What is a brand?
A brand is a name, term, sign,
symbol, design or a combination
of the above to identify the goods
or service of a seller and
differentiate it from the rest of the
What does the brand identify?
A brand comprises of
Nokia= well built ( attribute)
Why is it important that it is well built?
Well built= reliability (functional benefit)
Why is it that reliability is so important?
Reliability= phone is on all the time and my
friends and family can easily reach me
( emotional benefit)
Why is important that you are reachable all
I am a responsible person (brand essence)
It is the marketer’s promise to give
a set of features, benefits and
Weather brand is built by advertising?
Involves all the activities that are
necessary to nurture a brand
into a healthy cash flow stream
Volvo launches new convertibles.
Volvo= safety (every aspect of design)
Convertibles= not so safe
Volvo dropped the idea.
What kind of activities?
Sales and distribution
When a commodity becomes a
brand, it is said to have equity
What is brand equity?
The premium it can command in the
Difference between the perceived value
and the intrinsic value
What happens when equity
What happens when brands
have high equity?
The company can have more leverage
with the trade
The company can charge a premium on
The company can have more brand
The company can have some defense
against price competition
Most Valuable Global Brands
Source: Financial World
Brand Loyalty Pyramid
Likes the brand. Considers
it a friend
Satisfied buyer. Would
incur costs to switch
reason to change
Generic Name Brand
products that carry the name of
products that carry the name of
the seller, not the manufacturer
products and sells it
names of others
Reid and Taylor
Generic Name Brand
A brand name over which the original
owner has lost exclusive claim because
all offerings in the associated class of
products have become generally known
by the brand name (usually that of the
first or leading brand in that product
Xerox is the company
“photocopy” is the generic name, Vaseline
Considerations in choosing a
What does the brand name mean?
What associations / performance /
expectations does it evoke ?
What degree of preference does it
A brand name should indicate
Names easy to
Should not indicate
poor meanings in
other markets or
Creating the brand
Brand sponsor Brand name
Brand strategy Brand reposition
Manufacturer Blanket family
Multibrands No positioning
Individual: the product
fails or appears to have
low quality the company’s
name or image is not hurt
development cost is less
Line extensions: introduction of additional
items in the same product category (coke
Brand extensions: using brand name for
products in other category ( Honda four
wheeler and two wheeler)
Multibrands: additional brands in the same
product category ( Kelvinator, Electrolux)
New brands: aqua fresh by gsk
What images come to mind?
Reid and Taylor
A brand ambassador is a celebrity or a
well-connected person or any person who is
used to promote and advertise a product or
A company achieves some clear-cut goals by
using a brand ambassador
Giving a face and personality to the brand
that is expected to be rubbed off from the
Brand equity models
Brand asset valuator (BAV), developed
by Young and Rubicam.
Four key components
Knowledge: ( familiarity)
Future growth value
Brand stature (esteem and knowledge)
Current operating value
Five categories of brand assets and
Proprietary assets ( trade marks,
Brand as a product
Brand as a organization
Brand as person
Brand as symbol
Model for brand strength
Presence: do I know about it?
Relevance: does it offer me something?
Performance: can it deliver?
Advantage: does it offer me something
better than others?
Bonding : nothing else beats it
Resonance is characterized by the intensity of the
psychological bond that customers have with the brand and
their level of engagement with the brand.
The first level of the pyramid deals with establishing the
identity of the brand.
The second layer of the pyramid deals with giving
meaning to the brand,
Brand performance is the way the product or service
attempts to meet the consumer’s functional needs,
Brand imagery deals with the way in which the brand
attempts to meet customers’ psychological and social
Third tier of the pyramid to develop a consumer response to the
brand judgments: Judgments about a brand emerge from a
consumer pulling together different performance and imagery
associations. These judgments combine into a consumer’s
opinion of a brand
brand feelings: are consumers’ emotional responses to the
brand. six brand-building feelings that he regards as important
emotions that a consumer can have towards a brand, namely
warmth, fun, excitement, security, social approval and self-respect
The final tier of the pyramid deals with the consumer’s relationship
with the brand that is brand resonance
Are trademarkable devices that serve to identify
and differentiate the brand.
Criteria for choice of elements
Memorable: rin, surf
Meaningful: coke diet
Transferable: for other category of products
Brand experience must match brand
Calls for managing every brand
Packaging and labeling
A package is the physical container or
wrapping for a product.
10 percent of a product's retail price is
spent on package development and
design and the package itself.
Functions of Packaging
promoting and selling the
defining product identity
meeting customer needs
ensuring safe use
protecting the product
Promoting and Selling the
Product Customer reaction to a
package and brand name is an
important factor in determining
marketplace success or failure.
Defining Product Identity
Packages can invoke prestige,
convenience, status, or other positive
Providing Information Packages give
directions for product use, information about
contents, guarantees, nutritional information,
and potential hazards.
Meeting Customer Needs Various sizes
meet the needs of different market segments:
family packs meet the needs of larger
families; smaller packages are made for
Ensuring Safe Use Plastic
tamper-resistant packaging, and
childproof containers protect customers.
Protecting the Product Packages
protect a product during shipping,
storage, and display, prevent
tampering, and sometimes help prevent
shoplifting of the product.
A label is an information tag,
wrapper, seal, or imprinted message
that is attached to a product or its
package. A label’s purpose is to:
inform about a product’s contents
and direction for use
protect companies from legal liability
contain a brand name, logo,
ingredients, special promotional
messages, and other useful
Many package labels must meet local,
state, and federal standards to prevent
manufacturers from misleading