The company has adopted its name

from “Nike – the Greek goddess of

victory”. No wonder a ‘swoosh’ was
happily accepted by Nike, as it
accurately signals a sign of victory.
Communication

perception
Explicit Vs Hidden Messages
The yellow underlining arrow points from A to Z, which indicates the
sheer variety of products that the Company handles. It also
resembles a smile to indicate customer satisfaction
The brand comes from Bern, which means “City of
the Bear”.
Can you identify?
 Sun evokes Unilever’s origins in
Port Sunlight and can represent a
number of brands. Flora, SlimFast
and Omo all use radiance to
communicate their benefits

A symbol of beauty and looking

good. Placed next to the flower it
evokes cleanliness and fragrance;
placed near the hand it suggests
softness.
Unique design, sign, symbol, words, or a combination of
these, employed in creating an image that identifies a 
product and differentiates it from its competitors. 

Over time, this image becomes associated with a level of

credibility, quality, and satisfaction in the consumer's mind.

Thus brands help harried consumers in crowded and 

complex marketplace, by standing for certain benefits and 
value. 

Legal name for a brand is trademark and, when it identifies

or represents a firm, it is called a brand name.
Strategies to build up the image
 Branding Strategy
• Leveraging the power of the brand name to cover the
market more effectively
– Brand associations
• Why do we do it?
– Phenomenally expensive to create and promote a new
brand name (at least 100 – 150 million dollars)
– Too many brands out there
– Increase productivity of current marketing programs
 Case 1
• Your brand has a respectable market share but
you want it to grow. What do you do?
– Address segment needs more precisely
• How can you use the popularity of the brand
name to address segment needs even better?
– Sub-branding / umbrella branding
 Sub-branding
• Creating new brands which are part of the
parent brand family – expressed as suffixes of
the parent brand.
• Apple I-Pod, I-Pod Mini, I-Pod Shuffle and now
the I-Pod Nano
 Umbrella branding
• When you have many sub-brands, each linked
to a common brand, then the common brand
is known as the umbrella brand
• E.g. Ford Explorer, Ford Ecosport, Ford
Endeavour etc.
 Case 2
• Your brand has a respectable market share
and you want to protect it from growing
competition. What do you do?
– Address that section of the market which does not
buy your product
• How can you attract customers who do not
buy into your brand’s equity?
– Flanker branding
 Flanker Brand
• Different brand name – same product
– Purpose: Pre-empt competition, cover the market
more completely (protect your flanks)
– Problem: some cannibalization is expected.
• Thums Up and Coca Cola in India
• Tide and Ariel from P&G
 Case 3
• Your brand is strong in your current market.
The market is saturated and you are looking to
diversify. What do you do?
– Identify another product and give it the same
brand name
• If the new product is in the same product line
– Line Extension
• If the new product is from a completely
different product line – Brand Extension
 Brand Extension
• Same brand name, new product line e.g. Reebok
shoes and Reebok water. Nike shoes and Nike
casuals.
• The concept of congruence determines the success
of a brand extension strategy. E.g. Johnson’s baby
powder and Johnson’s baby oil – high congruence.
But imagine Lizol floor cleaner and Lizol toothpaste!!!
 Line Extension
• Same brand name, different product in the
same product line.
– E.g. IBM PCs and IBM laptops
– Line extensions are safer strategies than brand
extensions since congruence is always higher.
 Case 4
• Your brand is sold in the B2B market as a component
of another product. You want the brand to get
consumer recognition and equity. What do you do?
– Tell consumers about your brand’s presence in the final
product
• Ingredient branding: Branding an ingredient of the
main brand, which is often manufactured by a
different company.
• E.g. Intel Inside is an ingredient brand on IBM, Dell,
Compaq, etc. computers.
 Case 5
• You have a strong brand but want to penetrate the
market even better. What do you do?
• Complementary Branding OR Co-branding – when
two or more mutually reinforcing brands get
together to jointly promote themselves (one is not
an ingredient of another).
• E.g. Harley Davidson and Ford Explorer.
 Product-Market Matrix
Product

NEW Market Development Diversification

Brand extension Brand extension
Line extension

Market Penetration
OLD Sub-branding Product Development
Flanker brands Co-branding
Co-branding Ingredient branding
Market
OLD NEW
 Product Line-Brand Matrix

NEW Flanker Diversification

Brand

Brand
Name
EXISTING Line Brand
Extension Extension

EXISTING NEW
Product
Line
 Kapferer’s branding system
• Product brand - exclusive name to single product (Tide, Dove)
• Line brand - same concept across different products (VW)
• Range brands - one name on group of products having same
ability (Scotch Brite)
• Umbrella brand - supports products in different markets
(Canon cameras, copiers, office equip
• Source brand - products directly named (CK clothing, cologne)
• Endorsing brand - wide diversity of products under product,
line brands or range brands (GM)
 The 5 factors that define a brand
1. The Brand Promise
At its core, a brand is a promise to consumers. What will consumers
get when they purchase a product or service under your brand
umbrella? The brand promise  incorporates more than just those
tangible products and services. It also includes the feelings that
consumers get when they use your products and services.

Example: Think about your favourite brand and what that brand

promises to you. If you’re a Nike fan, the brand might
represent athleticism, performance, strength, good
health, and fun. Your brand promises something to consumers.
What is it?
 The 5 factors that define a brand
2. The Brand Perceptions
Brands are built by consumers, not companies. Ultimately,
it’s the way consumers perceive a brand that defines it. It
doesn’t matter what you think your brand promises. The
only thing that matters is how consumers perceive your
brand. You need to work to develop consumer perceptions
that accurately reflect your brand, or your brand is doomed
to limited growth potential.
Example: What are consumers’ perceptions of Big B? You
can bet everything he does is meant to create specific
consumer perceptions.
 The 5 factors that define a brand
3. The Brand Expectations
Based on your brand promise, consumers develop expectations
for your brand. When they pull their hard-earned money out of
their pockets and purchase your products or services, they
assume their expectations for your brand will be met. If your
brand doesn’t meet consumer expectations in every interaction,
consumers will become confused by your brand and turn away
from it in search of another brand that does meet their
expectations in every interaction.

Example: Imagine Rolls Royce launched a Rs1,00,000 car. To say

the least, consumers would be extremely confused because such
a product doesn’t meet their expectations for a luxury brand.
 The 5 factors that define a brand
4. The Brand Persona
Rather than asking, “What is a brand?” a better question might
be, “Who is a brand?” Every brand has a persona. Think of your
brand as a person. What is that person like? What can you expect
when you interact with that person? From appearance to
personality and everything in between, your brand persona is
one that consumers will evaluate and judge before they do
business with you.

Example: Think of it this way. Who would you rather spend time

with — Apple or Microsoft? These two brands have very different
brand personas.
 The 5 factors that define a brand
5. The Brand Elements
Your brand is represented by the intangible elements described
above as well as tangible elements such as your brand logo,
messaging, packaging, and so on. All of these elements must
work together to consistently communicate your brand
promise, shape brand perceptions, meet brand expectations,
and define your brand persona. If one element is awry, your
entire brand can suffer.

Example: There is a reason why that Cadbury Logo in purple

has been around for so long. It means something to consumers.
 Brand elements

Name: the word or words used to identify a company, product, service,

or concept

Logo: the visual trademark that identifies a brand

Catchphrase: “Life is good" is associated with LG

Graphics: the "dynamic ribbon" is a trademarked part of Coca-Cola's

brand

Shapes: the distinctive shapes of the Coca-Cola bottle and of the

Volkswagen Beetle are trademarked elements of those brands
Colours: Yellow colour of Yellow Pages.

Sounds: a unique tune or set of notes can denote a brand.

Scents: the rose-jasmine-musk scent of Chanel No. 5 is

trademarked

Tastes: Kentucky Fried Chicken has trademarked its special

recipe of eleven herbs and spices for fried chicken

Movements: Lamborghini has trademarked the upward

motion of its car doors
Simply put, your brand is your promise to
your customer. It tells them what they can
expect from your products and services,
and it differentiates your offering from that
of your competitors. Your brand is derived
from who you are, who you want to be and
who people perceive you to be
A brand name instantly informs
customers about a company’s
reputation, enabling them to trust the
quality of each product or service that
business offers. The very mention of the
brand name (or the sight of the brand
logo) conjures all of a customer’s
experiences and perceptions of a
business—good and bad.
A movie-going parent will assume
that a Disney movie is going to be
family-friendly.

A growing business purchasing a new

mainframe and system from IBM can
be confident that the new hardware
and software has been proven in many
other businesses.
 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.
• A product may be a physical good, a service, a retail
outlet, a person, an organization, a place, or even an
idea.

1.44
 Five Levels of Meaning for a Product
• The core benefit level is the fundamental need or want that
consumers satisfy by consuming the product or service.
• The generic product level is a basic version of the product containing
only those attributes or characteristics absolutely necessary for its
functioning but with no distinguishing features. This is basically a
stripped-down, no-frills version of the product that adequately
performs the product function.
• 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 that distinguish the product from
competitors.
• The potential product level includes all the augmentations and
transformations that a product might ultimately undergo in the
future.

1.45
 Product Levels

• Generic Product.
• Expected Product.
Types
• Augmented Product.(more than expected)
• Potential Product Level. (Augmentation that the
product may undergo in future).

• Brand duty here is to identify the generic product.

• Emphasizing on its importance and difference from
others.
Brand • Mainly it identifies the product or service.
Function • Although Myopically it sometime falters, since it
forgets that it exists because of and for customers.

Thus the bottom line is that function of a Brand is to transform the

product, adding value that the customer covet.
 The Product and Product Mix

• Nondurable
Product – Tangible
Classifications – Rapidly consumed
– Example: Milk
• Durable
• Durability and – Tangible
tangibility – Lasts a long time
– Example: Oven
• Consumer goods • Services
– Intangible
• Industrial goods – Example: Tax preparation
 The Product and Product Mix

Product • Classified by
Classifications shopping habits:
– Convenience goods
• Durability and – Shopping goods
tangibility – Specialty goods
• Consumer goods – Unsought goods
• Industrial goods
 The Product and Product Mix
• Materials and parts
Product – Farm products
– Natural products
Classifications – Component materials
– Component parts
• Durability and • Capital items
– Installations
tangibility – Equipment
• Consumer goods • Supplies and business
services
• Industrial goods – Maintenance and repair
– Advisory services
 The Product and Product Mix

• Product mix dimensions:

– Width: number of product lines
– Length: total number of items in mix
– Depth: number of product variants
– Consistency: degree to which product lines are
related
 Product-Line Decisions

• Product-Line Analysis
• Product-Line Length
• Product-Line Modernization, Featuring, and
Pruning
• A brand is therefore more than a product, as it
can have dimensions that differentiate it in
some way from other products designed to
satisfy the same need.
• Some brands create competitive advantages
with product performance; other brands
create competitive advantages through non-
product-related means.

1.53
 Why do brands matter?
• What functions do brands perform that make
them so valuable to marketers?

1.54
 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

1.55
 Reducing the Risks in Product Decisions
• Consumers may perceive many different types of risks in buying
and consuming a product:
• 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.
• Time risk—The failure of the product results in an opportunity
cost of finding another satisfactory product.

1.56
 Can everything be branded?
• Ultimately a brand is something that resides in
the minds of consumers.
• The key to branding is that consumers perceive
differences among brands in a product category.
• Even commodities can be branded:
– Coffee (Maxwell House), bath soap (Ivory), flour
(Gold Medal), beer (Budweiser), salt (Morton),
oatmeal (Quaker), pickles (Vlasic), bananas
(Chiquita), chickens (Perdue), pineapples (Dole), and
even water (Perrier)

1.57
 An Example of Branding a Commodity

• De Beers Group added the phrase “A Diamond

Is Forever”

1.58
 What is branded?
• Physical goods
• Services
• Retailers and distributors
• Online products and services
• People and organizations
• Sports, arts, and entertainment
• Geographic locations
• Ideas and causes
1.59
 Source of Brands Strength
• “The real causes of enduring market leadership
are vision and will. Enduring market leaders have
a revolutionary and inspiring vision of the mass
market, and they exhibit an indomitable will to
realize that vision. They persist under adversity,
innovate relentlessly, commit financial resources,
and leverage assets to realize their vision.”
Gerald J. Tellis and Peter N. Golder, “First to Market, First to Fail?
Real Causes of Enduring Market Leadership,” MIT Sloan
Management Review, 1 January 1996

1.60
 Attributes of Strong Brands
• Excels at delivering • Well-designed brand
desired benefits hierarchy
• Stays relevant • Uses multiple
• Priced to meet marketing activities
perceptions of value • Understands
• Positioned properly consumer-brand
• Communicates relationship
consistent brand • Supported by
messages organization
• Monitors sources of
brand equity
 Marketing Advantages of Strong Brands

• Improved perceptions of • Elastic consumer

product performance response to price
• Greater loyalty decreases
• Less vulnerable to • Greater trade
competition cooperation
• Less vulnerable to crises • Increase in
• Larger margins effectiveness of IMC
• Inelastic consumer • Licensing
response to price opportunities
increases • Brand extension
 • Visual/ Verbal Perspective.
• Positioning Perspective.
• Value Perspective.
• Brand Image Perspective.
BRAND
PERSPECTIVE • Added value Perspective.
• Perceptual Appeal
Perspective.
• Personality Perspective.
 Brand Decisions

• Brand identity decisions include:

– Name
– Logo
– Colors
– Tagline
– Symbol
• Consumer experiences create brand bonding,
brand advertising does not.
 Brand Decisions

• Marketers should attempt to create or

facilitate awareness, acceptability,
preference, and loyalty among consumers.
• Valuable and powerful brands enjoy high
levels of brand loyalty.
 Brand Decisions

• Aaker identified five levels of customer

attitudes toward brands:
– Will change brands, especially for price. No
brand loyalty.
– Satisfied -- has no reason to change.
– Satisfied -- switching would incur costs.
– Values brand, sees it as a friend.
– Devoted to the brand.
 Brand Decisions

• Brand equity refers to the positive

differential effect that a brand name has on
customers.
• Brand equity:
– is related to many factors.
– allows for reduced marketing costs.
– is a major contributor to customer equity.
 Brand Decisions

Key Challenges • Advantages of

branding:
• To brand or not – Facilitates order
processing
• Brand sponsor – Trademark protection
• Brand name – Aids in segmentation
• Brand strategy – Enhances corporate
image
• Brand repositioning
– Branded goods are
desired by retailers
and distributors
 Brand Decisions

Key Challenges • Options include:

– Manufacturer
• To brand or not (national) brand
– Distributor (reseller,
• Brand sponsor store, house, private)
• Brand name brand
• Brand strategy – Licensing the brand
name
• Brand repositioning
 Brand Decisions

Key Challenges • Strong brand names:

– Suggest benefits
• To brand or not – Suggest product
qualities
• Brand sponsor
– Are easy to say,
• Brand name recognize, and
• Brand strategy remember
– Are distinctive
• Brand repositioning – Should not carry poor
meanings in other
languages
 Brand Decisions

• Varies by type of brand

Key Challenges – Functional brands
– Image brands
• To brand or not – Experiential brands
• Brand sponsor • Line extensions
• Brand extensions
• Brand name • Multibrands
• Brand strategy • New brands
• Brand repositioning • Co-branding
 Brand Decisions

Key Challenges • A brand report card

can be used to audit
• To brand or not a brand’s strengths
• and weaknesses.
Brand sponsor
• Changes in
• Brand name preferences or the
• Brand strategy presence of a new
• Brand repositioning competitor may
indicate a need for
brand repositioning.
CDM-Kuch_Meetha_Ho_Jaaye_1.mp4