Brand

Management
Session 1

Brands and Brand Management

January 15th, 2017

 Todays Agenda
Introduction
Some Housekeeping Rules
Course Outline and Overview
Text Book and Reference Books
Grading Plan
Term Report and Presentation
Overview of Brands and Brand Management
A Reminder!
Please put your phones to silent

Penalty:
Rs.500/-
Giving Treat to the whole class
 my INTRODUCTION
A Business Professional with 23 years post MBA
Experience

Farooq Profile Summary Updated.doc

 my EDUCATION
MBA
IBA Karachi 1993

Bachelor of Commerce
Govt. National College Karachi 1991
Text, Reference Books & Contact Details
Text Books
Strategic Brand Management, Building, Measuring and
Managing Brand Equity 4thEdition - (Global Edition)
by Kevin Lane Keller

Reference Books
1. The 22 Immutable Laws of Branding
by Al Ries and Laura Ries
2. Building Strong Brands by David Aaker

Contact Details
In case of any problem, e-mail me at
[email protected] or SMS me at 0333-5898-772
 Course Outline
Sessions Topic Learning Outcomes
What is a brand? - Importance of Brands (for Seller & Consumers),
1 Overview of Brands and Brand Management Attributes of a Strong Brand - What is Brand Management? Brand, Branding & Brand Management -
Purpose of Brand Management
Outline the sources and outcomes of Customer based Brand Equity, Brand Positioning and its
2 Customer Based Brand Equity and Brand Positioning
development process, Brand Mantra and how it is developed?
Understand the Brand Resonance, Steps in Building Brand Resonance, Brand Value Chain and
3 Brand Resonance and Brand Value Chain
contrast Brand and Customer Equity
Identification of Brand Elements, criteria for choosing brand elements and understand the
4 Choosing Brand Elements to Build Brand Equity
rationale for "Mixing and Matching" brand elements
Identify new Perspectives and Developments in marketing, rationale for Value Pricing, and Direct
5 Marketing Programs to Build Brand Equity
and Indirect channels
6 First Hourly Examination
Understand the changes in the new Media Environment, outline the major Marketing
6 Integrating Marketing Communications and Brand Equity
Communication Options and development of an Integrated Marketing Communication Plan

7 Leveraging Brand Associations Outline the main ways to leverage Secondary Associations and respective Tactical Issues
Understand the new Accountability in terms of ROMI, how to conduct a Brand Audit and
8 Brand Equity Management and Measurements
Significance of Brand Tracking studies
 Course Outline
Sessions Topic Learning Outcomes
Understand the effective Qualitative and Quantitative research techniques for tapping into
9 Measuring Sources and Outcomes of Brand Equity
Consumer Brand Knowledge and Advocacy Ladder
Outline the guidelines for developing a good Brand Portfolio, components of the Brand Architecture
10 Brand Portfolio and Architecture Strategies
and understand the assembly of a basic brand hierarchy for a brand.

11 Second Hourly Examination

Brand Name - Importance and Characteristics, Selection of Brand Name and Brand Attributes.
11 Naming New Product and Brand Extensions Understand the different types of brand extensions with main advantages and disadvantages and
their contribution to the parent Brand Equity
Understand the important considerations in brand reinforcement, the range of brand revitalization
12 Managing Brands over Time
options to a company with strategies to improve brand awareness
Understand the rationale for developing a global brand, a standardized global marketing and the
13 Managing Brands over Geographies and Market Segments
strategic steps in developing a global brand positioning
14 Course Term Report Submission and Group Presentations
15 Final Examination
 Assessment
Activity Marks Duration Frequency Selection Weight age
Quiz 5 Max. minutes 2 -3 Best 1 5%
Hourlies 30 One Hour 2 One 30%
Course Term Project 15 Whole Term 1 One 15%
Report Presentation 10 10 -12 Minutes One One 10%
Final 40 3 hours One One 40%
 Report / Presentation
Launching a New Brand
Repositioning of an existing brand
 Key Concepts

A Snapshot of Marketing, Brand and Branding

What is a Brand?
What is Brand and Brand Management?
Why do Brands Matter?
Brands for Consumers and Sellers
Pros and Cons of Customer based Brand Equity
What can be Branded?
What makes a Brand Strong?
Strategic Brand Management Process
 What is a brand?
A brand is a product, service, or concept that is publicly distinguished
from other products, services, or concepts so that it can be easily
communicated and marketed
A strong brand differentiates your products from the competitors
It gives a quality image to your business
It includes developing a promise, making that promise and maintaining it
Brands are different from products in a way that brands are what the
consumers buy, while products are what concern/companies make
Brand is an accumulation of emotional and functional associations
Brand is a promise that the product will perform as per customers
expectations. It shapes customers expectations about the product
 What is a Brand?
Brand is the sellers promise to deliver
the same bundle of benefits/services
consistently to buyers.
On the other hand a name becomes a
brand when consumers associate it with
a set of tangible and intangible benefits
that they obtain from the product or A product is any offering by a
service. company to a market that serves
to satisfy customer needs and
wants. A product can be an
object, service, idea, etc.

Brands are not

the same as
Products.
 What is a Brand?
Nokia brand promises trust and strong technology

The popular Starbucks has earned its brand image from the
opinions of its customers.
The brand Starbucks stands for bolder, more flavorful
coffee.

Thus, you can see that Brands are what the consumers
buy, while products are what concern/companies make.
Brand is a promise that the product will perform as per
customers expectations.
It is a name, term, sign, symbol or a combination
of all these which differentiate the goods/services of one
seller or group of sellers from those of competitors.
Some examples of well known brands are Wrangler, Audi,
Samsung, Coca Cola, etc.
 What is a Brand?
American Marketing Associations definition

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.

Attributes that identify the brand are called Brand

Elements (based on people, place, objects, animals, etc.)

Practicing managers define brands as more than that.

This distinction is important since it can lead to confusion.

 What is a Brand?
Brand versus Product
Product is anything that can be offered to a market for attention,
acquisition, use or consumption that may satisfy a need or a want
(goods, services, retail store, person, organization, idea)
Kotler defines 5 levels of a product
1. Core benefit level fundamental need or want that is satisfied
2. Generic product level basic version attributes necessary for
functioning (stripped down level)
3. Expected product level what customers normally expect
4. Augmented product level additional attributes, benefits that
distinguish it from competition
5. Potential product level all transformation that it might undergo
in the future
 What is a Brand?
A Brand is therefore a Product that also has dimensions
that differentiates it from other products designed to satisfy
the same need (competition)
Differences may be
Rational and tangible : related to product performance
(3M, Sony, Gillette)
Symbolic, emotional, intangible: related to what the
brand represents (Coca Cola, Calvin Kline, Marlboro)

What distinguishes a brand from a commodity gives it

equity - the sum total of consumer perceptions and
feelings about how it performs (3M, Sony, Gillette)
The name and what it stands for
The company associated with the brand
 What is Branding?
Branding is assembling of various marketing mix medium
into a whole so as to give you an identity
It is nothing but capturing your customers mind with
your brand name
Branding makes customers committed to your business
It is all about capturing the niche market for your product
/ service and about creating a confidence in the current
and prospective customers minds that you are the
unique solution to their problem
Branding forms customer perceptions about the product
The primary aim of branding is to create differentiation.
What is Brand Management?

Now, that you have learnt

about brands, let us see
what is brand management.

Brand management is the process

of building, managing and
improving a brand.

It begins by having a thorough

knowledge of the term brand.

Hence, brand management includes

developing a promise, making that
promise and maintaining it.

It means defining the brand, positioning the

brand, and delivering the brand. It is an art of
creating and sustaining the brand.
 What is Brand Management?
The tangibles for product brands
Branding is assembling of various
include the product itself, its The intangibles are made up of marketing mix medium into a
characteristics, features, price, the emotional connections with whole so as to give the product an
packaging, etc. the product / service. identity.

The tangible and intangible Whereas, in case of service Thus, you can see that It is building a
characteristics of brand are brands, the customers brand management is all brand name that
managed through Brand experience forms the about Branding. captures the
management. tangibles. customers mind.
 What is Brand Management?
Brand management is nothing but an art of creating
and sustaining the brand
It means defining the brand, positioning the brand,
and delivering the brand
Brand management includes managing the tangible
and intangible characteristics of brand
In case of product brands, the tangibles include the
product itself, price, packaging, etc. While in case of
service brands, the tangibles include the customers
experience
The intangibles include emotional connections with
the product / service.
Purpose of Brand Management
The main aim of branding is to differentiate a companys products
and services from its competitors.

Branding aims to convey a brand message vividly, create customer

loyalty, persuade the buyer for the product, and establish an
emotional connectivity with the customers and form customer
perceptions about the product.

Brand management plays a crucial role to form brands. The brand

management strategies also provide good support to the brand
so that it can sustain itself in long run.

Also, through brand management, brands are managed and brand

equity is built over a period of time. It helps in building a
corporate image. Thus, only a competent brand management
system can create a successful brand.
 Why do Brands Matter?
Brand Value created translates to financial profits
for the firm as:
Creates perceived differences through branding
Develops a loyal consumer franchise

The brand is an intangible valued asset that needs to

be handled carefully.
 Why Do Brands Matter?
It creates a relationship between brand and consumer
a bond / pact. trust and loyalty and in return .
expect consistent product performance, appropriate price,
distribution and other actions
Brands take on a special meaning and change the experience
and perception of a product that leads to greater satisfaction
Customers with past experience learn more about the brand
The advantages
Lowers search cost internally and externally
The value may not be only functional in nature
They are symbolic devices allowing them to project their self image
Extremely important with credence goods to signal quality
Brands reduce risk particularly in BtoB settings
Why Do Brands Matter?
The main reason A brand helps A strong
consumers flock make a mark and brand makes
Brands help
to some brands differentiate a people aware
A Brand is a customers to
Brands have and ignore others good or service of what the
promise that connect to
become is that behind the from others in company
the product the product
important drivers brand stands an marketplace. represents
will perform as or service on
of growth for any unspoken and about the
per customers an emotional
organization, promise of value. different
expectations. level.
good or service. offerings of
the company.

N
R S
B A D
Why Do Brands Matter?

Thus, you can see that Customers use brands

people connect as a means to show
emotionally with This is what I stand
brands that stand for for and hence, use
things that are brands to express
important to them. themselves.

Is it aopen
Does the
it The
elegant
rugged
care
love
brand customers
minded
signify
brand the
about
forand
quality
brand remain
achievers
outdoors
refined
signify and
the
status
like Royal
like in loyal
like to
like
brands and they become
suchNike
environment
Omega
Enfield
progressive
Lenovo
Bluestar
like as in?
??Mercedes
? like
advocates Apple
like
for ? ?brands.
those
Panasonic?
 Why Do Brands Matter?
Customers
Risk reducer
Search cost reducer
Signal of quality
Symbolic device for self expression
Promise, bond, pact, with maker of the product
Means of identification of source of product for assignment of
responsibility to product maker

Manufacturer
Means of identification for handling, tracing
Signal of quality level to satisfied customers
Competitive advantage
Financial return
Legal protection of unique features
 Brands for Consumers and Sellers
Source of
product

Lower risk

The word Brand signifies different things to

consumers and sellers.
Less cost of
Consumers searching for
a choice

Symbol of
Quality

Symbolic
device
 Brands for Consumers and Sellers
Source of Consumers can easily make a purchase decision based
product on brands. Consumers usually find brands which
satisfy their need.

Lower risk

The word Brand signifies different things to

consumers and sellers.
Less cost of
Consumers searching for
a choice

Symbol of
Quality

Symbolic
device
 Brands for Consumers and Sellers
Source of
product

Brands mean lower purchase risk to consumers as they

Lower risk are dealing with a product or organization that they
trust.

Less cost of The word Brand signifies different things to

Consumers searching for
a choice
consumers and sellers.

Symbol of
Quality

Symbolic
device
 Brands for Consumers and Sellers
Source of
product

Lower risk The word Brand signifies different things to

consumers and sellers.

If the consumers recognize a particular brand and have

Less cost of knowledge about it, they make quick purchase
Consumers searching for decision and save lot of time. Also, they save search
a choice
costs for product.

Symbol of
Quality

Symbolic
device

The word Brand signifies different things to consumers and sellers.

 Brands for Consumers and Sellers
Source of
product

Lower risk

The word Brand signifies different things to

consumers and sellers.
Less cost of
Consumers searching for
a choice

Consumers see brands as a symbol of quality and remain

Symbol of committed and loyal to a brand as long as they believe that the
Quality
brand will continue meeting their expectations and perform in the
desired manner consistently.

Symbolic
device

The word Brand signifies different things to consumers and sellers.

 Brands for Consumers and Sellers
Source of
product

Lower risk

The word Brand signifies different things to

consumers and sellers.
Less cost of
Consumers searching for
a choice

Symbol of
Quality

Symbolic Brands play a significant role in signifying certain product

device features to consumers.

The word Brand signifies different things to consumers and sellers.

 Brands for Consumers and Sellers
Means of
Competitive
Advantage

Legal
protection of
products
features

Seller

Satisfied
customer

Means of
Profits

The word Brand signifies different things to consumers and sellers.

 Brands for Consumers and Sellers
Means of A brand helps the firms to provide consistently a
Competitive unique set of characteristics, advantages, and services
Advantage to the buyers/consumers.

Legal
protection of The word Brand signifies different things to
products
features
consumers and sellers.

Seller

Satisfied
customer

Means of
Profits
 Brands for Consumers and Sellers
Means of
Competitive
Advantage

Legal
protection of Brands help to protect the unique features/traits of
products products by legal copyrights.
features

Seller
The word Brand signifies different things to
Satisfied consumers and sellers.
customer

Means of
Profits

The word Brand signifies different things to consumers and sellers.

 Brands for Consumers and Sellers
Means of
Competitive
Advantage

Legal
protection of The word Brand signifies different things to
products
features
consumers and sellers.

Seller

Satisfied Brand represents values, ideas and even personality

customer and hence leads to an assortment of memories in
customers mind and hence satisfied customers.

Means of
Profits

The word Brand signifies different things to consumers and sellers.

 Brands for Consumers and Sellers
Means of
Competitive
Advantage

Legal
protection of The word Brand signifies different things to
products
features
consumers and sellers.

Seller

Satisfied
customer

Means of Brands form the basis of purchase decision among

Profits consumers and thus are a means of financial profits.

The word Brand signifies different things to consumers and sellers.

 Anything Can Be Branded
Branding is possible for
B to B products
High-tech products
Services
Retailers and Distributors
Online products and services
People and Organizations
Sports
Arts, Entertainment
Geographic location
Ideas and causes
 Anything Can Be Branded
To brand a product what needs to be done is
Consumer has to be
Taught to identify the brand label, name and other
elements
Learn the brand meaning - functional, emotional and
symbolical
Know the brand difference from other similar product
brands (performance / image and non-product related
considerations)

Commodities have been branded atta, salt

 The Key to Successful Branding

For branding strategies to be successful

Consumers must be convinced that there are
meaningful differences among brands
Consumer must not think that all brands in the
category are the same
PERCEPTION = VALUE
What makes a Brand Strong?
It is important that in order to make a strong impact, a brand should be strong. There are
a few characteristics that make a strong brand, which are as follows:

A strong brand is a major driver of shareholder value.

A strong brand is like an asset. It can be used as collateral for financial loans , buying and selling as
an asset.

A strong brand has strong attributes, values and personality that the consumers associate with the
brand.

A strong brand is a means of attaining higher customer loyalty.

A strong brand always delivers the benefits that customers truly desire.

A strong brand makes use of and coordinates full range of marketing activities to build equity.

A strong brand has the right blend of product quality, design, features, costs and prices.

A strong brand is properly positioned and occupies a particular niche in consumers' minds.

A strong brand compels consumers to willingly pay a substantial and consistent premium price for
the brand versus a competing product and service.
Gillette as a Strong Brand

Gillette is one of the strongest brands in the market of mens personal care products.
It has tied the actual quality of its products to various intangible factors such as:

User Imagery
The type of person who uses Gillette, the type of situations in which the brand
is used, the type of personality Gillette portrays etc.

Technology
Its razor blades are as technologically advanced as possible through
continuously spending millions of dollars in R&D.

Sub-branding
It has developed several sub brands such as Trac II, Altra, Sensor, Mach3 to
remain on top of its competitors.

Enhancements
It makes constant improvements with modifiers like Altra Plus, Sensor Excel.
Gillette as a Strong Brand

Gillettes tagline, 'The Best A Man Can

Get, showcased in its ads through the
years has created a consistent,
intangible sense of product superiority.

Gillette has created a strong brand

image in totality - that is, all the
different perceptions, beliefs,
attitudes and behaviors customers
associate with their brand.

To keep this strong brand presence,

Gillette is very protective of the name
carried by its razors, blades and
associated toiletries. Hence, Braun is
used for the company's electric razors
and its oral care products are
marketed under the name, Oral B.
 Strategic Brand Management
Strategic Brand Management involves design and
implementation of marketing programs and activities
to build,
measure,
manage BE
Strategic brand management process involves four main steps:

1. Identify and establish brand positioning and values

2) Plan and implement brand marketing programs
3) Measure and interpret brand performance
4) Grow and sustain Brand Equity

45
Strategic Brand Management Process

The Strategic Brand Management Process consists of the following four steps:

Strategic
Brand
Management
Process
Strategic Brand Management Process

STEPS KEY CONCEPTS

Mental maps
Identify and Establish Competitive frame of reference
Points-of-parity and points-of-difference
Brand Positioning and Values Core brand values
Brand mantra

Mixing and matching of brand elements

Plan and Implement Integrating brand marketing activities
Brand Marketing Programs Leveraging of secondary associations

Brand Value Chain

Brand audits
Measure and Interpret
Brand tracking
Brand Performance Brand equity management system

Brand-product matrix
Brand portfolios and hierarchies
Grow and Sustain Brand expansion strategies
Brand Equity Brand reinforcement and revitalization

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 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

48
 The Customer/Brand Challenge

In this difficult environment, marketers must

have a keen understanding of:
customers
brands
the relationship between the two

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