The document discusses brands and brand management. It defines what a brand is and distinguishes brands from products. Brand elements are the components that identify and differentiate a brand, such as a name, logo, or package design. Brands provide value to both consumers and firms. For consumers, brands help simplify decisions, reduce search costs, set expectations, signal product attributes, and reduce risks. For firms, brands help simplify product handling, organize records, provide legal protection, create predictable demand, erect barriers to competition, and provide competitive advantage.

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CHAPTER 1:
BRANDS AND BRAND
MANAGEMENT

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What is a Brand?
Brand Elements
Brands versus Products

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Brand Elements
¨ Different components that identifies and
differentiates a brand
¤ Name, logo, symbol, package design, or other
characteristic
¨ Can be based on people, places, things, and
abstract images

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Brand versus Product
Brand Product
Has dimensions that differentiate it in
some way from other products designed
to satisfy the same need
Anything available in the market for use
or consumption, that may satisfy a need
or want
Can be differentiated on the basis of:
• Packaging
• Services provided
• Customer advice
• Financing
• Delivery arrangements
• Warehousing
• Other things valued by the customers
Can be categorized into five levels
namely:
• Core benefit level
• Generic product level
• Expected product level
• Augmented product level
• Potential product level
C G E A P

5. What is the difference between
symbol, logo and trademark?
• A symbol is a graphic image that has some attached meaning, such as
an on screen icon or sign on a door. The meaning is attached to all
uses of that graphic.
• A logo attaches ownership to the graphic image, it could be a
company, a brand, a service, an institution.
• A trademark protects the use of the symbol/logo. To get a
trademark, you must prove to the registrar that you have a
unique symbol/logo, that no one else is using it. There then
follows a period of time when everyone can see your application
and object if they can prove they are using something similar or
identical, or that it would be confuse their business with yours.

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Why Do Brands Matter?
Consumers
Firms

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Consumers
¨ Encompass all types of customers, including
individuals as well as organizations
¨ Functions provided by brands to consumers
¤ Identify the source or maker of the product
¤ Simplify product decisions
¤ Lower the search costs for products internally and
externally
¤ Helps set reasonable expectations about what
consumers may not know about the brand

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Consumers
¤ Signal product characteristics and attributes
n On the basis of attributes products can be classified as:
n Search goods
n Experience goods
n Credence goods
¤ Reduce risks in product decision
n These risk can be categorised as
n Functional ,physical, financial, social psychological, and time

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Firms
¨ Brands provide valuable functions
¤ Simplify product handling and tracing
¤ Help organizing inventory and accounting records
¤ Offer the firm legal protection for unique features or
aspects of the product
¤ Provide predictability and security of demand for the
firm and creates barriers of entry for competitors
¤ Provide a powerful means to secure competitive
advantage

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Figure 1.3 - Roles that Brands Play