this document helps to you to have some understanding relating to branding

1. Brand management - chapter 1 1
MAMM ch-1 1
Chapter 1
Overview of Brand
Management

2. Brand management - chapter 1 2
MAMM ch-1 2
1.1 Evolution of Brands
The term brand comes from the word ‘ brandr’
which means to burn it was taken from the practice
of ancient farmers to put marks on their animal by
burning their body to identify them.
The nucleus of branding seems to be uniformity;
people needed to put seal on their items because
their properties were similar to others’ properties
and differentiation becomes difficult.
Branding is imperative when identity is lost due to
homogeneity
The first brands were the name of the owner or
producers like Ford, Sears, Waterman etc

3. Brand management - chapter 1 3
MAMM ch-1 3
.
Next brands started to take names of places,
famous people and animals in attempt to
strengthen association between product and
brand
Branding advanced in the middle of 20thC. When
industrialization brought mass production of
homogeneous items the central objective of
brands being differentiation
The major classifications of brand names
Personal name of investor or inventor-
Name of places
Scientific names
Appealing words
Descriptive words

4. Brand management - chapter 1 4
MAMM ch-1 4
1.2 What is a Brand?
A brand is perceptual entity that lives in the
consumers mind.
A successful brand is a name , term, sign,
symbol, design or combination of this which
identifies a product of a given firm as having
sustainable differential advantage
Branding makes customers to discriminate
among marketers’ offers in a way it creates
value to the product
A Brand is valuable asset of a firm that is legally
protected

5. Brand management - chapter 1 5
MAMM ch-1 5
1.2.1 Elements of a brand
Components of a brand that identify and
differentiate a brand includes:
Symbol- It symbolizes or stands for something;
carries a meaning behind it
The figurative aspect like packaging design, logo, design,
emblem communicates marketers intention to customers
Word- facilitates communication & identification
Object- relates with a given product category
Kodak with photography and BMW with car
Idea or Concept- It shall be related more with the
product concept not a single product because
brands endure but products would not
Sheraton with the concept of luxury; coke with
refreshment

6. Brand management - chapter 1 6

7. Brand management - chapter 1 7
MAMM ch-1 7
1.2.2 Brands and products
A product is anything that can be offered to
market to satisfy customers’ needs it is a
physical entity
A brand is the perception customers have as a
result of marketer’s positioning effort about a
distinguishable offer of a marketer it is a
perceptual entity
There are five levels of a product
Core benefit- fundamental need customers’ satisfy by the
product
Generic product- basic attributes which must exist
Expected product- attributes that buyers normally expect to
exist
Augmented product- additional offers which distinguish the
product from competitors
Potential product- augmentations which might be basic
products in future

8. Brand management - chapter 1 8
MAMM ch-1 8
1.2.4 Brand Perspectives
1. Visual/ Verbal perspective- brands are
distinguishable name, logo, trade mark,
packaging design, that identify or differentiate
a given company’s product from competitors’
• Easily identified by symbol or color
2. Positioning perspective- creating favorable
position in customers’ mind.
• There shall exist unique and relevant position which
associate with a particular product category
Ex. IBM computers, Kodak photography,
• Differentiation is offered with value
Ex. Dove moisturizing cream or Dettol antiseptic

9. Brand management - chapter 1 9
MAMM ch-1 9
3. Value perspective- A brand adds value for
the product
Functional value – offered by any marketer
don’t offer differentiation/ refers just the
performance
ex. Caterpillar- earth moving
Expressive value- refers to the psychological
aspect of the customer ; what they want to
express
ex. Rolex- achievement
Central value- are enduring and reflects
religious, national, or political persuasion
Ex. St. Gabriel hospital, Habesha Cement

10. Brand management - chapter 1 10
MAMM ch-1 10
. 4. Brand image perspective- brands are what are
perceived by customers. This perspective
emphasizes on symbolism or imagery aspect of
a brand
Customers would be buying the product for not
only what it is but also for what it symbolizes
Ex. T- shirts with Holy Bible versus
5. Added value perspective- brands add value for
a product ; this make the distinction between a
brand and a commodity
Blind comparison tests revealed that brands increase
customers preference
It brings reliability, assurance, consistent quality , and
confidence

11. Brand management - chapter 1 11
MAMM ch-1 11
.
6. Perceptual appeal perspective- There are
three different appeals: to the sense, reason,
and emotion.
Brands like Aspirin and Caterpillar appeal to reason,
Lux and Gillette appeals to emotion,
MacDonald appeals to sense
7.Personality perspective- The brand personality
describes the nature and quality of the
customer’s response to a brand
It visualizes a brand as a person possessing certain
traits like masculine or feminine, sophisticated,
dependable, friendly, young, sexy
Marketers use celebrities to promote brand
personality

12. Brand management - chapter 1 12
MAMM ch-1 12
1.3 The concept of brand equity
Brand equity- Is set of brand assets and
liabilities linked with a particular brand
name and or symbol that adds or
subtracts value
Positive brand equity : brand asset adds value
Negative brand equity: is liability subtracts
value

13. Brand management - chapter 1 13
Positive Brand equity contains five important
benefits
Brand loyalty : the extent to which customers
stick to a particular brand
Brand awareness: includes brand/name recall
and brand/ name recognition
Perceived quality: the brand is taken as an
attribute of quality
Brand association with perceived quality
Other proprietary brand assets like patent,
trade mark, channel relationship
MAMM ch-1 13

14. Brand management - chapter 1 14
Strategic Brand Management Process
1. Identifying and positioning brand positioning
and values
Mental mapping- positioning the brand favorably in
customers’ mind
Competitive frame of reference- creating brand
superiority
Core brand values- attributes and benefits linked
with the brand
Brand mantra- nucleus of the brand, heart and soul
of a brand ( brand DNA)
MAMM ch-1 14

15. Brand management - chapter 1 15
2. Planning and implementing
brand marketing programs
Mixing and matching brand elements-
{ brand name, logo, symbol, character , packaging
and slogan} with
{ memorable, meaningfulness, likeability,
transferability, adaptability and protect able }
Integrating brand marketing activities
Product – tangible and intangible benefits
Price- value perceptions
Distribution – integrate push and pull
IMC – mix and match options
MAMM ch-1 15

16. Brand management - chapter 1 16
.
Leverage of secondary
associations
Company
Country of origin
Channel of distribution
Other brands
Endorser
Event
– Awareness ,
– Meaningfulness,
– Transferability

17. Brand management - chapter 1 17
3. Measuring and interpreting
brand performance
Brand value chain- is tracing value
creation process to examine the financial
impact of brand marketing expenditures and
investments.
includes tracing brand equity source
and outcomes
Brand audits-
Brand inventory- comprehensive profile (
catalogue) of products and brands
Brand exploratory- what customers think of
the brand
MAMM ch-1 17

18. Brand management - chapter 1 18
.
Brand tracking- studying
brand awareness & usage,
brand judgment,
brand Performance
Brand imagery
Brand feelings
Brand resonance
Brand equity management system-
set of research procedures designed to
provide timely, accurate, and actionable
info. To be used for marketing decisions.

19. Brand management - chapter 1 19
3.Grow and sustain brand equity
Brand hierarchy
Principle of simplicity- use as few levels as
possible
Principle of relevance- create abstract associations
relevant to as many products as possible
Principle of differentiation- differentiate individual
products and brands
Principle of prominence- adjust reputation to affect
perceptions of product distance
Principle of communality- link common products
through shared brand elements
MAMM ch-1 19

20. Brand management - chapter 1 20
…
Brand-Product mix
Brand extension- establish new equity
and enhance existing equity
Brand portfolio- maximize coverage
and minimize overlap
Enhance brand equity overtime
Brand reinforcement- innovation in
product design, manufacturing and
merchandising
– Relevance in user and usage imagery
Brand revitalization- back to basic
strategy
– Renovation strategy

21. Brand management - chapter 1 21
…
Establish brand equity over market
segments
Identify differences in consumer behavior
How they purchase and use products
What they know and feel about different
brands
Adjust branding program
Choice of brand elements
Nature of supporting marketing programs
Leverage secondary associations

22. Brand management - chapter 1 22
Article review
Discussion on brand equity article
review
Do line extensions influence parent
brand equity?
Does brand trust matter to brand equity?

23. Brand management - chapter 1 23
Art. 1.Do line extensions influence
parent brand equity?
The article studies the effect of line
extension on parent brand equity
Introduction
Previous researches showed that
advertising and promotion have positive
effect on parent brand equity
But whether line extensions indeed affect
parent brand equity and how certain
types of line extensions affect parent
brand equity is not studied very well

24. Brand management - chapter 1 24
…
New line extensions increase their parent
brand’s consumer base and assist in
growing parent brand franchise
On the other hand wide selection of line
extensions confuses customers
Innovative line extensions enhance brand
equity by making increasing the point of
differentiation of the parent brand
Two routes are suggested to improve
brand equity
1. High equity brands- introduce innovative
products
2. Low equity brands- continuously introduce line
extension and use solo advertising

25. Brand management - chapter 1 25
Theoretical foundation
Brand equity is the added value endowed
by a brand name to a product , and are
influenced by marketing instruments
When the brand extension is similar to the
parent brand it adds to the parent brand
equity
Whereas incongruent and negative
information dilute parent brand equity
Brand extensions increase the parent
brand’s choice probability

26. Brand management - chapter 1 26
…
Line extensions involve minor change from
parent brand and target the same market
segment
Consumer positively evaluate an umbrella brand
having lots of line extensions
Line extensions involve both rewards and risks
High equity brands face greater risks than low
equity brands but low equity brands have
greater upside potential from line extensions
Innovations create new associations that are
unique to the brand and can enhance parent
brand image

27. Brand management - chapter 1 27
Nestle
Nestea:
Nescafe:

28. Brand management - chapter 1 28
…
Innovations can increase product
attractiveness, enhance the value
propositions, and increase customers’
loyalty
Advertising for a line extension changes
the belief about the parent brand equity
and improves parent brand evaluation
If line extension is presents with
inconsistent information vis-à-vis the
parent brand consumers’ evaluation of the
parent brand suffers

29. Brand management - chapter 1 29
Hypothesis
H1a. The greater the number of the new line
extensions, the higher the parent brand
equity
H1b. The greater the number of the new line
extensions, the lower the parent brand
equity
H2. The higher the parent brand equity, the
fewer the line extensions
H3. The greater the proportion of innovative
new line extensions, the higher the
parent brand equity

30. Brand management - chapter 1 30
…
H4. The higher the parent brand equity,
the greater the benefit from innovative
line extensions
H5. The greater the proportion of
advertising devoted to solo
advertising for new line extensions,
the higher the parent brand equity
H6. The higher the parent brand equity,
the lower the benefit from solo
advertising

31. Brand management - chapter 1 31

32. Brand management - chapter 1 32
Findings
H1a is supported. A greater number of new
line extensions leads to higher parent brand
equity.
H2 is not supported. Previous year brand
equity does not influence the number of new
line extensions introductions.
H3 is not supported. Innovative line
extensions do not have a direct significant
effect on parent brand equity.
H4 is supported. The benefit from innovation
increases with parent brand equity.

33. Brand management - chapter 1 33
…
H5 is supported. Brands that devote a
greater proportion of their advertising to
the solo advertising of a new line
extension experience greater
improvements in their equity.
H6 is supported. the benefits of solo
advertising decrease with brand equity.
High equity brands are harmed when they
engage in solo advertising for their line
extensions.

34. Brand management - chapter 1 34
Art2. Does brand trust matter to
brand equity?
The article aims to study the importance of
brand trust in the development of brand equity
Introduction
Brand equity is taken as a relational market-
based asset which exists outside the firm and
resides in the relationships of final users of
the brand
Trust is main factor which affects relationships

35. Brand management - chapter 1 35
Theoretical foundation
Brand equity
Provides sustainable competitive advantage
Adds value to customers
helps to create defensible competitive positions
takes time to develop,
is inherently complex, and
Can not be easily transferred to other firms
its value as an asset is reflected in superior
financial performance
it leads to higher margins

36. Brand management - chapter 1 36
…
greater sales and market shares
advertising and promotions that are more
responsive
earlier market penetration and
cheaper product line extensions
brand equity is relational market-based asset.
much of its value is a result of the brand’s
external relationships with other members of
the value chain

37. Brand management - chapter 1 37
Brand trust
Trust is the confidence that one will find
what is desired from another, rather that
what is feared
Brand trust implies that there is a high
probability or expectancy that the brand
will result in positive outcomes for the
consumer.
Brand trust has two dimensional attributes
i.e. reliability and intension

38. Brand management - chapter 1 38
…
Reliability has a technical or competence-
based nature, involving the ability and
willingness to keep promises and satisfy
consumers’ needs.
Intentions-comprises the attribution of
good intentions to the brand in relation to
the consumers’ interests and welfare,
A trustworthy brand is one that consistently
keeps its promise of value to consumers
through the way the product is developed,
produced, sold, serviced and advertised

39. Brand management - chapter 1 39
…
Brand trust evolves from past experience
and prior interaction
it is influenced by the consumer’s
evaluation of any direct (e.g. trial, usage)
and indirect contact (e.g. advertising,
word of mouth) with the brand
consumption experience is the most
relevant and important source of brand
trust

40. Brand management - chapter 1 40
Hypothesis
H1. The consumer’s overall satisfaction
with the brand has a positive effect on
brand trust.
H2. The consumer’s trust in a brand has
a positive effect on brand loyalty.
H3. The consumer’s loyalty to the brand
has a positive effect on brand equity.

41. Brand management - chapter 1 41

42. Brand management - chapter 1 42
Findings
H1. is supported. Overall satisfaction affects
brand trust ( reliability and intention) which
implies that brand trust is rooted in past
experience
Brand reliability as being related with
consistency and performance relies heavily on
overall satisfaction than brand intension
H2. is supported. Brand trust is positively
associated with brand loyalty
H3. is supported. brand loyalty significantly
associated with an increase in brand equity

43. Brand management - chapter 1 43
Practical implications
Promise-centric brand management - to
position the brand as a promise, as a set of
expectations that the brand offers a certain
type and level of value.
Consider capabilities when you promise
and keep your promise to build brand trust
Trust is build through experience ;more
positive experiences with a brand increase
brand trust

44. Brand management - chapter 1 44

45. Brand management - chapter 1 45
MAMM ch-1 45
1.2.5 Anatomy of a Brand
A brand has a number of parts, that together
form the whole which is greater than the parts.
Successful branding effort assembles this parts
and creates favorable image in customers’ mind.
The two basic components are
Physical component - the material, design,
style, comfort, durability of the product
Perceptual components- the intangibles like
User imagery-self image, values and life style of
users (ex. Sheraton hotel, Boston spa with luxury)
Emotional/Psychological benefits- association
of certain feeling with the product ex. Johnson &
Johnson ( love and care)

46. Brand management - chapter 1 46
MAMM ch-1 46
.
Brand personality- visualizing the brand as
human
Brand Image- how the whole brand is perceived
by customers
Another perspective of branding
Functional dimension- tangible attributes of
the product linked with the practical benefits
and appeals to the reason
Emotional/ Symbolic dimension- intangible
attributes of the product which symbolize
social or psychological benefits that
customers seek from the product.