Brand Management

Subject Code: MB 1402

MBA- Semester-IV

Prepared By: Mrs. Santosh Bali

 Objective and Outcome of Course

Understanding the key issues

 In creation of Profitable Brand Strategies
 Understanding Brands & Brand Management
 In building and maintaining brands
 Understanding Brand Extension
 Brand Communications & Brand Loyalty
 Understanding the Brand Equity Concept
 Measuring Brand Performance
 Unit –I- Introduction

• Basic introduction of Brands

• Definitions
• Branding concept
• Function of Brands
• Significance of Brands
• Different Types of Brands
• Commodities Vs Brands
 Unit -I

• Brand and Brand Management

• Role of Brand Manager
• Strategic Brand Management process
• Building Strong Brands
• How it has evolved over time
• Branding Challenges and opportunities
 Meaning of Brands
 A type of product manufactured by a particular company under a
particular name is called Brand.

 A brand is a product, service, or concept that is publicly distinguished

from other products, services, or concepts so that it can be easily
communicated and usually marketed.

 A brand name is the name of the distinctive product, service, or concept.

Branding is the process of creating and disseminating the brand name.

 A brand is a set of expectations, memories, stories and relationships that,

taken together, for a consumers decision, to choose one service over
another.

 A brand conveys positive or negative perceptions in multiple ways

including human behaviour & consumer psychology.
 Definition OF BRAND
 A brand is defined as a "name,
term, sign symbol (or a combination
of these) that identifies the maker or
seller of the product“.
(Philip Kotler)

 Brand is a name, term, symbol, design

or combination of them which is
intended to signify the goods and
services of a seller or a group of
sellers and to differentiate them from
those of competitors”
[American Marketing Association]
 Brands

 The brand is a term which describes a product, give

identification and make it distinguish from other
competitors. A brand can be considered as a commitment
and established the association with the target consumers.
(Bond and Kirshenbaum, 2004:161)

Brand is the sum of knowledge about a product which is

formed by a series of experiences. A brand develops in the
mind and reinforced the customer all points of contact with
the creation of different and memorable image in the mind
of customer
 Characteristics of Good Brand:
A good brand should have some special
characteristics which make the product popular.
It should be should be exceptional and unique.
Easy pronunciation of brand name can make
the band memorable.
It should be extendable.
A Good brand should provide the idea about
products benefits and quality just by name.
The language of brand name should be easily
convertible in foreign languages.
 Characteristics of Good Brand

 It should not describe ghastly/wrong sense or meaning in

other categories.
 A good brand always is the relevant and meet people’s
expectation.
 The consistent brand can build customers trust in consumers.
 Proper positioning of a strong brand can make a position in
target consumers mind and they have a preference it over
other brands.
 A strong brand should perform what it promises.
 It should the credibility towards their consumers.
 Inspirational, Uniqueness and appealing attributes can make
a brand stronger than competitors
BRANDS CREATE BENEFITS FOR CUSTOMERS & FIRMS
 Offered brands must meet the needs and
desires of the consumers.
 Buyer can identify the product & marketer.
 It’s helpful in time to save for purchases,
 Brand helps in evaluation product and judge
the product characteristics.
 It reduces risk & psychological reward from
owning the brand.
 Benefits of Brands
 Consistently used brands with positive experience become
trustworthy and give peace of mind to the customers.

 Trustworthy brands save decision-making time and

desirable than comparable products.

 Disappointment due to the risk of unknown brands can be
reduced by brand awareness.

Consumer start recognizes that brand and remains

dedicated and trustworthy to a brand and extended that
believes with a natural understanding that the brand will
carry on the meeting their expectations
 Benefits of brands
 Strong Brands increased the credibility of the
products by improving the perception of customers
in the competitive market.
 Strong Brands support to be established in the
competitive market.
 Strong brand increases the sense of stability and
improves potential customers for long period by
establishing trust.
 Properly branded companies have reduced the risk
of losing market share. Established brands come
into sight as an eye-catching and complete to the
potential buyers.
 Benefits of Brands
 More complete and more attractive to potential buyers.

 Brands become the most valuable assets like brand equity for
the companies which are capable to increase the value of
finance or business to potential customers.

 Good branding makes a feeling of emotional attachment to

something bigger and a sense of satisfaction with the
association with that particular brand.
 Significance of Brands

 An appropriate branding has a significant impact on

conversions.
 A trustworthy brand can easily be accepted by customers with
innovations and improved products.
 Branding can educate potential customers about the brand
through suitable marketing campaigns, which can move
customers through the sales funnel.
 Communications of Brand Attributes, Mission of Company,
Value Proposition, Price, Quality, and Compression with
Competitive Brands, brand identity highlights the brand's
uniqueness and have a huge impact on competitors.
 Significance of Brands

 Strong brands provide never –endings benefits

to the business recognition,
 Competitive perimeter in the market,
 straightforward introduction of innovative
products,
 loyalty and collective values,
 Enhance credibility and effortlessness
purchasing by the potential customers.
 Brand management (Meaning)

 Brand Management is the analysis and

planning on how a brand is perceived
(seeming) in the market in Marketing.
 Developing a good relationship with the target
market is essential for brand management.
 It is the process of identifying the core value of
a particular brand
 Reflecting the core value among the targeted
customers
 Brand Management (Elements)

 Tangible elements of brand management include

the product itself
its look (Appearance)
Price, and
Packaging, etc.
 The intangible elements are
Experiences that the consumers share
with the brand
Relationships they have with the brand.
Association with the brand
 Brand Management (Functions)
A brand manager would oversee all aspects of
the consumer's brand association and
relationships with members of the supply
chain

 Brand management build brand credibility and

credible brands only can build brand loyalty,

 Spring back back from circumstantial crisis,

and can benefit from price-sensitive
customers.
 Definition of Brand Management

• "the process of creating a relationship or a

connection between a company's product and
emotional perception of the customer for the
purpose of generating segregation among
competition and building loyalty among
customers."

• Brand Management is a fulfillment in customer

expectations and consistent customer satisfaction.
(Keller,2008)
 Building Brand:-By Marketing Tools (4 Ps)
 As a first step, marketers should define what they
want their brand to represent(brand identity).
Once marketer have a clear idea of the brand’s identity,
they can use marketing tool to build the brand. Using
a 4 P’s framework
 product,
 price,
 place,
 promotion
marketer can create a promotional strategy that
utilizes both promotional advertising and inventive
approaches.
Marketing tools 4 ‘p’s to 7 ‘p’s
Marketing tools 4 ‘p’s to 7 ‘p’s
 Marketing tools 4 ‘p’s to 7 ‘p’s
• People – All companies are dependent on the people who run
them from front line Sales staff to the Managing Director.
Having the right people is essential because they are as much a
part of your business offering as the products/services you are
offering.

• Processes –How we restore earn the confidence of our customers,

e.g. impressive buildings, well-trained staff, great website etc…
how we deliverers our product and services to our customers.
by more sales staff are now involved in alteration.

• Physical Evidence – Almost all services include some physical

elements even if the bulk of what the consumer is paying for is
intangible. ( connection with customers with sales staff, packaging,
appearance etc….)
 Strategic Brand Management Process

 Strategic Brand Management Process involves planning,

implementing and controlling marketing programmes and
activities to build, measure and manage brand equity.
Whereas, brand equity means commercial value that derives
from customer perception to the brand name.

Strategic brand management process involves following

steps :

• Identifying and establishing brand positioning and value.

• planning and implementing brand marketing programs.
• Measuring and interpreting brand performance.
• Growing and sustaining brand equity.
 Identifying and establishing brand positioning and value

 Clear understanding of what the brand is to represent

and how it should be positioned with respect to
competitors

 Brand positioning is the act of designing company

image customer’s mind
 planning and implementing brand marketing programs:

• Planning marketing activities and supporting marketing

programs and the way brand is integrated into them
• It involves three factors :
 Choosing brand elements
 Integrating the market into marketing activities and
supporting marketing program
 Leveraging secondary associations
 Measuring and interpreting brand performance

 includes set of research procedure designed to provide timely,

accurate and actionable information for marketers so that they
can make best decision in short run and best strategic decision
in long run
 To understand the effects of brand marketing programs,
marketer should measure and interpret brand awareness
 Growing and sustaining brand equity:

 Maintaining and expanding brand equity can be

quite challenging

 Managing brand within the context of other

brands as well as multiple categories, over time,
and across multiple market segments

 Brand reinforcement and revitalization

 Measuring Brands by the brand manager
 What does the brand mean to customers?
 What product associations do customers have
and their attitudes toward the brand?
 What colors are associated with the brand?
 What is the brand’s personality and what are
the perceptions of the brand’s country of
origin?
 Monitoring customer’s impression of all these
important elements of the brand plays an
important role in brand management.
 BUILDING STRONG BRANDS

 Building Brand by Advertising & Awareness

 Leveraging (Best influencing power)
 Identifying the position the brand hold
 Protecting Brands from the past brand investment
 Establishing and managing and maintaining the
brands

 process is a new framework for understanding,

managing, and organizing the full scope of brand
management task.
 LEVERAGING BRANDS:-UTILIZE THE BRAND AS ASSETS
 return on their investment,
 best utilize their brand assets by
Leverage some of the brand’s established equity to create
line extension, brand extension, or co-brand products.
 Line Extension : Adding a new form of a product or service is generally
regarded as the easiest extension, but is likely to generate low incremental
revenue.

 Brand Extension : This type of extension differs from a line extension in that
it consist of extending the products or services brand into a new category. A
brand extension has the benefits of real growth opportunity, but the
drawback is the potential for costly mistakes

 Co-Branded Products : This method of leveraging brands consist of an

alliance of complimentary brands. This can often take the form of ingredient
branding. A good marketing strategy will consider whether co-branding is
appropriate for particular situations.
 PROTECTING THE BRAND
 The area of strategic brand management has historically
been short-changed, being forgotten as the brand building
bandwagon took off.

 However, it is not taking it’s rightful place as a key element of

strategic brand management.

 Traditionally, protection come from legal teams whose work

with trademark remains an element of protecting the brand but
is, by no means, the entire protection needed.
Study of Determinants of Consumer Buying Behavior to
build strong brands
 Branding Opportunity

Take Advantage Of Every Branding Opportunity

• By sponsor charitable organization

• Health programmes ( Free Camp)
• Environmental Support Programmes
• Animal Protection Campaign
• Educational Support
• Religious or cultural Support programmes
 Branding Opportunities
there are lots of ways to show your support and build your brand.
• events organizers for branding opportunity.
• Funds opportunities
• Athletic events, By provide branded items such as T-shirts,
bike jerseys, hats, and water bottles dinner programs
• Conferences sponsors
• Promotional Gifts for the participants
• Logo Placements
• E-Mail Signature
• Online Publicity
• Creating a digital branding strategy
• strong internet presence, especially social media

These are excellent branding occasions.

 Branding Challenges
ENVIRONMENTAL PRESSURES ON BRAND MANAGEMENT
 Marketers must create competitive advantage by constantly
adapting to and instigating change.
 An innovative product or program loses its competitive edge
and the ability to command price and/or share premiums as
soon as competitors are able to duplicate or counter its
capabilities.
 Hence, successful marketers must dare to be different, not only
to get ahead, but to stay there.
 However, adaptations to market changes are likely to be more
successful if actions are guided by knowledge of the forces
shaping market behavior and insights that enable the
development of sustainable competitive advantages.
 Branding Challenges
 Globalization of Competition and Greater Openness of
Markets

 The globalization of the world economy can present

discouraging challenges.
 Technology developed in the United States can be
converted to product designs in Japan, manufactured in
Thailand, and distributed worldwide by traders in Hong
Kong.
 Collaborating with competitors become a great challenges.
 The strength of global challenges encourages domestic
competitors to form alliances and creates pressures for
changes in antitrust regulation to make the alliance feasible
 Branding Challenges
 Product innovation
union of product-markets
combines functions of a laser printer, copy machine,
optical scanner, and fax machine. This development
was feasible because all functions are driven by the
same digital technology.

 Time-based competition (market entry timing). In an

era of rapid technological change accompanied by
fast innovation, shorter product life cycles, and
converging markets, time-based competition is
becoming increasingly important.
 Branding Challenges
 Gathering the best customers-An innovating company often
has the ability to cherry-pick customers who are likely to buy
more or willing to pay more

 Developing a reputation for innovation

 Shorter order fulfillment cycles & Mass customization

 The Increased Power of Distributors and the development of

Channels
Branding Challenges
Branding Challenges
 Branding Challenges
 competition (25%) and cost control (21%) are the two biggest
challenges faced by suppliers.
Branding Challenges
Branding Challenges
 Important Terms and Concepts

• Brand Advertisement
• Brand Sales promotion
• Brand Awareness
• Brand positioning
• Brand Knowledge
• Brand Price
• Perceived Quality
• Brand Image
• Brand Purchase behavior
• Brand Association
• Brand Satisfaction
• Brand Attachment
• Brand Trust
• Brand Loyalty
• Brand Equity
• Brand Extension
 Branding Decisions –
4 Brand Strategy Decisions to Build strong Brands
 BRAND POSITIONING
Brand positioning is to create a unique impression in the
customer's mind so that the customer associates something
specific and desirable with brand that is distinct from rest of
the marketplace

• Brand positioning is defined as the conceptual place you want

to own in the target consumer's mind
• The benefits you want them to think of when they think of your
brand.

• An effective brand positioning strategy will maximize customer

relevancy and competitive distinctiveness, in
maximizing brand value
 Steps of Brand Positioning
 Select the target customer group you want to
focus on.
 Develop a list of needs of target customer
group has that you intend to meet.
 List your product/service's benefits that
uniquely meet these needs.

Positioning is the process of identifying an

appropriate market position for a product (or
service or brand) and getting it established in
that area.
 Brand Positioning

• A positioning statement is an expression of how a given

product, service or brand fills a particular consumer need in a
way that its competitors don't.

• Positioning establishes a preference for

your brand relative to competitive offerings
based on the perception of a unique and
important difference.
3 c’s Model of Brand Positioning
Brand Positioning
Brand positioning in customer's mind
Branding Decisions – Brand Sponsorship Options
Branding repositioning
 Vision, mission and value of brands
• Brand Vision
• Brand Mission
• Brand Value
• Brand Elements
• Branding for Global Markets-
• Competing with Foreign Brands,
• Brand Portfolios and
• Market Segmentation.
 Brand vision meaning
Brand vision refers to the ideas behind
a brand that help guide the future.
When the brand vision reflects and supports
the business strategy, differentiates from
competitors, vibrates with customers,
strengthen and inspires employees and
partners, and provide the flow for the ideas of
marketing programs
 Steps for creating Brand vision
Step 01. Define who you are and what makes you
unique
Step 02. Create a branded personality
Step 03. Define your core values
• What is the history of my brand and company?
• What unique benefits does my product/service
offer?
• What materials are my products crafted from?
• How is my product created?
• What unique experience does my brand offer to
people?
 Importance of Brand vision
The ideas behind your brand define you.
Getting your brand's vision right can help you
attract more customers and make the selling
process easier. ...

Brand vision and brand values send personal

and emotional signals to potential customers,
allowing them to connect with your company
and develop loyalty.
Brand
Brand vision
Brand vision meaning
 Brand mission

A brand mission is a short statement that

declares a brand's purpose. ... A foundational
statement about a brand's identity that is
meant to both inspire customers and provide
strategic direction
 Difference ; Brand vision and mission
Organizations summarize their goals and objectives in
mission and vision statements.

Both of these serve different purposes for a company

but are often confused with each other.

A mission statement describes what a company wants

to do now, How to achieve the aim of the company.

A vision statement outlines what a company wants to

be in the future. plans of the aims of the company to
achieve.
 Mission v/s vision
The Mission Statement concentrates on the
present; it defines the customer(s), critical
processes and it informs you about the desired level
of performance.

The Vision Statement focuses on the future; it is a

source of inspiration and motivation. Often it
describes not just the future of the organization but
the future of the industry or society in which the
organization hopes to effect change.
Vision by Taglines
 Branding for global market
Global brands are brands that are recognized
throughout much of the world.

Global branding refers to brands that are marketed

globally.
 How to Built international brands

What you need to expand.

Brand awareness for Building International Brand.
Building International brand symbols for global
market.
Dimension of Global brand.
Globate consumer segments
New opportunities New responsibility.
Strategies to build Global Brand
 Global brand management
Successful global brand management is a
balancing act between local level objectives
and international strategic vision.

In a world of globalization, multinational

companies and expanding online commercial
and social communications, global brand
management has develop into a complex and
ever changing discipline
 Built International brands
 Once you're on the Web, you're accessible pretty much anywhere in the
world.

 Understand What You’re Selling – if you’re looking to shift from a local market to an
international presence, it’s critical to evaluate how your brand will translate, literally
and culturally.

 Have A Single Philosophy But modify A Powerful Story – sometimes the story that
you tell inside your local market is not the same as the one you can use beyond your
borders.

 Have A sequence Plan – most brands landing on foreign shores will need to think
about how they use their new presence and their historic legacy to best advantage
over time.

 Prepare For Competition – The moment you take your local brand out of your own
market and into another, the dynamics around your competitiveness change. Now
the very things that enabled you to succeed against international brands in your
home market are the very advantages that others have as you enter theirs.
 Brand Awareness

• Brand awareness considered as a key and important

component of brand equity (Aaker, 1996) and it is a common
selecting aspect amongst customers

• In the process of brand building, efforts are made to

formulate certain follow signs in the memories and as well as
the heart of the potential buyers through a variety of sources
of information and marketing strategies, which create
precise significance and affect directly the emotions as well
as consumers lives (Wijaya, 2011).

• For a strong brand, it is necessary to offer brand value

fulfilling the desire of the buyers.
Brand Awareness

 BRAND AWARENESS IS THE

PROBABILITY THAT CONSUMER ARE
FAMILIAR ABOUT THE AVAILABILITY
OF THE PRODUCT.
 IT IS THE DEGREE TO WHICH
CONSUMERS PRECISELY ASSOCIATE
THE BRAND WITH THE SPECIFIC
PRODUCT.
 IT INCLUDES KNOWLEDGE OF
BRAND.
 BRAND AWARENESS INCLUDES
BOTH BRAND RECOGNITION AS
WELL AS BRAND RECALL.
Brand Awareness Cycle
BRAND AWARENESS AND CONSUMER DECISION MAKING

brand awareness is an exclusively essential

subject of this study, there was a requirement
to go deep into the different levels of
awareness at the time of the consumer
decision –making process.
 Measuring Brand Awareness

• Brand Awareness can be measured in different

ways in consumer’s decision-making process
which includes
• Brand recall or Unaided Awareness and
• Brand recognition or Aided Brand Recall
(Belch, G. E., & Belch, M. A.2012).
 Brand Recall

• In the Unaided recall, the consumers have the

memory ability to confidently draw out a brand
name from a given product category (Keller,
Kevin 1993

• The number of brand recall depends on the

product factors as well as the individuals brand
loyalty, usages rates of the product brand,
awareness towards the brand and education
level of an individual (Keller, 1993).
 Unaided Brand Recall

Brand recall point toward a comparative

association between product categories and
brand whereas this relationship was found
weaker in Brand recognition than Band recall,
Keller, Kevin, 1993). It is also known as unaided
brand awareness.
 Top of the Mind Awareness

• Top of the Mind Awareness is also known as

immediate brand recall ability. The imaginary
picture comes immediately comes in the mind
which includes the sign, sound, image, quality
from the product category at the time of asking
about the brands is known as the top of the
mind awareness. This level of brand awareness
enjoys the highest share market and familiarity
among the consumer.
 Brand Recognition
 This is the position when consumers appropriately
recognize a specific brand by just watching the logo,
symbol packaging or the promotional campaign.

It measures and also depends on the capability of the

customers to appropriately distinguish the brand in the
purchasing process.

By presenting the brand in the advertisement brand

identification can be increased.
It can assist the viewers by encoding the appropriate
information in the remembrance (Baack, Wilson, & Till,
2008).
BRAND AWARENESS IN DIFFERENT STAGES OF CONSUMER
BEHAVIOUR
Initiator: In a purchase process initiators are the
individuals who recognized the need of a
particular product which has not been met and
needs to be certified to purchase to resolve the
situations.
Influencer: An individual who influence the
actual buyer to take a purchase decision by
convincing intentionally or it can maybe
unintentionally in the purchase need situation.
The influencer gathers the information about the
product and brand and forwards to the actual
buyer for a final decision.
 BRAND AWARENESS IN DIFFERENT STAGES OF CONSUMER
BEHAVIOUR
Buyer: Buyers are the individual who has the
authority to make the purchase decision. The buyer
may be influenced by the initiator and the
influencer. The advice, knowledge and the
awareness level of initiators and influencer affect
the buyer’s decision.
• User: The individual who straightforwardly
concerned in the utilization of the purchased
product brand. User’s satisfaction or dissatisfaction
level affects the companies brand equity. It can be
a positive or negative brand equity which can be
spared by word of mouth publicity
 DIFFERENT DIMENSIONS OF BRAND AWARENESS

• BRAND EQUITY
• Brand Image
• Brand Satisfaction
• Brand Association
• Brand Loyalty
 Brand equity (Meaning)

• Brand equity refers to the term used in the marketing to

show the value of a brand in the consumer’s perception.
• Consumer’s perceptions built by the use of a particular
brand and obtaining satisfactory results with a positive
attitude towards the brands.

• Positive attitudes of the brand create positive brand equity

and the below expectation experience by the use of brands
creates low brand equity. According to Keller (2008), Brand
equity corresponds to the name, design and the symbol or
logo of a brand in the consumer’s memories and considered
as an imperative organ of building a recognized brand.
Brand equity (Meaning)
 Brand equity as brand value
As brand equity represents the value of the brand (Barasco,
1988) described
it as one of the financial perspective measurement for the
manufacturers.

Brand equity describes as consumer perspectives by

representing the consumer’s positive or negative perception
towards the brand and outlines the value of the brand for
the buyer's point of view.

This consumer’s perceptions build up and produce as an

outcome of a customer’s experiences. Aker,1991 viewed that
brand equity communicates the position of the product in
consumer’s mind.
 Brand Equity Models:
Aaker’s Brand Equity Model:
Brand equity model by aaker (1991)
 Aaker’S brand equity model
Brand awareness for creating Brand equity
 Aaker’S brand equity model :
Perceived quality in creation of brand equity
Aaker’S brand equity model :
Understating perceived quality
 Aaker’S brand equity model :
Perceived quality for brand association
 Aaker’S brand equity model :
Brand value by perceived quality
 Aaker’S brand equity model :
BRAND ASSOCIATION
Brand association is anything which is deep
seated in customer's mind about the brand. Brand associations are the
attributes of brand which come into consumers mind when the brand is
talked about.

• Brand associations are formed on the following basis:

• Customers contact with the organization and it’s employees;
• Advertisements;
• Word of mouth publicity;
• Price at which the brand is sold;
• Celebrity/big entity association;
• Quality of the product;
• Products and schemes offered by competitors;
• Product class/category to which the brand belongs;
• POP ( Point of purchase) displays; etc
 Brand Association
Positive brand associations are developed if the
product which the brand depicts is durable,
marketable and desirable. The customers must
be persuaded that the brand possess the features
and attributes satisfying their needs. This will
lead to customers having a positive impression
about the product. Positive brand association
helps an organization to gain goodwill, and
obstructs the competitor’s entry into the market.
 Brand Loyalty

 CONSUMER GENERALLY BUYS

THE SAME MANUFACTURER-
ORIGINATED PRODUCT OR
SERVICE REPEATEDLY OVER
TIME RATHER THAN BUYING
FROM MULTIPLE SUPPLIERS
WITHIN THE CATEGORY.
 DEGREE TO WHICH A
CONSUMER CONSISTENTLY
PURCHASES THE SAME BRAND
WITHIN A PRODUCT CLASS IS
CALLED BRAND LOYALTY.
Study Upto 1st MST
 Strategies for Competing in Foreign Markets
• Export strategies,
• licensing strategies,
• Franchising strategies,
• Strategic alliances.
 Export Strategy
• An export strategy uses the production facilities of the
home country to create products which it then exports to
the foreign market.
• The advantage of this approach is that the company
maintains control of operations and quality control while
not incurring the risk of investing in facilities abroad.
• A country can also gain experience curve and economies
of scale benefits from keeping all production in one
country.
• The main disadvantage is that the cost to produce the
goods may be higher locally than it is abroad by
competitors.
 Licensing Strategies
• Licensing gives a foreign firm the right to produce
a product or use technical information in the
scope of the license agreement.
• Licensing is used when businesses do not wish to
invest in facilities in the foreign country, but they
do want to sell their products in that country.
• This option is the riskiest approach, but it also
yields the lowest returns because the company
will only receive a fraction of the profits.
• However, the company loses control over
operations when it licenses.
 Franchising
• Franchising is used when operational control is
necessary, but the company does not want to
commit to creating its facilities abroad.
• Franchising is less risky than direct foreign
investment,
• It has more control is gained than through license
agreements, but the gains from franchising are also
lower than export or direct investment options.
• Franchisers also must make sure that all franchises
are following the company’s standards to protect
their brand name and reputation.
 Strategic alliances
• Strategic alliances are when a domestic and a foreign
company team up to accomplish something.
• Strategic partnerships are used to share technology,
capabilities, or business practices or to coordinate activities
of different members within the supply chain.
• Strategic partnerships that begin for sharing are often
temporary because both businesses become strong enough
to compete on their own once these things are integrated
into the companies.
• Supply chain alliances are longer lasting because as the
companies continue to work together,
• they continue to see profits from collaboration and they may
also see increased profits due to learning how to function
better together.
 List of 10 Indian brands that are giving tough competition to
the foreign ones
• Cafe Coffee Day: Cafe Coffee Day (CCD) is an
Indian cafe chain owned by Chikmagalur-based
Amalgamated Bean Coffee Trading Company. ...
• Old Monk: ...
• Micromax: ...
• Royal Enfield: ...
• Louis Phillipe: ...
• Lakme: ...
• Airtel: ...
• Jaguar:
 Benefits of global marketing
• Increasing Profitability and Profit Growth Through Global Expansion
• Expanding the market by leveraging products
• Taking goods or services developed at home and selling them
internationally
• Utilizing the distinctive competencies that underlie the production and
marketing
• Cost economies from global volume
• Economies of scale from additional sales volume
• Lower unit costs and spreading of fixed costs
• Location economies
• Economic benefits from performing a value creation activity in the optimal
location
• Leveraging the skills of global subsidiaries
• Applying these skills to other operations within firm ’ s global network
• Must also consider transportation costs, trade barriers, as well as the
political and economic risks
Steps to go Global
Selection of country for global marketing
Types of Exporting
Exporting by Internet
Market Segmentation
 Market segmentation
• The breaking down or building up of potential
buyers into groups called market segments.

• Market segmentation is the activity of dividing

a broad consumer or business market,
consisting of existing and potential customers,
into sub-groups of consumers (known
as segments) based on some type of shared
characteristics.
 Market segments
In dividing or segmenting markets, researchers
typically look for common characteristics such
as shared needs, common interests, similar
lifestyles or even similar demographic profiles.

The segments created are composed of

consumers who will respond similarly
to marketing strategies and who share
behavior such as similar interests, needs, or
locations.
 MARKET SEGMENTATION STRATEGY

A market segmentation strategy organizes the

customer or business base along

Demographic Segmentation ,
Geographic Segmentation,
Benefit Segmentation,
Behavioral Segmentation, Or
Psychographic Segmentation Lines
—or a combination of them.
S-t-p approach of segmentation
 S-T-P process of Segmentation

Marketers tend to use the S-T-P process,

that is Segmentation→ Targeting → Positioning,

as a broad framework for simplifying the process.

Segmentation comprises identifying the market to be segmented;

Identification,
Selection, And
Application Of Bases To Be Used In That Segmentation ;
And
Development Of Profiles.
 Targeting comprises an evaluation of each
segment's attractiveness and selection of the
segments to be targeted.

 Positioning comprises the identification of

optimal position and development of the
marketing program.
 Benefits of Market Segmentation

• Identifies Opportunities For New Product

Development
• Helps Design Marketing Programs
• Most Effective For Reaching Homogenous
Groups Of Buyers
• Improves allocation of marketing
resources
 need for marketing segmentation
• The marketing concept calls for
understanding customer and satisfying
there needs better than the competition.

• Different customers have different needs,

and its rarely possible to satisfy all the
customers by treating them alike.
DIFFERENCE BETWEEN A MASS MARKET AND TARGET MARKET

• Mass market refers to treatment of the market

as a homogenous group and offering the same
marketing mix to all customers.

• Target market on the other hand recognizes the

diversity of the customers and does not try to
please all of them with the same offering.
 REQUIREMENTS OF MARKET SEGMENTS

• Identified: The differentiating attributes of the segments must be

measurable so they can be identified.

• Accessible: the segments must be reachable through

communication and distribution channels.

• Unique needs: to justify separate offerings, the segments must

respond differently to different marketing mixes.

• Substantial: the segments should be sufficiently large to justify the

resources required to target them.

• Durable: the segments should be relatively stable to minimize the

cost of frequent changes.
Bases for segmentation in consumer markets
 Geographic segmentation
• Geographic segmentation tries to divide markets into
different geographical units:
• Regions
• Size of the area
• Population density
• Climate
• Regions: by continent, country, state or even neighborhood
• Size of the area: segmented according to size of population
• Population density: often classified as urban, suburban, or
rural Climate: according to weather patterns common to
certain geographic regions
 Demographic segmentation
• Demographic segmentation consists of dividing the market into
groups based on variables such as:

• Age • Gender • Income • Social class • Life style

• Age : Marketers design, package and promote products

differently to meet the wants of different age groups.
examples include the marketing of toothpaste (contrast the
branding of toothpaste for children and adults)
and toys (with many age-based segments).
• Gender: Gender segmentation is widely used in consumer
marketing. The best examples include clothing, hairdressing,
magazines and toiletries and cosmetics.
• Income: Many companies target wealthy consumers with luxury
goods and convenience services.
 Demographic segmentation
• Social class: Consumers "perceived" social class
influences their preferences for cars, clothes, home
furnishings, leisure activities and other products &
services.

• Lifestyle: Marketers are increasingly interested in the

effect of consumer "lifestyles" on demand.
Unfortunately, there are many different lifestyle
categorization systems, many of them designed by
advertising and marketing agencies as a way of winning
new marketing clients and campaigns.
 Psychographic segmentation
• Psychographic segmentation groups
customers according to their lifestyle.
Activities, interest, and opinions (AIO) surveys
are one tool for measuring lifestyle. Activities ,
Interest , Opinion , Values
 Behavioralistic segmentation
• Behavioralistic segmentation is based on actual customer
behavior towards products. Some behavioralistic variable include:
• Opinions, interests and hobbies
• Degree of loyalty
• Occasions
• Benefits sought
• Usage

Opinions, interests and hobbies – this covers a huge area and

includes consumers’ political opinions, views on the environment,
sporting and recreational activities and arts and cultural issues.
Behavioralistic segmentation
 Behavioralistic segmentation

• Degree of loyalty – customers who buy one brand either all

or most of the time are valuable to firms. Behavioralistic
segmentation
• Occasions – this segments on the basis of when a product is
purchased or consumed. Behavioralistic segmentation
• Benefits sought – this requires marketers to identify and
understand the main benefits consumers look for in a
product.
• Usage – some markets can be segmented into light, medium
and heavy user groups. Behavioralistic segmentation
 BRAND PORTFPLIO
A brand portfolio is simply the collection
of brands under a company's control.

Small businesses with just one shop may have

only a single brand, but large and
multinational corporations may have dozens
of distinct brands in their portfolios.
 Definition: Brand Portfolio

• The brand portfolio of a company is the

complete range of all brands and brand lines it
offers for sale in a particular category or
market segment.

• A brand portfolio is said to be optimal when

each brand complements each other in the
product portfolio range.
Brand Portfolio
 NEED OF BRAND PORTFOLIO
• The basic principle of a brand portfolio is to maximize
market coverage and to offer enough brands so that
no potential customers feel left out,

• (Marketing and production costs are justified by the

size of the end customer segment).
Role of brands in brand Portfolio

Flanker Brand: A Flanker Brand also known as a Fighter Brand is a

new product launched in a market by the company in the same
category wherein an established brand is already positioned.

This is primarily done for the increased market share as well as to

cater to the need of all the segments of customers.

e.g. Armani’s brand portfolio is one of the best examples to

explain the concept of a flanker brand. In it, the brands are
distinguished on the basis of price and customer segment.
Brand portfolio (Example)
 Cash Cow Brand
• Cash Cow Brand: A cash cow brand is that product in the brand
portfolio that has reached the maturity level in the product life
cycle but is able to bring in profits necessary for its survival.

• These brands are not removed from the market because

necessary cash is flowing in through its sale which is better than
incurring heavy cost on the launch of a new product.

• E.g. The best example of cash cow brand is Gillette Company

that is keeping the old brands viz. Gillette Atra, Gillette sensor
and Gillette Trac II in its brand portfolio despite new razor
technology such as Mach III turbo and Gillette Fusion.
 Low-End Entry Level Brand
• A low Entry Brand in a brand portfolio includes the product which is
offered at less price.

• The low priced product is added to the portfolio to ensure the purchase
at least once and bring the customer into the brand family.

• Once the customer becomes a part of the family, he is then persuaded

for the purchase of the higher priced product in near future.

• E.g. Hero Moto Corp explains this concept very accurately wherein low
priced bikes viz. CD Dawn, Platina, CD Deluxe are added in the brand
portfolio to gain the customer base along with the high priced bikes
such as Karizma, Ignitor, Impulse, Achiever, etc.
 High-End Prestige Brand
• A High-End Prestige Brand in the brand portfolio is the
product offered at a high price with the intention of
creating a sense of prestige in the minds of customers.

• Other brands in the portfolio also get the recognition

because of the premium brand and its quality do have
a halo effect on each product line.

• E.g. Tata is the best example to elucidate high-end

prestige branding.
Thus, a firm tries to have all the different brands operating
independently under its periphery to protect the sources of
equity by not letting customers move away due to the
unavailability of their desired product.
 Brand Asset Valuator (BAV)
• Definition:

• Brand Asset Valuator (BAV)

Brand Asset Valuator is a metric applied for the
measurement of brand value of a product.

Brand Asset Valuator was developed by an agency

called “Young and Rubicam”.

BAV measures a brand under the 2 broad heads of

 BAV Model of measuring Brand Equity

• A Brand Asset valuator is a metric that is used

to analyze how a brand is perceived
(Supposed) by its consumers in terms of
different attributes.
Brand Asset Valuator
 BAV Model
• . Brand Vitality (energy) which refers to the
current and future growth potential that a
brand holds in it.
• 2. Brand Stature (size) which refers to the
power of a brand.
• Both of these heads can be further divided to
have the following parameters for judging the
brand-
BAV Model
 1. Differentiation (BAV Model)

• It is the ability of a brand to stand apart from its competitors.

Differentiation has three components to it. These are

Different-refers to how do the brand’s offering differs from

its rivals.

Unique- refers to the brand’s quality and carries the essence

of its existence. It has more to do with the credibility,
authenticity and originality of the idea that the brand carries.

Distinctive-refers to the worthiness (value) of a brand.

 2. Relevance

• This refers to how closely can the consumers

relate to the brand’s offering and is a
significant driver for a brand’s dispersion.
 3. Esteem

• This refers to the consumer perception about

the brand. Whether a brand is popular or not,

• whether it delivers on its stated promises- all

this contribute in building up the esteem of the
brand.
 4. Knowledge
• This refers to the degree of awareness about a
brand in the minds of its consumers.

• This is very important in building a brand and

making the consumers understand of what the
brand actually stands for and its contained
message to the consumers.
BAV Model
 BRANDZ model
By
Millward Brown and WPP
in the 1990s.
 BRANDZ model
For measuring Brand Equity
• Marketing research consultants Millward Brown and
WPP have developed the BRANDZ model of brand
strength,

• at the heart of which is the Brand Dynamics pyramid.

• According to this model,…… brand building involves a

sequential series of steps, where each step is contingent
upon successfully accomplishing the previous step
BRANDZ MODEL
 BRANDZ MODEL
• About its BrandZ™ model, Millward Brown state that it represents a
database that provides a ‘detailed, calculated, understanding of
consumer’ decision-making worldwide‘

and ‘the most reliable, comprehensive and useful brand valuation

ranking available‘.

• An interesting fact is that BrandZ™ ‘s research cover 100 000

different brands in over 50 markets.

• This intensive, in market consumer research differentiates the

BrandZ methodology from competitors that rely only on a panel of
‘experts‘ or purely financial and market desktop research
• …At the heart of a brand’s value is its ability to appeal
to relevant customers and potential customers.

• According to Millward Brown‘s BrandZ™ model

brands that succeed in creating the greatest
attraction power are those that are: meaningful,
different and important

– meaningful (understand consumers’ expectations and

needs),
– different (unique in a positive way and ‘set the trends‘)
– and most important (come spontaneously (suddenly) to
mind as the brand of choice for the specific need)
 Five steps …
• The pyramid illustrates the five key steps the
consumers go through with a brand

– starting with brand awareness and finishing with

brand loyalty.

Each step up to the pyramid top means a greater

level of brand loyalty and ‘bonded‘ consumers, those
at the top level of the Brand Dynamics pyramid,
build stronger relationships with the brand.
 1 step- presence
st

• At this step, consumers are aware of the brand

(may have tried products and/or services, that are sold
under this brand before).

• However, these customers have little or no emotional

attachment to the brand at this level of the pyramid.

• This level can be attained by heavy advertising, a

presence at the greatest possible number of sales
outlets, or by creating a buzz in the market.
 2nd Step….Relevance
• On the second step consumers ask themselves questions such
as:
– ‘Does this brand fit my needs?‘……….‘Is it worth it?‘.

• At this level of Brand Dynamics pyramid, the brand promise

has to be relevant to the customers.
• This means that added value has to be offered (in terms of
functionality or image),
• in addition to awareness. As, there is still little or no
emotional attachment to the brand at these two
stages(presence and relevance)
• and consumers are still comparing prices and value of the
brand(s), brand managers should make sure that the
marketing strategy they use focuses on these key concerns.
 3 Step……Performance
rd

• Performance is the third step of the pyramid and at this

stage consumers start comparing the brand with its
competitors on the market, in order to find out whether
the brand delivers on its potential.

• At this level customers begin associating the brand with a

specific identity.

– Brand managers have to make sure that their marketing

activities give consumers the information they need and show
the customers how much better the specific brand is by
communicating its benefits.
 4 Step…..Advantage
th

Advantage–At this stage the brand has to out

perform the average quality standard of the
market, so that the consumers believe that
this specific brand has an emotional and/or
rational advantage over the other brands in
the (product) category.
 5 Step….. Bonding
th

• Bonding–At this final stage, customers have established a

bond with the brand.

• As brand loyalty increases at higher levels of the Brand

Dynamics pyramid, consumers at the level of Bonding are
likely to be active advocates of the brand/brand
ambassadors.

• The brand has become a valuable part of their self-image

and this makes the consumers exclude competitors‘ brands
in favor of this one
 Steps for Building Strong Brand Equity

• Introduce a Quality Product into the Marketplace –

This may seem obvious but it is extremely important to
deliver a product that attracts a positive reaction from
consumers. This can be achieved through labeling,
packaging, delivery or the value its offers to users.

• Monitoring Trends and Competitors –

A strong brand has the ability to adapt to changes in the
marketplace in order to stay relevant. To achieve this,
marketers must monitor industry trends and market
conditions.
 Building Strong Brand Equity
• Build a Consistent Brand Image –
It is important to reinforce your brand by
providing a consistent positive experience in the
minds of consumers.

• Consistency of Brand Messaging –

When creating your brand messaging ensure
that it is easy to remember and reminds
consumers about the qualities that they care
most about.
 Building Strong Brand Equity

• Capture Customer Feedback –

Since the real power of a brand exists in the
mind of consumers, it is necessary for
marketers to always capture and analyze
customer feedback.
 Keller’s
Customer Based Brand Equity Model
Customer Based Brand Equity Model

Keller introduced a brand equity model known

as ‘Customer-Based Brand Equity’ model
published in his extensively used book
"Strategic Brand Management.“

model highlights four key levels of working in

business, which can create a successful brand.
A Pyramid shapes model classified as
follows:
 Identity
• Identity:
Communication to define the brand benefits
and correct key message of the brand
delivered to customers in Identity stage.

The marketing strategies developed to create

correct image and understanding of customers
towards the brands.
 Meaning
Meaning: In the meaning stage Keller discussed
the strategies which delivered the
meaning of a brand to customers.

It included the commitment, social cause,

dedication to customer service, quality, price
etc. …. which gives a reason to be proud of the
purchase and repurchase of the particular
brand.
 Response
• Response:
this shows the post-purchase behaviour of customers. Quality,
as expected by the customers, can make the strengthen and
have a great opportunity for growth and success of a brand.

Failing to deliver on expectations is one of the most damaging

things that can happen to a brand, The Company cannot be
able to recover from an extended period of declining short.

Customers mostly concentrate on the Quality, Credibility,

innovation, trustworthiness, likability, superiority
 Relationship
• Relationship: Brand Resonance –Keller shows the
connection of a particular brand with customers, the
author breaks down the resonance into four categories:

• Behavioral Loyalty included the repeat purchasing

behaviour,
• Attachment included customer’s love about the brand's
special features.
• The sense of Community included the connection of
association with the brand.
• Active Engagement included the loyalty and a positive
response and attitude towards a brand
 Unit - 3
Brand Communications
 Building Brand Image
 Brand Loyalty Programmes
 Brand Promotions Models
 Online brand Promotions
 Role of Brand Ambassadors
 Factors affecting Brand Awareness
 Public Relations
 Difference between Advertisement and Public Relations
Brand Communication
Meaning of Brand Communication
• Brand Communication is an important part
and tool of brand management by which the
companies inform, persuade, enlighten, teach,
remind, and enrich the knowledge of their
stakeholders about the brand, its strengths,
values, fundamentals, and its offerings of
products and services.
Communication Needs
 Brand Loyalty Programmes
• What is Brand Loyalty programmes
• Discuss the different types of Brand Loyalty
programmes
CUSTOMER LOYALTY
 BRAND LOYALTY PROGRAMMES
• Brand loyalty is a consumer behavior pattern
where consumers become committed to a
particular brand and make repeat purchases over
time.

• Companies use creative marketing strategies,

such as loyalty or rewards programs, trials, brand
ambassadors, and incentives like free samples to
build brand loyalty are called loyalty programs.
 LOYALTY PROGRAMS IN MARKETING
• A customer loyalty program is a structured
and long-term marketing effort which
provides incentives to repeat customers who
demonstrate loyal buying behavior.

• Successful programs are designed to motivate

customers in a business's target market to
return often, make frequent purchases, and
avoid competitors.
 Types of Brand Loyalty Program
1. POINT PROGRAM

• The point program is the most common program around the

commerce world as it is the simplest one. It is based on one simple
principle: Spend more to get more.

• Every time a customer makes a purchase in-store or on your website,

they get a certain amount of points depending on the size of their
purchase.

These points are translated into some type of reward. Whether it is a

discount or a special customer treatment, customers seems to work
toward collecting a certain amount of points to redeem their
reward.
 2. Spend Program

• In spend programs, customer get loyalty

credits for the amount they spend at a
business.

• This program is very easy to understand,

create and maintain, It is also proven to be an
effective way to increase transaction amounts.
 3. Levels of loyalty (Tiered) Programs
• The right balance between possible and desirable
rewards is to implement a tiered system, which rewards
initial loyalty and encourages more purchases.

• This program is based on levels of loyalty. Customers

get points whenever they purchase something.

• The more points they receive, the higher loyalty level

they will reach. And the higher the level, the more
rewards they will get.
 4. Paid Program – VIP member club

• Customers pay a monthly or annual fee to

join your VIP member club with access to
special services, discounts or unique
opportunities.

• These paid program should include benefits

that are exclusive to members.
 5. Value – based Program

• The reward when choosing the value-based program is

to connect with customers on a deeper level by creating a
strong and ethical relationship with them.

• This is similar to the point system, where customers’

purchases translate into currency.

For example in a pet shop, Every time a customer makes a

Rs. 50 purchase, it would donate Rs. 5 to an animal rescue
organization.
 6. Partnered Program

• Strategic partnership for customer loyalty can be super

effective regarding customer retention, as you offer them
more opportunities.

• At the same time, it can help the growth of your business by

building new business relationships (partnerships).

• While providing your customers with value that is relevant

to them and goes beyond what your company can
exclusively offer them, you are showing them that you truly
understand and care about their needs.
 7. Game Program

• A good idea is to turn your loyalty program

into a game application to encourage repeat
purchases, increase customer loyalty,
entertain customers and help strengthen the
brand’s image in a more entertainment way.
 8. Hybrid Loyalty Programs
• A hybrid loyalty program is a combination of more than one type
of loyalty systems.

• You may merge 2 different systems such as the tier and the game
program, where customers reach new levels of loyalty every time
they complete a new level in your game. The participation in the
game should of course involve a purchase.

• The most common combination is that of point-based system

with a tier program as it makes the calculation of points easy for
the customers and encourages them to pursue next loyalty level
and thus, more purchases.
 Brand loyalty programs implications
• utilize a simple points-based system.
• make use of a tier system to reward initial loyalty and
encourage more purchases..
• Structure non-monetary programs around your customers'
values.
• Partner with another company to provide all-inclusive offers.
• Make a game out of it.
• Be as kind as your customers.
• Scratch the "program" completely.
• Build a useful group of people for your customers.
Earn 10 points per every $1 spent on a purchase
Earn 50 points for logging into Zappos.com on any device*
Earn 100 points when you help other Zappos.com shoppers by
writing a review
EXAMPLE OF TIERED PROGRAM

tiered loyalty programs MOSTLY offered by Hotels

and Airlines
• Other “WOW” benefits of the Zappos Rewards program:
• Free, expedited shipping at all tier levels
• Points can be applied toward Zappos Rewards Codes,
which can be applied toward future purchases on
Zappos.com
• Zappos Rewards members will receive a dedicated
customer service phone number
• Early access to exclusive products and sales
• Opportunities to suggest your own Zappos Rewards and
test new features
• Free UPS pickups for merchandise returns
• Free returns beyond the 365-day return policy
• Other exclusive perks at each tier level
• Customers earn for transactions and for
engaging with the brand.
• There is a mix of hard and soft benefits.
• The overall idea of a tiered loyalty program is
that the greater the customer’s brand loyalty,
the more recognition and rewards they earn.