brand eqiuty-deepti ms 03- 07 4rm college

8/8/2019 Brand Eqiuty-DeEPTI MS 03- 07 4rm College

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MARKETING MANAGEMENT

MARKET

Regular gathering for buying and selling of goods.

Area of trade and business

A place where we put up our goods, services, products by Advertising and

Promotion

Its a physical place where buyers and sellers gather to buy and sell

goods.

MARKETER-

Two parties seeking to sell something to each other, both are calledmarketers.


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MARKETING MANAGEMENT

Art and Science of choosing target markets and getting, keeping

and growing customers, through creating, offering and freely

exchanging products & services with others.


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Whatthingsare Marketed?

Goods-

Physical goods like- Cars, Televisions, machine tools, industrial chemicals,

watches, shoes, clothing, SoapsServices-

Work of airlines, hotels, barbers, beauticians, maintenance & repair,bankers, lawyers, doctors, consultants.

Events- Time Based

Trade shows, Exhibitions, sports events like Olympics, commonwealthgames.

These are promoted to both companies and fans.

Experiences-

Amusement parks, water parks, theme-based experiences like-restaurants theme with villages of Gujarat or Rajasthan.

Persons-Celebrity Mktg- artists, singers, sportsmen, they market themselves.

Eg. David Beckham, Oprah Winfrey, AB, SRK


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Places-Cities, states, cultures attract tourist round the world.

Bangalore called as Silicon Valley in IT Sector.Kerela called Gods own country

India called Incredible Land

Properties-Real estate agents work for property owners and earn a name in

the market and become a BRAND.

Organizations-Universities, museums, NGOs, all do the campaigning to make

Public ImageEg. UNICEF

Note- All theabove,if workkeenly upon, will becomea BRAND


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UnitI

Creating Brand Equity

-Whatisa product?- A bundle of benefits or satisfaction offered to a

customer.

Eg.- HLLs Lux soap are selling- good beautiful complexion, lovely skin,

PHILIPS selling bulbs, are selling- good illumination, long hours of light and

durability.

Creating Brand Equity

-Building strong brands require a keen undstng of competitors, and with the

competition growing more intense every year.

- Global competitors into new markets.

-On-line competitors expanding distribution by cost-efficient ways.

-Private-label brands by providing low-priced alternatives.

-Also brand extensions- Major brands moving into new categories.


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Whatis BRAND?

-A type of product made by the company under a particular name.

Brand Name- a name given by the maker to a product.

BRAND-A name,term,sign,symbol,design,slogan,intended to identify

the goods or services of one seller or group of sellers & to differentiate

them from those of competitors.

-This dfrnc may be related to product performance i:e FUNCTIONAL

OR

- may be related to what brand represents, i:e symbolic,emotional

Eg.- NAME- Goodknight, Hit, Complan, Boost,Fairn Lovely


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Logo- Kelvinators Penguin, Onidas Devil, Amul Butter

Girl

Slogan- is an extremely efficient means to build brand

equity.

They help consumers understand what brand is all about and

what special it offers.

Eg.- Complete Man- Raymonds

Joy Of Flying Jet Airways

Lifes Good, Mint withthehole, I am lovingit, Purefor

sure


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BRAND EQUITY

It is the value or worth of the brand

Or

Its an added value, quality or strength to a product or service.Its is the net result of all the investments and efforts that a marketer

puts into building a brand.

Differential effect, that brand knowledge has on customer response tothe mktg of that brand.

It could be POSITIVE CONSUMER-BASED BRAND EQUITY

Or

NEGATIVE CONSUMER-BASED BRAND EQUITY

Basically, Brand Equity isthe made of-

-User-ship of the brand

-Consumer loyalty

-Perceived quality

-Positive symbols & favorable associations around the brand

Highly paid premium brand equity brands are- HLL, ITC, IT Majors.


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Roles or Essentials of Brands

1. Identify the Maker- or source of products and allow the consumersto relate its performance with the manufacturer.

- Consumers find out, which brand satisfy their needs & which do not.Eg.- Lijjat Papad, Vicovajradanti

2. Simply producthandling- As in todays time, lives of consumersare getting more busy, rushed, complicated, so brand helps indecision- making with reduced risk.

-Name should be short, simple, easy to pronounce and remember

Eg.- Ponds, Rin, Lux

3. Organize Accounting- Brand helps in performing differentfunctions for the firm like-

- Product-handling, Tracing

- Organizing Inventory

- Organizing accounting records

4. Offer Legal Protection- Brand gives legal protection with differentfeatures and aspects of a product.

Eg.- Brand Name can be protected through its TRADEMARKS,

Manufacturing Processes through its PATENTS,

Packaging through its COPYRIGHTS


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5. Signify Quality- It should be unique, attractive, distinctive.

-Level of quality makes the satisfied buyers to choose easily the product.

Eg.- Sunlight, Goldflake, Dalda, Amul

6. Creates Barriersto entry- Brand Loyalty by the customers secure

the demand for the firm and its products.

- Hence creates barriers for other firms to enter the markets.

7. Servesas Competitive Advantage- Other firms might duplicate the

manufacturing processes but still cannot match the lasting

impressions of yrs of product experience from consumers mind.

8.- Secure Price Premium- Firms pay tremendously in making a brand

by mergers & acquisitions and thus, extract extra profits from the

brands.

Eg.- P&G-Procter & Gamble- Pringle potato chips, Tide, Old-Spice, Oral-B

Toothbrush, Pampers.


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BRANDING

Endowing products & services with the power of a brand.

Provide with qualityGiving name to a product to make it identify by the consumer.

Branding means- Giving Specified, distinctive name to a product- Specified name creates individuality in the product and hence, it can be

easily distinguished in the market from the rival products.

SCOPE OF BRANDING

It creates a mental structure that helps consumers in getting knowledgeabout products & services & thus, helps in DECISION-MAKING.

EQUITYQuality of being fair and impartial


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Brand Knowledge

Consists of all thoughts, feelings, images, experiences, beliefsassociated with brands.

Eg.- VOLVO- for safetyHALLMARK- for care of emotions

PONDS- for skin sensitivity

Brands must associate

strongly, uniquely,favorably

with the customers

BRAND PROMISE

Its the marketers vision, what the brand must be & do for theconsumers.

Eg. AMUL from Gujarathas come up with many varieties in Non-carbonated milk-based drinks like- Amul Kool Lassi, Butter milk, kool

kafe, kool koko ,

keeping in mind the Health of people.


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Brand Variants

Specific brand lines supplied to specific retailers or distribution channels.

Eg.- A camera company may supply low-end cameras to a merchandiser,while high-end cameras to the specialty stores.

Licensed Product

Is One whose brand name has been licensed to manufacturer thatactually makes the product.

BRAND NAMING DECISIONS

For products & services, which brand name to choose

1.Individual names- each product of the company is given anindependent brand name.

Eg.- HLL has bathing soap categories- Lux, Liril, Dove, Pears

In Detergents- Surf, Rin, Wheel

In Toothpastes- Close-up, Pepsodent

Eg.- Nestle- As In coffee brand

In noodles- MaggiIn chocolate- Kitkat

Baby food-Cerelac

Advantage- If product fails, company name is not hurt

Disadvantage- Promotion is expensive


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2. BlanketFamily Names- When group of products are given thesame brand name. It is limited to one line of product.

Eg.- AMUL(Family name)- amul lassi, butter milk, kool kafe

Dhara- mustard oil, groundnut oil, sunflower oil

Eg- Amul for Milk products, Ponds for cosmetics.

Advantage- Promotion becomes easier, less expensive

Disadvantage- if one product becomes a low-quality product, otherrange might get affected

3. SeparateFamily nameforall products-all products of one company or manufacturer under one umbrella.Eg- all products like- soaps, chemicals, textiles, engineering goods,

under TATAs name

Eg.- Aditya Birla Group-

Hindalco for Aluminium

Ultratech for Cement

Grasim for Suitings

4. Corporatenamecombined withindividual productnames-

Company name is itself used as a brand name under which variedproducts are marketed

E.g.- Kellogg's Cornflakes, Bajaj Bulbs, Cadburys chocolate, VideoconWashing Machine


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BRAND PORTFOLIO

IS A SET OF ALL BRANDS AND BRAND-LINES FOR A PARTICULARCATEGORY OR MKT SEGMENTATION.

Marketers carefully monitor the brand portfolis, identify the weak brandsand prune the un-profitable ones.

the firm decides to cut-short the product-line, by eliminating somebrands .

Eg.- P&G focuses more on Pantene, Head & shoulders, Ariel, Vicks

Dabur now concentrating on 3 product lines- food, personal care, health

care

Vatika, Hajmola, Pudin hara, Chyawanprash, Real juices.


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Different Models of Brand Equity

1. Brand Asset Valuator

2. Akar Model

3. BRANDZ Model4. Brand Resonance

BRANDZ Model of measurement-

5. Presence- Weak relation with Brand- Do I know about the product?

4. Relevance- Does it offer me something?

3. Performance- Can it deliver?2. Advantage- Does it offer something better than others?

1. Bonding- Strong relation with Brand- Nothing else beat it?


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Building Brand Equity Marketers build brand equity by creating right knowledge with right

customers.

This is done by-

I- Brand Elements

II- Marketing activities

III- Meaning Transference

I- Brand Elements- comprise of brand names, Logo's, slogans,characters, symbols

Brand element choosing criteria6 types-

1. Memorable- How easily brand name can be recalled

- It should be short, simple, easy to pronounce and remember

Eg. Lux, L.G, Taj

2. Meaningful- Brand name should suggest something about the product.

Eg.- Fair & Lovely Fairness Cream3. Likeable- Brand name should be liked visually,verbally

Eg. Scorpio, Lancer, Splendor, Scooty Pep

4. Transferable- Brands should used to introduce new products in sameor difrnt categories

Amul-into milk products with more categories as dahi, butter milk


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5. Adaptable- Brand should change itself with time.

Eg. LIFEBOUY underwent changes with its colour,

fragrance,packaging,looks

6. Protectible- Brand should be legally protectable.Products shouldnt become generic with the common names.

II- Marketingactivities- Difrnt activities are required to make thebrand heard by the customers like- Personal Observation, word of

mouth, online or telephonic experiences.

Brand contact- information based experience, +ive or ive, a customerhas with the brand.

- Marketers are building brand equity by Clubs, Consumer communities,trade shows, events, factory visits, press releases, PR

III. Meaning Transference- Transferring the meaning of the brand inan appropriate manner


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Managing Brand Equity

Brand Reinforcement-

Eg.- Godrej reinforced its global identity with the Miss World Contest

Kinetic Honda- Auto StartLipton Taza Tea- Freshness

Brand Revitalization-

- Giving new life to the brands with new ideas

- Rejuvenation of the brand by adding value to the existing brand by

improving product attributes.Advantage- Helps in overcoming consumers boredom by changing tastes,

needs, preferences

- Brands appear in new packaging, shapes, sizes, colours, fragrances,flavours, features, qualities

Eg.- Cadburys 5-Star chocolate became new with creamier and

smoother tasteOnida Television came with newer features

Objective- give new life to the declining brand, occasional revival to thesuccessful brands, brands alive and in focus

Eg.- HLL keep updating brands- Surf, Lux, Close-Up


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Devisinga Brand EquityHow to make a new product into a Brand?

3 ways-

1. Can develop new brand elements for new products.

(slogans, logos, symbols)

2. Can apply some of its existing brand elements.

3. Can use combination of new and existing brand elements.

Thisisbeingdoneinfurther ways-

BRAND EXTENSION- When a firm uses an established brand to introduce a new product

Eg.- P&G introduces Pantene shampoo

Sub-Brand

when a marketer combines a new brand with the existing brand

Eg.-Amul Masti Dahi, Maruti Swift, ICICI prudential life insurance Advantages of Brand- extension

-Helps new item to get instant brand recognition

-Saves the cost of launching a new brand

-Helps in gaining strength due to the existing brand

-Also leads in making a SUPER-BRAND, among consumers.


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TYPES OF BRAND EXTENSION-a. Line-extension- A parent brand covers a new product within same

product line/ category, with new colors, forms, flavors, packagesizes.

Eg.-Lifebouys line extension into- Lifebuoy PlusHLL launched- Surf Excel, Surf Excelmatic

Colgate launched- Colgate Gel, Colgate Total, Colgate Calciguardb. Category Extension- Extending a Brand name to products in a

related line but related in some way.Eg.- Dettol is known for antiseptic lotions

Launched- Dettol soap, Dettol plaster, dettol handwashMaggi launched- ketchup, soupsBRAND LINES

Consists of all the products, original as well as LINE & CATEGORYextensions.

Eg.- Ponds dreamflower talcPonds dreamflower talc magic

Ponds facewashPonds cold-cream

Ponds moisturizing lotionPonds moisturizing body lotion

Ponds moisturizing cleansing BarBrand Mix- is a set of all brand lines that a particular seller makes

available to the buyers.


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1.Flankers- or fighters

- These brands are positioned wrt to competitors brand, so that moreprofitable brands retains their position.

- Fighter brands neither have to take away the sales of high-pricebrands, nor should reflect poorly in regards of other brands.

2. Cash Cows- milkingcows

- Some brands are kept as such inspite of dwindling sales coz theymanage to hold enough customers inspite of new brands.

- Thus companies can anytime milk these cash cows by capitalizing on

the reservoirs of existing brands.Eg.- Newer Mach III, Gillete still markets older versions of razors

3. Low-End Entry level- Traffic Builders- They build the customer traffic to brand franchise.

Eg.- BMW introduced certain models into its 3-series automobiles, withthe means of bringing up new customers into brand franchise, to later

upgrade it into high-priced models4. High- End Prestige-

This brand adds prestige and credibility to entire brand portfolio.

Eg.- Many T.V brands are now offering high-priced plasma T.V

- Promoting such products help in pushing up the entire product line ofthe company.

brand eqiuty-deepti ms 03- 07 4rm college

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