
– Expected product
– Augmented product
– Potential product
WHAT DOES BRANDING REALLY MEAN ?

(1) A BRAND IS A LONG-TERM VISION

(2) A BRAND IS A LIVING MEMORY

(3) BRANDS ENDOW PRODUCT WITH MEANING

(4) A BRAND IS A CONTRACT
 BRANDING: THE PURPOSE

BRANDING IS THE TERMINAL PHASE OF A

PROCESS THAT INVOLVES THE COMPANY’S
RESOURCES AND ALL IT’S FUNCTIONS,
FOCUSING THEM ON ONE STRATEGIC INTENT:

CREATING A DIFFERENCE
 A BRAND IS MORE THAN A PRODUCT

BRAND
ORGANISATIONAL
ASSOCIATIONS BRAND PERSONALITY
PRODUCT

COUNTRY OF ORIGIN •SCOPE

SYMBOLS
•ATTRIBUTES
•USES
•QUALITY / UALUE
BRAND / CUSTOMER
USER IMAGERY •FUNCTIONAL BENIFITS RELATIONSHIPS

EMOTIONAL BRANDS SELF-EXPRESSIUE

BENEFITS
 What is a brand?
• A name, term, sign, symbol or design, or a
combination of them, intended to identify the
goods or services of one seller or group of
sellers and to differentiate them from those of
competitors.
American Marketing Association
 What is a brand?
• A brand is a product, but one that adds other
dimensions that differentiate it in some way
from other products designed to satisfy the
same need.
Kevin Lane Keller
 What is a brand name?

• That part of a brand which can be vocalized –

the utterable.
American Marketing Association
 What is a brand mark?

• That part of a brand which can be recognized

but is not utterable, such as symbol, design, or
distinctive coloring or lettering.
American Marketing Association
 What is a trade mark?

• A brand or part of a brand that is given legal

protection because it is capable of exclusive
appropriation. A trademark protects the
seller’s exclusive rights to use the brand
name and/or brand mark.
American Marketing Association
 Day before yesterday…
A brand was name, term, sign, symbol or design, or a
combination of them, intended to identify the goods or
services of one seller or group of sellers and to
differentiate them …
 Yesterday…

A brand was a bundle of benefits

delivered by products/services to
consumers…
 Today…

A brand is an experience that real

people enjoy (hopefully) everyday…
And it has a name and a personality
which fits with me.
 Are You a brand?
Yes, you all are brands in your individual right!
 EXAMPLE OF A BRAND
MERCEDES BENZ = BRAND NAME

BRAND MARK =

TRADE MARK = MERCEDES BENZ

BRAND NAME
+
BRAND MARK = BRAND
+
TRADE MARK
 Where do you all fit in ?
(i) All of you have a name = Mr.. X or Ms.Y

(ii) All of you have Distinguishable features like brand mark

(iii) All of you have trade mark ??? =

 Why Do Brands Matter
Consumers Perspective
• Identification of source of product
• Assignment of responsibility to product marketer
• Risk (functional, physical, financial, social, psychological,
time) Reducer
• Search cost reducer
• Promise, bond or pact with maker of product
• Symbolic device
• Signal of quality
 Why Do Brands Matter

Manufacturers Perspective
• Means of identification to simplify handling or tracing
• Means of legally protecting unique features
• Signal of quality level to satisfied customers
• Means of endowing products with unique associations
• Source of competitive advantage
• Source of financial returns
Can Anything Be Branded ??
- A brand is something that resides in the minds of the
consumers
- Branding involves creating mental structures and helping
consumers to organize their knowledge
- The key to branding is that consumers perceive differences
(tangible & intangible) among brands in a product category.
- Marketers can benefit from branding whenever consumers
are in choice situation in comparison to a non-choice
situation.

Choice results in branding

Can Anything Be Branded ?
Physical goods
- E.g. Coca-Cola, BMW, Sony, Nescafe.
- A strong brand can provide valuable reassurance
to business customers who may be putting their
co. fate and perhaps their own career- on the line.
- Business to business products
- High-Tech products
Can Anything Be Branded ?
Services
- E.g. Hotel Marriot, City N.A. DHL, Fedex.
- In the last 30 years, some of the greatest branding
successes have come in the area of services.
- Branding is particularly important to service
firms to address potential intangibility and
variability problems
- Brands can help to identify and provide meaning
to different services provided by a firm.
Can Anything Be Branded ?
Retailers and Distributors
- E.g. Sears, Arong (BD), Agora (BD), Wal-Mart,
Mutual Distribution (BD).

Online products and services

- E.g. Amazon.com, Google, Homeview.com(BD),
Munshiji.com

People and Organizations

- E.g. Jenifer Lopez, Madona, Sachin, Shahrukh, Red
Cross.
Can Anything Be Branded ?
Sports, Arts and Entertainment
- E.g. Man U, Real Madrid, Titanic, Lord of Rings.

Geographic Location
- E.g. Switzerland, Malaysia (Pataya Beach),
Indonesia (Bali)

Ideas and Causes

- E.g. WWF, AIDS Ribbons.
 What Are the Strongest Brands
BusinessWeek
September 5/12, 2005
2005 2004
BRAND BRAND COUNTRY
PERCENT
Rank Brand Name VALUE VALUE OF DESCRIPTION
CHANGE
$MILLIO $MILLIO OWNERSHIP
NS NS

While Coke struggles to add new diet and

1 1 COCA-COLA 67,525 67,394 0% U. S. energy drinks, it is still searching for a
zippier global advertising message.
It continues to reach into hot consumer
2 2 MICROSOFT 59,941 61,372 -2% U.S. markets such as TV set-top box software,
video games, and mobile phones.
The sale of the notebook business to
Lenovo continues the transformation from a
3 3 IBM 53,376 53,791 -1% U. S.
computer manufacturer to a services and
consulting company.
Hawking itself as a center of cutting-edge
innovation and source of
4 4 GE 46,996 44,111 7% U.S.
earth-friendly products has enhanced GE's
brand image.
Thanks to its Pentium chips and Centrino
5 5 INTEL 35,588 33,499 6°i° U. S. wireless notebooks, Intel is a household
name worldwide.
 Looking to take on Apple's iPod as cell phones
6 8 NOKIA 26,452 24,041 10% Finland
and MP3 players converge into one device.
Incoming CEO Bob Iger must develop new
7 6 DISNEY 26,441 27,113 -2% U.S. offerings. The trend is toward edgier fare even
for kids,
Who's not lovin' it? Big Mac has reconnected
8 7 McDONALD'S 26,014 25,001 4% U. S. with moms and teens thanks to new offerings
like salads and a hipper image.
Poised to pass GM globally, Toyota's image
9 9 TOYOTA 24,837 22,673 10% Japan gets a big boost from its growing stable of
hybrids.
Still tops in the U.S., the world's biggest
10 10 MARLBORO 21,189 22,128 -4% u.s. cigarette brand has struggled in Europe of
late, losing share in France and in Germany.
Quality problems and strategic errors have
11 11 MERCEDES-BENZ 20,006 21,331 -6% Germany punctured Mercedes' sales for two years. Will
the new S-Class sedan help buff its image?
A history in global markets that often helps it
12 13 CITI 19,967 19,971 0% U.S. trump local players has helped to shield Citi
from recent scandals.
Printer king HP faces increased competition,
- and new CEO Mark Hurd must figure a way to
13 12 HEWLETT-PACKARD 18,866 20,978
10%
U.S.
improve performance against computer rivals
Dell and IBM.
AmEx' star is rising since it won the right to let
14 14 AMERICAN EXPRESS 18,559 17,683 5% U.S. banks issue its cards. AmEx invested heavily in
marketing spending worldwide.
The King of Blades is on a roll, with its battery-
powered Iv13Power razor helping produce
15 15 GILLETTE 17,534 16,723 5% U.S.
record results. Now it's getting ready to merge
with P&G.
Branding Challenges and Opportunities

• Savvy customers
• Brand proliferation
• Media fragmentation
• Increased competition

- both from demand (product hit maturity or decline stage) and

supply side ( brand extension, deregulation, globalization, low-
priced competitors)

• Increased costs
• Greater Accountability
 What is brand equity?
• Brand equity is a set of brand assets and liabilities
linked to a brand, its name and symbol, that add to
or subtract from the value provided by a product
or service to a firm and/or to that firm’s
customers.

David Aaker, Managing Brand Equity

 What is brand equity?

• Brands with equity provide “an ownable,

trustworthy, relevant, distinctive promise to
consumers.

Brand Equity Board

 Strategic Brand Management Process
• Identifying and establishing brand positioning and values
Concepts to look at:
- Mental maps
- Competitive frame of reference
- Points of parity and points of difference
- Core brand values
- Brand mantra

• Planning and implementing brand marketing programs

Concepts to look at:
- Mixing and matching of brand elements
- Integrating brand marketing elements
- Leverage of secondary association
 Strategic Brand Management Process
• Measuring and interpreting brand performance
Concepts to look at:
- Brand value chain
- Brand audits
- Brand tracking
- Brand equity management system

• Growing and sustaining brand equity

Concepts to look at:
- Brand product matrix
- Brand portfolios and hierarchies
- Brand expansion strategies
- Brand reinforcement and revitalization