MKT Chap-1

BRAND MANAGEMENT
MKT 543
BRANDS AND BRAND Chapter 1
MANAGEMENT
BRANDS AND BRAND MANAGEMENT
WHAT IS A BRAND?
Brand emerges from old norse (Scandinavian language) word

brandr that means to burn
“A brand is a storehouse of trust. That matters more and

more as choices multiply. People want to simplify their lives.”
In technocrat and colorless times, brands bring warmth,

familiarity and trust.
WHAT IS A BRAND?
For the American Marketing Association (AMA), 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 or group
of sellers and to differentiate them from those of competition.”
These different components of a brand that identify and
differentiate it are brand elements.
WHAT IS A BRAND?
Many practicing managers refer to a brand as more than that—

as something that has actually created a certain amount of
awareness, reputation, prominence, and so on in the marketplace.
1.6
WHAT IS A BRAND?
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
BRAND VERSUS PRODUCT
Brand Product
Has dimensions that differentiate it Anything available in the market for
in some way from other products use or consumption, that may satisfy
designed to satisfy the same need a need or want
Can be differentiated on the basis Can be categorized into five levels

of: namely:
• Packaging • Core benefit level
• Services provided • Generic product level
• Customer advice • Expected product level
• Financing • Augmented product level
• Delivery arrangements • Potential product level
• Warehousing
• Other things valued by the
customers
FIVE LEVELS OF MEANING FOR A PRODUCT
WHAT IS A BRAND?
A brand is therefore more than a

product, as it can have dimensions
that differentiate it in some way
from other products designed to
satisfy the same need.
WHAT IS A BRAND?
 According to Kevin Lane Keller “A brand is therefore a product,
but one that adds other dimensions that differentiate it in someway from
other products designed to satisfy the same need.”
 Understanding consumer motivations and desires and creating relevant and

appealing images surrounding the products makes a brand leader.
 Brand building tools:
 R&D
 Product
 Service
 Promotion
 Retail environment
 Advertising
 Merchandising
 Packaging
 CRM
 Price
 Some brands create competitive advantages with

product performance;
 Other brands create competitive advantages
through non-product-related means.
WHY DO BRANDS MATTER?
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
CONSUMERS
Signal product characteristics and attributes
 On the basis of attributes products can be classified as:
✓ Search goods
✓ Experience goods
✓ Credence goods
CONSUMERS
Reduce risks in product decision
These risk can be categorised as
Functional (not perform as expected), physical (risk to self and others),
financial (not be worth its cost ), social (lead to social embarrassment)
psychological (poor choice hurts the consumer's ego ), and time (wasted in
purchasing)
✓ Seek Information
✓ Stay Brand Loyal
✓ Select by Brand Image
✓ Rely on Store (Brand) Image
✓ Buy the Most Expensive Model (Brand)
✓ Seek Reassurance
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
FIGURE- ROLES THAT BRANDS PLAY
CAN ANYTHING BE BRANDED
PHYSICAL GOODS
Business-to-Business
Products
High-tech Products
B2B PRODUCTS
• Guidelines for marketers of B2B brands
• Ensure that entire organization supports branding and

brand management.
• Adopt a corporate branding strategy if possible and
create a well-defined brand hierarchy.
• Frame value perceptions.
• Link relevant non-product-related brand associations.
• Find relevant emotional associations for the brand.
• Segment customers carefully both within and across
companies.
HIGH-TECH PRODUCTS
•Struggle with branding due to lack of
branding strategy.
•Have realised that financial success is no
longer driven by product innovation alone.
•Marketing skills play an important role in the
adoption and success of high-tech products.
HIGH-TECH PRODUCTS
Guidelines for high-tech branding:
• Understand your brand hierarchy and manage it
appropriately over time.
• Know who your customer is and build an appropriate
brand strategy.
• Realize that building brand equity and selling
products are two different exercises.
• Brands are owned by customers, not engineers.
• Brand building on a small budget necessitates
leveraging every possible positive association.
• Technology categories are created by customers and
external forces, not by companies themselves.
HIGH-TECH PRODUCTS
• The rapidly changing environment demands that

you stay in tune with your internal and external
environment.
• Invest the time to understand the technology and
value proposition and do not be afraid to ask
questions.
SERVICES
ROLE OF BRANDING WITH SERVICES
•Challenges in marketing services:
• Less tangible than products and vary in quality.
• Depend on the particular person or people providing
them.
•Branding addresses problems related to
intangibility and variability.
•Brand symbols help make abstract nature of
the services more concrete.
•Provides competitive edge to the services.
PROFESSIONAL SERVICES
•Offer specialized expertise and support

to other businesses and organizations.
•Combination of B2B and traditional
consumer services branding.
•Challenges:
• Greater variability
• Harder to standardize
• Threat from greater equity of employees
CAN ANYTHING BE BRANDED
ROLE OF BRANDING
Sports , Arts, and Geographic Ideas and

Entertainment Locations Causes
STRONG BRANDS
Brands that have been market leaders in their
categories for decades
Any brand is vulnerable and susceptible to poor brand
management
FACTORS RESPONSIBLE FOR BRANDING
CHALLENGES
Savvy customers
Economic downturns
Brand proliferation
Increased Competition
Media transformation
Increased costs
Greater accountability
FIGURE- CHALLENGES TO BRAND BUILDERS
BRAND EQUITY
The differential effect that knowing the
brand name has on customer response to
the product or its marketing
Principles of branding and brand equity
 Differences in outcomes arise from the “added value”
endowed to a product
 The added value can be created for a brand in many
different ways
 Brand equity provides a common denominator for
interpreting marketing strategies and assessing the value
of a brand
 There are many different ways in which the value of a
brand can be exploited to benefit the firm
STRATEGIC BRAND MANAGEMENT
PROCESS
Identifying and Developing Brand Plans
Designing and Implementing Brand

Marketing Programs
Measuring and Interpreting Brand

Performance
Growing and Sustaining Brand Equity

FIGURE - STRATEGIC BRAND MANAGEMENT
PROCESS

MKT Chap-1

Uploaded by

Copyright:

Available Formats

MKT Chap-1

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

MKT Chap-1

Uploaded by

Copyright:

Available Formats

BRAND MANAGEMENT

Brand emerges from old norse (Scandinavian language) word

“A brand is a storehouse of trust. That matters more and

In technocrat and colorless times, brands bring warmth,

For the American Marketing Association (AMA), a brand is a

Many practicing managers refer to a brand as more than that—

Different components that identifies and

Can be differentiated on the basis Can be categorized into five levels

A brand is therefore more than a

 Understanding consumer motivations and desires and creating relevant and

 Some brands create competitive advantages with

Encompass all types of customers, including

Brands provide valuable functions

• Ensure that entire organization supports branding and

• The rapidly changing environment demands that

•Offer specialized expertise and support

Sports , Arts, and Geographic Ideas and

Identifying and Developing Brand Plans

Designing and Implementing Brand

Measuring and Interpreting Brand

Growing and Sustaining Brand Equity

You might also like