Chapter 1

Brands
and
Brand Management
Cp

1. What is A Brand?
H 2. Importance of Branding
E 3. What can be branded?
A 4. Branding Challenges n
D Opportunities
S 5. Steps of a Strategic Brand
Management Process
 1. What is A Brand?
• Brand: Name, term, sign, symbol, design or the combo
of all these.
• Brand Elements can be related to the company/ based
on people’s/places/product cat/animals/ abstract
images
• Brand helps to identify goods/services
• Brand creates differentiation, awareness, rep,
knowledge, preference, likability, conviction and
choice
 1. What is A Brand?
Differences between Brands n Products
Products: VP/offerings( goods and services)
5 levels of Products:
– Core Benefit: Fundamental needs
– Generic: Basic/no frill version: no distinguish features
– Expected: expected attributes
– Augmented: additional attributes
– Potential: future augmentation.
Brands create differentiation ( actual/perceived)
Brands create competitive advantages ( actual/perceived)
5 Levels of product
According to Philip Kotler , a product is more than a tangible ‘thing’. A
product meets the needs of a consumer and in addition to a tangible
value this product also has an abstract value. For this reason Kotler
states that there are five product levels that can be identified and
developed.
1. Core Product
This is the basic product and the focus is on the purpose for which the
product is intended. For example, a warm coat will protect you from
the cold and the rain.
2. Generic Product
This represents all the qualities of the product. For a warm coat this is
about fit, material, rain repellent ability, high-quality fasteners, etc.
3. Expected Product
This is about all aspects the consumer expects to get when they
purchase a product. That coat should be really warm and protect from
the weather and the wind and be comfortable when riding a bicycle.
4. Augmented Product
This refers to all additional factors which sets the product apart from
that of the competition. And this particularly involves brand identity and
image. Is that warm coat in style, its colour trendy and made by a well-
known fashion brand? But also factors like service, warranty and good
value for money play a major role in this.
5. Potential Product
This is about augmentations and transformations that the product may
undergo in the future. For example, a warm coat that is made of a fabric
that is as thin as paper and therefore light as a feather that allows rain
to automatically slide down.
Practice the model for Auto Mobile / Beverage/ University/ Hospitality
 3 Classifications of product attributes and benefits
Search Goods: a search good is a product or service with features and
characteristics easily evaluated before purchase. convenience products:
consumer evaluates attributes ( size, color, style, design, weight, ingredients,
etc by VISUAL INSPECTION . Elastic products and hence price competition is
observed. Price sensitive buyers. Features can be copied easily.
Experience Goods: an experience good is a product or service where product
characteristics, such as quality, is difficult to observe in advance, but these
characteristics can be ascertained upon consumption. Consumer evaluates
attributes ( durability , service quality, safety, ease of handling , by ACTUAL
PRODUCT TRIAL/ consumer evaluates attributes EXPERIENCE . Automobile /
Furniture / Price is an indicator of Quality. Less price sensitive customers and
products are more differentiated relative to Search Goods .
Credence Goods: A type of good with qualities that cannot be observed by the
consumer right after the first or second purchase, making it difficult to assess
its utility. Consumer may rarely learn product attributes from references:
Insurance, Medical service., Education, Vitamin Supplements, IT service,
content Service. Price is an indicator of Quality.
 2.Importance of Branding
Providers Perspective
Customers Perspectives
• Identification of the Source
• Retain Intellectual
• Perceptions (value association) Property ™
and Expectation • Identification of the
• Reduce Risks (functional, Source
physical, financial, social,
psychological, time) • Product Tracing/
• Knowledge leads to easier Inventory/Accounti
Decision Making: lowers search ng
effort: (internal external)
• Creating Positioning
• Relationship: trust, realized
advantages ( tangible n • Secure Comp.adv
intangible: esteem/actualization)
 3. What can be branded?
• P hy
sical G
• Serv oods (B
ices: Pr 2B n B
of 2C)
Online essional
/ Sport /Retail/
• Peo s
ple
• Org
anizati
• Ente ons
rtainm
ents
https://www.youtube.com/watch?v=trWhZek6
FCc

https://www.youtube.com/watch?v=ybUif_H8
nUE

https://www.youtube.com/watch?v=75GAoiPf
Cqc

https://www.youtube.com/watch?
v=nYSBBMwsq4Q
 4. Branding Challenges n Opportunities
A. Savvy Customers: experienced, knowledgeable and demanding
B. Economic Downturns:
• Increase Investment
• Get closer to Customers
• Identify heads to Invest
• Focus on Value Propositions rather on Price Cut
• Fine Tune the segment-wise offerings
C. Brand Proliferation:
D. Media Transformation: Digital Media/ SMM
E. Increased Competition: Globalization, brand extension, clones,
deregulations,
F. Increased Cost: Inflation
G. Greater Accountability: pressure to ensure Short term profitability
rather long term impact
https://www.techrepublic.com/article/amazon
-breaks-200-billion-mark-named-the-worlds-m
ost-valuable-brand-for-third-consecutive-year/
 Branding Strategy: Building Strong Brand Equity
Brand Equity
• It’s the measure of the brand’s
ability to capture consumer
preference and loyalty. Connection
with customers
• If consumers reacts more favorably
to a brand than to a generic
product, it’s a positive brand equity.
• One measure of equity is the extent
to which customers are willing to
pay more for the brand

Brand Equity is the positive differential effect that knowing the brand name has on
customer response to the product or service
 Branding Strategy: Building Strong Brand Equity
• Brand strength is measured
based on 4 consumer
perception dimensions:
• Differentiation (what makes
the brand stand out)
• Relevance (how customer
feels it meets his need)
• Knowledge (how much
consumers know about the
brand)
• Esteem (how highly
consumers respect/trust the
brand)
A Brand with a high equity is an valuable asset: high customer loyalty, easy brand
extensions and bargaining power with reseller, high customer equity, etc
Branding Strategy: Building Strong Brand Equity
 5. 4 Steps of a Strategic Brand Management Process
B. Designing and
A. Identifying and Implementing Br
Developing Brand Plans Mark a nd
eting Prog
• Brand Positioning Model • Design Br
and Elements
• Brand Resonance Model • Integration of the Br
and
• Brand Value Chain into the Marketin
g Mix
• Leveraging
g
Secondary
nd In t e rpre ti n
Association
ring a
a su
C. M e r m a nce
an d Perfo
Br u dit
d A
Bran r a c king D.
Growing and Sustaining Brand Equity
T
Brand
• Defining Brand Architecture: Portfolio and Hierarchy
• Managing Brand Equity over time
• Managing Brand Equity Globally.