MARKETING MANAGEMENT

³Branding is the art and cornerstone of marketing.´

Branding
‡ Brand is 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. Ex:

Brand Equity
Brands vary in the amount of power and value they have in the market place. 5 levels of customer attitude towards a brand 1. Customer will change brands especially for price reasons ± No Brand Loyalty 2. Customer is Satisfied. No reason to change the brand. 3. Customer is Satisfied and would incur costs by changing brand. 4. Customer values the brand and sees it as a friend. 5. Customer is devoted to the brand. Brand Equity is highly related to how many customers are in classes 3, 4, or 5.

positive symbols and favourable associations around the brand « a bundle of all these attributes together result in brand equity. . consumer loyalty. Usership of the brand. It is the net result of all the investment and effort that a marketer puts into building a brand.Brand Equity (cont«d) Brand Equity is defined as the unique set of brand assets and liabilities that is linked to a brand. perceived quality.

.Brand Equity (cont.d) Some of the Most valuable brands in the world are .

80 Crores . Limca. a Financial Concept ‡ paid Rs.Brand Equity.40 crore for buying out Parle brands ± Thums Up. Gold Spot and Citra ‡ bought over Transelektra¶s Good Knight and Hit for Rs.

High Brand Equity provides a number of competitive advantages  The Company will enjoy reduced marketing costs because of consumer brand awareness and loyalty  The Company can charge a higher price than its competitors because the brand has higher perceived quality.  The Company will have more trade leverage in bargaining with distributors and retailers because customers expect them to carry the brand. .  The Company can more easily launch extensions because the brand name carries high credibility.  The brand offers the Company some defense against price competition.

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SELECTING BRAND NAME A good brand name will be distinctive. the mosquito repellant. offers a good night¶s sleep Boost is the energy booster drink Aquaguard gives protected water Fair & Lovely promises fair and lovely skin TVS named its tyre as Srichakra . Different Approaches in selecting brand names 1. Names communicating the functions/attributes of the product Ex: GoodKnight. easy to pronounce and remember.

Ingredient Branding .

. Names.d) 2.Selecting Brand Name Cont. which communicate the specialty of the product Ex: The name ³Taj´ given to the hotel chain of Indian Hotels is an attempt to recapture and reflect the Moghul splendour .

Use of Acronyms Sometimes brand names are acronyms..Selecting Brand Name (Cont.d) 3. Ex: originated from Anand Milk Union Ltd MRF originated from Madras Rubber Factory .

pictures.words.Selecting the Logo Logo enhances recognition by the provision of a symbol of identity. alphabets. The logo can be made of anything. A logo is a pictorial symbol intended to communicate with the consumers. graphic designs or even a splash of colours. .

d) Brand Name Kelvinator Goodlass Nerolac Asian Paints Air India Onida MRF radial Logo Penguin Bird Tiger Gattu Maharaja The green-eyed devil The man with steel muscles .Selecting the Logo (cont..

it has Pepsopdent. Individual names: Each product of the company is given an independent brand name. Close-up . Lifebuoy. Ex: HLL. Liril. Pears. In detergents line. it has Surf. Lux. Rin. HLL has several brands like Dove. Hamam. & Wheel In tooth pastes line. Sunlight. gives separate brand names for most of its products In bath soaps line.Brand-Name Decision 1.

Johnson¶s baby soap. VCRs. Johnson & Johnson sells many of its baby care products under the Johnson¶s brand name ± Johnson¶s baby powder. Johnson¶s baby shampoo etc .Brand-Name Decision (Cont.d) 2. Blanket Family Names: Different products of the company are marketed under one brand name. ghee and chocolates Videocon is a family brand name for a variety of products of Videocon Corporation. butter. refrigerators. washing machines and air conditioners go under the same name. Its TVs.. Ex: Amul is the common brand name for the company¶s milk powder.

.d) 3. Separate family names for all products Ex: has also developed certain umbrella brands. . is an umbrella brand for its tea and coffee products.Brand-Name Decision (Cont.

µs Lakme is an umbrella brand to cover a variety of products ranging from nail polish to perfumes .Separate family names for all products µs Kissan is an umbrella brand for its food line.

µs Milkmaid for condensed milk. soups. ketchups and jams. sauces.Separate family names for all products Ex: is an umbrella brand for several food items like noodles. Cerelac for baby food . pickles.

d) 4.Brand-Name Decision (Cont. Kellogg¶s Raisin Bran Cadbury¶s Dairy Milk. Hero Honda CBZ Kellogg¶s Corn Flakes. Bajaj Discover Hero Honda Karizma.. Cadbury¶s 5 Star . Godrej No:1 Bajaj Pulsar. Company trade name with individual product names Ex: Godrej Cinthol.

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Colgate Total. Ex: Lifebuoy Personal. Lifebuoy Active Lifebuoy Gold Lifebuoy Plus Ex: Surf Ultra. Colgate Cibaca. sizes of the existing product category. Colgate Maxfresh . Colgate Herbal. Surf International Ex: Colgate Dental Cream. Colgate Calciguard.Line Extensions ‡ Existing Brand names extended to new forms. Surf Excel. Colgate Gel. flavours. Colgate Salt.

‡ Changing consumer tastes can be accommodated through line extensions. ‡ Advertising & other promotion costs can be reduced to some extent.Advantages of Line Extension ‡ It strengthen brand power and keep brand live and modern. .

. and it basically means extending a brand name to new products.Brand Extension ‡ It is an effective tool/weapon in brand management.

motorcycles..Brand Extensions Existing brand names extended to new product categories Ex: Honda uses its company name to cover such products as cars. marine engines etc. . scooters.

Brand Extension Existing brand names extended to new related product categories Ex: Pond¶s Dreamflower Talc Pond¶s Dreamflower Talc Magic Pond¶s Cold Soap Pond¶s Face Wash Pond¶s Cold Cream Pond¶s Moisturising Lotion Pond¶s Dreamfower Soap .

Maggi Soup etc.Maggi Ketchup. Later.Ex: initially was a brand of noodles. Ex: Dettol Soap-antiseptic soap Dettol Plaster-antiseptic bandage Dettol Handwash-antiseptic wash . the brand name was extended to other product lines in the related category food.

‡ When a brand lends for premium pricing.Advantages of Brand Extension ‡ Helps the new item to acquire instant brand recognition ‡ Saves costs. benefit of brand extension is all the more significant ‡ Extensions also help build the brand into a µsuperbrand¶ in the minds of consumers.a brand extension costs much less than launching a new brand. .

Sunlight.Multibrands ‡ New brand names introduced in the same product category. Ex: HLL is using Surf. New Brands ‡ New brand names in the new product categories . Ala brand names for its fabric wash product line. Wheel. Rin.

Dell. Each sponsor expects that the other brand name will strengthen preference or purchase intention. in which two or more well-known brands are combined in an offer. Google on AirTel Reliance with LG mobiles . and Compaq convinced many personal computer buyers to buy only computers brands with ³intel inside´.Co-brands ‡ Co-branding also called dual branding. Ex: Intel¶s consumer-directed brand campaign with IBM.

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