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Lecture 2 Brand Management

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Lecture 2 Brand Management

  1. 1. Brand Management PT MBA – Trimester III – Year 1 Lecture 2
  2. 2. Coming up… <ul><li>Little more about “Brands” </li></ul><ul><li>Brand v/s Products </li></ul><ul><li>Need/ role of Brands </li></ul><ul><li>Strategic Brand Management – an Introduction </li></ul><ul><li>Customer-based Brand Equity </li></ul>Ref: Strategic Brand Mgmt. – Kevin Kelly
  3. 3. Brands <ul><li>Brandr – “to burn” </li></ul><ul><li>AMA definition – Name, term, sign, symbol, design or a combination of them….identify…. Differentiate from competition </li></ul>Pears soap was the first registered brand as per Unilever JWT first introduced trademark advertising in 1900 through a house advert Awareness, Reputation, Prominence in market Careful selection of brand elements
  4. 4. Brand v/s products <ul><li>Kotler’s definition </li></ul><ul><li>Core Benefit </li></ul><ul><li>Generic Product </li></ul><ul><li>Expected Product </li></ul><ul><li>Augmented Product </li></ul><ul><li>Potential Product </li></ul><ul><li>Brand: </li></ul><ul><li>Product </li></ul><ul><li>+or- perceived </li></ul><ul><li>differentiator </li></ul><ul><ul><ul><li>Rational & Tangible </li></ul></ul></ul><ul><ul><ul><li>Performance based </li></ul></ul></ul><ul><ul><ul><li>Symbolic, emotional </li></ul></ul></ul>Brand = Product + customer perception +performance + brand name + company Ref: Strategic Brand Mgmt. – Kevin Kelly
  5. 5. Role of brands – for Customers <ul><li>Identification of source of product </li></ul><ul><li>Assignment of responsibility to the product maker </li></ul><ul><li>Risk reducer </li></ul><ul><li>Search cost reduces </li></ul><ul><li>Promise, bond, with maker of product (KF airlines) </li></ul><ul><li>Symbolic device </li></ul><ul><li>Signal of quality (arrow shirts) </li></ul>Ref: Strategic Brand Mgmt. – Kevin Kelly
  6. 6. Role for Manufacturer <ul><li>Identification for handling </li></ul><ul><li>Patenting – Legal IPR protection etc </li></ul><ul><li>Signal of quality level – price ranges </li></ul><ul><li>Endowing products with unique associations </li></ul><ul><li>Competitive edge </li></ul><ul><li>Financial returns </li></ul>Ref: Strategic Brand Mgmt. – Kevin Kelly
  7. 7. 3 important questions How can Brand Equity be created? Ref: Strategic Brand Mgmt. – Kevin Kelly How can Brand Equity be measured? How can Brand Equity be used to expand Business opportunities?
  8. 8. Strategic Brand Management <ul><li>Design and implementation of Mktg. programs to build, measure and manage brand equity </li></ul>Identify and Establish Brand Positioning and Values Plan and implement Brand Marketing Programs Measure and Interpret Brand Performance Grow and sustain Brand Equity <ul><li>Mental Maps </li></ul><ul><li>Competitive frame of reference </li></ul><ul><li>Points of parity and Points of difference </li></ul><ul><li>Core brand Values </li></ul><ul><li>Brand Mantra </li></ul><ul><li>Mixing and matching of brand elements </li></ul><ul><li>Integrated brand marketing activities </li></ul><ul><li>Leverage of secondary association </li></ul>Ref: Strategic Brand Mgmt. – Kevin Kelly
  9. 9. Strategic Brand Management <ul><li>Brand-product mix </li></ul><ul><li>Brand Portfolios and hierarchies </li></ul><ul><li>Brand expansion Strategies </li></ul><ul><li>Brand reinforcement and revitalization </li></ul>Identify and Establish Brand Positioning and Values Plan and implement Brand Marketing Programs Measure and Interpret Brand Performance Grow and sustain Brand Equity <ul><li>Brand Value chain </li></ul><ul><li>Brand audits </li></ul><ul><li>Brand Tracking </li></ul><ul><li>Brand Equity Management System </li></ul>Ref: Strategic Brand Mgmt. – Kevin Kelly
  10. 10. Building Customer-Based Brand Equity 1. Brand building tools and objectives 2. Consumer knowledge effects 3. Branding Benefits Ref: Strategic Brand Mgmt. – Kevin Kelly
  11. 11. 1. Brand building tools and objectives <ul><li>Choose Brand Elements </li></ul><ul><li>Brand name </li></ul><ul><li>Logo </li></ul><ul><li>Symbol </li></ul><ul><li>Character </li></ul><ul><li>Packaging </li></ul><ul><li>Slogan </li></ul><ul><ul><li>Memorability </li></ul></ul><ul><ul><li>Meaningfulness </li></ul></ul><ul><ul><li>Likability </li></ul></ul><ul><ul><li>Transferability </li></ul></ul><ul><ul><li>Adaptability </li></ul></ul><ul><ul><li>Protectability </li></ul></ul>Ref: Strategic Brand Mgmt. – Kevin Kelly
  12. 12. 1. Brand building tools and objectives <ul><li>Developing Marketing Programs </li></ul>Product Price Distribution Channels Communications <ul><ul><li>Tangible and intangible </li></ul></ul><ul><ul><li>benefits </li></ul></ul><ul><ul><li>Value Perceptions </li></ul></ul><ul><ul><li>Integrate “Push” & “ Pull” </li></ul></ul><ul><ul><li>Mix and match options </li></ul></ul>Ref: Strategic Brand Mgmt. – Kevin Kelly
  13. 13. 1. Brand building tools and objectives <ul><li>Leverage on secondary associations </li></ul>Company Country of origin Channels of Dist. Other Brands Endorsor Event <ul><ul><li>Awareness </li></ul></ul><ul><ul><li>Meaningfulness </li></ul></ul><ul><ul><li>Transferability </li></ul></ul>Ref: Strategic Brand Mgmt. – Kevin Kelly
  14. 14. Consumer Knowledge Effects <ul><li>Brand Awareness </li></ul><ul><ul><li>Depth </li></ul></ul><ul><ul><ul><li>Recall </li></ul></ul></ul><ul><ul><ul><li>Recognition </li></ul></ul></ul><ul><ul><li>Breadth </li></ul></ul><ul><ul><ul><li>Purchase </li></ul></ul></ul><ul><ul><ul><li>Consumption </li></ul></ul></ul><ul><li>Brand Associations </li></ul><ul><ul><li>Strong </li></ul></ul><ul><ul><ul><li>Relevance </li></ul></ul></ul><ul><ul><ul><li>Consistence </li></ul></ul></ul><ul><ul><li>Favourable </li></ul></ul><ul><ul><ul><li>Desirable </li></ul></ul></ul><ul><ul><ul><li>Deliverable </li></ul></ul></ul><ul><ul><li>Unique </li></ul></ul><ul><ul><ul><li>Points of parity </li></ul></ul></ul><ul><ul><ul><li>Points of difference </li></ul></ul></ul>
  15. 15. 3. Possible outcomes <ul><li>Greater Loyalty </li></ul><ul><li>Less vulnerability to competitive marketing actions and crises </li></ul><ul><li>Larger Margins </li></ul><ul><li>More elastic response to price decreases </li></ul><ul><li>More inelastic response to price increases </li></ul><ul><li>Greater trade cooperation and support </li></ul><ul><li>Increased marketing communication efficiency and effectiveness </li></ul><ul><li>Possible Licensing opportunities </li></ul><ul><li>More favourable brand extension evaluations </li></ul>
  16. 16. Measuring Customer-based Brand Equity <ul><li>Brand Audit </li></ul><ul><ul><li>Brand Inventory </li></ul></ul><ul><ul><li>Brand Exploratory </li></ul></ul><ul><li>Brand Value Chain </li></ul><ul><ul><li>Brand equity sources </li></ul></ul><ul><ul><li>Brand equity outcomes </li></ul></ul><ul><li>Brand equity management system </li></ul><ul><ul><li>Brand Equity Charter </li></ul></ul><ul><ul><li>Brand Equity Report </li></ul></ul><ul><ul><li>Brand Equity Responsibilities </li></ul></ul>
  17. 17. Managing Customer Brand Equity <ul><li>Define Brand hierarchy </li></ul><ul><ul><li>Principle of Simplicity </li></ul></ul><ul><ul><li>Principle of relevance </li></ul></ul><ul><ul><li>Principle of differentiation </li></ul></ul><ul><ul><li>Principle of prominence </li></ul></ul><ul><ul><li>Principle of commonality </li></ul></ul><ul><li>2. Define Brand- Product mix </li></ul><ul><ul><li>Brand extensions </li></ul></ul><ul><ul><li>Brand Portfolio </li></ul></ul><ul><li>3. Enhance Brand Equity over time </li></ul><ul><ul><li>Brand Reinforcements </li></ul></ul><ul><ul><li>Brand revitalization </li></ul></ul><ul><li>4. Establish B.E. over </li></ul><ul><li>market segments </li></ul><ul><ul><li>Identify differences in consumer behavior </li></ul></ul><ul><ul><li>Adjust Branding program </li></ul></ul>

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