What is Management?

Management
 What is Management?

Optimally deploying resources so that the goals and

objectives are achieved
Thru’ the process of
Planning, Organising, Directing and Controlling
 What is Marketing

Different People describe marketing in different ways

Let us start from the basics and build our way up

 Understanding the Marketplace
and Customer Needs
Core Concepts

 Customer needs, wants, and demands

 Market offerings (products and services)
 Value and satisfaction
 Exchanges and relationships
 Markets
 Understanding the Marketplace
and Customer Needs
Customer Needs, Wants, and Demands

• States of deprivation

Needs • Physical—food, clothing, warmth, safety

• Social—belonging and affection
• Individual—knowledge and self-expression

Wants • Form that needs take as they are shaped by culture and
individual personality

Demand • Wants backed by buying power

 Products & Services

 Products are the physical goods sold to customers and services

rendered to them
 Physical goods include both durable goods that last longer
periods and nondurable goods with shorter uses
 Nondurable goods include convenience items, shopping goods,
and specialty products

 Services consist of the intangible items sold to others,

including banking, financial, insurance, transportation, credit,
and personal services.
 Customer looks for

Value
The value proposition is the set of benefits a company promises to
deliver to the customers in order to satisfy their needs
 Customer Value

 Customer value is the relationship between benefits

obtained by the customer and the sacrifice needed to be
made by the customers to obtain those benefits
 Customer value concept can be applied to a Rolex watch
as well as a to bar of peanut candy
 Customer value does not imply that a product or service
has to be of “high quality” (quality as known in the
colloquial sense)
 Customer Value

 Good customer value means, that a consumer must perceive to

be getting a product or a service of such quality that they are
expecting , with a price tag that they are happy with paying

 Customers usually compare their perceived value of similar

products before making a final decision.

 It is the Marketing Function that creates, communicates, and

delivers value to the relevant customers.
 Customer Value

Costs Benefits

•One customer’s view of the benefits and costs of a firm’s

market offering may vary from another customer’s view, so firm
may not be able to satisfy everybody with the same offering.
• Customer value concept takes the customers point of view, but
customers may not explicitly weigh costs and benefits and even
if they do their view may not match some “objective” reality.
2-7
 Perceived Value and Satisfaction

 Customer perceived value is the difference between the

benefits what the customer perceives (s)he gains in owning and
using a product, and the total costs of obtaining that product
and using it

 Customer Satisfaction is the extent to which a product’s

perceived performance matches, or exceeds, the buyer’s
expectations.

 Reality – Expectation – Perception – Reality –

 We will see these in more detail later.
 What is Perceived Customer Value?

Product
Product value
value
Services
Services value
value Total
Total
customer
customer
Personal
Personal value
value benefit
benefit
Customer
Customer
Image
Image value
value delivered
delivered
value
value
Monetary
Monetary cost
cost

Time
Time cost
cost Total
Total
customer
customer
Energy
Energy cost
cost cost
cost
Psychic
Psychic cost
cost
 Customer Satisfaction

Customer Satisfaction is…

the outcome of the customers’ evaluation of a good or service in

terms of
whether that good or service, has met their needs and expectations of
the desired value
 Value & Satisfaction

 The Perceived Value upon using the Product or Service – If almost

Equal to the Desired Value
- Then it Results in SATISFACTION
 The Perceived Value upon using the Product or Service – If Less
than the Desired Value
- Then it Results in DIS-SATISFACTION

The Perceived Value upon using the Product or Service – If Greater

than the Desired Value
- Then it Results in Customer Delight
The objective of the Organisation and the Marketer is to strive for
Customer Delight
 Marketing
Exchange, Transactions and Relationships
Exchange is the core concept of marketing

The transaction between the company and the customer

is the start of an enduring relationship between them

Customer
Customer The company
The customer seeks
benefits from the offers benefits to
company, its customers,
Company
Company
and expects to pay. and seeks profits.
 Buyer

 A buyer may be an individual or a business that makes a purchase

from a seller
 The buyer is the party that gives or transfers money to the seller
to secure a product and who procures the item or service
 A teenager getting a video game from a store at the mall is a
buyer;
 as is a distribution company that purchases raw materials from a
manufacturer
 Consumer

 a consumer is a person who actually uses or consumes the

product (or service)
 The consumer is most often called an "end user" because (s)he is
the last stop and does not usually transfer or sell the item to
another party
 A buyer can be a consumer, as in the example of a teenager
buying and using a video game
 At the same time, every consumer need not necessarily be the
buyer---for instance, if a mother purchases cereal for herself and
her family, each family member is a consumer of the product.
 Customer, Client

 Customer is essentially a buyer who may be buying regularly

 This term is used in relation to the seller’s relationship in terms of
the buyer
 when you buy milk at the supermarket, you are that supermarket’s
customer.
 Client: a person or group that uses any ‘Services’ – may be the
professional advice or services of a lawyer, accountant,
advertising agency, architect, etc.
 What is the difference between
a customer and a consumer?

A customer – purchases and pays for a product or service

A consumer – is the ultimate user of the product or service;
the consumer may not have paid for the product or service
Consider the following example:
A food manufacturing business makes own-label, Italian
ready-meals for the major supermarkets.
So far as the business is concerned, the customer is the
supermarket to whom it supplies meals
The consumer is the individual who eats the meal
 What is the difference between
a customer and a consumer?

In terms of its marketing effort, who should the business above target?
In reality – it needs to understand the needs and wants of both the
customer and the consumer.
It needs to develop a strong understanding of the needs of the
supermarkets in terms of their requirements for ready meals (e.g.
packaging, recipes, price & delivery).
It also needs to understand (perhaps with the help of the supermarkets)
the needs and wants of the consumer. How are tastes changing? Are
consumers happy with the standard / taste of the product?
 Whom to look for?

 the company should target buyer, customer, consumer appropriately

 Take an example of complan....Customer, in case of complan is the
parent (mother), Buyer may be the father and Consumer is the
child. So the company has to ensure that it tastes good for the child
as well as to make it appealing to the parent by highlighting its
nutritious value....
 Sometimes a company has to identify the needs of both the buyer
and the consumer. For example, a publisher who sells textbooks
must market to both the distributor who will sell the textbooks and
the professors who will order them for class. The students
technically can be termed as ‘ consumers’ but in many cases the
buyer's decision would be strongly influenced by the consumer's
needs.
 Markets

 Market is defined as the set of all actual and potential buyers of a

product.
 Each of these buyers is identified as having a sufficiently similar
need, which they want to be satisfied by a specific product or
service
 Therefore Markets consist of customers with identified needs
and specific wants together with the financial resources, and the
willingness to spend such resources to satisfy those wants and
needs. Giving rise to demand for specific products or services
  Marketing

Marketing is about meeting the needs and wants of Customers,

provided the buyer/consumer demands a product or service to
fulfil the ‘want’ at a price,
when the Customer would see value
Understanding the Marketplace and Customer Needs

Markets are the set of actual and potential buyers of a

product
  Marketing

 Marketing is a business-wide function – it is not something that

operates alone from other business activities;

 Marketing is about understanding customers and finding ways

to provide products or services which customers demand
 The Marketing Process

Needs Who will we Marketing Mix CRM Customer

Wants serve? Lifetime Value
Demands Product Are we actually
How will we creating value? Mind-Share of
be different? Price Customer
Are our
Place customers
satisfied?
Promotion
 Key elements of marketing
their relationships
 The Changing Marketing Landscape

Major Developments

Rapid
Rapid
Digital age
globalization
Globalisation

Ethics and
Not-for-profit
social
marketing
responsibility
 The Modern World of Marketing

 Rapidly changing media environment

 Mass media – Print Periodicals, Radio, TV - were dominant in
the earlier decades – Now losing viewers, readers, listeners to
newer emerging media
 Digital media growing so fast but targets narrow audience
 The Modern World of Marketing

 Rapidly changing media environment

 Consumers not content to be passive message recipients like
before – Prefer interactive
 Information now obtained by Consumers from multiple
sources
 Target Market Selection Strategies

1. Undifferentiated Marketing

2. Differentiated Marketing

3. Concentrated Marketing

31
 Selecting target market

Undifferentiated Differentiated Concentrated

Micromarketing
(localised or
(mass (segmented (Niche
individualised
marketing)
marketing) marketing) marketing

 Targeting broadly Targeting narrowly

 Undifferentiated Marketing
 A firm might decide to
ignore market segments and Undifferentiated Marketing
target the whole market with
one offer
 This mass marketing focuses
on what is common in the
needs of consumers rather
than on what is different.
 Undifferentiated marketing: In this strategy, the whole target
market is treated as one and it is considered that there are no
market segments that show uncommon needs
 The company believes on ‘one product-all segments strategy’ and
has one marketing mix for the target market
 For example, Coca Cola sells Coke, Limca, Thums-up, etc. and
does not differentiate between the target audience.
 Differentiated Marketing
Differentiated Marketing

 A firm decides to target

several market segments and
design separate offers for
each.
 Differentiated Marketing

 VF is the USA’s number-one jeans maker, with brands such as

Lee, Riders, Rustler, and Wrangler
 But jeans are not the only focus for VF. The company’s brands are
carefully separated into five major segments—Jeanswear, Image
wear (workwear), Outdoor, Sportswear, and Contemporary
Brands.
 Differentiated Marketing

 By offering product and marketing variations to segments,

companies hope for higher sales and a stronger position within
each market segment
 Developing a stronger position within several segments creates
more total sales than undifferentiated marketing across all
 segments. VF Corporation’s combined brands give it a much
greater, more stable market share than any single brand could
 The four Jeanswear brands alone account for one-fourth of all
jeans sold in the United States
 Similarly, P&G’s multiple detergent brands capture four times
the market share of its nearest rival.
 Differentiated marketing: In this marketing strategy the company
divides the market into segments and uses different marketing mix
for each segment.
 This strategy is used by Hindustan Unilever which sells soaps like
Lifebuoy, Lux, Rexona, Liril, Pears, etc. and each has its own
market.
Concentrated market coverage strategy is specially appealing
when company resources are limited. Instead of going after a small
share of a large market, the firm goes after a large share of one or
few smaller segments.

 Concentrated marketing: In this marketing strategy the company

mostly follows ‘one product one segment policy’. For example
Ashok Leyland produces large chassis of machines for buses and
trucks.
 Flexible Market Offering

 Even in segments 100 % needs are not same – consists of two

parts
1. Naked Solution :- products and services that all members of
the segment values similarly and would want it
2. Discretionary options :- that some segment members value.
Each option might carry an additional charge.
 Example: Automobile industry – basic model is same but for
A.C , power steering, power window buyer, has to pay extra
price
 Niche Marketing

 Group of customers seeking a distinctive mix of benefits who are

ready to pay extra premium.
 Niche = sub – segments of segments
E.g.. Washing detergents -hard & gentle washes
Surf excel for tough stains ( hard on clothes) &
Ezee from Godrej for delicate clothes.
--- Astha , Sanskar , Q TV – focus on religion & spiritualism

Cos. may serve Distinct Needs

Customers may be willing to pay some Premium
 Individual(ised) Marketing

 This is sort of Ultimate Segmentation – also called micro-

marketing
 customized marketing or one to one marketing.
 Custom(er)ization – empower the consumers to design the product
or service offering of their choice.
 Ex. Paint companies have started doing this- Asian Paint , Nerolac
, Berger Paints
 Arvind mills launched Ruff’n Tuff Jeans, branded ready – to –
stitch
 Levi Strauss started doing it from late 1990’s for Ladies Jeans
 Individual(ised) Marketing

 Individual marketing- has also been labeled sometimes

as one to one marketing.
 For example. Dell is doing individual marketing, by
taking the order of every individual and prepare the
computer accordingly
 Consumer market targeting
segmentation

Based on usage rate and patterns,

Behavioral price sensitivity, brand loyalty and
segmentation benefits sought

Psychographic
segmentation Based on values, attitudes and
lifestyle
Demographic
segmentation
Based on age, gender, ethnicity,
education and family status
Geographic
segmentation
Based on region, climate, population
density and population growth rate
 Business market targeting
segmentation

Buyer
behavior Based on the loyalty to suppliers,
usage pattern and order size

Customer type
Based on the size of organization,
its industry, position in the value
chain, etc.
Geographic
segmentation
Based on customer concentration,
industrial growth rate and other
macroeconomic factors
Holistic Marketing
 The 4’P’s and the 4’C’s
 McCarthy (1960) offered Marketing Mix, often referred to as the
4Ps (Product, Price, Promotion, Place), as a means of translating
marketing planning into practice
 This concept has been criticised by a number of studies as being
production-oriented and not service products oriented or
consumer-oriented.
 Yes, when the 4Ps concept became famous Services Sector was too
small (Now it is over 50%). Therefore in Services Marketing , later
on, 3 more Ps (People, Process, Physical Evidence)were added –
making it 7Ps . Later another P – Productivity and Quality with
Technology – was added as 8th P { Most books still use 7Ps}
 Lauterborn’s formula, well known as 4Cs is also widely used for
the Consumer Orientation emphasis
 The 4’P’s and the 4’C’s
 The 4Cs are:
 1. Consumer wants and needs (rather than Product): You can only sell what
someone specifically wants to buy
 2. Cost (rather than Price): Price is only a part of the total cost to satisfy a
want or a needs. ‘Total Cost’ involves finding out what else sacrifices a
consumer must make in order to buy a product.
 3. Convenience to buy (rather than Place): takes into consideration the ease
of buying a product, finding the product, finding information about the
product, etc.
 4. Communication (rather than Promotion): While promotion is considered
“manipulative” as it is from the seller, communication suggests an exchange
of ideas between the buyer and the seller; therefore it is “cooperative.” Do not
forget that:
 “Today’s customers take functional features and benefits, product quality, and
a positive brand image as a given. They want products, communications, and
marketing campaigns that dazzle their senses, touch their hearts, and
stimulate their minds.”
 The 4’P’s and the 4’C’s

 Do not forget that:

 “Today’s customers take functional features and benefits, product
quality, and a positive brand image as a given.
 They want products, communications, and marketing campaigns
that dazzle their senses, touch their hearts, and stimulate their
minds.”
 What Is a Brand?

Brand Elements

Brands Versus Products

 Brand

 Brand
 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.
 Differentiate goods and services from those of competitors.
 Creates a certain amount of awareness, reputation,
prominence, and so on in the marketplace.
 Brand Elements

Different components that identifies and differentiates a

brand
 Name, logo, symbol, package design, or other characteristic.
 It can be based on people, places, things, and abstract
images.
 Brand Versus Product
Brand Product
It has dimensions that differentiate it Anything available in the market for
in some way from other products use or consumption that may satisfy
designed to satisfy the same need. a need or want.

It can be differentiated on the basis It can be categorized into five levels

of: namely:
• Packaging • Core benefit level
• Services provided • Generic product level
• Customer advice • Expected product level
• Financing • Augmented product level
• Delivery arrangements • Potential product level
• Warehousing
• Other things valued by the
customers
 Product

 Product
 Can be:
 Physical good - A cereal, tennis racquet, or automobile.
 A service - An airline, bank, or insurance company.
 A retail outlet - Department store, specialty store, super market.
 A person - Political figure, professional entertainer, athlete.
 A place - City or country.
 An idea or a social cause.
 Product

 Five levels of meaning for a product:

 Core benefit level: Fundamental need or want that consumers
satisfy by consuming the product or service.
 Generic product level: Basic version of the product containing only
those attributes or characteristics absolutely necessary for its
functioning but with no distinguishing features.
 Expected product level: Set of attributes or characteristics that
buyers normally expect and agree to when they purchase a product.
 Augmented product level: Additional product attributes, benefits,
or related services that distinguish the product from competitors.
 Potential product level: All the augmentations and transformations
that a product might ultimately undergo in the future.
 Brand

 Brand
 Dimensions may be rational and tangible—related to product
performance of the brand—or more symbolic, emotional, and
intangible—related to what the brand represents.
 A branded product may be:
 A physical good like Kellogg’s corn flakes cereal, Prince tennis
racquets, or Ford Mustang automobiles.
 A service such as Delta Airlines, Bank of America, or Allstate
insurance.
 To Sum Up ....
Through branding, organizations:

 Create perceived differences amongst products.

 Develop loyal customer franchise.
 Create value that can translate to financial profits.
 Why Do Brands Matter?

Consumers

Firms
 Consumers
Encompass all types of customers, including
individuals as well as organizations.

Functions provided by brands to consumers are:

 Identify the source or maker of the product.
 Simplify product decisions.
 Lower the search costs for products internally and
externally.
 Helps set reasonable expectations about what consumers
may not know about the brand.
 Consumers (Continued…)
 Signal product characteristics and attributes.
 On the basis of attributes products can be classified as:
 Search goods
 Experience goods
 Credence goods

 Reduce risks in product decision

 These risk can be categorised as
 Functional
 Physical
 Financial
 Social psychological
 Time
 Search Goods
 Search goods
 Evaluated on the basis of attributes such as sturdiness, size, color,
style, design, weight, and ingredient composition by visual inspection.
 Example - Grocery
 Experience goods
 Evaluated on the basis of features such as durability, service quality,
safety, and ease of handling.
 Example - Automobile tires
 Credence goods
 Consumers may rarely learn attributes.
 Example - Insurance
 Risks

 Risks
 Functional risk - Product does not perform up to expectations.
 Physical risk - Product poses a threat to the physical well-being or
health of the user or others.
 Financial risk - Product is not worth the price paid.
 Social risk - Product results in embarrassment from others.
 Psychological risk - Product affects the mental well-being of the
user.
 Time risk - Failure of the product results in an opportunity cost of
finding another satisfactory product.
 Firms
Brands provide valuable functions
 Simplify product handling and tracing.
 Help organizing inventory and accounting records.
 Offer the firm legal protection for unique features or
aspects of the product.
 Provide predictability and security of demand for the firm
and creates barriers of entry for competitors.
 Provide a powerful means to secure competitive
advantage.
Roles that Brands Play
 Can Anything Be Branded

Physical Goods

Services
 Physical Goods

Business-to-Business Products

High-tech Products
 B2B Products

 B2B products
 Example of B2B brand - Caterpillar
 Guidelines for marketers of B2B brands
 Ensure that entire organization supports branding and brand
management.
 Adopt a corporate branding strategy if possible and create a
well-defined brand hierarchy.
 Frame value perceptions.
 Link relevant non-product-related brand associations.
 Find relevant emotional associations for the brand.
 Segment customers carefully both within and across companies.
 Hi Tech Products

High-tech Products
Struggle with branding due to lack of branding strategy.
Have realised that financial success is no longer driven by product
innovation alone.
Marketing skills play an important role in the adoption and success of
high-tech products.

Guidelines for high-tech branding:

Understand your brand hierarchy and manage it appropriately over time.
Know who your customer is and build an appropriate brand strategy.
Realize that building brand equity and selling products are two different
exercises.
 Hi Tech Products

Brands are owned by customers, not engineers.

Brand building on a small budget necessitates leveraging
every possible positive association.
Technology categories are created by customers and
external forces, not by companies themselves.
The rapidly changing environment demands that you stay
in tune with your internal and external environment.
Invest the time to understand the technology and value
proposition and do not be afraid to ask questions.
 Services

Role of Branding with Services

Professional Services
 Role of Branding with Services

 Role of branding with services

 Challenges in marketing services:
 Less tangible than products and vary in quality.
 Depend on the particular person or people providing them.
 Branding addresses problems related to intangibility and variability.
 Brand symbols help make abstract nature of the services more concrete.
 Provides competitive edge to the services.

 Professional services
 Offer specialized expertise and support to other businesses and organizations.
 Combination of B2B and traditional consumer services branding.
 Challenges:
 Greater variability
 Harder to standardize
 Threat from greater equity of employees
 Can Anything Be Branded

Retailers and Distributors

Online Products and Services

People and Organizations

 Retailer/Distributor Brands

 Retailers and distributors

 Retailers can introduce their own brands by using their store
name, creating new names, or some combination of the two.
 Brand enables retailers and other channel members:
 Generate consumer interest, patronage, and loyalty in a store.
 Create their own brand image by associating quality with
their service , product assortment, and merchandising.
 Yield higher price margins, increased sales volumes, and
greater profits.
 Online Marketer Brands

 Online product and services

 To build successful brands, online marketers should
 Create unique aspects of the brand on dimensions that are important
to consumers.
 Example - Convenience, price, and variety
 Perform satisfactorily in areas, such as customer service, credibility,
and personality.
 Find unique ways to satisfy consumers’ unmet needs.
 Offer unique features and services to consumers.
 Offer unique value propositions to geographically dispersed
customer groups.
 People or Organisation as Brands

 People and organizations

 Product category is people or organization competing for public
approval or acceptance.
 Have well-defined images that are easily understood and liked (or
disliked) by others.
 The idea of brand in this category is not limited to famous and well
known personalities, an individual who builds his name and
reputation in a business context is essentially creating his own brand.
 Right awareness and image is invaluable in shaping the way people
treat and interpret words, actions, and deeds.
 Role of Branding
Sports , Arts, and Entertainment

Geographic Locations

Ideas and Causes

 Branding Sports, Arts
Sports, arts, and entertainment
• Sports teams
• Market themselves through a creative combination of advertising, promotions,
sponsorship, direct mail, digital, and other forms of communication.
• Build awareness, image, and loyalty, to meet ticket sales targets regardless of
the team’s actual performance.
• Art and entertainment
• An example of experience goods i.e. prospective buyers cannot judge quality
by inspection and must use cues such as the particular people involved, the
concept or rationale behind the project, and word-of-mouth and critical
reviews.
• A strong brand is valuable in the entertainment industry because of the fervent
feelings that names generate as a result of pleasurable past experiences.
 Place(Geographic) Branding

Geographic locations
• Increased mobility of people and businesses and growth in the
tourism industry have contributed to the rise of place marketing.
• Refers to actively promoting cities, states and countries through
advertising, direct mail, and other communication tools.
• Aim is to create awareness and a favorable image of a location that
will entice temporary visits or permanent moves from individuals
and businesses.

Ideas and causes

• Branding helps make ideas and causes more visible and concrete.
 To Sum up....
• Branding is universal and pervasive in different product
categories.
• Applicable to both tangible and intangible offerings of an
organization.
• Technological developments have impacted the way firms
market their offerings.
• Organizations reap financial benefits from positive brand
images.
 Strong Brands
• Brands that have been market leaders in their categories
for decades.
• Any brand is vulnerable and susceptible to poor brand
management.
Factors Responsible for Branding Challenges

Savvy Customers

Economic Downturns

Brand Proliferation

Media Transformation
 Branding Challenges
Savvy customers
• It has become increasingly difficult to pursue consumers because:
• Consumers and businesses have become more experienced with
marketing, more knowledgeable about how it works, and more
demanding.
• Current marketing environment has vast number of sources of
information that consumers may consult.
• Empowered consumers play an active role in a brand’s fortune.
Economic downturns
• Changes in economy impact consumers’ purchasing power.
• Research suggest that during recession consumer switch to less
expensive products.
 Branding Challenges
Brand proliferation
• Marketers have increasingly added new products under their brand
umbrella.
• Multiple product brands complicate the decision making process for
marketers.
• As large number of brands engage in expansion, channels of distribution
become clogged, and brands struggle to get products on the shelf.
Media transformation
• Erosion or fragmentation of traditional advertising media and the
emergence of interactive and non-traditional media, promotion, and other
communication alternatives.
• Marketers are spending more on non-traditional forms of
communication.
Factors Responsible for Branding Challenges

Increased Competition

Increased Costs

Greater Accountability
 Factors Responsible for Branding Challenges
 Increased competition
• Both demand and supply factors have contributed to the increase in
competitive intensity.
• Demand for many products and services has flattened and hit the maturity
stage, or even the decline stage, of the product life cycle.
• On the supply side, new competitors have emerged due to factors such as
globalization, low priced competitors, brand extensions, deregulations.
 Increased costs
• The cost of introducing a new product or supporting an existing product
has increased rapidly, making it difficult to match the investment and level
of support that brands received previously.
 Greater accountability
• Different organizational pressures often encourage quick-fix solutions
which may have adverse long-run consequences.
Challenges to Brand Builders
 Brand Equity

Principles of branding and brand equity

 Differences in outcomes arise from the “added value”
endowed to a product.
 The added value can be created for a brand in many
different ways.
 Brand equity provides a common denominator for
interpreting marketing strategies and assessing the value
of a brand.
 There are many different ways in which the value of a
brand can be exploited to benefit the firm.
 Strategic Brand Management Process

Identifying and Developing Brand Plans

Designing and Implementing Brand Marketing

Programs

Measuring and Interpreting Brand Performance

Growing and Sustaining Brand Equity

 Strategic brand management process

• Design and implementation of marketing

programs to build measure, and manage brand
equity.
Identifying and Developing Brand Plans

Brand Positioning Model

Brand Resonance Model

Brand Value Chain

 Developing Brands

Brand positioning model

• Describes how to guide integrated marketing to maximize competitive
advantages.

Brand resonance model

• Describes how to create intense, activity loyalty relationships with
customers.

Brand value chain

• Means to trace the value creation process for brands, to better
understand the financial impact of brand marketing expenditures and
investments.
Designing and Implementing Brand Marketing Program

Choosing Brand Elements

Integrating the Brand into Marketing Activities and

the Supporting Marketing Program

Leveraging Secondary Associations

 Implementing Brand Marketing Program

Choosing brand elements

• The best test of the brand-building contribution of a brand element is what
consumers would think about the product or service if they knew only its brand
name or its associated logo or other element.

Integrating the brand into marketing activities and the supporting marketing program
• Although the judicious choice of brand elements can make some contribution to
building brand equity, the biggest contribution comes from marketing activities
related to the brand.

Leveraging secondary associations

• Because the brand becomes identified with another entity, even though this entity
may not directly relate to the product or service performance, consumers may infer
that the brand shares associations with that entity, thus producing indirect or
secondary associations for the brand.
Measuring and Interpreting Brand Performance

To manage brands profitably, managers must

implement a brand equity measurement system.
Brand equity measurement system involves:
 Brand audits
 Brand tracking studies
 Brand equity management system
 Brand Equity - Measurement
 Brand equity measurement system
• 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 the best strategic decisions in the long
run.
• Brand audits: Comprehensive examination of a brand to, assess its health, uncover its
sources of equity, and suggest ways to improve and leverage that equity.
• Brand tracking studies: Collect information from consumers on a routine basis over
time, typically through quantitative measures of brand performance on a number of
key dimensions marketers can identify in the brand audit or other means.
• Brand equity management system: Set of organizational processes designed to
improve the understanding and use of the brand equity concept within a firm.
• Three steps that help implement a brand equity management system are:
creating brand equity charters, assembling brand equity reports, and defining
brand equity responsibilities.
 Growing and Sustaining Brand Equity

Defining Brand Architecture

Managing Brand Equity Over Time

Managing Brand Equity Over Geographic

Boundaries, Cultures, and Market Segments
 Sustaining Brand Equity
 Defining brand architecture
• Provides general guidelines about branding strategy and the brand elements to be applied across
all the different products sold by the firm.
• Two key concepts in defining brand architecture are:
• Brand portfolio: Set of different brands that a particular firm offers for sale to buyers in a particular category.
• Brand hierarchy: Displays the number and nature of common and distinctive brand components across the
firm’s set of brands.

 Managing brand equity over time

• A long-term perspective of brand management recognizes that any changes in the supporting
marketing program for a brand may affect the success of future marketing programs.
• Produces proactive strategies designed to enhance customer-based brand equity and reactive
strategies to revitalize a brand that encounters problems.

Managing brand equity over geographic boundaries, cultures, and market segments
• In expanding a brand overseas, managers need to build equity by relying on specific knowledge
about the experience and behaviors of those market segments.
Strategic Brand Management Process