brand fundamentals(1)

8/3/2019 Brand Fundamentals(1)

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FUNDAMENTALS

OF BRAND

Presented by :

RAHIM JABBAR

JAKARTAAugust, 2005


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A Review of the Marketing ConceptsBasic Concepts of the Brand:

What is a Brand?Brief History of BrandsA Brand versus a Commodity

Benefits of Brands

The Components of A BrandProduct/Service as the BasisName as the Identifier and RelaterPackaging as the Presenter

Messages as the NarratorPrice as the Proxy of Value

A Brand will surely have a certain position

POINTS OF DISCUSSION

Session -1 & 2 (09:15 to 10:30): 75 minutes


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Positioning for a Brand:The Concept of PositioningFactors to be ConsideredThe Anchor of Brand CreationThe Promise, Attributes, Benefits and ValuesConsumer and Competitor Analysis to Explore Values

Brand Development for Target SegmentBrand Positioning Statement

Managing the BrandManaging Brand EquityReaching the End Consumers

Communications & AdvertisingComponents of A Winning OfferManaging the Process of Consumer-Brand LinkageOperational Aspects of Brand Equity

Key Points

POINTS OF DISCUSSION (2)

Session -3 & 4 (10:50 to 12:20): 90 minutes


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Participants & Learning Objectives

As a result of this overview, participants are

expected to be able to:

Explain: What a definition of a brand is What the components of a brand are The concept of positioning for a brand

Apply insights from knowledge on brand todevelop a competitive positioning for a brand


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A REVIEW OF

THE MARKETING CONCEPTS


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WHAT IS THE BUSINESS ?

TheOwners of

Capital/

Resources

The

Firms

INPUTS

Men

MoneyMaterials

Machine

Moments

(Time)

INVEST

THROUGHPUTS TARGETMARKET

The BusinessProcesses

THERETURNS

OUTPUTS

ProductsGoods

Services

The

Transaction/

Exchanges

RETURN

On

INVEST-

MENT

Copyright Rahim Jabbar /2002


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WHAT IS THE ESSENCE/NATURE OFTHE TRANSACTION PROCESS?

THEFIRM

CONSUMERS/

CUSTOMERSPRODUCTS/SERVICES

THAT PROVIDES VALUES TO THE

THE

OFFERING

S

SATISFACTION

THEMONEY

TRANSACTION

INCOME/

EARNING

THE EXCHANGE

PROCESS

Copyright Rahim Jabbar/1999

Marketing is taskedto manage the economictransactions with thecustomers/consumers


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MAIN POINTS OF THE MARKETING CONCEPTS (1)

1. Marketing is a major element of the core business processesof creating value added through inducing and stimulatingtransactions/exchanges

2. Business transaction can only be realized through offering

product/service (=the offer) as a means of exchangingvalues between the consumers/customers/clients and thefirms/companies.

3. Consumers/customers/clients will consider any offer (be itproduct or service) as bringing values to them if the offerhelps them achieve their goals , satisfy their wants and fulfilltheir needs


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4. Values, therefore can be seen as special meanings attached to aparticular consumption occasion of using or consuming aproduct or the event of receiving a particular service.(This is a pragmatic/utilitarian use of the word value)

5. At this point, marketers have two options: go with the product as a commoditywrap the values offered by the product through branding

6. Brandingis a strategic option for marketing a product orservice. Branding is a means of wrapping the valuessurrounding the product or service.


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7. The task of marketing function is to find and create consumers/customers/clients by transforming individual persons or groupsof people from being lay people in the streets into obtainingsome added values at consuming the offers/using the product or

becoming recipients of the services (

to become consumers/customers/clients).

8. After this transformation, the task is to manage the relationship(Customer/Consumer Relationship Management).

9. Managerially, the marketing process consists of development,creation, and activation of the marketing mix for the offer(product or service) destined for a specific target in mind.


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10. These days rarely do we find a single product for a singlemarket (a single product-market category). The overwhelmingmajority of categories comprise of multi-products targeted at a

variety of different groups of consumers/customers/clients.(Each group is conveniently called a segment of the market).

11. Due to the above reasons, the development of any offer (be itproduct or service) should go through the process of S.T.P.(Segmentation, Targeting and Positioning)



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12. Segmentation is the way you partition the market based oncertain approach. Segmenting the market would facilitate inchoosing the specific part of the market you want to target.

13. Targeting is the process matching your product/offer tospecific part of the market.

14. Positioning is the way you differentiate your product/offer

from same product category targeted to the same segment.



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BASIC CONCEPTSOF THE BRAND


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BRIEF HISTORY OF MARKS/TRADE MARKS / BRAND (1)

As far back as 4,000 years ago, there are ampleevidences that craftsmen from China, India andPersia used either their signature or symbols toidentify their products.

Roman pottery-makers used more than 100 differentmarks to distinguish their work, the famous beingthe Fortis (which means strong) mark.

Those craftsmen are believed to have used marks for:An advertisementA guarantee of quality

Source: WIPO Publication; Intellectual Property, A Power Tool for Economic Growth, (2000)


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BRIEF HISTORY OF MARKS/TRADE MARK/BRANDS (2)

In the Middle Ages, the use of marks becameassociated with skilled trades. Marks were used toshow that a product was made by a member of aguild known to have experience in the trade. (InFrench marque deposee = the mark was registered

with a trade guild).

In modern times, trademarks have become identifiersof products business assets.

As branding has become a pivotal marketing concept,today, trademark has become almost synonymouswith brand.



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WHAT IS A BRAND?

A name, term, sign, symbol or design or a

combination of these, that is intended to identifythe goods and services of one business or group ofbusinesses and to differentiate them from those ofcompetitors

Brand : a mixture of tangible and intangibleattributes symbolized in a trademark, which, ifproperly managed, creates influence andgenerates value (Interbrand, a leading brand consultancy)

A brand is a relationship that secures futureearnings by securing customer loyalty

(Interbrand, a leading brand consultancy)


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A BRAND VERSUS A COMMODITY

A brand starts with a name used to identify and differentiate anobject c. q. product/ commodity or service and ends up with

expected inflows of income, generated by values imparted.

Commodity Brand

Undifferentiated products Based on point of difference

High levels of substitutability almost zero switching costs

Can build up consumer loyalty higher switching costs

Competing on price basis Is able to command a premiumover average/normal price

Generally lower margin May gain higher profitability

Profits come from volume Profits are determined byeffective branding and efficient

marketing activities


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BENEFITS OF BRANDS (1)

Economic benefits for the consumers

Brands facilitate consumer decision making and choiceProvides informationReduces search costsReduces risks (psychological and financial)Simplifies decision making

Brands transform consumption experienceProvide predictable quality

Provides comfort of reassuranceProvides a badge with social impact

Sources : Excerpted from various

sources and business experiences


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BENEFITS OF BRANDS (2)

For the enterprises: Strategic business benefits:

An established brand benefits the business, because it canIncrease sales volumeCement consumer loyaltyAssist in response to competitors pressureIncrease revenues and profitability

Expand and maintain market shareHelp introduce new productsGain royalties through licensing programProvide foundation for franchisesSupport strategic partnership and marketing allianceJustify corporate valuation in financial transactions

Raise awareness of charitable causesSignal compliance with safety requirementsShow fulfillment of technical specificationsShow inter-operability of technical system



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OBJECT

NAME

MEANINGS &

ASSOCIATIONS

VALUE - ADDED

GENERATED BY BRAND

The value of

re - assurance

TRANSFORMATION EXPERIENCE

Subject experience of using a brand :promotive/de-motive effects -

of brand on physical product characteristics

Differentiation/ Brand Personality

A relevant emotional metaphor linked with social dimensions Outer Directed

Inner Directed

Badge of Origin

Authenticity

Promise of Performance

Replicability

ADDED VALUES GENERATED BY BRAND

Sources : Excerpted

from various sourcesand business experiences


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COMPONENTS OFA BRAND

THE BRANDS :


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THE BRANDS :COMPONENTS OF A BRAND

THE

BASIS

The Product/

Service

THE

IDENTIFIER/RELATOR

Brand Name/

Logo

THE

NARRATOR

The Message/

Communication/Advert.

THEPRESENTER

The

Packaging

Should be

matching to each

other

THE

PROXY OF

VALUE

The

Price

Should be

matching



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THE BRANDS:PRODUCT/SERVICE AS THE BASIS

HABITS AND

USAGE DATA/INFO

USERS THE PRODUCTBenefits Attributes

Choice

Criteri

a

Overall

Performance

Measure

Dimensions of Product Performance

Specific

Positives/Negatives

Physical

attributes

Effect

attributes

Process

attributes Benefitattributes

Uses/

Usages

Copyright

Rahim Jabbar/1999

VALUES

Page 7


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THE BRANDS :NAME AS THE IDENTIFIER AND RELATOR

Meanings

Associations

Sound/

rhyming

Shape

of

Fonts Symbols

Socio-

cultural

context

The

BRAND

NAME

Commonality

of association -> CORE

AB

C

Page 7

Impacting

Affective

&

Cognitive

aspects of

human Impacting

consumerperceptionCopyright

Rahim Jabbar/1999


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THE BRANDS :PACKAGING AS THE PRESENTER

Colour

Associations

Shape

Logo/

Icon Symbols

Socio-

cultural

context

The

PACKAGINGMaterials

Attributes

Impacting

Human

Mood

Impacting

cognitive &

affective

aspects of

human

beings

Impacting

consumer

perceptio

n


THE BRANDS :


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THE BRANDS :MESSAGES, COMMUNICATION & ADVERTISING

AS THE NARRATOR

What to say and How to say it to Whom with What Expected Effects

WHO WHATWHAT

EFFECTSSAYSIN

WHAT

CHANNELTO WHOM WITH

MARKETERS/

COMPANY

PRODUCING

THE PRODUCT/

PROVIDING

THE SERVICE

MESSAGE

S

ABOUT

THE

BRAND

ABOVE

THE

LINE

BELOW

THE

LINE

THE

TARGET

MARKET

OTHER-

WISE

PREFERENCE

Source: Adapted from Harold Laswell (1948)


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THE BRANDS :PRICE = VALUE PROXYPRICING OPTIONS BASED ON VALUE PERCEPTION

Source: The Strategy Clock: Bowmans Strategy Options

PerceivedAddedValue

P r i c e

High

High

Low

Low

6

7

8

1Low priceLow added value

2Lowprice

3Hybrid

4Differentiation

5 FocusedDifferentiation


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A BRAND WILL SURELYHAVE A CERTAIN POSITION

Currently, market for each product category is inundated withoverwhelming number of similar offerings. Differentiation interms of product functionality is so minimal in such a way thatthe consumers are faced with a sea of indiscernible offerings. As

such, the poor consumers are faced with almost insurmountablechoices.

Within such a market context, a brand is meant to name aproduct for the purpose of identification and differentiation.Therefore, it is vitally critical for a brand to be well-positionedin the consumer minds . This mind position will be eventuallyreflected in the market position in terms of unique identityand competitive differentiation.


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THE POSITIONING

FOR A BRAND


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Positioning : The Concept

Positioning is what you do to the mind of the prospects.That is how you position your product/brand in the mind of the prospect.

Therefore, to be effective,

Positioning has to be done with the target (consumers/market) in mind

The marketer should understand :What explains their behaviour (what motivates them; what benefits

are sought).

The degree to which his/her product/brand satisfy the targets needs

(Brand Health Indicator/Brand Equity Monitor)

The degree to which the competitors products/brands satisfy

the targets needs (Customer Satisfaction Monitor, CompetitiveBrand Mapping, etc.)

Source: Adapted from Al Ries & Jack Trout, Positioning, the Battle for Your Mind (1989)


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Positioning is to find a position of your offer ( in the mind of theprospect) that is THE BEST for it and THE MOST APPROPRIATEFOR THE TARGET MARKET

Factors to be considered, therefore, should be :

the product/service itself (What makes it so unique? What canmake it distinctive ?). The followings can be explored :

a. Technical innovation (GSM, G-4 )b. Improved Performance (Corolla Altis)

c. Perceived Superiority (Intel Computer Microchip)d. New benefits (Sony Walkman, G-4 Phone)


Positioning :Factors to be Considered


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Positioning :Factors to be Considered (2)

Positioning is to find a position of your offer ( in the mind of theprospect) that is THE BEST for it and THE MOST APPROPRIATEFOR THE TARGET MARKET

Factors to be considered, therefore, should be :

the Company that makes it (What makes the Company so special?).Examples :Baygon --> Bayer guarantees Quality)

Consumer Preference : Citibank, the House of Money.The Competitive Environment. The followings can be explored :

a. Market segmentation (AMEX Card)

b. Re-classifying competitors (BMW vs. Mercedes)c. Price/Value (Promag vs. Mylanta)



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Brand Positioning:The Anchor of Brand Creation

Brand positioning is the anchor of brand creation

Creation of a brand is based onthe concept of what it will stand forthe clues to its existencethe promise (that can be supported and reinforced)

Authenticity should become the foundation of a brand(It is the justification that the brand can deliver its promise)


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Brand Positioning:The Promise, Attributes, Benefits and Values

The mix of attributes that carry benefits (which constitutevalues to the target consumers) should be able to create astrong impact at the first point of contact.

The brands promise and its supporting benefits deliveredthrough the mix of attributes should be captured in attention-catching messages. Tag-line is a short phrase to help

communicate and support the brands positioning.

POSITIONING


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POSITIONING :

The Process of Developing Competitive Positioning

SEGMENTATION TARGETING POSITIONING

DEFINE MARKETPOTENTIALDefine the marketDefine the potential

(est. no. consumers &their consumption/

usage and their totalspending)DEVELOP CRITERIAFOR SEGMENTATIONBehavior basedNeeds basedProduct relatedMAP AVAILABLESEGMENTS

Quantify the sizes(volume & value)

Products/Brandsused by segment

ANALYZE EACHSEGMENT BYATTRACTIVENESSize (Volume/Value)GrowthFIND GAPS

IN THE SEGMENTNeeds vs. currentproducts

Under-servedsegment

MATCH GAPSWITH YOURPRODUCTDifferentiation

opportunitiesDEVELOP MOSTAPPROPRIATESTRATEGY:Differentiate massmarket

Niche marketGrowth market

PERCEPTUALPOSITIONINGIdentify relevant setof competitiveproducts

Identify the set of

determinantattributes /benefits

Research targetcustomers evaluationon relevant attributes/benefits about allproducts

Map productpositions (locations)

DETERMINECUSTOMERSSPREFERENCEMix /combinationof attributes/benefits

SELECT THE MOSTCOMPETITIVEPOSITIONING

POSITIONING


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POSITIONING :

Analysis of Target Consumers and Competitors to Explore Competitive Values

Source: Adapted from Kenichi Ohmae , The Mind of the Strategist (1982)

CONSUMERS:Need structure

Values & benefitsDemand dynamics

(Envisaged)COMPANYS BRAND :Key differentiated mix of

values that are competitiveSalient attributes required

(Current)COMPETITORS BRANDS :Key differentiated value

dimensionsSalient attributes

COST COMPARISON

DIFFERENTIATECOMPETITIVELY!!!

Comparative Advantages(based on efficiency standard)

Competitive Advantages(based on effectiveness standard)

Specific target segmentsVALUES: :

SPECIAL MEANINGS

ATTACHED TO SPECIFIC

CONSUMPTION OCCASIONS/

EVENTS. (PRAGMATIC &

SUBJECTIVE APPLICATION

OF VALUES)

ConsumerInsights

P iti i


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Positioning:An Example of Brand Position Map

ClassPrideDistinctive look

PracticalFuel EconomyAffordable

SportyFunYoung

ConservativeSomewhatolder

MercedesB.M.W.

Toyota.

Honda.Mitsubishi


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Positioning

All about identifying the optimal place of abrand, considering its competitors, in theconsumers mind

Maximizing company potential benefit

The compass that guides marketing strategy


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Positioning

THE POSITIONING STATEMENT SHOULD DRAWON THE STRONGEST ASPECTS OF BENEFITSOFFERED BY THE BRAND

Clarifies what brand is all about

Uniqueness/Point of Difference

Why consumers should BUY & USE (Addressestheir needs better than competition)


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Positioning

WHO are you going to give this positioning to?

WHO are you going to market your product to?

WHAT do they want and need

What CONSUMER INSIGHT is your positioning

based on?


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Positioning

State the thought you wish to implant inyour targets mind:

TO (core target audience), (Brand Name),

IS THE (frame of reference)THAT (owned benefit)

BECAUSE (support or reason to

believe)


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Positioning

An Example:

TO oral health concerned adults,XYZ IS THE only brand oftherapeutic toothpaste THATkills germs that cause bad breath,

plaque and gingivitis.

THE POSITIONING:


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THE POSITIONING:POSITIONING, BRAND DEVELOPMENT

AND TARGET SEGMENT

THE

BASIS

The Product/

Service

THE

IDENTIFIER/

RELATOR

Brand Name/

Logo

THE

NARRATOR

The Message/

Communication/

Advert.

THE

PRESENTER

The

Packaging

THE

PROXY OF

VALUE

The

Price


Selected

POSITIONwithin

TARGET

SEGMENT

THE

SELECTED

POSITIONING

Correct forthe product

Direct the developmentof the offer

Correct for

the target

segment

BRANDCONCEPT

Brand Positioning Statement(1):


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Brand Positioning Statement(1):Basic Questions to Develop the Message Content

and Communication Strategy

1. Brand Vision :

What is the ultimate goal you have in mind for your brand?It is a dream supported by belief (that it can and will beachieved sometime in the future) and commitment (namelya pledge to achieve and realize).

Further questions revolve around: Who to serve? Where?How? What to expect? How to approach it in general terms.Vision will serve as an enabler to realize a quantum leap

(a dramatic improvement, without risking too much), whenit is further supported by persistence (i.e. refuse to surrender)and enthusiasm (i.e. strong interest consistently maintained)


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Brand Positioning Statement (2):Basic Questions to Develop the Message Content


2. Brand Mission

It is a statement of conception on where the company/brand to be throughout time. Questions to ask: What rolewill it play in the market? (How many roles are there?What are they ?)

What role will it play in the Companys portfolio?. (Howmany roles are there? What are they ?)

Brand Positioning Statement (3):


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g ( )Basic Questions to Develop the Message Content


3. Basic Positioning

How you want it to be seen comparatively among the offersclaiming the same/similar benefits? (targeted to the samesegment)

Acid tests are :* Is it clear ? (unmistakable v.s. the others?)* Is it correct ? (for the brand ? for the market? for the target

group?)

* Is it competitive ? (better than the others ? able tochallenge market leaders/major players in the category/segment/sub-segment ?)

Brand Positioning (4):


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g ( )Basic Questions to Develop the Message Content


4. Consumer end benefitsWhat will it do for me ? (Functionally ? Emotionally ?Socially ? etc.)

5. Reasons why

What make/will make the consumers believe that it will givethe end benefits stated ?

6. ProofsWhy should your brand delivers its promise ?

7. Support benefitsWhat other benefits I get? (The consumer questions)


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MANAGINGTHE BRAND


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MANAGING THE BRAND

PRODUCT/

SERVICE

The Basis/

Foundation

NAME/

LOGO

The Identifier

& Relator

CORE

MESSAGES

The Narrator

PACKAGING

The Presenter

PRICE

Proxy of

Value

TARGETMARKET

Copyright: Rahim Jabbar, 2004


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MANAGING THE BRAND

Copyright: Rahim Jabbar, 2004

BRAND MANAGEMENT:

Managing brand covers developing, rejuvenating,extending, marketing the brand (that includesdistributing and advertising to the target market).

Managing a brand also means managing the process ofconsumer-brand linkage form being unaware to becomeloyal users (maximizing switchers-in and minimizingout-switchers

The objective of brand management is to develop, create

and strengthen equity of the brand. (Brand equity is theability of a brand to gain market share, through firsthaving a a reasonable share of heart and share of mind).


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MANAGING THE BRAND

REACHING THE END-CUSTOMERS

MANUFACTURER/SUPPLIER

DIRECT INDIRECT

DIRECT

SALES

TELE-

MARKETING

FACE-TO

FACE

DIRECT

MARKETING

SPECIALIZED

RETAIL

STORE

WHOLLY

OWNED

FRAN-

CHISE RETAILERS RETAILERS RETAILERS

WHOLESALER

DISTRIBUTORS

WHOLESALER

THE

INTERNET

E N D C U S T O M E R S

Source: Capon & Gilbert :Marketing Management for the 21st Century

MANAGING THE BRAND:


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* Hard-Sell : How does brand communication persuade people to buy ?

MessagesTransmission/

Transportation

Persuasion &

play - backTransformed

BehaviourBuying

* Soft-Sell : How does communication add values through symbols that carry specific meanings ?

Messages Myths/

Rituals

Modified

shared

culture

Attitudinal

change

Behavioural

changeBuying

Symbols

Meanings

Values

MANAGING THE BRAND:

BRAND COMMUNICATIONSoft-Sell vs Hard-Sell

MANAGING THE BRAND:COMMUNICATION & ADVERTISING


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COMMUNICATION & ADVERTISING

The Essence of Marketing Communication Process

WHO WHATWHAT

EFFECTSSAYSIN

WHAT

CHANNELTO WHOM WITH

MARKETERS

EXPOSES

THE

OFFER

PROMOTE

ADVERTISE

DISPLAY

ABOVE

THE

LINE

BELOW

THE

LINE

THE

TARGET

OTHER-

WISE

PREFERENCE


MANAGING THE BRANDS:


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1.To create awareness of the product/brand

2.To create desire for the product/brand (Stress customer benefits &their values)

3.To influence customer attitudes to the product (e.g.caring,etc)

4.To create brand loyalty

5.To persuade customers to buy

6.To persuade the customers to visit the outlets, compared to others

7.To remind customers to buy

8.To inform the market about the product/brand

9.To provide re-assurance about the product/brand

10.To be always ethical

Source: Adapted from Brauns Mission Statement as quoted by Bruce & Jevnaker, Management of DesignAlliances,

Sustaining Competitive Advantage, Wiley, 1998 . (The two statements within brackets are the writers addition)

The Objectives of Advertising, Promotion and Merchandising (APM)

MANAGING THE BRANDS:

M i th P f C B d Li k


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Managing the Process of Consumer-Brand Linkage

Non-Usersof productor service

Users ofcompetitive

brand

Aware ofyour brand

Advertising

Interested

Rejectingthe

Brand

Trial

purchasers

Sporadic

purchasers

Stop aftertrial

Stop

Regular

users

Stop

TOPBRAND

STOPAFTER A PERIOD

OF LOYALTY

Habit formation:development of

preference

Reinforcementof preference

Inclusionin the

evoked set

Source; Adapted after Giep & Franzen

Loyalty

SWITCHERS AWAY

SWITCHERS IN

MANAGING THE BRAND:COMPONENTS OF A WINNING OFFER


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Winning

OFFER(BRAND/

PRODUCT)

Compet

itive

PREFE-

RENC

E

Compet

itivePREV

A-

LENCE

Compet

itive

PRICE/VALU

E

RATIOPRICE

Product

PERFORM

-ANCE

COMMUN

ICATION

APPEAL

COMPONENTS OF A WINNING OFFER

Perceived

PERFOR

MANCE

Actual

PERFORMANCE

Psycho-

logical

needs

Socialneeds

Cultura

l

needs

VISI-

BILIT

Y

AUDIB

-ILITY

AVAIL-

ABILITY

TARGET

CONSUMERS

Physio-

logicalneeds

VISUAL/

AESTHETI

C

APPEAL

SHARE OF

VISUAL

MATERIALSSHARE OF

SHELF

SPACE

SHARE OF

VOICE

LEVEL OF

EXPOSURE

DISTRIBUTION

PUS

H

MEA-

SURE

OF

DEG-REE

OF

FIT

BET-

WEEN

CON-

SUM-

ERS

NEEDS

AND

THE

OFFER


MANAGING THE BRAND :Operational Aspects of Brand Equity(6%)


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Operational Aspects of Brand EquityAdvertising Quality

Advertising weight

Qualitative research results

Take out

Brand Support ExpenditureShare of voices (Spend)

Perceived Quality

Price

Actual Quality / CPT

Price differentials

Spontaneous Awareness

Aided Awareness

Advertising Awareness

Brand Awareness

Source of Awareness

Numeric Distribution

Weighted Distribution

Numeric Distribution

By channel

Sales per distribution points

Awareness Effects

Distribution Effects

Value

Advertising Effects

Consumer Pull

Operational Effects(Push)

Brand Equity

( )

(28%)

(72%)

(50%)

(50%)

(37%)

(63%)

(100%)

(94%)

(95%)

(5%)

(99%)

(1%)

(82%)

(18%)

Targets: Marketing

Consumer Profile

Volume &Share

Targets: FinancialsNTO and margins

Brand trial & re-purchaseSwitching in and out

Brand Performance

Volume growth

Share/share developmentLoyalty

Brand Image

Source: A study on a fast moving consumer product market in Malaysia (1985-1995)


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KEY POINTS

KEY POINTS


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KEY POINTS

THE ORIGIN OF BRANDS

Business is about creating value added through economictransactions.

Marketing is tasked to manage the economic transactionbetween a business with its consumers/customers/clients.

As far back as four millennia ago, craftsmen from Persia, Chinaand India in marketing their products used their signaturesor symbols as the marks to identify and differentiate theirproducts.

As marketing became a stronger now the strongest keydriver of business, trade-marks were gradually transformedto be synonymous with brands.

KEY POINTS (C ti d 1)


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KEY POINTS (Continued-1)

THE DEFINITION OF BRAND

Brand is defined as a name, symbol or design, or combination ofthose elements used to identify and differentiate a product orservice of a company and those of competitors. Brand is acompetitive weaponry.

THE BENEFITS OF BRANDS

Brands bring benefits to both the business and the consumers:Brands facilitate consumer decision making and choice. Brands

transform consumption experiences. For the business, brandscan cement consumer loyalty that will generate more sales andrevenues.



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THE COMPONENTS OF A BRAND

A product or service is the basis for a brand. The secondcomponent of a brand is its name and logo that become theidentifiers of the brand. The third component is its packagingthat functions as its external presenter. The fourth component isthe messages or stories created around the brand that play theroles of its narrator or purveyor. The fifth component is its pricewhich is the proxy of its value. All components should be inharmony to each other.

THE POSITION FOR A BRANDAs a brand is the identifier and differentiator for a product, a

brand should be aimed to occupy certain territory in theconsumers minds. The particular/specific territory occupiedby a brand in the consumers minds is called the position of thebrand.



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POSITIONING A BRAND

So, positioning a brand is what you do to the mind of theprospective consumers. Positioning is about finding the bestfor the product/service and the most appropriate for the targetmarket. (It is all in the consumers mind!)

The process of developing a competitive position for a brandstarts with the segmentation of the market, followed bytargeting ( selecting a particular segment) to whom a brand isto be positioned (positioning).

In order to explore competitive values to be wrapped in thebrand to be positioned, we should analyze the target consumers( consumer insights) and the competitors brands.(competitors mapping)

KEY POINTS (Continued 4)


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POSITIONING A BRAND (Continued)

Therefore, positioning a brand is about identifying the optimalplace within the competitive set in the consumers minds. Thepositioning statement should draw on the strongest benefitsoffered by the brand.

Positioning statement should clarify what the brand is all about.It should clearly state the brands uniqueness and point-of-difference (P.O.D.) . The statement should also explain why theconsumers should BUY and USE the brand:

Who are you going to give this positioning to?

Who are you going to market your product to?What do they want and need?What consumer insights is your positioning based on?

KEY POINTS (Continued 5)


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MANAGING THE BRAND

Managing a brand covers : developing, rejuvenating, extending,and marketing the brand (that includes distributing andadvertising it to the target market).

Managing a brand also means managing the process ofconsumer-brand linkage form being unaware to become loyalusers (maximizing switchers-in and minimizing out-switchers)

The objective of brand management is to develop, create andand strengthen the equity of the brand.

Brand equity is the ability of a brand to gain market share ,through first having a reasonable share of mind and share ofhearts.

References (1)


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f ( )

Capon, Noel and James M. Hulbert, Marketing Management

in the 21st Century, Prentice Hall, 2001Davidson, Hugh, Even More Offensive Marketing, Penguin

Books, 1997

Hiam, Alexander and Charles D. Schewe, The Portable MBA

inMarketing, John Wiley & Sons, Inc., 1992

Jabbar, Rahim, Approaches towards Segmentation,

Targeting & Positioning, 2002, (unpublished)

Business Week, 2001, The 100 Most Valuable Global Brands

WIPO, Intellectual Property, A Power Tool for Economic

Growth, 2002, internet edition, accessed 2nd August 2005 through:http://www.wipo/int/about_wipo/gen/wipo.dgo/wipo_pub_888/

html.

R f (2)
http://www.wipo/int/about_wipo/gen/wipo.dgo/wipo_pub_888/http://www.wipo/int/about_wipo/gen/wipo.dgo/wipo_pub_888/


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References (2)

Kennedy,Carol, Managing with the Gurus, Top level

Guidance on 20 management techniques, Century BusinessBook, 1996

Cowley, Don, Ed. Understanding Brands, Kogan Page 1991

Aaker, David A. Managing Brand Equity The Free Press,1991

Temporal, Paul, Branding in Asia, 2001

Knapp, Duane E, The Brand Mindset, The Mc-Graw HillCompanies Inc., 2000

Upshaw, Lynn B., Building Brand Identity, John Wiley &

Sons Inc., 1995.

Arnold, David, The Handbook of Brand Management,Century Business, 1992.

Woodruff, Robert & Gardial, Sarah F., Understanding

Customer Values & Satisfaction, Blackwell Business, 2000.

brand fundamentals(1)

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