5/19/2017

Learning Objectives
Chapter-1
Define brand, state how brand differs from a
BRANDS AND BRAND product, and explain what brand equity is
MANAGEMENT Summarize why brands are important
Explain how branding applies to virtually everything
Describe the main branding challenges and
Prof. Mizanur Rahman opportunities
MBA (Canada), PhD (Dhaka)

Department of Marketing Identify the steps in the strategic brand

University of Dhaka management process

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What Is A Brand? What Is A Brand?

A brand is a name, term, sign, symbol, or A brand is the promise, the big
Improved

design or a combination of them, intended idea, the expectations that reside in

Generic

to identify the goods or services of one each customers mind about a

seller or group of sellers and to differentiate product, service, or company.---Alina
them from those of competition.---AMA ??? Wheeler

A brand is something that has actually A brand is the summation of all

Improved

created a certain amount of awareness, perceptions, experiences and beliefs

Best

reputation, prominence, and so on in the associated with a product, service, or

marketplace. entity that make it distinct.

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Why Is Brand So Important? Why Is Brand So Important?

As perceptions of all tangible Brands can have POWER

and intangible elements,
brands have Coca-Cola Is it more than cola beans, corn sweetener, spices,
and food coloring mixed together?
Is it more than a beverage?

Coors Is it more than hops, malted barley,

the ability to Light mushroom, and water?
the power that can
transcend the attributes capture attention and Starbucks Is it more than coffee?
and characteristics of loyalty far above
products others USA Is it more than 50 states united?

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Different Types of Brands Are You A Brand?

B2B Worlwide (meta)

B2C Corporate
Web Commercial Yes!! or No!!
Trade Non-business (?) You all are a brand by all of your individual rights
Local Countries and identities
Official bodies
Regional
Charity org.
National Politics/Polticians
International

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Brand Elements Brand Elements

Different components that identify and
Brand name is that part of a brand which
differentiate a brand can be vocalized or utterable.
Can be based on people, places, things, and Brand mark is that part or element of a
abstract images brand which can be recognized but is not
utterable, such as symbol, design, or
Name distinctive coloring or lettering.
Logo and symbol
Trademark is that part or element of a
Package design brand which is registered & protected by
Slogan law and which gives the seller exclusive
Other Characteristic rights to use it in perpetuity

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Create Brands with an Identity That What Defines a Commodity

generates customer loyalty and business

(a) Compete in price or Basic No

fundamental superiority Perfect
Performance Differences
Substitution
Options for a brand Needs in Brands
(b) Construct an identity
with meaning

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Commodity Branding Strategies Brands versus Products

Product Brand
Anything we can offer to a More that a product because it
market for attention, has dimensions that differentiate
acquisition, use, or it in some way from other
consumption that might products designed to satisfy the
satisfy a need or want same need
Brand The
Build an Create a Add Value
Company
Emotional Customer Through
Not The
Connection Community Services
Product

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Brands versus Products Five Levels of Meaning for a Product

Product Brand
A physical entity that lives in A perceptual entity that lives in Core benefit level
the real world the minds of consumers
Generic product level
Provides only functional Provides functional as well as
value physiological (social, emotional, Expected product level
and epistemic) and situational
values Augmented product level
All products are not brands All brands are products Potential product level
Can be copied by competitors Is unique

Comes and goes with time Is timeless???

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Brands Conveying Six Meanings Every Brand Has A Personality

Nike Addidas Bata
Beautiful Greek Old
Attributes characteristics and features
Feminine Masculine Orthodox
Benefits functional and emotional Strong Strong Bore
Smart Stylish Formal
Values performance, safety & prestige
Ambitious Authoritative Introvert
Culture Mercedes-organized, efficient, high quality Cool Powerful Unsporty
Sexy Dominating Weak
Personality Fanta/Virginia Slim: female personality
Extrovert Stable Simple
Users the kind of consumer using it Energetic Commanding Conservative
Young Modern Trustworthy
Lively Bold Caring
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Evolution From USP to HSP What Is Branding?

Physical
USP = Unique Selling Proposition (50s)
product
The act of transforming a product into customer
Emotional
attachment
ESP = Emotional Selling Proposition (60s) satisfying value-added propositions to create
preferences in ones favor and against rivals
Corporate
branding
OSP = Organizational Selling Proposition (80s)
Shaping the perception of a product or company in society
More than physical BSP = Brand Selling Proposition (90s)
dimensions Everything a marketer does to its offer so that customers
can favorably discriminate a brand
Personalization;
ownership by MSP= Me Selling Proposition (2000s)
consumers
About making an emotional connection.---Alina Wheeler
Multisensory brand;
synergy
HSP =Holistic Selling Proposition (After 2000s)

http://www.slideshare.net/paulsjr/brief-history-of-branding
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Branding Pitfalls or Flaws Major Enemies of Brands

Pitfall No. 1: A brand is A brand is defined only by

something a firm owns customers
Under nourishing
Pitfall No. 2: Brands Proactive brand management is
take care of themselves required Excessive milking
Pitfall No. 3: Focus on Manage touch points; target
brand awareness instead right customers and Excessive line extensions
of brand relevance stakeholders
Excessive repositioning
Pitfall No. 4: Dont base Gain customer input and
on internal image of determine current brand image Excessive promotions
brand and take needful measures
Pitfall No. 5: Dont let Company should determine its
outsiders do firms job own brand image

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Types of Failure of Brands Achieving Brand Power

Parity Brands offer only similar values

Inferior Brands offer lesser value or suffering Brand + Brand + Brand =
Differentiation Relevance Equity
competitive disadvantage
Mismatch Brands offer value not in the line
with customer needs Brand Power
is a function of Differentiation, Relevance, and Equity
Over-priced Brands offer superior value but at
a higher sacrifice BP=f(D,R,BE)

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Achieving Brand Power Achieving Brand Power

Brand Differentiation Brand Relevance

The characteristics and perceptions that are The degree to which the brand is applicable to, or
perceived to be different against alternatives makes a connection with peoples lifestyles,
issues, needs, desires, etc.

Differentiation buys trial Relevance gains repeat consideration

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Achieving Brand Power When Is Brand Power Achieved?

Customer will not change brands for price reasons

Brand Equity
Customer is satisfied; no reason to change
Derived from experience-based associations and the Customer would take pains to get the brand
emotional connections that grow from them
Customer values the brand and sees it as a friend
Brand Equity provides insulation Customer is devoted to the brand

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Brand Loyalty Brand Loyalty

Loyal customer base depends on:

Brand loyalty is the bias, behavioral response,
expressed over time, by some decision-making Trust Affinity
unit, with respect to one or more alternatives, and
is a function of psychological process Consistency Social bonds

Loyal customer base is the essence of brand building Accessibility Psychological bonds

Responsiveness Financial bonds

Commitment Structural bonds

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Brand Loyalty Brands Are Customer Possessed

Trust: Willing to rely on brand
Consistency: No variation in quality an intangible and a perceptual
Accessibility: Accessible to customers entity that remains in minds
Responsiveness: Quick response to customers Brand is possessed like knowledge structure which
Commitment: Dedicated to customers by customers but lives in customers mind in form
Affinity: Identify with brand owned by firms of a universe of associations
Social bonds: Customer-seller relation because it is which stores information, creates
brand awareness, and brand
Psychological bonds: Influencing personality, lifestyles
associations, and elicits customer
Financial bonds: Discounts offering response
Structural bonds: Physical connection between buyers and
sellers systems
Copyright 2016 Pearson Education, Inc. Publishing as Prentice Hall
1.32
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Brands Are Customer Possessed To Sum Up ....

Thirst
Urban Refreshing

Orange
Cola Black Through branding, organizations:
Fun
Fanta Create perceived differences amongst products
Pepsi Coke
Good Develop loyal customer franchise
Times US Mirinda
Young Create value that can translate to financial profits
Sweet

S. Khan
Rebel

Fig: Associative Network for Pepsi

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Copyright 2016 Pearson Education, Inc. Publishing as Prentice Hall
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Why Do Brands Matter? Why Do Brands Matter?

What functions do brands perform?

More specifically, what brands do to:

a) CONSUMERS
b) MANUFACTURERS

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Reducing the risks in product decisions Can Everything Be Branded?

YES!!! Even commodity can be branded
Risks consumers perceive in buying and consuming a
product:
How are brands created? To brand a product it
Functional riskThe product does not perform up to
is necessary to teach
expectations
How do you brand a consumers:
Physical riskThe product poses a threat to users health product?
Who the product is
Financial riskThe product is not worth the price paid Firms create brand through What the product
Social riskThe product results in embarrassment marketing programs, does
Psychological riskThe product affects the mental well- although it resides in the
minds of consumers Why consumers
being should care it
Time riskThe failure of the product results in an
opportunity cost of finding another satisfactory product
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Can Everything Be Branded? What Can Be Branded?

The key to branding is that consumers perceive

differences among brands in a product category
Marketers can benefit from branding whenever
consumers are in a choice situation

De Beers Group added the phrase Tide

Google Maradona
A Diamond Is Forever & Red BD
Red Cross Green
Cross

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What Can Be Branded? Physical Goods: B2B Products

Physical goods (BMW, Sony)

Services (British Airways, FedEx, Hilton Hotel)
Corporate perspective required
Create a positive brand image and reputation for the
Retailers and distributors (Sears, Wal-Mart, M&S) company as a whole which will create:
Online products and services (Amazon.com, Google) Greater selling opportunity (reassurance and clarity)

People and organizations (Maradona, Red Cross) More profitable relationships

Competitive advantage
Sports, arts, and entertainment (Real Madrid)
Some B2B firms believe that buyers are so informed and
Geographic locations (Sunderbon) professional that brands dont matter

Ideas and causes (AIDS Ribbons)

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Physical Goods: High-Tech Products Services: Role of Branding with Services

Dont brand only by naming

Challenging due (technologists view) Tanagibilize the service
to the speed and Challenging as
Financial success depends not only Establish brand symbols
brevity of PLCs on innovation but also on marketing services are less because they
Common mistakes skills tangible and more
Make the abstract nature of
variable in quality
Promote brands CEOs are the dominant factors services more concrete
based on a list of Trust is critical, and customers often Need to address Help identify and provide
attributes buy into companies as much as intangibility and meaning to different services
Tend to think of products
variability Signal to consumers that service
brands as a Need less mkt. budget but more problems is special and deserving of its
technical feature expenditures on mkt.
name
communications (c.mkt. technique)
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Services: Professional Services Retailers and Distributors

Create corporate credibility in terms of expertise,

trustworthiness, and likeability Attach unique
Brands can help create associations to service
Overcome variability issue with professional services quality, product
Consumer interest,
Individual employees have a lot more of their own patronage, and loyalty in assortment, pricing, and
equity in the firm stores credit policy to stores
The retailers image and Introduce brands through
Referrals and testimonials can be powerful when the
establish positioning
services are intangible and subjective using store names,
creating new names, or
Emotions can play a big role in terms of sense of some combination of both
security and social approval

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Online products and services People and Organizations

Branding is challenging Create unique aspects of the
because brand on some dimensions Build up a name and reputation in a
like convenience, price, business context
Flashy or unusual ads fail Branding is
variety
to create awareness of Right awareness and image determine
Ensure that brands perform
simple if the
why the brand is unique, the way people treat you, interpret
and why consumers satisfactorily in other areas product your words, and actions
should buy it like customer service, category is
Check who the person is and what
credibility and personality people or
Their business models kind of person he is in terms of skills,
are based on selling Offer unique features and organization talents, attitude, and so forth
information, products, services to consumers and
and experiences avoid extensive ads Some firms take on meanings
through their programs, activities,
Rely more on WOM and pub. and products
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Sports, Arts, and Entertainment Geographic Locations

Marketing people and organizations as brands exists in
these areas
Promote cities, states,
Sports marketing has become In arts and Increased mobility of regions, and countries
sophisticated in recent years entertainment, both people and through the use of ad,
Apply creative combination of ad, buyers judge businesses and growth
quality not by
direct mail, and other
promotions, sponsorship, direct mail, in the tourism industry
digital, and other forms of com. inspection, but com tools
have contributed to the
Build up brand awareness, image,
use cues such as This will create awareness
people involved, rise of place marketing and a favorable image of a
and loyalty
WOM, critical location that will entice
Establish brand symbols and logos visitors
reviews, etc.
that work as a financial contributor

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What Makes Branding Geographic Places Unique How Is Geographic Location Defined

Diverse Customer Segment

Multicultural
Live There vs Visitors
Businesses & Investors

Locations Sell Experience

Expectations Differ
Themes are Key Excitement
Impacted by Weather & Location

Every Place Has a History

Iconic Symbols and Sights
Do you Keep or Change Impression

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Ideas and Causes To Sum up....

Branding is universal and pervasive in different

Use phrase or slogan or product categories
Ideas and causes symbols for branding (AIDS
are branded by Applicable to both tangible and intangible offerings
Ribbons)
mostly non-profit Technological developments have impacted the way
organizations Make them more visible
firms market their offerings
and concrete
Organizations reap financial benefits from positive
brand images

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Keys to Enduring Brand Leadership Essentials to Success of a Brand

Successful brands Two basic strategies can

achieve be used:
discriminatory Better Brand Strategy
response from Superior Band Strategy
consumers

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Essentials to Success of a Brand How to Build Superior Brands?

Better Brand Strategy Superior Brand Strategy
Offers more value on Offers competitive as well as Must achieve valued discrimination
attributes or benefits sought some unique attributes or
by customers and beats benefits not offered by It is not sufficient just to achieve valued
competition competition discrimination or deliver what target market
Limits efforts to existing Goes beyond existing currently wants
attributes or benefits attributes or benefits RATHER
Increases CV incrementally Increases CV exponentially
Ex: Toothpaste offers germ Ex: Toothpaste offers minting Deliver what What customers
protection round the clock attribute others fail to look forward to
instead of 12 hours

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How to Build Superior Brands? 5-Steps of Achieving Valued Discrimination

To achieve valued discrimination, marketers 1. Identify Segments

must know: Study existing segments characteristics and
For whom is the brand meant? (target market) competition
What do competitive brands offer? (similarity) 2. Understand the Key Drivers of Buying
What do customers desire or value but do not get? List down the attributes/benefits/values
(discriminating value)
sought
Do extensive marketing research to figure out

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5-Steps of Achieving Valued Discrimination Strong Brands

3. Determine Relative Importance

Rate these in order of importance Are brands that have been market
leaders in their categories for decades
4. Analyze Competition
Any brand is vulnerable and susceptible
Make competitive analysis and customer to poor brand management
analysis
The appeal of brand is not timeless, if it is not
5. Find Sources of Discriminative Value properly managed
Find attributes which are the sources of
valued discrimination

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Top Ten Global Brands (Interbrand)

What are the Strongest Brands?
Rank in 2015 2015 ($Billion)
1. Apple 170.28
2. Google 120.31
3. Coca-Cola 78.42
4. Microsoft 67.67
5. IBM 65.09
6. Toyota 49.05
7. Samsung 45.30
8. GE 42.27
9. MacDonald's 39.81
10. Amazon 37.85
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Factors Responsible for Branding Factors Responsible for Branding

Challenges Challenges
Savvy
customers
Increased Economic
accountability downturns

Increased Brand
cost proliferation

Increased Media
competition transformation

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Brand Equity Principles of Branding and Brand Equity

The added value The premium a brand (1) Differences in outcomes arise from the added
endowed to products can command in the value
reflected in how market (2) Added value can be created in many different
consumers think, feel, ways
The difference
and act with respect to
between the perceived (3) BE provides a common denominator for
brand
value and the intrinsic interpreting mkt. strategies and assessing brand
Marketing effects value of a brand value
uniquely attributable to
the brand (4) Different ways in which the value of a brand can
No common definition be exploited to benefit the firm

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Brand Equity Competitive Advantages Strategic Brand Management

Reduced marketing costs The four main steps of the

process:
Trade leverage The design and Identifying and developing brand
plans
Can charge a higher price implementation of
Designing and implementing
marketing programs
brand marketing programs
Can easily launch brand extensions to build, measure,
Measuring and interpreting brand
and manage BE performance
Can take some price competition
Growing and sustaining brand
equity

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Designing and Implementing Brand

Identifying and Developing Brand Plans
Marketing Programs

Brand Brand Brand Value Chain

Positioning Resonance Model Choosing brand elements
Model Model Traces the value (mixing and matching)
How to create How to create creation process
a position in intense, active to better Integrating the brand into
customers loyalty understand the marketing activities and the
minds and relationships financial impact supporting marketing
guide with customers of brand programs
integrated marketing
marketing to expenditures and Leveraging secondary
maximize CA investments associations

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Measuring and Interpreting Brand Measuring and Interpreting Brand

Performance Performance

Brand Audits Brand Tracking ME Management

Marketers develop and A comprehensive Studies System
implement a BEMS to manage examination of a Collecting information A set of
brands profitably brand to assess from consumers, on a organizational
its health, routine basis over processes designed
BEMS is a set of research time on key to understand and
uncover its
procedures designed to provide dimensions identified use of the BE
sources of equity, concept within a
timely, accurate, and actionable in the brand audit or
and suggest ways firm
information for marketers so that to improve and other means to know
how brands and Creating BE charters
they can make the best possible leverage that Assembling BE reports
tactical and strategic decisions marketing programs
equity Defining BE
are performing responsibilities

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Growing and Sustaining Brand Equity Defining Brand Architecture

A firms brand Brand portfolio is the

set of different brands in
Defining brand architecture architecture
a particular category a
provides its general firm offers to its buyers
Managing BE over time
guidelines about
Managing BE over geographic branding strategy and Brand hierarchy
displays the number and
boundaries, cultures, and which brand elements
nature of common and
market segments to apply across all the distinctive brand
different products sold components across the
by the firm firms set of brands.

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Managing Brand Equity Over Time Managing Brand Equity Over Time

It recognizes that any

(a) what products it
changes in the supporting
represents, what core
marketing program for a Brand reinforcement
benefits it supplies, and
Brand management brand may affect the requires the brand always what needs it satisfies,
needs long-term success of future marketing be moving forward and and
programs consistently conveying
views of marketing
the brands meaning in (b) how the brand makes
decisions It produces proactive
products superior, and
strategies to enhance CBBE terms of
which strong, favorable,
and reactive strategies to
and unique brand
revitalize a brand that
associations should exist
encounters problems in consumers minds.

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Managing Brand Equity Over Time Managing Brand Equity over Geographic
Boundaries, Cultures, and Market Segments

Brand revitalization:
First, understand what the sources of BE were
to begin with. In expanding a brand overseas, managers need
Are positive associations losing their strength or to build BE
uniqueness? by relying on specific knowledge about the
Have negative associations become linked to the experience and behaviors of those market
brand? segments
Second, decide whether to retain the same
positioning or create a new one

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Managing Brand Equity over Geographic Strategic Brand Management Process

Boundaries, Cultures, and Market Segments

Global branding decisions

Decide which markets to enter
Decide how to enter the market
Decide on the marketing program
Decide on marketing organization

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