brand chapter 1

8/6/2019 Brand Chapter 1

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Brands and Brand Management

Chapter - 2


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What is a brand?

According to the American Marketing Association (AMA), abrand is a name, term, sign, symbol, or a combination ofthem, intended to identify the goods and services of one selleror 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.


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Brands vs. Products

Aproductis anything we can offer to a market forattention, acquisition, use, or consumption that mightsatisfy a need or want.

Aproductmay be a physical good, a service, a retailoutlet, a person, an organization, a place, or even anidea.


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A brand is therefore more than a product, as it

can have dimensions that differentiate it in

some way from other products designed tosatisfy the same need.


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Some brands create competitive advantages

with product performance; other brands create

competitive advantages through non-product-related means.


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Criteria forChoosing Brand Elements

Memorability

Meaningfulness

Likability Transferability

Adaptability

Protectability

Marketers offensive strategy

and build brand equity

Defensive role for leveraging

and maintaining brand equity


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Tactics for Brand Elements

A variety of brand elements can be chosen that

inherently enhance brand awareness or facilitate the

formation of strong, favorable, and unique brand

associations. Brand names

URLs

Logos or symbols or signs

Characters

Slogans

Packaging


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Brand Names

Like any brand element, brand names must

be chosen with the six general criteria of

memorability, meaningfulness, likeability,

transferability, adaptability, and protectability

in mind.


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BrandNaming Procedures

Define objectives

Generate names

Screen initial candidates Study candidate names

Research the final candidates

Select the final name


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URLs

URLs (uniform resource locators) specify locations of pageson the web and are also commonly referred to as domain

names.

A company can either sue the current owner of the URL for

copyright infringement, buy the name from the current owner,or register all conceivable variations of its brand as domain

names ahead of time.


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Logos and Symbols

Play a critical role in building brand equity and especiallybrand awareness

Logos range from corporate names or trademarks (word marks

with text in general) written in a distinctive form, to entirely

abstract designs that may be completely unrelated to the wordmark, corporate name, or corporate activities

A word, symbol, or phrase used to identify

a particular company's product and

differentiate it from other companies'

products. Indicated by the symbol ,when registered with a government

authority it is sometimes indicated by the

symbol ; To register something as a

trademark; To so label a product.


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Characters

A special type of brand symbolone that takes on human orreal-life characteristics

Some are animated like Pillsburys Poppin Fresh Doughboy,Peter Pan peanut butters character, and numerous other

characters such as Tony the Tiger, The AMUL girl.

Others are figures like Juan Valdez (Colombian coffee), andRonald McDonald. Notable newcomers include the AOL

running man, the Budweiser frogs, and the AFLAC duck.


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Slogans

Slogans are short phrases that communicate

descriptive or persuasive information about the brand.

Slogans are powerful branding devices because, like

brand names, they are an extremely efficient,

shorthand means to build brand equity


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Classic Slogans

Melts in your mouth, not in your hands (M&Ms) Wheres the beef? (Wendys)

Can you hear me now? (Verizon)


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Jingles

Jingles are musical messages written around the brand.Typically composed by professional songwriters, they oftenhave enough catchy hooks and choruses to become almost

permanently registered in the minds of listenerssometimes

whether they want them to or not! Jingles are perhaps most valuable in enhancing brand

awareness.


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Packaging

From the perspective of both the firm and consumers,

packaging must achieve a number of objectives:

Identify the brand

Convey descriptive and persuasive information

Facilitate product transportation and protection

Assist at-home storage

Aid product consumption


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Packaging Can Influence Taste

Our sense of taste and touch is very

suggestible, and what we see on a package can

lead us to taste what we think we are going to

taste.


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Packaging Can Influence Value

Long after we have bought a product, a

package can still lead us to believe we bought

it because it was a good value.


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Packaging Can Influence Consumption

Studies of 48 different types of foods and personal

care products have shown that people pour and

consume between 18% and 32% more of a product as

the size of the container doubles.

Valerie Folkes, Ingrid Martin and Kamal Gupta,Valerie Folkes, Ingrid Martin and Kamal Gupta,

When to Say When: Effects of Supply on Usage,When to Say When: Effects of Supply on Usage,

Journal of Consumer ResearchJournal of Consumer Research, 20 December 1993, 467, 20 December 1993, 467--477.477.


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Packaging Can Influence How a

Person Uses a Product

One strategy to increase use of mature products has been to

encourage people to use the brand in new situations, like soup

for breakfast, or new uses, like baking soda as a refrigerator

deodorizer.

An analysis of 26 products and 402 consumers showed that

twice as many people learned about the new use from the

package than from television ads.


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Putting It All Together

The entire set of brand elements makes up the brand

identity, the contribution of all brand elements to

awareness and image.

T

he cohesiveness of the brand identity depends on theextent to which the brand elements are consistent.


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Why do brands matter?

What functions do brands perform that make

them so valuable to marketers?


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Importance of Brands to Consumers

Identification of the source of the product

Assignment of responsibility to product maker

Risk reducer

Search & cost reducer

Promise, bond, or pact with product maker

Symbolic device

Signal of quality


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Reducing the Risks in Product Decisions

Consumers may perceive many different types of risks inbuying and consuming a product:

hFunctional riskThe product does not perform up toexpectations.

hPhysical riskThe product poses a threat to the physicalwell-being or health of the user or others.

hFinancial riskThe product is not worth the price paid.

hSocial riskThe product results in embarrassment from

others. hPsychological riskThe product affects the mental well-

being of the user.

hTime riskThe failure of the product results in anopportunity cost of finding another satisfactory product.


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Importance of Brands to Firms

To firms, brands represent enormously

valuable pieces of legal property, capable of

influencing consumer behavior, being bought

and sold, and providing the security of

s u s t a i n e d f u t u r e r e v e n u e s .


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Importance of Brands to Firms

Identification to simplify handling or tracing

Legally protecting unique features

Signal of quality level

Endowing products with unique associations

Source of competitive advantage

Source of financial returns


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Can everything be branded?

Ultimately a brand is something that resides inthe minds of consumers.

The key to branding is that consumers perceive

differences among brands in a productcategory.

Even commodities can be branded:

Coffee (Barista), bath soap (Lux, Dove), flour(Pillsbury, Ashirvad), beer (Budweiser), salt(Tata), oatmeal (Quaker), pickles (MotherDairy,Nilons),Chickens (Perdue), pineapples (DelMonte), and even water (Bisleri, Qua)


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An Example of Branding a Commodity

De Beers Group added the phrase A Diamond

Is Forever


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What can be branded?

Physical goods

Services

Retailers and distributors

Online products and services

People and organizations (Politicians,entertainers etc.)

Sports, arts, and entertainment Geographic locations

Ideas and causes


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Source of Brands Strength

The real causes of enduring market leadership are vision and

will. Enduring market leaders have a revolutionary and

inspiring vision of the mass market, and they exhibit an

indomitable will to realize that vision. They persist under

adversity, innovate relentlessly, commit financial resources,

and leverage assets to realize their vision.Gerald J. Tellis and Peter N. Golder, First to Market, First to Fail? Real

Causes of Enduring Market Leadership,MITSloan Management Review, 1

January 1996


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What are the strongest brands?


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Branding Challenges and Opportunities

Savvy customers

Brand proliferation

Media fragmentation

Increased competition

Increased costs

Greateraccountability


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The Brand Equity Concept

No common viewpoint on how it should beconceptualized and measured

It stresses the importance of brand role inmarketing strategies.

Brand equity is defined in terms of themarketing effects uniquely attributable to thebrand.

Brand equity relates to the fact that different outcomes resultin the marketing of a product or service because of its brandname, as compared to if the same product or service did not

have that name.


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Strategic Brand Management

It involves the design and implementation ofmarketing programs and activities to build,

measure, and manage brand equity.

The Strategic Brand ManagementProcess isdefined as involving four main steps:

1. Identifying and establishing brand positioning and values

2. Planning and implementing brand marketing programs

3. Measuring and interpreting brand performance

4. Growing and sustaining brand equity


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Strategic Brand Management ProcessStrategic Brand Management Process

Mental maps

Competitive frame of reference

Points-of-parity and points-of-difference

Core brand values

Brand mantra

Mixing and matching of brand elements

Integrating brand marketing activities

Leveraging of secondary associations

Brand value chain

Brand auditsBrand tracking

Brand equity management system

Brand-product matrix

Brand portfolios and hierarchies

Brand expansion strategies

Brand reinforcement and revitalization

Key ConceptsSteps

Grow and sustain

brand equity

Identify and establish

brand positioning and values

Plan and implement

brand marketing programs

Measure and interpretbrand performance

brand chapter 1

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