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Brand Mgt.pdf

  1. 1. Chapter : 1 Brand Management
  2. 2. Preview of the Chapter  What is brand ?  Why do brands matter ?  Can everything be Branded ?  What are strongest Brands ?  Branding Challenges and Opportunities.  The Brand Equity Concept.  Strategic Brand Management process.
  3. 3. What is a Brand? A 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.
  4. 4. ESPN: A Strong Brand
  5. 5. Brand Elements Elements Slogans Brand names URLs Logos Symbols Characters
  6. 6. What is a Product? A product is anything that can be offered to a market for attention, acquisition, use, or consumption to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas.
  7. 7. Ashok Leyland is known for its products
  8. 8. Five Product Levels
  9. 9. Five Levels of meaning for a Product 1. The Core Benefit Level is the fundamental need or want that consumer satisfy by consuming the product or services. 2. The Generic Product Level is a basic version of the product containing only those attribute absolutely necessary for its but with no distinct features. 3. The Expected Product Level is a set of attribute that buyers normally expect and agree to when they purchase the Product. Continue…..
  10. 10. Continue….. 4. The Augmented Product Level includes additional product attributes, benefits, or related services that distinguish the product from competitors. 5. The Potential Product Level includes all the augmentation and transformation that a product might undergo in the future.
  11. 11. Brand verses Product Harvard’s Ted Levitt has argued that “ the new competition is not between what companies produce in their factories but between what they add to their factory output in the form of packaging, services, customer advice, financing, delivery arrangements, warehousing, and other things that people value. A Brand is therefore more than a product, because it can have dimensions that differentiated it in some way from other products design to satisfy the same need. Continue…..
  12. 12. Continued…..  Brand can also distinguished by its equity, sum total of consumer’s perception and feeling about the product’s attributes and how they perform, about the brand name and what it stands for, and about the company associated with the brand.  Brand create competitive advantage with product performance.  Brand create competitive advantage through non-product-related means.  Strong Brands carry a number of different types of association.
  13. 13. Importance of Brand OR Why do Brands Matter  In Consumer’s perspective.  In Firm’s perspective.
  14. 14. Consumer’s perspective  The term encompass all types of customer, individuals as well as industrial.  Brand identify the source or maker of the product, which allows consumers to assign responsibility to a manufacturer or distributors.  Based on the experience of previous use, consumer can find out their satisfaction level.  It provide means of simplification for their product decision.  If consumer recognize a Brand and have some knowledge, it minimize processing of information to make product decision. Continue…..
  15. 15. Continued…..  It also lower the search cost for product, both internally and externally.  Consumer can make assumption and form reasonable expectation about what they may not know about the brand.  Consumer can offer trust and loyalty with the understanding the performance of Brand.  Brand can serve as symbolic device, allowing consumer to project their self-image.  It also reflect value and traits.
  16. 16. Role that Brand Play (Consumer)  Identification of source.  Assignment of Responsibility to product maker.  Risk reducer. (Functional, Physical, Financial, Social, Psychological, Time Risk. )  Reduce search coast.  Symbolic Device.  Signal of Quality.  Promise, Bond with maker of product.
  17. 17. Firm’s perspective  They serve an identification purpose to simplify product handling or tracing.  Brands help to organize inventory and accounting records.  It also offers the firm legal protection for unique feature.  It retain intellectual property right and protected through registered trademark.
  18. 18. Role that Brand Play (Firm)  Means of identification to simplify handling or tracing.  Means of legally protecting unique features.  Signal of quality level to satisfied customers.  Means of endowing product with unique association.  Source of competitive advantage.  Source of financial returns.
  19. 19. Can Everything Be Branded ?  Brand is something that resides in the minds of consumers.  The key to branding is that consumer perceive differences among brands in a product category.  It benefits marketers whenever consumers are in a choice situation.
  20. 20.  Physical Goods. Physical Goods are what are traditionally associated with Brands.  Business to Business Product.  B-B Brands are often corporate brands, so understanding branding from corporate brand perspective is critical.  High-tech Product.  Many company struggled with branding.  Managed by technologists, they often lack any kind of brand strategy and see branding as simply naming their product. Physical Goods.
  21. 21. Services  They are less tangible than products and more likely very in quality.  It depends on the particular person or people providing them. Retailers and Distributors  Brand can generate loyalty and interest.  Brands by using store name.
  22. 22. Online Products and Services.  Providing tracking update.  Find unique way to satisfy customer’s unmet need. People and Organization.  It is straightforward when the product is people. (liked or Disliked by others)  Similarly organization often take on meaning though their program or activities.
  23. 23. Sports, Arts, and Entertainment Geographic Location Ideas and Causes
  24. 24. What are strong Brand ? The best known or highly regarded.  The five factors as the key to Brand Leadership.  Vision of the Mass Market  Managerial Persistence  Financial Commitment  Relentless Innovation  Asset Leverage
  25. 25. Branding Challenges and Opportunities  Savvy Customer.  Expectation of what they want from the product is higher than what they think brand will deliver them, and the gap is growing.  Brand proliferation.  Rise in line and brand extension.  Media Fragmentation.  Erosion of traditional media and emergence of non-traditional and other communication alternatives. Continue…..
  26. 26. Continued…..  Increased Competition.  Globalization.  Low-priced competitors.  Brand extension.  Deregulation.  Increased Cost.  Grater Accountability.
  27. 27. Challenges to Brand Builders  Savvy Customer.  More complex brand families and portfolios.  Maturing market.  More sophisticated and increasing competition.  Difficulty in differentiating.  Decreasing brand loyalty.  Growth of private labels.  Increasing trade power.  Fragmenting media coverage.  Eroding traditional media effectiveness.  Emerging new communication options.  Increasing promotional expenditure.  Decreasing advertising expenditure.  Increasing cost of production and support.  Increasing short term performance orientation.  Increasing job turnover.
  28. 28. What is Brand Equity? Brand equity is the added value endowed on products and services, which may be reflected in the way consumers, think, feel, and act with respect to the brand. But most observer believes that it consist of marketing effect uniquely attributable to brand. That is , why different outcome results from marketing of branded product. Branding is all about creating differences.
  29. 29. The principles of Branding and Brand Equity  Differences in outcome arises from the “added value” endowed to a product as a result of past marketing activities for the Brand.  This value can be created for a Brand in many different ways.  Brand Equity Provides a common denominator for interpreting marketing strategies and assessing the value of the Brand.  There are many different ways in which the value of a Brand can be exploited to benefit the firm ( greater proceeds or low cost or both).
  30. 30. Strategic Brand Management Process Strategic Brand Management involves the design and implementation of marketing programs and activities to build, measure, and manage brand equity. Strategic Brand Management Process as having four main steps; 1. Identifying and establishing Brand positioning. 2. Planning and implementing Brand marketing program. 3. Measuring and interpreting brand performance. 4. Growing and sustaining brand equity.
  31. 31. Strategic Brand Management Process Mental maps Competitive frame of reference Points-of-parity and points-of-difference Core brand values Brand mantra Mixing and matching of brand elements Integrating brand marketing activities Leveraging of secondary associations Brand Value Chain Brand audits Brand tracking Brand equity management system Brand-product matrix Brand portfolios and hierarchies Brand expansion strategies Brand reinforcement and revitalization KEY CONCEPTS STEPS Grow and Sustain Brand Equity Identify and Establish Brand Positioning and Values Plan and Implement Brand Marketing Programs Measure and Interpret Brand Performance
  32. 32. Identify and Establish Brand Positioning and Values Mental maps Competitive frame of reference Points-of-parity and points-of-difference Core brand values Brand mantra It starts with what brand is to be represented and how it should be positioned. Brand Positioning can be define as the act of designing company's offer and image so that it occupies a distinct and valued place in the target customer’s mind. Positioning convince consumers of the advantages or point of difference a brand has over competitors, while at the same time establishing point of parity. Continue…..
  33. 33. Continued….. A mental map is a visual depiction of the different types of association linked to the brand in the minds of consumers. Core Brand Association are that subset of attribute and benefit that best characterized a Brand. Brand Mantra also known as brand essence or core brand promise. A Brand Promise is the marketer’s vision of what the brand must be and do for consumers.
  34. 34.  Building brand equity requires creating a brand that consumers are sufficiently aware of and with which they have strong, favorable, and unique brand associations; that is knowledge building process and will depends on three factors.  Choosing Brand Elements :  Integrating the Brand in to Marketing Activities and the Supporting Marketing Programs :  Leverage of Secondary Association :  Product Origin, co-branding, licensing, endorsements, awards. Mixing and matching of brand elements Integrating brand marketing activities Leveraging of secondary associations Plan and Implement Brand Marketing Programs
  35. 35. The task of determining and evaluating a brand’s positioning often benefit from a brand audit. Brand Audit is a comprehensive examination of brands to assess its health, uncover its sources of equity, and suggest ways to improve equity. Brand Value Chain is a means to trace the value creation process for brands, to better understand the financial impact of brand marketing expenditure and investments. Brand Value Chain Brand audits Brand tracking Brand equity management system Measure and Interpret Brand Performance
  36. 36.  It’s a consumer-focused exercise involving series of procedure to access brand’s health  Suggest ways to improve it’s equity  Require the understanding of sources of brand equity from the firm and consumer perspective  Consist of two steps:  Brand inventory : Current profile- how sold  Brand exploratory: What consumer think & feel Brand Audits Brand Audits
  37. 37. Means the total financial value of the brand.  Certain company build their brand portfolio for growth.  What is a brand worth?  Brand’s Earnings  Brand’s strength in terms of share, stability, protection, trend Brand Valuation
  38. 38.  Collect Information from consumers  Employ quantitative measures to provide current information  Means of understanding where, how much and in what ways brand value is being created.  Important for manager in decision making.  Provide valuable diagnostic. Brand Tracking
  39. 39.  Brand Equity Management is a set of research procedure designed to provide timely, accurate, and actionable information for marketers so that it helps in strategic decision.  Implementing such a system involves brand tracking and brand equity management system.
  40. 40.  Defining the Branding Strategy: It provide general guidelines about which brand element to apply across its products. Main tools in defining the brand strategy are:  Brand – product Mix : Graphical presentation of all Brands and Product sold by the firm.  Brand Hierarchy : Display the number and nature of common and distinctive brand component across the firm’s product.  Managing Brand Over Time :  Managing Brand Equity Over Geographic boundaries, Culture, and Market Segment. Brand-product matrix Brand portfolios and hierarchies Brand expansion strategies Brand reinforcement and revitalization Grow and Sustain Brand Equity