This document discusses key concepts in brand management including definitions of brands and brand equity. It introduces a customer-based brand equity model which identifies the determinants and benefits of strong customer-based brand equity. These include brand awareness, associations, perceptions, and resonance. The document also outlines the strategic brand management process of identifying brand positioning, implementing marketing programs, measuring performance, and sustaining equity over time.

1. BRAND MANAGEMENT Bhushan D. Sudhakar, Ph.D Assistant Professor & Co-ordinator (UG)

2. What is a Brand? A brand is a name, term, sign, symbol, or design which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.

3. New Branding Challenges Brands are important as ever Consumer need for simplification Consumer need for risk reduction Brand management is as difficult as ever Savvy consumers Increased competition Decreased effectiveness of traditional marketing tools and emergence of new marketing tools Complex brand and product portfolios

4. The Customer/Brand Challenge In this difficult environment, marketers must have a keen understanding of: customers brands the relationship between the two

5. The Concept of Brand Equity The brand equity concept stresses the importance of the brand in marketing strategies. Brand equity is defined in terms of the marketing effects uniquely attributable to the brand. Brand equity relates to the fact that different outcomes result in the marketing of a product or service because of its brand name, as compared to if the same product or service did not have that name.

6. The Concept of Customer-Based Brand Equity Customer-based brand equity Differential effect Customer brand knowledge Customer response to brand marketing

7. Determinants of Customer-Based Brand Equity Customer is aware of and familiar with the brand Customer holds some strong, favorable, and unique brand associations in memory

8. Building Customer-Based Brand Equity Brand knowledge structures depend on . . . The initial choices for the brand elements The supporting marketing program and the manner by which the brand is integrated into it Other associations indirectly transferred to the brand by linking it to some other entities

9. Benefits of Customer-Based Brand Equity Enjoy greater brand loyalty, usage, and affinity Command larger price premiums Receive greater trade cooperation & support Increase marketing communication effectiveness Yield licensing opportunities Support brand extensions.

10. Customer-Based Brand Equity as a “Bridge” Customer-based brand equity represents the “added value” endowed to a product as a result of past investments in the marketing of a brand. Customer-based brand equity provides direction and focus to future marketing activities

11. The Key to Branding For branding strategies to be successful, consumers must be convinced that there are meaningful differences among brands in the product or service category. Consumer must not think that all brands in the category are the same. PERCEPTION = VALUE

12. Strategic Brand Management Strategic brand management involves the design and implementation of marketing programs and activities to build, measure, and manage brand equity. The strategic brand management process is defined as involving four main steps: 1) Identifying and establishing brand positioning and values 2) Planning and implementing brand marketing programs 3) Measuring and interpreting brand performance 4) Growing and sustaining brand equity

13. 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

14. Motivation for Customer-Based Brand Equity Model Marketers know strong brands are important but aren’t always sure how to build one. CBBE model was designed to be … comprehensive cohesive well-grounded up-to-date actionable

15. Rationale of Customer-Based Brand Equity Model Basic premise: Power of a brand resides in the minds of customers Challenge is to ensure customers have the right types of experiences with products & services and their marketing programs to create the right brand knowledge structures: Thoughts Feelings Images Perceptions Attitudes

16. Building Customer-Based Brand Equity Building a strong brand involves a series of steps as part of a “branding ladder” A strong brand is also characterized by a logically constructed set of brand “building blocks.” Identifies areas of strength and weakness Provides guidance to marketing activities

17. CUSTOMER-BASED BRAND EQUITY PYRAMID RESONANCE SALIENCE JUDGMENTS FEELINGS PERFORMANCE IMAGERY 4. RELATIONSHIPS = What about you & me? 3. RESPONSE = What about you? 2. MEANING = What are you? 1. IDENTITY = Who are you?

18. Salience Dimensions Depth of brand awareness Ease of recognition & recall Strength & clarity of category membership Breadth of brand awareness Purchase consideration Consumption consideration

19. Performance Dimensions Primary characteristics & supplementary features Product reliability, durability, and serviceability Service effectiveness, efficiency, and empathy Style and design Price

20. Imagery Dimensions User profiles Demographic & psychographic characteristics Actual or aspirational Group perceptions -- popularity Purchase & usage situations Type of channel, specific stores, ease of purchase Time (day, week, month, year, etc.), location, and context of usage Personality & values Sincerity, excitement, competence, sophistication, & ruggedness History, heritage, & experiences Nostalgia Memories

21. Judgment Dimensions Brand quality Value Satisfaction Brand credibility Expertise Trustworthiness Likability Brand consideration Relevance Brand superiority Differentiation

22. Feelings Dimensions Warmth Fun Excitement Security Social approval Self-respect

23. Resonance Dimensions Behavioral loyalty Frequency and amount of repeat purchases Attitudinal attachment Love brand (favorite possessions; “a little pleasure”) Proud of brand Sense of community Kinship Affiliation Active engagement Seek information Join club Visit web site, chat rooms

24. Customer-Based Brand Equity Model Consumer- Brand Resonance Brand Salience Consumer Judgments Consumer Feelings Brand Performance Brand Imagery INTENSE, ACTIVE LOYALTY RATIONAL & EMOTIONAL REACTIONS POINTS-OF-PARITY & POINTS-OF-DIFFERENCE DEEP, BROAD BRAND AWARENESS

25. Brand Positioning Define competitive frame of reference Target market Nature of competition Define desired brand knowledge structures Points-of-parity necessary competitive Points-of-difference strong, favorable, and unique brand associations

26. Issues in Implementing Brand Positioning Establishing Category Membership Identifying & Choosing POP’s & POD’s Communicating & Establishing POP’s & POD’s Sustaining & Evolving POD’s & POP’s

27. Establishing Category Membership Product descriptor Exemplar comparisons

28. Identifying & Choosing POP’s & POD’s Desirability criteria (consumer perspective) Personally relevant Distinctive & superior Believable & credible Deliverability criteria (firm perspective) Feasible Profitable Pre-emptive, defensible & difficult to attack

29. Major Challenges in Positioning Find compelling & impactful points-of-difference (MacMillan & McGrath, HBR , ‘97) How do people become aware of their need for your product and service? How do consumers find your offering? How do consumers make their final selection? How do consumers order and purchase your product or service? What happens when your product or service is delivered? How is your product installed? How is your product or service paid for?

30. Major Challenges in Positioning Find compelling & impactful points-of-difference (cont.) How is your product stored? How is your product moved around? What is the consumer really using your product for? What do consumers need help with when they use your product? What about returns or exchanges? How is your product repaired or serviced? What happens when your product is disposed of or no longer used?

31. Communicating & Establishing POP’s & POD’s Create POP’s and POD’s in the face of attribute & benefit trade-offs Price & quality Convenience & quality Taste & low calories Efficacy & mildness Power & safety Ubiquity & prestige Comprehensiveness (variety) & simplicity Strength & refinement

32. Strategies to Reconcile Attribute & Benefit Trade-Offs Establish separate marketing programs Leverage secondary association (e.g., co-brand) Re-define the relationship from negative to positive

33. Sustaining & Evolving POP’s & POD’s Core Brand Values & Core Brand Proposition

34. Core Brand Values Set of abstract concepts or phrases that characterize the 5-10 most important dimensions of the mental map of a brand. Relate to points-of-parity and points-of-difference Mental Map  Core Brand Values  Brand Mantra

35. Brand Mantras A brand mantra is an articulation of the “heart and soul” of the brand. Brand mantras are short three to five word phrases that capture the irrefutable essence or spirit of the brand positioning and brand values . Nike Authentic Athletic Performance Disney Fun Family Entertainment

38. Outline The mandate for effectiveness What makes an ad effective? The world of advertising The five players of advertising The evolution of advertising Introduction to Advertising

39. The Mandate for Effectiveness Today advertising is in a bind Advertisers expect specific results that lead to sales Advertising must be effective

40. Effective ads work on two levels: with consumers and with advertisers Characteristics of effective ads: Strategy - Execution Advertising must be goal directed What Makes an Ad Effective ? Creativity

41. Defining advertising A paid form of communication A sponsor is identified Tries to persuade or influence the consumer to do something Conveyed through mass media Reaches a large audience Is nonpersonal The World of Advertising

42. Types of Advertising Brand advertising Retail/local advertising Political advertising Directory advertising Direct-response advertising Business-to-business advertising Institutional advertising Public service advertising (PSA) Interactive advertising

43. Marketing role Communication role Economic role Societal role The Roles of Advertising

44. Functions of Advertising Provide product and brand information Provide incentives to take action Provide reminders and reinforcement

45. Advertiser Advertising agency The advertising department The in-house agency Media Vendors Target audience The Five Players of Advertising

46. Age of print Industrial revolution and emergence of consumer society Modern advertising: Agencies, science and creativity Accountability era The Evolution of Advertising

47. Interactive advertising Globalization Niche marketing Integrated marketing communications (IMC) Consumer Power Current Advertising Issues

48. Brand personalities Branding Trust Brand image Brand relationships Brand equity How Brands Work

49. Complex, Varied Marketing Activity Comprehensive, Robust Marketing Measures Detailed, Rich Marketing Models MARKETING PLANNING PROCESS

50. Role of Integrated Marketing Communications Marketing communications … are the “voice” of the brand and are a means by which it can establish a dialogue and build relationships with consumers. allow marketers to inform, persuade, incent, and remind consumers directly or indirectly can contribute to brand equity by establishing the brand in memory and linking strong, favorable, and unique associations to it.

51. Role of Integrated Marketing Communications (Cont.) Consumers can be told or shown how and why a product is used, by what kind of person, and where and when; Consumers can learn about who makes the product and what the company and brand stand for Consumers be given an incentive or reward for trial or usage Brands can be linked to other … People Places Events Brands Experiences Feelings Things

52. Simple Test for Marketing Communications 1. 3. 2. Current Desired Brand Brand Knowledge Knowledge

53. Integrated Marketing Communications and Customer-Based Brand Equity One implications of the CBBE framework is that the manner in which brand associations are formed does not matter -- only the resulting strength, favorability, and uniqueness

54. Designing Integrated Marketing Communications Programs From the perspective of customer-based brand equity, marketers should evaluate all possible communication options available to create knowledge structures according to effectiveness criteria as well as cost considerations. Different communication options have different strengths and can accomplish different objectives.

55. Alternative Communication Options (Consumer) Media Advertising (TV, radio, newspapers, magazines) Direct Response Advertising Interactive (on-line) Advertising & Web Sites Outdoor Advertising (billboards, posters, cinema) Point-of-Purchase Advertising Trade Promotions Consumer Promotions Sponsorship of Event Marketing Publicity or Public Relations

56. Alternative Communication Options (Business-to-Business) Media Advertising (TV, radio, newspaper, magazines) Trade Journal Advertising Interactive (on-line) Advertising & Web Sites Directories Direct Mail Brochures & Sales Literature Audio-Visual Presentation Tapes Giveaways Sponsorship or Event Marketing Exhibitions, Trade Shows, Conventions Publicity or Public Relations

57. Print Ad Evaluation Criteria Is the message clear at a glance? Is the benefit in the headline? Does the illustration support the headline? Does the first line of the copy support or explain the headline and illustration? Is the ad easy to read and follow? Is the product easily identified? Is the brand or sponsor clearly identified?

58. Ad Campaign Considerations Campaigns make brands -- not single ads Be creative and develop creative themes Avoid slavishly sticking to executional formulas Brand communications should sing like a choir Multiple voices Multiple notes Find fresh consumer insights & compelling brand truths Productively conduct ad research

59. IMC Case Study CMPB Success Factors Smart strategy Relative deprivation Imaginative creative Funny but relevant Clever hook “ Got milk?” slogan Timely secondary media In store Right partners

60. Common Mistakes in Developing Advertising Failure to distinguish ad positioning (what you say) from ad creative (how you say it) Mistaken assumptions about consumer knowledge Improperly positioned Failure to break through the clutter Distracting, overpowering creative in ads

61. Common Mistakes in Developing Advertising (cont.) Under-branded ads Failure to use supporting media Changing campaigns too frequently Substituting ad frequency for ad quality

62. Communication Option A Communication Option C Communication Option B Audience Audience Communication Option Overlap Note: Circles represent the market segments reached by various communication options. Shaded portions represent areas of overlap in communication options.

63. Evaluating IMC Programs Coverage - what proportion of the target audience is reached by each communication option employed, as well as how much overlap exists among options Cost - what is the per capita expense

64. Evaluating IMC Programs (cont.) Contribution - the collective effect on brand equity in terms of enhancing depth & breadth of awareness improving strength, favorability, & uniqueness of brand associations Commonality - the extent to which information conveyed by different communication options share meaning

65. Evaluating IMC Programs (cont.) Complementarity - the extent to which different associations and linkages are emphasized across communication options Versatility - the extent to which information contained in a communication option works with different types of consumers Different communications history Different market segments

66. “ Keller Be’s” Be analytical : Use frameworks of consumer behavior and managerial decision-making to develop well-reasoned communication programs Be curious : Fully understand consumers by using all forms of research and always be thinking of how you can create added value for consumers Be single-minded : Focus message on well-defined target markets (less can be more) Be integrative : reinforce your message through consistency and cuing across all communications

67. “ Keller Be’s” Be creative : State your message in a unique fashion; use alternative promotions and media to create favorable, strong, and unique brand associations Be observant : Monitor competition, customers, channel members, and employees through tracking studies Be realistic : Understand the complexities involved in marketing communications Be patient : Take a long-term view of communication effectiveness to build and manage brand equity