Introduction to Strategic Brand Management Developed for Sri Lanka Institute of Marketing - Diploma In Brand Management as course material

1. Introduction to
Strategic Brand
Management
Leroy J. Ebert DipM MCIM, Chartered Marketer, MSLIM
Manager Marketing and Business Development – Logiwiz Ltd.
Developed as course material for the SLIM Diploma in Brand
Management

2. • Firms are realizing that one of their most valuable assets are the brand
names associated with their products
• In the present context all of us are always running short of time
• Brands help us to simplify decision making, reduce risk and facilitate
decision making
• This chapter will help you get a deeper understanding of how to achieve
those branding goals
• To explore the important issues in planning, implementing, and
evaluating brand strategies
• To provide appropriate concepts, theories, models and other tools to
make better branding decisions
Preview

3. • Branding has been around for centuries as a mean to distinguish the
goods of one producer from another
• The word BRAND is derived from the Old Norse word
brandr, which means “To Burn”
• AMA definition – a brand, is a “name, term, sign, symbol, or design
or a combination of them, intended to identify the goods and services
of one seller of group of sellers and to differentiate them from those
of competitors”
• Practicing managers refer to the brand as something that has actually
created a certain amount of awareness, reputation, prominence and so
on in the market place
• The key to creating a brand as per the AMA is to be able to choose a
name, logo, symbol, package design, or other characteristic. These
components are known as Brand Elements. Will see more in chapter
4
What is a BRAND?

4. • A product is anything we can offer to a market for
attention, acquisition, use, or consumption that might
satisfy a need or want
• Thus a product may be a physical good, service, retail
outlet, a person, an organization, or an idea
• Lets discuss role of brands in these context in chapter 15
Brand versus Products

5. 5 Levels of a Product
Potential product
level
Augmented
product level
Expected
product level
Generic
product level
Core benefit
level
Brand versus Product

6. • A Brand is therefore more than a product, because it can have
dimensions that differentiate it in some way from another products
designed to satisfy the same need. These differences may be rational
and tangible related to the product performance of the brand or more
symbolic, emotional and intangible.
• Some brands create competitive advantage with product performance
i.e. Gillette due to their focus on innovation and continuous
investments in R&D
• Other brands create competitive advantage through non product
related means i.e. Coke, by understanding the consumer motivations
and desires and creating relevant and appealing images surrounding
their products
• Brands especially the strong ones carry a number of different types of
associations, and marketers must account for all of them in making
marketing decisions
• The marketers behind some brands have learnt this the hard way
Brand versus Product

7. • Coca-Cola rebranding
• Coca-Cola Super Bowl Advertisement
• Feedback Coca-Cola Super Bowl
Brand versus Product

8. Consumer
Manufacturer
Identification of source of product
Means of identifying to simplify
handling or tracing
Assignment of responsibility to
product maker
Means of legally protecting unique
features
Risk reducer
Signal of quality level to satisfied
customers
Search cost reducer
Means of endowing products with
unique associations
Promise, bond, or pact with maker of
the product
Source of competitive advantage
Symbolic device
Source of financial returns
Signal of quality
Why Do Brands Matter

9. • Functional Risks – The product does not perform up to
expectation
• Physical Risks – The product poses a threat to the
physical well being or health of the user or others
• Financial Risks- The product is not worth the price paid
• Social Risks – The product results in embarrassment from
others
• Time Risk – The failure of the product results in an
opportunity cost of finding another satisfactory product
Brand as a Risk reducer

10. • Savvy Customers – customers are becoming more
experienced and demanding, Consulting firm Brand Keys
conducted a survey and found out that consumers
expectations of what they want from brands are on avg
13% higher than what they think brands will deliver to
them and the gap is growing
• Understanding market leadership – brands are more
likely to loose market leadership over time, brands must
become “trustmarks” and eventually “Lovemarks”
Branding Challenges and
Opportunities

11. • Brand Proliferation – marketers have the option of
launching new brands and products especially in terms of
line and brand extensions
• Media Fragmentation – increase in media options and
the emergence of interactive and non traditional
media, promotion and other communication alternatives.
Marketers are compelled to move away from TV due to
cost, clutter, fragmentation and new technology, % of
budgets allocated has increased significantly for new
media in comparison to that of TV
Branding Challenges and
Opportunities

12. • Increased Competition – has resulted in so many financial
incentives and discounts in the market place to remain
competitive. On demand side the consumption for many
products and services has flattened and hit maturity stage or
even decline stage of the product life cycle. In order to grow
marketers have to eat into the competitors market share.
Competition has also increased due to the following reasons
•
•
•
•
Globalization
Low priced competitors (i.e. Kingsoft vs Microsoft office)
Brand extensions
Deregulation
Branding Challenges and
Opportunities

13. • Increased Costs – in addition to competition the cost of
introducing new products or supporting existing products have
increased significantly making it significantly difficult to
match the level of investment and support that brands were
able to receive in previous years.
• Greater Accountability – Marketers are increasing been held
responsible for the marketing decisions and investment they
make. Increasingly companies want marketers to take
decisions that generate short term profits with long term
consequences. Due to this job turnover has become
increasingly high and they do not anticipate to be in the present
position for too long. One study found that the average tenure
of a CMO is only 23 months.
Branding Challenges and
Opportunities

14. • Brand Equity refers to the value of the brand
• It consists of the marketing effects uniquely attributable
to a brand. That is, brand equity explains why different
outcomes result from the marketing of a branded product
or service that if it were not branded.
The Brand Equity Concept

15. • SBM involves the design and implementation of marketing programs
and activities to build, measure and manage brand equity
•
•
•
•
Identifying and establishing brand positioning
Planning and implementing brand marketing programs
Measuring and interpreting brand performance
Growing and sustaining brand equity
• Brand positioning can be defined as the “act of designing the
company's offer and image so that it occupies a distinct and valued
place in the target customers mind”
• Positioning convinces the consumers of the advantages or POD’s a
brand has over competitors while at the same time alleviating
concerns about any possible disadvantages (establishing points of
parity)
Strategic Brand
Management Process

16. Strategic Brand
Management Process

17. Content Extracted from “Strategic Brand Management” 3rd
Edition
Authors: Kevin Lane Keller
M.G. Parameswaran
Issac Jacob
Presentation developed from SLIM Diploma In Brand
Management Students
Presentation developed by Leroy J. Ebert (27th Feb 2014)