Strategic Brand Management          Chapter 1Paswan
What is a Brand? Old Norse word – brandr – to burn. AMA – Name, term, sign, symbol, or design, or a combination of them, i...
Product Levels? Core benefits – fundamental need or want. Generic product – basic offering. Expected product – normal expe...
Branding - benefits?Consumers                      ManufacturersIdentification of source       Means of identification for...
Branding is Universal (anything can be branded) Commodity – Chicken, Coffee, salt, fruits, vegetables, water, etc. Physica...
Determinants of Brand Longevity Vision of the mass market? Managerial persistence? Financial commitment? Relentless Innova...
Some Challenges… Savvy    consumers, maturing market, decreasing brand loyalty. Brand    proliferation, complex brand fa...
Next? Brand Equity – financial value, intangible value, loyalty,        consumer perception, consistent behavior???  Paswan
Why Brand Equity?    Positive       brand equity leads to:         –   Loyalty         –   Larger Margins         –   Gre...
The Value of Brand EquityPaswan
Brand Equity Sources   of Brand Knowledge  – Associative node model of memory  – Brand awareness  – Brand image      Str...
Corporate AwarenessPaswan
Brand Associations Stolichnaya       Absolut  – Experienced      – Young  – Self-assured     – Contemporary  – Successfu...
Evolution of Brand Elements,               GE 1876-1960’s electronics 1900 trademark’s logo 1900 slogan – Better Living...
Brand Equity But how does one develop brand equity? The goal of this course is to learn how to manage  brands (via marke...
Building Customer-Based Brand Equity            TOOLS AND OBJECTIVES                               KNOWLEDGE EFFECTS      ...
Building Equity1.    Determine brand knowledge structures     a. Breadth of awareness (brand salience)     b. Positioning ...
Brand Value:              Brand Hierarchy Pyramid                                               Very meaningful inThe emot...
Brand Management    Brand management is the act of     designing and implementing     marketing programs to build and    ...
The Role of a Brand or           Product Manager Prepare   Marketing Plan Develop    Copy, Programs, and Campaigns Stim...
The Role of a Brand or           Product ManagerPluses - Cost effective mix, quick market reaction, attention for small b...
A Product Manager -    Computer Software Firm Typical   day  – Meetings - new product line, marketing mix,    marketing s...
A Product Manager    Computer Software Firm Marketing mix - recommends price to corporate committee, manages advertising,...
A Product Manager -    Consumer Packaged Goods Firm Typical   day  – 75% fighting fires, 25% planning Marketing  plannin...
A Product Manager         Packaged Goods Firm Marketing mix - recommends price to corporate committee, manages advertisin...
Brand Management Issues                             Media              Purchasing                  Packaging     Promotion...
The Nature of the JobPaswan
Project Staring Point:     Brand perception about:     Brand features and attributes - awareness?     Brand benefits – nee...
PRODUCT LEVELLEVEL               ???BRANDName/PositioningPotential ProductAugmented ProductExpected ProductGeneric Product...
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  1. 1. Strategic Brand Management Chapter 1Paswan
  2. 2. What is a Brand? Old Norse word – brandr – to burn. AMA – 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 and to differentiate them from those of the competition. Branding basis – people, place, animal or bird, scientific term, and things or objects. Branding contain – inherent product meaning, and attributes or benefits. Branding could be done for product (physical good, retail store, person, organization, place, or an idea. Brand = product + other differentiating dimensions (physiological and psychological) Paswan
  3. 3. Product Levels? Core benefits – fundamental need or want. Generic product – basic offering. Expected product – normal expectation from a product in the market. Augmented product – differentiating and distinguishing attributes, benefits, or related service. Potential product – ideal and in future. Paswan
  4. 4. Branding - benefits?Consumers ManufacturersIdentification of source Means of identification for handling or tracingAssignment of responsibility Legal protectionRisk reducer – functional, Signal of quality to consumersphysical, financial, social,psychological, and timeSearch cost reducer Endowing product with unique associationPromise, bond, or pact Competitive advantageSymbolic, cultural Source of financial returnSignal of qualityPaswan
  5. 5. Branding is Universal (anything can be branded) Commodity – Chicken, Coffee, salt, fruits, vegetables, water, etc. Physical good - Consumer products; Business to Business; High-tech products. Services – KPMG, Citi, Airlines, Energy firms, etc. Retailers and distributors – Sears, Wal-Mart, private or store brands. On-line product and services – google, e-bay, etc. People and Organizations – Paul Newman. Sports, Arts, and Entertainment – Cowboys? Geographic Locations – Australia, Alaska. Ideas and Causes – Red Cross, NRA. Paswan
  6. 6. Determinants of Brand Longevity Vision of the mass market? Managerial persistence? Financial commitment? Relentless Innovation? Asset leveraging. Paswan
  7. 7. Some Challenges… Savvy consumers, maturing market, decreasing brand loyalty. Brand proliferation, complex brand families, . Media fragmentation, eroding traditional media, new options, changes in advertising and promotional expenditures. Increased competition, difficulty differentiating, private labels. Increased cost, increasing trade power. Increased accountability, job turn-over. Paswan
  8. 8. Next? Brand Equity – financial value, intangible value, loyalty, consumer perception, consistent behavior??? Paswan
  9. 9. Why Brand Equity?  Positive brand equity leads to: – Loyalty – Larger Margins – Greater Trade Support – More Efficient Communications / Marketing – Resiliency to Crises – Licensing Opportunities – Brand Extension Opportunities – Reduced Vulnerability to Competition – Greater financial returnsPaswan
  10. 10. The Value of Brand EquityPaswan
  11. 11. Brand Equity Sources of Brand Knowledge – Associative node model of memory – Brand awareness – Brand image  Strength of brand associations  Favorability of brand associations  Uniqueness of brand associationsPaswan
  12. 12. Corporate AwarenessPaswan
  13. 13. Brand Associations Stolichnaya  Absolut – Experienced – Young – Self-assured – Contemporary – Successful – Flashy – Male – Male – Lexus – Bars – Not-trendy – Advertising or artsPaswan
  14. 14. Evolution of Brand Elements, GE 1876-1960’s electronics 1900 trademark’s logo 1900 slogan – Better Living Electronically 1960’s General Electric -> GE 1970’s slogan – Progress for People 1979 slogan – We Bring Good Things to Life Paswan
  15. 15. Brand Equity But how does one develop brand equity? The goal of this course is to learn how to manage brands (via marketing programs) in order to create brand equity - that is, create an enduring advantage for your brands. Strategic Brand Management Process: 1. Identifying and Establishing brand position and values. 2. Planning and Implementing brand marketing programs. 3. Measuring and interpreting brand performance. 4. Growing and sustaining brand equity.Paswan
  16. 16. Building Customer-Based Brand Equity TOOLS AND OBJECTIVES KNOWLEDGE EFFECTS BENEFITS Choosing Brand Elements (4) Possible Outcome Brand name } Logo Memorability Brand Awareness (2) Greater loyalty Symbol Meaningfulness Depth Recall Character Transferability Recognition Less vulnerability to competitive Packaging Adaptability marketing actions and crises Slogan Protectability Breadth Purchase Consumption Larger margins Developing Marketing Programs (5 & 6) More elastic response to price increasesProduct Functional & symbolic benefitsPrice Value perceptions Brand Associations (2&3) More inelastic response toDistribution channels Integrate “Push” & “Pull” price increasesCommunications Mix and match options Strong Relevance Consistency Increased marketing communica- Leverage of Secondary Associations (7) tion efficiency and effectiveness Favorable Desirable } Company Deliverable Possible licensing opportunities Country of origin Channel of distribution Awareness Unique Point of parity More favorable brand extension Other brands Meaningfulness Point of difference evaluations Endorsor Transferability Event Paswan
  17. 17. Building Equity1. Determine brand knowledge structures a. Breadth of awareness (brand salience) b. Positioning (points of parity/difference) c. Image (strong & favorable brand associations)2. Develop marketing programs3. Integrate across product lines and geographies4. Measure and control a. Feelings/judgments/loyalty Paswan
  18. 18. Brand Value: Brand Hierarchy Pyramid Very meaningful inThe emotional beliefs and differentiating our Brand butvalues that consumers feel very difficult to deliverare being addressed by our consistently to ourbrand (CENTRAL) Beliefs & consumers Core ValuesThe functional and emotionalbenefits that ourproduct/services provides tothe consumer Benefits(EXPRESSIVE)Product/Service features Features & Easy to deliver and explainand/or attributes that must be to consumers but also easy toaddressed (FUNCTIONAL) Attributes imitate Paswan
  19. 19. Brand Management  Brand management is the act of designing and implementing marketing programs to build and maintain brand equity. – Product – Price – Distribution – CommunicationsPaswan
  20. 20. The Role of a Brand or Product Manager Prepare Marketing Plan Develop Copy, Programs, and Campaigns Stimulate Sales and Distribution Market Intelligence Product ImprovementsPaswan
  21. 21. The Role of a Brand or Product ManagerPluses - Cost effective mix, quick market reaction, attention for small brands, good training for executivesMinuses - Conflict and frustration (responsibility and no authority), administrative work with executive expectations, learns products not functions, short horizon, costs of associates and assistantsPaswan
  22. 22. A Product Manager - Computer Software Firm Typical day – Meetings - new product line, marketing mix, marketing staff, organizational design and integration – E-mail/Phone - 3rd party developers, sales force, product support Marketing planning - drafting the marketing planPaswan
  23. 23. A Product Manager Computer Software Firm Marketing mix - recommends price to corporate committee, manages advertising, conducts focus groups for product positioning and development, decides on channelsPaswan
  24. 24. A Product Manager - Consumer Packaged Goods Firm Typical day – 75% fighting fires, 25% planning Marketing planning - key is volume forecasting since unsold inventory is perishable Mix - 1/3 on pricing issues (list & trade), 20% on consumer promotions, president handles ads, 15% on distribution, little on sales and service Paswan
  25. 25. A Product Manager Packaged Goods Firm Marketing mix - recommends price to corporate committee, manages advertising, conducts focus groups for product positioning and development, decides on channels.Paswan
  26. 26. Brand Management Issues Media Purchasing Packaging Promotion Salesforce Services R&D Product Distribution Manager Fiscal Manufacturing Legal Publicity Market Advertising Research AgencyPaswan
  27. 27. The Nature of the JobPaswan
  28. 28. Project Staring Point: Brand perception about: Brand features and attributes - awareness? Brand benefits – needs & expectations? Brand values - associations? Paswan
  29. 29. PRODUCT LEVELLEVEL ???BRANDName/PositioningPotential ProductAugmented ProductExpected ProductGeneric ProductCore BenefitPaswan

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