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- 1. CHAPTERCHAPTER--11 BRANDS AND BRAND MANAGEMENTBRANDS AND BRAND MANAGEMENT Prof. Md.Prof. Md. MizanurMizanur RahmanRahman MBA (Canada), PhD (Dhaka)MBA (Canada), PhD (Dhaka) Department of MarketingDepartment of Marketing University of DhakaUniversity of Dhaka Learning ObjectivesLearning Objectives Define ―brand,‖ state how brand differs from aDefine ―brand,‖ state how brand differs from a product, and explain what brand equity isproduct, and explain what brand equity is Summarize why brands are importantSummarize why brands are important Explain how branding applies to virtually everythingExplain how branding applies to virtually everything Describe the main branding challenges andDescribe the main branding challenges and opportunitiesopportunities Identify the steps in the strategic brandIdentify the steps in the strategic brand management processmanagement process 1.2
- 2. 1.3 What Is A Brand?What Is A Brand? ―A―A brandbrand is a name, term, sign,is a name, term, sign, symbol, or design or asymbol, or design or a combination of them, intendedcombination of them, intended toto identifyidentify the goods or servicesthe goods or services of one seller or group of sellersof one seller or group of sellers and toand to differentiatedifferentiate them fromthem from those of competition.‖those of competition.‖ ------AMA ???AMA ??? What Is A Brand?What Is A Brand? Simply, ―a brand is someone‘s gutSimply, ―a brand is someone‘s gut feeling about a product, service orfeeling about a product, service or organizations.‖organizations.‖ ―A brand is the―A brand is the summationsummation of allof all perceptions, experiences andperceptions, experiences and beliefs associated with a product,beliefs associated with a product, service, or entity that make itservice, or entity that make it distinct.‖distinct.‖ ------Modern DefinitionModern Definition 1.4
- 3. Are You A Brand?Are You A Brand? Yes!! or No!!Yes!! or No!! You all are a brand by all of your individualYou all are a brand by all of your individual rights and identitiesrights and identities 1.5 Brand ElementsBrand Elements Different components that identify andDifferent components that identify and differentiate a branddifferentiate a brand Can be based onCan be based on people, places, things, andpeople, places, things, and abstract imagesabstract images NameName LogoLogo SymbolSymbol Package designPackage design SloganSlogan Other CharacteristicOther Characteristic 1.6
- 4. Brand ElementsBrand Elements Brand nameBrand name is that part of a brandis that part of a brand which can be vocalized orwhich can be vocalized or utterableutterable.. Brand markBrand mark is that part of a brandis that part of a brand which can be recognized but is notwhich can be recognized but is not utterableutterable, such as symbol, design, or, such as symbol, design, or distinctive coloring or lettering.distinctive coloring or lettering. TrademarkTrademark is that part of brand whichis that part of brand which is registered & protected by law andis registered & protected by law and which gives the seller exclusive rights towhich gives the seller exclusive rights to use it in perpetuityuse it in perpetuity 1.7 Brand ElementsBrand Elements Brand Name =Brand Name = Mercedes BenzMercedes Benz Brand MarkBrand Mark == Trade MarkTrade Mark == Brand NameBrand Name ++ Brand MarkBrand Mark ++ Trade MarkTrade Mark = Brand= Brand 1.8
- 5. Brand Vs. ProductBrand Vs. Product ProductProduct BrandBrand Anything available in theAnything available in the marketplace for use ormarketplace for use or consumption that may satisfy aconsumption that may satisfy a need or wantneed or want Has dimensions that differentiate itHas dimensions that differentiate it in some way from other productsin some way from other products designed to satisfy the same needdesigned to satisfy the same need 1.9 Product Vs. BrandProduct Vs. Brand ProductProduct BrandBrand AA physicalphysical entity thatentity that lives in the real worldlives in the real world AA perceptualperceptual entity that lives inentity that lives in the minds of consumersthe minds of consumers PProvides functionalrovides functional valuevalue PProvides functional as well asrovides functional as well as social, emotional, situational,social, emotional, situational, andand epistemic valuesepistemic values IImplies physicalmplies physical attributes and benefitsattributes and benefits IImplies physical attributes andmplies physical attributes and benefits as well as psychic aspectsbenefits as well as psychic aspects surrounding a productsurrounding a product CComes and goes withomes and goes with timetime IIs timeless???s timeless??? 1.10
- 6. 1.11 Five Levels of Meaning for a ProductFive Levels of Meaning for a Product Core BenefitCore Benefit Generic ProductGeneric Product Expected ProductExpected Product Augmented Product LevelAugmented Product Level Potential Product LevelPotential Product Level 1.12 Brands Conveying Six MeaningsBrands Conveying Six Meanings AttributesAttributes–– characteristics and featurescharacteristics and features BenefitsBenefits–– functional and emotionalfunctional and emotional ValuesValues–– performance, safety & prestigeperformance, safety & prestige CultureCulture–– MercedesMercedes--organized, efficient, high qualityorganized, efficient, high quality PersonalityPersonality–– FantaFanta/Virginia Slim: female personality/Virginia Slim: female personality UsersUsers–– the kind of consumer using itthe kind of consumer using it
- 7. BrandBrand OrganizationalOrganizational AssociationsAssociations Country Of OriginCountry Of Origin User ImageryUser Imagery EmotionalEmotional BenefitsBenefits SelfSelf--expressiveexpressive BenefitsBenefits BrandBrand --CustomerCustomer RelationshipsRelationships SymbolsSymbols Brand PersonalityBrand Personality Weight/ColorWeight/Color Price/QualityPrice/Quality Design/FeaturesDesign/Features Uses/ ValueUses/ Value Functional BenefitsFunctional Benefits ProductProduct A Brand Is More Than A ProductA Brand Is More Than A Product SophisticationSophistication LifeLife--stylesstyles ExperimentalExperimental benefitsbenefits 1.1.1313 Every Brand Has A PersonalityEvery Brand Has A Personality NikeNike AddidasAddidas BataBata BeautifulBeautiful GreekGreek OldOld FeminineFeminine MasculineMasculine OrthodoxOrthodox StrongStrong StrongStrong BoreBore SmartSmart StylishStylish FormalFormal AmbitiousAmbitious AuthoritativeAuthoritative IntrovertIntrovert CoolCool PowerfulPowerful UnsportyUnsporty SexySexy DominatingDominating WeakWeak ExtrovertExtrovert StableStable SimpleSimple EnergeticEnergetic CommandingCommanding ConservativeConservative YoungYoung ModernModern TrustworthyTrustworthy LivelyLively BoldBold CaringCaring 1.14
- 8. 1.15 What Is Branding?What Is Branding? TThehe act of transformingact of transforming a product intoa product into customer satisfying valuecustomer satisfying value--addedadded propositions to create preferences in one‘spropositions to create preferences in one‘s favor and against rivalsfavor and against rivals Everything a marketer does to its offer so thatEverything a marketer does to its offer so that customers can favorably discriminate a brandcustomers can favorably discriminate a brand FromFrom Brands asBrands as identifiersidentifiers NamesNames, logos,, logos, slogansslogans whichwhich buildbuild awarenessawareness and imageand image TOTO Brands asBrands as experienceexperience providersproviders NamesNames, logos, slogans,, logos, slogans, eventsevents,, customercustomer contactscontacts andand experiencesexperiences whichwhich buildbuild sensorysensory, affective,, affective, creativecreative relations andrelations and waysways ofof beingbeing withwith the brandsthe brands 1.16 From Traditional To Experiential BrandingFrom Traditional To Experiential Branding
- 9. USP = UniqueUSP = Unique SellingSelling PropositionProposition ((5050‘s)‘s) ESP =ESP = EmotionalEmotional SellingSelling PropositionProposition ((6060‘s)‘s) OSP =OSP = OrganizationalOrganizational SellingSelling PropositionProposition ((8080‘s)‘s) BSP = BrandBSP = Brand SellingSelling PropositionProposition ((9090‘s)‘s) MSP= MeMSP= Me SellingSelling PropositionProposition ((20002000‘s)‘s) HSP =HSP =HolisticHolistic SellingSelling Proposition (Proposition (AfterAfter 20002000‘s)‘s) 1.17 Evolution From USP to HSPEvolution From USP to HSP http://www.slideshare.net/paulsjr/briefhttp://www.slideshare.net/paulsjr/brief--historyhistory--ofof--brandingbranding Physical productPhysical product Emotional attachmentEmotional attachment Corporate brandingCorporate branding More than physicalMore than physical dimensionsdimensions Personalization;Personalization; ownership byownership by consumersconsumers Multisensory brand;Multisensory brand; synergysynergy Easy for the seller to track down problems andEasy for the seller to track down problems and process ordersprocess orders Legal protection of unique product featuresLegal protection of unique product features Opportunity to attract loyal and profitable set ofOpportunity to attract loyal and profitable set of customerscustomers Helping to give a product category at differentHelping to give a product category at different segments, having separate bundle of benefitssegments, having separate bundle of benefits Building corporate imageBuilding corporate image Minimizing harm to company reputation if the brandMinimizing harm to company reputation if the brand failsfails 1.18 Advantages of BrandingAdvantages of Branding
- 10. Beware of Branding PitfallsBeware of Branding Pitfalls Pitfall No. 1:Pitfall No. 1: A brand isA brand is something a firm ownssomething a firm owns Pitfall No. 2:Pitfall No. 2: BrandsBrands take care of themselvestake care of themselves Pitfall No. 3:Pitfall No. 3: Focus onFocus on brand awareness insteadbrand awareness instead of brand relevanceof brand relevance Pitfall No. 4:Pitfall No. 4: Don‘t baseDon‘t base on internal image ofon internal image of brandbrand Pitfall No. 5:Pitfall No. 5: Don‘t letDon‘t let outsiders do firm‘s joboutsiders do firm‘s job 1.19 A brand is defined only byA brand is defined only by customerscustomers Proactive brand managementProactive brand management is requiredis required Manage touch points; targetManage touch points; target right customers andright customers and stakeholdersstakeholders Gain customer input andGain customer input and determine current brand imagedetermine current brand image and take needful measuresand take needful measures Company should determine itsCompany should determine its own brand imageown brand image AAss perceptions of all tangible and intangibleperceptions of all tangible and intangible elements, brands have…elements, brands have… ……the powerthe power that can transcend the attributesthat can transcend the attributes and characteristics of productsand characteristics of products ……the abilitythe ability to capture attention and loyalty farto capture attention and loyalty far above othersabove others 1.20 Why Is Brand So Important?Why Is Brand So Important?
- 11. Brands can have POWER…Brands can have POWER… CocaCoca--ColaCola Is it more than cola beans, cornIs it more than cola beans, corn sweetener,sweetener, spices and food coloring mixed together?spices and food coloring mixed together? Is it more than a beverage?Is it more than a beverage? Coors LightCoors Light Is it more than hops, malted barley,Is it more than hops, malted barley, mushroom and water?mushroom and water? StarbucksStarbucks Is it more than coffee?Is it more than coffee? USAUSA Is it more than 50 states united?Is it more than 50 states united? 1.21 Why Is Brand So Important?Why Is Brand So Important? No awareness of the brandNo awareness of the brand Heard of it, but don‘t know anything about itHeard of it, but don‘t know anything about it Heard of it and know what it isHeard of it and know what it is Know that and how it‘s differentKnow that and how it‘s different Know that and how it has meaningKnow that and how it has meaning Relate the brand to a feeling, attitude, event,Relate the brand to a feeling, attitude, event, perception of myself that is important andperception of myself that is important and relevant to merelevant to me 1.22 To buildTo build brandbrand power, wepower, we need toneed to knowknow where wewhere we are andare and determinedetermine how to gethow to get to higherto higher levelslevels Brand Power HierarchyBrand Power Hierarchy
- 12. No awareness of the brand Heard of it, but don‘t know anything about it Heard of it and know what it is Know that & how it‘s differentKnow that & how it‘s different Know that & how it has meaningKnow that & how it has meaning Relate the brand to a feeling, attitude, event,Relate the brand to a feeling, attitude, event, perception of myself that is important andperception of myself that is important and relevant to merelevant to me Brand Initiation (where brands become products) 1.23 Brand Power HierarchyBrand Power Hierarchy No awareness of the brandNo awareness of the brand Heard of it, but don‘t know anything about itHeard of it, but don‘t know anything about it Heard of it and know what it isHeard of it and know what it is Know that & how it‘s different Know that & how it has meaningKnow that & how it has meaning Relate the brand to a feeling, attitude, event,Relate the brand to a feeling, attitude, event, perception of myself that is important andperception of myself that is important and relevant to merelevant to me Brand with Differentiation 1.24 Brand Power HierarchyBrand Power Hierarchy
- 13. No awareness of the brandNo awareness of the brand Heard of it, but don‘t know anything about itHeard of it, but don‘t know anything about it Heard of it and know what it isHeard of it and know what it is Know that & how it‘s differentKnow that & how it‘s different Know that & how it has meaning Relate the brand to a feeling, attitude, event,Relate the brand to a feeling, attitude, event, perception of myself that is important andperception of myself that is important and relevant to merelevant to me Brand with Relevance 1.25 Brand Power HierarchyBrand Power Hierarchy No awareness of the brandNo awareness of the brand Heard of it, but don‘t know anything about itHeard of it, but don‘t know anything about it Heard of it and know what it isHeard of it and know what it is Know that & how it‘s differentKnow that & how it‘s different Know that & how it has meaningKnow that & how it has meaning Relate the brand to a feeling, attitude, event, perception of myself that is important and relevant to me Brand with Equity 1.26 Brand Power HierarchyBrand Power Hierarchy
- 14. BrandBrand DifferentiationDifferentiation BrandBrand RelevanceRelevance ++ Brand PowerBrand Power is a function of Differentiation, Relevance, and Equityis a function of Differentiation, Relevance, and Equity BP=f(D,R,BE)BP=f(D,R,BE) ==BrandBrand EquityEquity ++ 1.27 Achieving Brand PowerAchieving Brand Power Brand Differentiation:Brand Differentiation: The characteristics and perceptions that areThe characteristics and perceptions that are perceived to be different against alternativesperceived to be different against alternatives Differentiation buys trialDifferentiation buys trial Achieving Brand PowerAchieving Brand Power 1.28
- 15. Brand Relevance:Brand Relevance: The degree to which the brand is applicable to, orThe degree to which the brand is applicable to, or makes a connection withmakes a connection with people‘s lifestyles,people‘s lifestyles, issues, needs,issues, needs, desires, etc.desires, etc. Relevance gains repeat considerationRelevance gains repeat consideration Achieving Brand PowerAchieving Brand Power 1.29 Brand Equity:Brand Equity: Derived fromDerived from experienceexperience--based associationsbased associations with thewith the brand, and the emotional connections that grow frombrand, and the emotional connections that grow from themthem Brand Equity provides insulationBrand Equity provides insulation Achieving Brand PowerAchieving Brand Power 1.30
- 16. Customer will not change brands for price reasonsCustomer will not change brands for price reasons Customer is satisfied; no reason to changeCustomer is satisfied; no reason to change Customer is satisfied and would take pains to getCustomer is satisfied and would take pains to get the brandthe brand Customer values the brand and sees it as a friendCustomer values the brand and sees it as a friend Customer is devoted to the brandCustomer is devoted to the brand When Is Brand Power Achieved?When Is Brand Power Achieved? 1.31 Brand LoyaltyBrand Loyalty Brand loyaltyBrand loyalty is the bias, behavioral response,is the bias, behavioral response, expressed over time, by some decisionexpressed over time, by some decision--makingmaking unit, with respect to one or more alternatives,unit, with respect to one or more alternatives, and is a function of psychological processand is a function of psychological process ‗Loyal customer base‘ is the essence of brand‗Loyal customer base‘ is the essence of brand buildingbuilding 1.32
- 17. Brand LoyaltyBrand Loyalty LLoyal customer base depends on:oyal customer base depends on: 1.33 TrustTrust ConsistencyConsistency AccessibilityAccessibility ResponsivenessResponsiveness CommitmentCommitment AffinityAffinity Social bondsSocial bonds Psychological bondsPsychological bonds Financial bondsFinancial bonds Structural bondsStructural bonds Brand LoyaltyBrand Loyalty Trust: willing to rely on brandTrust: willing to rely on brand Consistency: no variation in qualityConsistency: no variation in quality Accessibility: accessible to customersAccessibility: accessible to customers Responsiveness: quick response to customersResponsiveness: quick response to customers Commitment: dedicated to customersCommitment: dedicated to customers Affinity: identify with brandAffinity: identify with brand Social bonds: customerSocial bonds: customer--seller relationseller relation Psychological bonds: influencing personality, lifestylesPsychological bonds: influencing personality, lifestyles Financial bonds: discounts offeringFinancial bonds: discounts offering Structural bonds: physical connection between buyer‘s andStructural bonds: physical connection between buyer‘s and seller‘s systemsseller‘s systems 1.34
- 18. Brand isBrand is possessedpossessed by customers butby customers but ownedowned byby firms because it is…firms because it is… …an intangible and a perceptual entity− difficult to copy…an intangible and a perceptual entity− difficult to copy …like knowledge structure which lives in customer‘s…like knowledge structure which lives in customer‘s mind in form of a universe of associations which…mind in form of a universe of associations which… …stores variety of information…stores variety of information …creates brand awareness, and brand associations (brand image)…creates brand awareness, and brand associations (brand image) …elicits customer response…elicits customer response Brands Are Customer PossessedBrands Are Customer Possessed 1.35 PepsiPepsi Urban Refreshing Thirst Young Good Times Fun S. Khan Rebel Sweet US Cola Coke Fanta Orange Mirinda Black Brands Are Customer PossessedBrands Are Customer Possessed 1.36Fig: Associative Network for PepsiFig: Associative Network for Pepsi
- 19. To Sum Up ....To Sum Up .... Through branding, organizations:Through branding, organizations: Create perceived differences amongst productsCreate perceived differences amongst products Develop loyal customer franchiseDevelop loyal customer franchise Create value that can translate to financial profitsCreate value that can translate to financial profits 1.37 1.38 Why Is Branding So Hot?Why Is Branding So Hot? We have tooWe have too many choicesmany choices andand too little timetoo little time Most offerings haveMost offerings have similar qualitysimilar quality andand featuresfeatures We make our buying choices onWe make our buying choices on trusttrust
- 20. Why Do Brands Matter?Why Do Brands Matter? WhatWhat functionsfunctions do brands perform that makedo brands perform that make them so valuable to marketers?them so valuable to marketers? What brands do to CONSUMERS and FIRMS?What brands do to CONSUMERS and FIRMS? 1.40 Roles to Consumers (Individual andRoles to Consumers (Individual and OrganizationsOrganizations Functions provided by brands to consumersFunctions provided by brands to consumers Identify theIdentify the makermaker of the product and allowof the product and allow consumers toconsumers to assign responsibilityassign responsibility to a producerto a producer Simplify product decisionsSimplify product decisions Lower the search costs for products internally andLower the search costs for products internally and externallyexternally Help set reasonable expectations about whatHelp set reasonable expectations about what consumers may not know about the brandconsumers may not know about the brand ContinuedContinued
- 21. 1.41 Roles to ConsumersRoles to Consumers Do promise and establish relationship between aDo promise and establish relationship between a consumer and a brandconsumer and a brand Serve as symbolic devices allowing consumers toServe as symbolic devices allowing consumers to project their selfproject their self--imageimage Signal product characteristics and attributesSignal product characteristics and attributes On the basis of attributes, products are classified asOn the basis of attributes, products are classified as search goods, experience goods and credence goodssearch goods, experience goods and credence goods ReduceReduce risksrisks in product decisionin product decision ContinuedContinued 1.42 Reducing the risks in product decisionsReducing the risks in product decisions RRisks consumers perceive in buying and consumingisks consumers perceive in buying and consuming a product:a product: Functional riskFunctional risk——The product does not perform up toThe product does not perform up to expectationsexpectations Physical riskPhysical risk——The product poses a threat to user‘s healthThe product poses a threat to user‘s health Financial riskFinancial risk——The product is not worth the price paidThe product is not worth the price paid Social riskSocial risk——The product results in embarrassmentThe product results in embarrassment Psychological riskPsychological risk——The product affects the mental wellThe product affects the mental well-- beingbeing Time riskTime risk——The failure of the product results in anThe failure of the product results in an opportunity cost of finding another satisfactory productopportunity cost of finding another satisfactory product
- 22. 1.43 Roles to FirmsRoles to Firms Brands provide valuable functionsBrands provide valuable functions Simplify product handling and tracingSimplify product handling and tracing Help organize inventory and accounting recordsHelp organize inventory and accounting records Offer the firm legal protection for unique features orOffer the firm legal protection for unique features or aspects of the productaspects of the product ProvideProvide predictability and security of demand for the firmpredictability and security of demand for the firm and creates barriers of entry for competitorsand creates barriers of entry for competitors Provide a powerful means to secure competitiveProvide a powerful means to secure competitive advantageadvantage Provide source of financial returnsProvide source of financial returns Figure 1.3Figure 1.3 -- Roles that Brands PlayRoles that Brands Play
- 23. 1.45 Can Everything Be Branded?Can Everything Be Branded? YES!!!YES!!! How are brands created?How are brands created? How do you brand a product?How do you brand a product? Firms create brand throughFirms create brand through marketing programsmarketing programs,, although it resides in the mindsalthough it resides in the minds 1.46 How Are Brands Created?How Are Brands Created? To brand a product it is necessary to teachTo brand a product it is necessary to teach consumers:consumers: Who the product isWho the product is What the product doesWhat the product does Why consumers should care itWhy consumers should care it BBranding provides firms with value throughranding provides firms with value through creatingcreating mental structuresmental structures that help consumersthat help consumers organizeorganize their knowledge about product to maketheir knowledge about product to make decisiondecision
- 24. 1.47 Can Everything Be Branded?Can Everything Be Branded? EEverything even commodities can beverything even commodities can be brandedbranded Coffee (Maxwell House), bath soap (Ivory), flourCoffee (Maxwell House), bath soap (Ivory), flour (Gold Medal), beer (Budweiser), salt (Morton),(Gold Medal), beer (Budweiser), salt (Morton), oatmeal (Quaker), pickles (Vlasic), bananasoatmeal (Quaker), pickles (Vlasic), bananas (Chiquita), chickens (Perdue), pineapples (Dole),(Chiquita), chickens (Perdue), pineapples (Dole), and even water (Perrier)and even water (Perrier) 1.48 An Example of Branding a CommodityAn Example of Branding a Commodity De Beers Group added the phraseDe Beers Group added the phrase ―A Diamond Is Forever‖―A Diamond Is Forever‖
- 25. 1.49 What Can Be Branded?What Can Be Branded? Physical goods (BMW, Sony)Physical goods (BMW, Sony) Services (British Airways, FedEx, Hilton Hotel)Services (British Airways, FedEx, Hilton Hotel) Retailers and distributors (Sears, WalRetailers and distributors (Sears, Wal--Mart, M&S)Mart, M&S) Online products and services (Amazon.com, Google)Online products and services (Amazon.com, Google) People and organizations (People and organizations (MaradonaMaradona, Red Cross), Red Cross) Sports, arts, and entertainment (Real Madrid)Sports, arts, and entertainment (Real Madrid) Geographic locations (Geographic locations (SunderbonSunderbon)) Ideas and causes (AIDS Ribbons)Ideas and causes (AIDS Ribbons) Physical Goods: B2B ProductsPhysical Goods: B2B Products Know branding from corporate perspectiveKnow branding from corporate perspective Create aCreate a positive brand image and reputationpositive brand image and reputation for thefor the company as a whole which will create…company as a whole which will create… …greater selling opportunity and more profitable…greater selling opportunity and more profitable relationshipsrelationships Some B2B firms believe that buyers are so informedSome B2B firms believe that buyers are so informed and professional that brands don‘t matterand professional that brands don‘t matter DeDe--commoditize B2B brands to create difference,commoditize B2B brands to create difference, although it is difficultalthough it is difficult 1.50
- 26. Physical Goods: HighPhysical Goods: High--Tech ProductsTech Products Challenging due to the speed and brevity ofChallenging due to the speed and brevity of technology PLCstechnology PLCs Don‘t brandDon‘t brand only by namingonly by naming (technologists‘ view)(technologists‘ view) Financial success depends not only on innovation butFinancial success depends not only on innovation but also on marketing skillsalso on marketing skills CEOs are the dominant factors (Bill Gates: Microsoft)CEOs are the dominant factors (Bill Gates: Microsoft) Adoption ofAdoption of classic consumer marketing techniquesclassic consumer marketing techniques hashas increased expenditures on marketing communicationsincreased expenditures on marketing communications 1.51 Challenging as services are less tangible andChallenging as services are less tangible and more variable in qualitymore variable in quality Address intangibility and variability problemsAddress intangibility and variability problems TanagibilizeTanagibilize the servicethe service Brand symbolsBrand symbols may be important because they make themay be important because they make the abstract nature of services more concreteabstract nature of services more concrete BrandsBrands help identify and provide meaning to differenthelp identify and provide meaning to different servicesservices Branding is an effectiveBranding is an effective way to signalway to signal to consumers thatto consumers that service is special and deserving of its nameservice is special and deserving of its name 1.52 Role of Branding with ServicesRole of Branding with Services
- 27. Corporate credibilityCorporate credibility is key in terms of expertise,is key in terms of expertise, trustworthiness, and likeabilitytrustworthiness, and likeability VariabilityVariability is more of an issue with professionalis more of an issue with professional servicesservices Individual employeesIndividual employees have a lot more of their ownhave a lot more of their own equity in the firmequity in the firm Referrals and testimonialsReferrals and testimonials can be powerful when thecan be powerful when the services are intangible and subjectiveservices are intangible and subjective EmotionsEmotions can play a big role in terms of sense ofcan play a big role in terms of sense of security and social approvalsecurity and social approval 1.53 Professional ServicesProfessional Services Brands can help createBrands can help create...... …consumer interest, patronage, and loyalty in stores…consumer interest, patronage, and loyalty in stores …the retailer‘s image and establish positioning…the retailer‘s image and establish positioning Retailers can create their own brand image by…Retailers can create their own brand image by… …attaching unique associations to service quality, product…attaching unique associations to service quality, product assortment, pricing, and credit policy to their storesassortment, pricing, and credit policy to their stores …introducing their own brands through using store names,…introducing their own brands through using store names, creating new names, or some combination of bothcreating new names, or some combination of both 1.54 Retailers and DistributorsRetailers and Distributors
- 28. 3 strongest online brands are Google,3 strongest online brands are Google, FacebookFacebook,, and Twitterand Twitter Flashy or unusual ads fail to create awarenessFlashy or unusual ads fail to create awareness CreateCreate unique aspects of the brandunique aspects of the brand on some dimensions likeon some dimensions like convenience, price, varietyconvenience, price, variety Ensure that brandsEnsure that brands perform satisfactorily in other areasperform satisfactorily in other areas likelike customer service, credibility and personalitycustomer service, credibility and personality OfferOffer unique features and servicesunique features and services to consumers and avoidto consumers and avoid extensive adsextensive ads Rely more onRely more on WOM and publicityWOM and publicity 1.55 Online products and servicesOnline products and services Branding is simple if the product category isBranding is simple if the product category is people or organizationpeople or organization Build up a name and reputationBuild up a name and reputation Right awareness and image determine the way people treatRight awareness and image determine the way people treat you, interpret your words, and actionsyou, interpret your words, and actions CheckCheck whowho the person is andthe person is and whatwhat kind of person he is inkind of person he is in terms of skills, talents, attitude, and so forthterms of skills, talents, attitude, and so forth Organizations take on meanings through theirOrganizations take on meanings through their programs, activities, and productsprograms, activities, and products 1.56 People and OrganizationsPeople and Organizations
- 29. People and organizations are used as brandsPeople and organizations are used as brands Some apply traditional packagedSome apply traditional packaged--goods techniquesgoods techniques Apply creative combination of ad, promotions,Apply creative combination of ad, promotions, sponsorship, direct mail, digital, and other forms ofsponsorship, direct mail, digital, and other forms of communicationcommunication Building brand awareness, image, and loyalty, some are ableBuilding brand awareness, image, and loyalty, some are able to meet ticket sales targetto meet ticket sales target Brand symbols and logos work as a financial contributorBrand symbols and logos work as a financial contributor In arts and entertainment, buyers judge qualityIn arts and entertainment, buyers judge quality not by inspection, but use cuesnot by inspection, but use cues 1.57 Sports, Arts, and EntertainmentSports, Arts, and Entertainment Place marketing is on the risePlace marketing is on the rise Use IMC to promote cities, states, regions, andUse IMC to promote cities, states, regions, and countriescountries IMC creates awareness and a favorable image of aIMC creates awareness and a favorable image of a location that will entice visitorslocation that will entice visitors 1.58 Geographic LocationsGeographic Locations
- 30. Ideas and causes are branded by mostly nonIdeas and causes are branded by mostly non-- profit organizationsprofit organizations Use phrase or slogan or symbols for brandingUse phrase or slogan or symbols for branding (AIDS Ribbons)(AIDS Ribbons) Make them more visible and concreteMake them more visible and concrete 1.59 Ideas and CausesIdeas and Causes To Sum up....To Sum up.... Branding is universal and pervasive in differentBranding is universal and pervasive in different product categoriesproduct categories Applicable to both tangible and intangible offeringsApplicable to both tangible and intangible offerings of an organizationof an organization Technological developments have impacted the wayTechnological developments have impacted the way firms market their offeringsfirms market their offerings Organizations reap financial benefits from positiveOrganizations reap financial benefits from positive brand imagesbrand images
- 31. Revolutionary and inspiring vision of massRevolutionary and inspiring vision of mass marketmarket An indomitable will to realize that visionAn indomitable will to realize that vision Managerial persistence under adversityManagerial persistence under adversity Financial commitmentFinancial commitment Relentless innovationRelentless innovation Asset Leverage to realize visionAsset Leverage to realize vision Keys to Enduring Brand LeadershipKeys to Enduring Brand Leadership 1.61 Essentials to Success of a BrandEssentials to Success of a Brand Successful brands achieve discriminatorySuccessful brands achieve discriminatory response from consumersresponse from consumers Two basic strategies can be used:Two basic strategies can be used: Better Brand StrategyBetter Brand Strategy Superior Band StrategySuperior Band Strategy 1.62
- 32. 1.63 Better Brand StrategyBetter Brand Strategy Superior Brand StrategySuperior Brand Strategy BBeats competition of buildingeats competition of building more value on attributes/benefitsmore value on attributes/benefits sought by customerssought by customers OOffers competitive as well asffers competitive as well as some unique attributes/benefitssome unique attributes/benefits not offered by competitionnot offered by competition CConfined to existing attributes/onfined to existing attributes/ benefitsbenefits GGoes beyond existingoes beyond existing attributes/benefitsattributes/benefits IIncreases CV incrementallyncreases CV incrementally IIncreases CV exponentiallyncreases CV exponentially TToothpaste offers germoothpaste offers germ protection round the clockprotection round the clock instead of 12 hoursinstead of 12 hours TToothpaste offers mintingoothpaste offers minting attributeattribute Essentials to Success of a BrandEssentials to Success of a Brand How to Build Superior Brands?How to Build Superior Brands? SSuperior brands must achieve valueduperior brands must achieve valued discriminationdiscrimination Not sufficient just to achieve valued discriminationNot sufficient just to achieve valued discrimination or deliver what target market wantsor deliver what target market wants Rather deliver what others fail to and whatRather deliver what others fail to and what customers look forward tocustomers look forward to 1.64
- 33. TTo achieve valued discrimination, marketerso achieve valued discrimination, marketers must know:must know: For whom is the brand meant? (target market)For whom is the brand meant? (target market) What do competitive brands offer? (similarity)What do competitive brands offer? (similarity) What do customers desire or value but do notWhat do customers desire or value but do not get? (discriminating value)get? (discriminating value) How to Build Superior Brands?How to Build Superior Brands? 1.65 Five steps for achieving valued discriminationFive steps for achieving valued discrimination 1.1. Identify SegmentsIdentify Segments Study existing segments‘ characteristics andStudy existing segments‘ characteristics and competitioncompetition 2.2. Understand the Key Drivers of BuyingUnderstand the Key Drivers of Buying List down the attributes/benefits/values soughtList down the attributes/benefits/values sought Do extensive marketing research to figure outDo extensive marketing research to figure out How to Build Superior Brands?How to Build Superior Brands? 1.66
- 34. 3.3. Determine Relative ImportanceDetermine Relative Importance Rate these in order of importanceRate these in order of importance 4.4. Analyze CompetitionAnalyze Competition Make competitive analysis and customer analysisMake competitive analysis and customer analysis 5.5. Find Sources of Discriminative ValueFind Sources of Discriminative Value Find attributes which are the sources of valuedFind attributes which are the sources of valued discriminationdiscrimination How to Build Superior Brands?How to Build Superior Brands? 1.67 Strong BrandsStrong Brands BrandsBrands that havethat have been market leaders in theirbeen market leaders in their categories for decadescategories for decades Any brand is vulnerable and susceptible toAny brand is vulnerable and susceptible to poor brand managementpoor brand management The appeal of brand is not timeless, if it is notThe appeal of brand is not timeless, if it is not properly managedproperly managed
- 35. What Are the Strongest Brands?What Are the Strongest Brands? 1.69 1.70 Top Ten Global Brands (Top Ten Global Brands (InterbrandInterbrand)) Rank in 2015Rank in 2015 2015 ($Billion)2015 ($Billion) 1.1. AppleApple 2.2. GoogleGoogle 3.3. CocaCoca--ColaCola 4.4. MicrosoftMicrosoft 5.5. IBMIBM 6.6. ToyotaToyota 7.7. SamsungSamsung 8.8. GEGE 9.9. MacDonald'sMacDonald's 10.10. AmazonAmazon 170.28170.28 120.31120.31 78.4278.42 67.6767.67 65.0965.09 49.0549.05 45.3045.30 42.2742.27 39.8139.81 37.8537.85
- 36. 1.71 Factors Responsible for BrandingFactors Responsible for Branding ChallengesChallenges SavvySavvy customerscustomers EconomicEconomic downturnsdownturns BrandBrand proliferationproliferation MediaMedia transformationtransformation IncreasedIncreased competitioncompetition IncreasedIncreased costcost IncreasedIncreased accountabilityaccountability 1.72 Factors Responsible for BrandingFactors Responsible for Branding ChallengesChallenges
- 37. Types of Failure of BrandsTypes of Failure of Brands Parity BrandsParity Brands–– offer only similar valuesoffer only similar values Inferior BrandsInferior Brands–– offer lesser value or sufferingoffer lesser value or suffering competitive disadvantagecompetitive disadvantage Mismatch BrandsMismatch Brands–– offer value not in the lineoffer value not in the line with customer needswith customer needs OverOver--priced Brandspriced Brands–– offer superior value but atoffer superior value but at a higher sacrificea higher sacrifice 1.74 Brand EquityBrand Equity The added value endowed to products reflectedThe added value endowed to products reflected in how consumers think, feel, and act within how consumers think, feel, and act with respect to brandrespect to brand The premium a brand can command in theThe premium a brand can command in the marketmarket The difference between the perceived valueThe difference between the perceived value and the intrinsic value of a brandand the intrinsic value of a brand No common viewpoint on how BE should be conceptualized and measured.No common viewpoint on how BE should be conceptualized and measured.
- 38. Brand EquityBrand Equity Principles of branding and brand equityPrinciples of branding and brand equity Differences in outcomesDifferences in outcomes arise fromarise from the ―added value‖the ―added value‖ endowed to a productendowed to a product The added valueThe added value can be createdcan be created for a brand in manyfor a brand in many different waysdifferent ways Brand equity providesBrand equity provides a common denominatora common denominator forfor interpreting marketing strategies andinterpreting marketing strategies and assessingassessing thethe value of a brandvalue of a brand There areThere are many different waysmany different ways in which the value of ain which the value of a brand can be exploited to benefit thebrand can be exploited to benefit the firmfirm Brand EquityBrand Equity–– Competitive AdvantagesCompetitive Advantages RReduced marketing costseduced marketing costs TTrade leveragerade leverage CCan charge a higher pricean charge a higher price CCan easily launch brand extensionsan easily launch brand extensions CCan take some price competitionan take some price competition 1.76
- 39. 1.77 Strategic Brand ManagementStrategic Brand Management The design andThe design and implementation ofimplementation of marketing programsmarketing programs to build, measure,to build, measure, and manage brandand manage brand equity.equity. The four main steps of theThe four main steps of the process:process: •• Identifying and Developing BrandIdentifying and Developing Brand PlansPlans •• Designing and Implementing BrandDesigning and Implementing Brand Marketing ProgramsMarketing Programs •• Measuring and Interpreting BrandMeasuring and Interpreting Brand PerformancePerformance •• Growing and Sustaining BrandGrowing and Sustaining Brand EquityEquity Identifying and Developing BrandIdentifying and Developing Brand PlansPlans Brand Positioning ModelBrand Positioning Model How toHow to createcreate a position in the minds of customers anda position in the minds of customers and guideguide integrated marketing to maximize CAintegrated marketing to maximize CA Brand Resonance ModelBrand Resonance Model How toHow to createcreate intense, active loyalty relationshipsintense, active loyalty relationships Brand Value ChainBrand Value Chain TracesTraces the value creation process to better understandthe value creation process to better understand thethe financial impactfinancial impact of brand marketing expenditures andof brand marketing expenditures and investments.investments. 1.78
- 40. Designing and implementing BrandDesigning and implementing Brand Marketing ProgramMarketing Program Choosing brand elements (mixing andChoosing brand elements (mixing and matching)matching) Integrating the brand into marketing activitiesIntegrating the brand into marketing activities and the supporting marketing programand the supporting marketing program Leveraging secondary associationsLeveraging secondary associations 1.79 Measuring andMeasuring and Interpreting BrandInterpreting Brand PerformancePerformance Marketers must develop and implement aMarketers must develop and implement a BEMSBEMS toto manage brands profitablymanage brands profitably BEMS is a set ofBEMS is a set of research proceduresresearch procedures designed todesigned to provideprovide timely, accurate, and actionable information for marketers sotimely, accurate, and actionable information for marketers so that they can make the best possiblethat they can make the best possible tactical decisionstactical decisions in thein the short run and the bestshort run and the best strategic decisionsstrategic decisions inin the long runthe long run BEBE measurement system involves:measurement system involves: Brand auditsBrand audits Brand tracking studiesBrand tracking studies Brand equity management systemBrand equity management system 1.80
- 41. Measuring andMeasuring and Interpreting BrandInterpreting Brand PerformancePerformance BrandBrand auditsaudits:: A comprehensiveA comprehensive examinationexamination of a brand to,of a brand to, assessassess its health,its health, uncoveruncover its sources of equity, andits sources of equity, and suggestsuggest ways toways to improve and leverage that equityimprove and leverage that equity Brand tracking studies:Brand tracking studies: Collecting informationCollecting information from consumers,from consumers, on a routine basis over time on key dimensions identified in theon a routine basis over time on key dimensions identified in the brand audit or other means to know how brands and marketingbrand audit or other means to know how brands and marketing programs are performingprograms are performing BE management systemBE management system: A: A set ofset of organizational processesorganizational processes designed todesigned to understandunderstand andand useuse of the BE concept within a firmof the BE concept within a firm Three steps help implement a BEMS: creating BE charters, assemblingThree steps help implement a BEMS: creating BE charters, assembling BE reports, and defining BE responsibilitiesBE reports, and defining BE responsibilities 1.81 Growing and Sustaining Brand EquityGrowing and Sustaining Brand Equity Defining brand architectureDefining brand architecture Managing over timeManaging over time Managing BE over geographic boundaries,Managing BE over geographic boundaries, cultures, and market segmentscultures, and market segments 1.82
- 42. Defining Brand ArchitectureDefining Brand Architecture Provides generalProvides general guidelinesguidelines about branding strategyabout branding strategy and the brand elements to be applied across all theand the brand elements to be applied across all the different products sold by the firmdifferent products sold by the firm Two key concepts in defining BA:Two key concepts in defining BA: Brand portfolio:Brand portfolio: A set of different brands that a particularA set of different brands that a particular firm offers for sale to buyers in a particular categoryfirm offers for sale to buyers in a particular category Brand hierarchy:Brand hierarchy: Displays theDisplays the numbernumber andand naturenature ofof common and distinctive brand components across the firm‘scommon and distinctive brand components across the firm‘s set of different brandsset of different brands. 1.83 Managing Brand Equity Over TimeManaging Brand Equity Over Time A longA long--term perspective of brand managementterm perspective of brand management recognizes that:recognizes that: AnyAny changeschanges in the supporting marketing program mayin the supporting marketing program may affect the success of future marketing programsaffect the success of future marketing programs A longA long--term view producesterm view produces proactive strategiesproactive strategies toto enhance CBBE andenhance CBBE and reactive strategiesreactive strategies to revitalizeto revitalize a brand that encounters problemsa brand that encounters problems 1.84
- 43. Managing Brand Equity over GeographicManaging Brand Equity over Geographic Boundaries, Cultures, and MarketBoundaries, Cultures, and Market SegmentsSegments In expanding a brand overseasIn expanding a brand overseas,…,… …managers…managers need to build BE by relying on specificneed to build BE by relying on specific knowledge aboutknowledge about …the…the experience and behaviors of those marketexperience and behaviors of those market segmentssegments 1.85 1.86 Global branding decisionsGlobal branding decisions Decide which markets to enterDecide which markets to enter Decide how to enter the marketDecide how to enter the market Decide on the marketing programDecide on the marketing program Decide on marketing organizationDecide on marketing organization Managing Brand Equity over GeographicManaging Brand Equity over Geographic Boundaries, Cultures, and MarketBoundaries, Cultures, and Market SegmentsSegments
- 44. BBuilding Global CBBEuilding Global CBBE Understand similarities and differences in the globalUnderstand similarities and differences in the global branding landscapesbranding landscapes No shortcutsNo shortcuts Establish marketing infrastructureEstablish marketing infrastructure Integrated marketing communicationIntegrated marketing communication Brand partnershipBrand partnership Balance standardization & customizationBalance standardization & customization Local and global controlLocal and global control Establish operable guidelinesEstablish operable guidelines Global BEMSGlobal BEMS Brand elementsBrand elements Managing Brand Equity over GeographicManaging Brand Equity over Geographic Boundaries, Cultures, and MarketBoundaries, Cultures, and Market SegmentsSegments 1.87