PreludeI am Atif A. Farooqui

Education MBA Thames Valley University London (2005)MBA Bahria University Karachi (2001)

Specialization Marketing

Experience Asst. Brand Manager - BIC Razor (The Marketing Pvt. Ltd)Trade Category Manager Modern Trade Unilever Pakistan Ltd

Course Instructor Strategic Marketing & Consumer Behavior

Brand Management & Service Marketing Brand Management Category Management & Trade Marketing

Work-Shop Leadership, Negotiation, Category Management & Motivation

Guest Speaker Hamdard University, Karachi University & Bahria University

DOB 20th Feb19

B R A N D

Burning or Brand

Lets begin with the beginning

How did Brand come in to being ?

Modern Branding

Proper Trademark came in to being after fall of Rome

Stamping Livestock & Typical mark on potteries in Rome

Brand Evolution

Growing Brand Age

Advance Branding

Brand Strategy

PositionDifferentiationActivationPersuasionRe-VampRe Launch

COMMUNICATION

ATL (Above the line activity)BTL (Below the line activity)

Mass Media

What is a BRAND ?

A Brand is a name, term, sign, symbol, design or combination of them, intend to identify the goods and service of one seller or group of sellers an to differentiate them from others

AMA. Ref Text Book

Can be identified by:

• Name• Colour• Logo• Music• Slogan

• Abbreviation• Texture• Mold• Sound• Ambassador

A brand is a singular idea or concept that you own inside the

mind of a prospect The brand is nothing more than an

ongoing relationship in which a customer exchanges financial value with the marketing organization [your business] for the use of the benefits

the brand provides

Brand Name Strategies

• Some Companies use their name for all of their product “ Samsung” & “GE”

• Some Companies named their product as Unilever : Lux, Sunsilk, Wall’s & Surf Procter & Gamble: Pampers, Tide & Pantene

• Some Companies go for Brand name with inherent product meaning as “British Airways” & “Just Juice”

And so on

Brand Vs Product

Product is a Brand or Brand is a Product..!!

Discussion………………….

If not, then what is a product

What is a Product?What is a Product?Anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need.

– Includes: Goods, services, events, persons, places, organizations, ideas, or some combination thereof.

Ref:What is services MarketingSearch engine googles

Fundamental need

Core Product

Examples of Product Concept

What else it does…

Some create competitive advantages with product performance.Eg:

Wall’s: through innovation Gillette: Novelty & Innovation

Nokia: User friendliness Nike: Comfort & Durability

Some create competitive advantages with non-product-related meansEg:

Coca-Cola: through sharp images Geo TV: Word of mouth

Creates loyal consumer franchise by developing association through consumer engagement

Develop intangible asset for the firm what is far ahead than tangible ones

Brand Creates value what may translate in to financial term / profit for both consumer and firm

$Does a brand have a dollar value?

Trust comes from meeting and beating customers expectations.

T = r + dTRUST RELIABILITY DELIGHT

COCA-COLA CASE STUDY ALL TIME FAVORITE

Significance of Brands

Consumer Context

• Identification• Responsibility to

product maker• Risk Reducer• Search cost reduce• Promise, bond with

maker of product• Signal of quality

Manufacturers Context

• Identification to simplify handling

• Legally protected unique features

• Quality level to satisfied customer

• Competitive advantages

• Financial Returns

Reduces Risk In Product Decision

Functional Risk: Product does not perform up to the expectation

Physical Risk: The product poses a threat to the physical well-being or health of the user or others

Financial Risk: Product not the worth price paid

Social Risk: The product results in embarrassment from others

Psychological Risk: The product affects the mental well-being of the user

Time Risk: The failure of the product results in an opportunity cost of finding another satisfactory product

May we Brand Everything

Firm wishes to have a brand

Design activity to get Space in consumer mind

ConsumerCompare the brandWith other in the Same categoryAnd develop differences

DifferencePlays roleIn product

buying

All happensThrough firmMarketing program & attributes being Offered to consumer

Done

Universality of Branding

Ideas

Places

Organization

People

OnlineBusiness

RetailStores

Services

PhysicalGoods

Branding

End of Session No.1

Why brands become “Best Known Brand””

Where is singer

How often you buy Dentonic

May you all recall Rajput Tasty BreadHow many of you shave with Touch MeDo we still wear on Jennifer Cosmetic

How many of you bought WranglerDo we still bath with Yardley

QUIZ:

Which of these brands are charismatic?

JETBLUE

EVERYDAY

CITIBANK

GENERAL ELECTRONIC

APPLE

FORD

NISSAN

HITACHI

ACCENTURE

KMART

BURGER KING

LEVI’S

HOMEDEPOT

IKEA

GOOGLE

DISNEY

REEBOK

NEWSWEEK

VIRGIN

Branding Challenges & Opportunities

What is more difficult making a Brand or managing a Brand

Discussion

Branding Challenges & Opportunities

Savvy / Consumer Knowledge• Consumer is mart enough to understand the difference• You cannot pursue consumer through traditional way• All marketers are aware what consumer wants

Brand ProliferationWhen Company introduce new brands in the same productlines and hence try to cover each and every market segment for that product line

Eg: Hero Honda & Hero Honda Splendor

Branding Challenges & Opportunities

Media Fragmentation• Advertising is no more traditional.• Marketer has to find consumer in bids and pieces so does he

communicate and advertiseMarketers are no more excited and delighted to have current TV network…..Why…….because

Cost………………….Clutter……………….Fragmentation………Technology…………

• Company has shrunk their advertising budget• Companies are focusing on celebrities, sponsorship, sport & other

events

Branding Challenges & Opportunities

Increased Competition• Consumer offers , Trade Incentive and other promotion are

encouraged to meet the competition depending upon the market situation and market concentration

• Markets are matured due to globalization, deregulation and price war. Marketers may grow their product by snatching competitor share.

• Mature Brand needs blood injection interm of new packaging, offering. This may be termed as “Brand Rejuvenation”.

Brand Rejuvenation:

When marketer identifies that the decline stage for a brand has come and the concern Brand is going to die marketer injects life

The Brand Equity Concept

• Potential marketing concept started in 1980.• Good news about the Brand equity concept it elevates

the brand. Bad news about the concept It has not not any specific definition. This concept is defined in various ways.

• Most of the marketers and gurus believing :

Brand Equity consists of marketing effects uniquely attributable to a brand.

Brand Equity explains why different outcomes result from the marketing of a branded product or services than if it were not branded.

K. Keller

Brand EquityA positive differential effect that knowing the

brand name has on customer response to the product or service.

• Brand equity results in customers showing a preference for one product over another when they are basically identical.

Internet Engine Google

BRAND ASSOCIATION• Brand association are the other

informational nodes linked to the brand node in memory and contain the meaning of the brand for consumers.

Internet Engine Google

Strategic Role in Brand Building

Customer Value + Competitive Advantages = Brand Strength

Brand Equity

Building Strong Brand

Building Strong Brand

Strategic Role Responsibility of Brand Mgt Brand Initiative

Strategic Brand Management Process

“A process of designing & implementing of marketing programs for building, measuring & managing Brand Equity”

Identify & establishBrand Positioning Value

•Mental Map•Competitive Frame•Point of Parity & point of Difference•Core Brand Association•Brand Mantra

Plan & Implement Brand Marketing Program

•Mixing & matching of Brand element•Integrating brand marketing activities•Leveraging secondary association

Measure & InterpretBrand Performance

•Brand value chain•Brand audit•Brand tracking•Brand equity management system

Grow & SustainBrand Equity

•Brand Product Matrix•Brand Portfolios•Brand Expansion strategies•Brand reinforcement & revitalization

Strategic Brand Management Process

Strategic Brand Management Process

1. Identifying & Establishing Brand PositioningMental Map: Brand association with consumer through visual

Competitive Frame of Reference: Brand superiority in consumers’ mind vs Competitor.

Point of Parity: Overcoming disadvantages to bring brand at competitors advantages

Point of Difference: An advantage Brand has over competitor in the market

Brand Mantra: Core Brand Promise

Strategic Brand Management Process

2. Planning & Implementing Brand Marketing ProgramsBrand Elements: Brand elements are Brand name, logo, slogan all develop

great impact on consumer. What consumer thinks about the brand by seeing and reading element.

Integrating Brand Marketing Activities: Marketing activities in the past & ongoing by the firm for particylar brand have great impact

on brand building.

Leveraging Secondary Association: Brand is also linked with other association like Region, country, channel , spoke person, co-branding. These essential also participate vigorously to build

the brand equity

Strategic Brand Management Process

3.Measuring & Interpreting Brand PerformanceBrand Value Chain: It has great significance as it has always been the

value in low price. So trace the value creation process for brand to better understand the financial impact.

Brand Audit: A brand audit is comprehensive examination of brand health, equity, and suggest way forward.

Brand Tracking & Equity Management System: Keeping the finger on the pulse of Brand’s changing trend. This is normally done through

Brand Management system which usually internal

Strategic Brand Management Process

4.Growing & Sustaining Brand Equity:Brand Matrix: Its simply representation through graph to know the trend.

Brand Portfolio: How many brand a firm carrying in Its basket. How all Brand behaving who is cannibalizing what.

Brand Hierarchy: Displays the number & nature of common & distinctive brand components across the firm’s product.

Brand Expansion Strategy:

Brand Reinforcement & Revitalization:

Customer Based Brand EquityChapter 2

Customer Based Brand EquityCBBE

Customer based brand equity is the differential effect that brand knowledge has on consumer response to the marketing of that brand

“Keller” SBM

Customer Based Brand EquityCBBE

Detailing• CBBE model explain what brand equity is and how

should it be built in a better way.• It answer to two basic questions:

1. What do different brands mean to consumer ?

2. How does the brand knowledge of consumers effect their response to marketing activity ?

• Marketers facing challenges to build strong brand what consumer is looking for and he feels good for that.

Customer Based Brand EquityCBBE

CBBE

Positive CBBE Negative CBBE

•Consumer is less sensitive to price•Customer / consumer is accepting Brand extension•Seek to see the Brand at more distribution channel•Customer is not sensitive to advertising

If consumer reacts less favorablyTo marketing activity

Key Ingredients of Definition

Customer based brand equity is the differential effect that brand knowledge has on consumer response to the marketing of that brand

DifferentialEffect

BrandKnowledge Consumer

response

If no difference occur then product is generic

These difference may result in consumer knowledge of Brand

Consumer response what make up brand equity through consumer perception

Note: Consumer reports different opinion about branded & unbranded version of identical product. Because of the Marketing activity. This what they have got the perception of the product. This happens with every type of product.

QUICK TEST

Discussion

Colgate

Sheraton HotelStandard Chartered Bank

NIKE

Coca-Cola

SONY

EFU Life Insurance

Mobilink Indigo

BMW

Bahria University

Others

Associating network memory model

• It views memory as a consisting of a network of nodes and connecting links, in which nodes represent stored information or concepts and links represents the strength of association between this information or concepts. Any type of information can be stored in the memory network, including information that is verbal, visual, abstract or contextual in nature.

• Consistent with the associative network memory model, brand knowledge is conceptualized here as consisting of a brand node in memory with a variety of associations linked to it. Brand knowledge is characterized in terms of two components- brand awareness and brand image.

Associative Network Model

Nodes Connecting Links

Stored Info / ConceptStrength of association b/w Info & Concept

Brand Knowledge

Represents Stored Info & concepts

Strength of association b/w info & concept

Brand Awareness

Brand Image: perception about a brand, as reflectedBy the brand association held in consumer memory

Customer ability to identify the brand Under different circumstances

NODES

Links

Associative Network Memory Model

BrandKnowledge

BrandKnowledge

Brandrecognition

Brandrecognition

BrandrecallBrandrecall

BrandimageBrandimage

Brand Awareness

Brand Awareness

(source: Keller.K, Strategic Brand Management)

Type ofBrand association

Type ofBrand association

Appropriateness ofBrand association

Appropriateness ofBrand association

Strength ofBrand association

Strength ofBrand association

Uniqueness ofBrand association

Uniqueness ofBrand association

AttitudeAttitude

BenefitBenefit

AttributionAttribution

Brand Awareness

Brand awareness refers to customer’s ability to recall and recognize the brand, as reflected by their ability to identify the brand under different conditions

Advantage of Brand AwarenessLearning advantage:-• The first way that brand awareness affects

consumer decision making is by influencing the formation and strength of the brand association that make up the brand image. The first step in building brand equity is to register the brand in the minds of consumers and the choice of brand elements do this task.

Eg Brand has Brand Ambassador to Influence consumers

• Consideration Advantages- It is important that consumer think of and consider the brand whenever they are making a purchase for which the brand could potentially be acceptable or whenever they are consuming a product whose needs the brand could potentially satisfy.

Eg Burger King or KFC

• Choice advantages- Brand awareness can affect choices among brands in the consideration set even if there are essentially no other association to those brands. It has been shown that in low-involvement decision settings a minimum level of brand awareness may be sufficient for product choice even in the absence of a well formed attitude.

Eg All type of Impulse Decision

Brand Image• Brand Image can be defined as

perception about a brand as reflected by the brand association held in consumer memory. – In other words Brand associations are the

other informational nodes linked to the brand node in memory and contain the meaning of the brand for consumers.

Strength of Brand Association

• Making sure that association are linked sufficiently strongly to the brand will depend on how the marketing programme and other factors affect consumer brand experiences. Two factors facilitating the strength of association to any piece of information are the personal relevance of

the information and the consistency with which this information is presented over time

Eg . Not the Brand but Film Heroes

Strength of Brand Association

Brand Attributes:

Descriptive features that characterized a product or service

Eg. By class

Brand Benefit:

Personal value & meaning that consumer attach to the product or services

Favorability of Brand Association

• Favorable association for a brand are those association that are desirable to consumers and are successfully delivered by the product and conveyed by the supporting marketing programme for the brand. Choosing which favorable and unique association to link to the brand requires careful analysis of the consumer and competition to determine the optimal positioning for the brand.

Desirability & Deliverability

Uniqueness of brand association

• Brand association may or may not be shared with other competing brands. The essence of brand positioning is that the brand has a sustainable competitive advantage or “USP” that gives consumer a compelling reason why they should buy that particular brand

Uniqueness of brand association

• Brand association may or may not be shared with other competing brands. The essence of brand positioning is that the brand has a sustainable competitive advantage or “USP” that gives consumer a compelling reason why they should buy that particular brand

Four steps of brand building• Ensure identification of the brand customers

and an association of the brand in customer’ minds with a specific product class or customer need.

• Firmly establish the totality of brand meaning in the minds of customers by strategically linking a host of tangible and intangible brand associations with certain properties

• Elicit the proper customer response to this brand identification and brand meaning

• Convert brand response to create an intense, active loyalty relationship between customers and the brand.– Brand identity, brand meaning, brand

responses and brand relationships

4. Relationships

What about you & me

3. Response

What about you

2. Meaning What are you ?

1 Identity

Who are you?

Customer Based Brand Equity Pyramid

BRAND RESONANCE

BRAND JUDEGEMENTS

Consumer personal opinion

BRAND FEELINGS

BRAND PERFORMANCESatisfying functional need

BRAND IMAGERYExtrinsic property

Psychological need

BRAND SALIENCE the extent to which a brand visually stands out from its competitors

Consumer Emotional Response to the Brand

The extent whereby consumer think they are in sync

Brand PositioningChapter # 3

BRAND POSITIONING & VALUE

• “Brand Positioning is the act of designing the company’s offer and image so that it occupies a distinct and valued place in the target customer’s minds.”

- Kotler

It is all about identifying the optimal location of a brand and it’s competitors in the minds of consumers to maximize potential benefit to the firm.

Brand Positioning Statement

The Cornerstone

• The brand positioning statement is the single most important item in all of marketing.

• It defines EVERYTHING about what your brand is to the consumer.

All Elements

• Packaging, Pricing, Distribution, Manufacturing, Sales, Marketing….

• All work in unison to the beat of the brand positioning statement.

Brand Positioning Statement

For women ages 25-55, Loreal Revitalift Anti-wrinkle and firming cream reduces facial wrinkles and firms your skin.

NO REASON WHY!

Why?• It helps to guide marketing strategy by

clarifying – What a brand is all about?– How it is unique?– How it is similar to competitive brands?– Why consumers should purchase and use the

brand?

Prerequisites of positioning • Who the target consumer is?

• Who the main competitors are?

• How the brand is similar to these competitors ?

• How the brand is different to these competitors?

Target market• Segmentation – It involves dividing the market into distinct group of

homogeneous consumers who have similar needs and consumer behavior and thus require similar marketing mixes..

• Criteria to guide segmentation and target market decisions.

– Identifiably-Can segment identification be easily determined?

– Size-Is there any adequate sales potential?

– Accessibility-Are specialized distribution outlets and communication media available to reach the segment?

– Responsiveness-How favorably will the segment respond to a tailored marketing program?

Business – Business segmentation

Nature of good Kind Where used Type of buy

Buying conditions Purchase locationWho buysType of buy

Demographic SIC code No. of employees No of production workers Annual sales volume No. of establishments

Behavioral-User statusUsage rate Usage occasionBrand loyalty Benefit sought

Demographic-IncomeAgeSexFamilyRace

Psychographic-Values, opinion and attitudes Activities and life style

Geographic International Regional

Customer segmentation

Segmentation Bases

Exercise by class

Nature of competition

• To target a certain type of consumer often, at least implicitly, defines the nature of competition because certain firms have also decided to target that segment in the past (or plan to do in the future) or because consumers in that segment already may look to certain brands in their purchase decisions.

Example by Class

Competition

Point of Parity Point of Differentiation

Proper Positioning Requiresa) Point of Parity Association (POP)b) Point of Differentiation Association (POD)

Attributes or benefits that consumer stronglyAssociates with a Brand. They believe that Could not find to the same extent with a Competitive brand

USP

Sustainable Competitive Advantages (SCA)Ability to achieve an advantage in deliveringSuperior value in the market for longer period of time

Not unique to the Brand but may shareWith other Brands

Category Point of ParityRepresent necessary but notNecessarily sufficient condition

Competitive Points of ParityAssociations designed to negateCompetitor’s Point of Differentiation Attribute Base:

Points of Difference

• Strong• Favorable• Unique brand associationsBased on• Attribute• Benefit• Develop a USP & a Sustainable Competitive

Advantage (SCA)

Points of Difference

• Attributes – Kraft cheese – more milk• Benefit - Ikea – reasonably priced furniture and

home furnishings for the mass market, TV’s with remote locators

• USP – Dettol vs.Savlon – does not burn Iodex vs. Moov – does not leave stains Crocin vs. Vicks Action 500 – fast relief Lays chips vs. Bingo chips

Positioning Guidelines - Steps

1. Define & communicate a competitive frame of reference

2. Choose POP and/or POD

3. Establish these POP/POD

4. Update Positioning over time

Step 1

Establish a competitive Frame of reference

• Communicate brand category membership• This helps provide consumers with a frame of reference

& avoid confusion in consumers mind• Important when introducing new products – ITC- Wiils-

Fiama, Bingo etc.• Well established brands do not need this – Coke-

beverages, Kellogs, McKinsey etc.

Competitive Frame of reference

Company can straddle 2 or more frames of reference –

• BMW – luxury & performance

• Kellogs – taste & health

• Maggi – fast to cook, healthy to eat

Step 2

Choose POP/POD

1. Desirability Criteria• Relevance• Distinct• Believable

2. Deliverability Criteria• Feasible• Communicable• Sustainable

Step 3

Establish POD & POP

• Taste vs. low calories

• Low price vs. quality

• Powerful vs. safe

• Family & Fun

• Nutritious vs. taste

Establish POD & POP

1. Separate the attributes – Head & Shoulders – 2 attributes – dandruff removal & sleek, shine and healthy hair

2. Leverage equity of another entity – brand ambassadors – Sachin Tendulkar & Boost, Reid & Taylor

3. Redefine relationships – Apple’s Mackintosh – user friendly & powerful

Step 4

Update Positioning over time1. Laddering – move from low level needs to

higher level needs - Involves a progression from attributes to benefits to value creation – (Maslow’s Heirarchy)

• Cream/lotions – moisturizes skin- healthy & glowing skin- beauty & confidence

2. Reacting – • Do nothing• Defensive• Offensive

Abstract valuesMotivations

• Laddering – Product functions >>> core values

Updating brand positioning

Benefits

Attributes

Brand Mantras

• Short phrase that captures the spirit of positioning• Provides guidance to all the activities of the brand• Emotional modifier>> descriptive modifier>> Brand function• McD – “Food, folks and Fun• Nike – “Authentic Athletic Performance”• Disney – “Fun Family Entertainment”• Zee Cinema – “Movies Masti Magic”• Its should

– Communicate the category and boundaries– Simplify.. To make brand memorable– Inspire – Should stand out with a higher meaning

Brand Mantras• A brand mantra is an articulation of

the “heart and soul” of the brand. – Brand mantras are short three to five

word phrases that capture the irrefutable essence or spirit of the brand positioning and brand values.

• Nike– Authentic Athletic Performance /Just do it

• Disney– Fun Family Entertainment

Brand Mantras

Designing a brand mantra: Emotional Modifier (Disney ……. Fun) Descriptive Modifier (Disney ……. Family) Brand Function (Disney……. Entertainment)

Brand Mantras

Communicate brand mantra: Communicate (setting boundaries …… eg) Simplify (crisp, lively, retainable…… eg) Inspire (patriotic, rebellious …… eg)

Brand Mantras• Expression of “Heart and soul” of brand• Short 3-5 word phrases that capture the essence & spirit of brand

positioning & values• Creates a mental filter to screen out inappropriate marketing

activities• Communicate the category and boundaries• Simplify.. To make brand memorable• Inspire – Should stand out with a higher meaning

3 Aspects – Emotional – Descriptive - Function• McDonalds – Food -Folks - Fun• Nike -Quality -Athletic - Performance• Disney -Fun -Family - Entertainment

Designing Marketing Programs To Build Brand Equity

Marketing

R&D AssemblyFinanceMarketing

Product Technology

Manufacturer

Customer

Distributor

Retailer

Consumer

Functionally Specialized Marketing

Marketing

R&D AssemblyFinanceMarketi

ng

Product Technology

Manufacturer

Customer

Distributor

Retailer

Consumer

Functionally Specialized Marketing

Customer Marketing

Consumer Marketing

Designing Marketing Programs to Build Brand Equity

•New Perspective On Marketing

•Product Strategy

•Pricing Strategy

•Channel Strategy

New Perspective On Marketing

• Personalizing Marketing– Experimental Marketing– One – to – one marketing– Permission marketing

• Reconciling the new marketing approaches

Product Strategy

• Perceived Quality and Value– Product quality dimensions

• Performance, features, conformance quality, reliability, durability, serviceability, style and design

– Brand Intangibles– Total quality management and return on quality– Value chain

• Relationship marketing– Mass customization– After marketing– Loyalties programs

TQM tenets

Pricing Strategy

• Consumer price perception– Price bands– Value – based pricing strategies

• Setting prices to build brand equity– Value pricing

• Product design and delivery• Product costs• Product prices

– Everyday low pricing (EDLP)

Price tiers in the ice cream market

Channel Strategy

• Channel design– Indirect channels

• Push and Pull strategies• Channel support

– Retail segmentation– Co-operative advertising

– Direct channels• Company owned stores• Other means

– Web strategies

Services provided by channel members