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BRAND
MANAGEMENT
SESSION9 & 11PBM
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What is a Brand?
Term Brand is derived from the old
Norse (Norwegian) word brandr
means to burn.
Brands were used as a means by
which owners of livestock mark their
animals to identify and differentiate
them.
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What is a Brand?
Brand is a name, term, sign, symbol, or
design, or a combination of them,
intended to identify the goods andservices of one seller/ group of sellers
and to differentiate them from those of
competitorsAmerican Marketing Association (AMA)
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What is BRAND EQUITY? Brand's power derived from the goodwill and name
recognition that it has earned over time, which translates into
higher sales volume and higher profit margins against
competing brands.
A measure of the strength of consumers attachment to a
brandFeldwick (1996)
The purpose of brand equity metrics is to measure the
value of a brand.
When consumers trust a brand and find it relevant, they
may select the offerings associated with that brand over
those of competitors, even at a premium price.
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Customer based Brand Equity Model
(CBBE)
How brand equitycan be :
(built measured managed) effectively
Premise of CBBE Model:
Understanding the needs & wants of the consumer.
Devising the products/services & programs to satisfy
the same better than others
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Powerof the brand lies in what
resides in the minds
of customers i.e. they have
learned, felt, seen, heard and
experienced.
Premise of CBBE Model cont
CBBEoccurs when
the consumer has
high level of
awareness and
familiarity with the
brand and holds some
strong, favourable,
and unique brand
associations in the
consumers memory
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Customer based Brand Equity
Strong brand ensures
Right kind of experience with products/services
Effective accompanying marketing programs
desiredthoughts/feelings/images/
beliefs/perceptions/opinions
are favourably linked with the brand
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Customer-based Brand Equity
differential effect that brand
knowledge has on consumer response
to the marketing of that brand.
(definition of CBBE Model)
Positive customer-based brand equity:consumer react
favourably i.e. accepting new brand extension, less sensitive to
price increases and more willing to get the brand through anydistribution channel.
Negative customer-based brand equity:customer react less
favourably to the marketing of the brand.
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Examples of Negative CBBE
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Examples of Negative CBBE
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Examples of Negative CBBE
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Examples of Negative CBBE
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Examples of Negative CBBE
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Customer-based BrandEquity
BRAND EQUITY arises from
differential effect
Arises from
differences in the
value proposition
offered
Favourable
consumer response
brand knowledge
These differences
results in consumers
brand knowledge
i.e. what resides inthe mind of the
consumer due to the
marketing activity
consumer
response to
marketing
Differential
response by
consumers is
reflected in theirperceptions,
preferences and
behaviourtowards
the pdt./service
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Brand knowledgeCharacterized in terms of:
Brand awareness Brand image
Brand awareness- strength of the brand node/
trace in the memoryreflected byconsumersability to identify the brand under different conditions.
Brand imageperceptions about the brand
reflected bybrand associations in the consumers
memory.
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Dimensions of Brand Knowledge
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Brand Associations
Associations can be develop for a
brand in any formin the consumer mind.
Example: Apple computers as a brand had
some consumer associationssimilarly
other major brands etc.
i.e. consumer insights about the brand
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Brand Associations
User friendly
Innovative Educational
Apple logo Fun
Cool Desktop
publishing
Creative
Excellent graphics
APPLE
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Brand Associations
Quality
Service Ambience
Cleanliness Value
McDonalds
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Strong Brand Associations
Coca-Cola: refreshment, taste,
availability, affordability
and accessibility.
Mercedes-Benz: performance and
status.
Volvo: safety
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Levis Brand Attributes & benefit associations
Levis 501
Blue denim, shrink-to-fit,cotton fabric, button-fly,two-horse patch, & smallred pocket tag
Product relatedattributes
Western, American,blue collar, hard-working,traditional, strong,rugged andmasculine
UserImagery
Appropriate for
outdoor work &casual socialsituations
UsageImagery
Honest, classic,contemporary,approachable,independent anduniversal
BrandPersonality
High quality, long-lasting,
and durable
Functional BenefitsComfortable fitting and
relaxing to wear
Experiential Benefits
Feelings of self-confidence
and self-assurance
Symbolic Benefits
ATTRIBUTES
BENEFITS
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Building Strong Brands: Steps
Ensure identification of the brand with customers
& an association in the mind Firmly establish the totality of brand meaning in
the customers mind by linking both tangible &
intangible brand associations with certainproperties.
Explore consumer response to brand identification
& meaning.
Convert the brand response/experience into an
intense and strong relationship b/w customers and
the brand.
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Customer-based Brand Equity Pyramid
Resonance(Loyalty)
Judgments Feelings
(Credibility) (attributes)
Performance Imagery(Primary & Secondary (Personality &
characteristics) Experiences)
Salience(awareness depth & breadth - about the product Category &
specified needs) e.g. Tropicana (orange juice)
4. Brand Relationships
What about you & me?
3. Brand Response
What about you?
2. Brand Meaning
What are you?
1. Brand Identity
Who are you?
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Customer-based Brand Equity Pyramid cont
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Customer-based Brand Equity Pyramidcont
Resonance Pyramid: Tropicana v/s Minute
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Resonance Pyramid: Tropicana v/s MinuteMaid
http://2.bp.blogspot.com/-OlsWYavvVbY/UME5QNoApmI/AAAAAAAAAPo/yRWl6etIMUo/s1600/resonance+pyramid+tropi.pnghttp://3.bp.blogspot.com/-3t9-u1rd6ys/UME5L8YsOoI/AAAAAAAAAPg/lAubitbWOyg/s1600/resonance+pyra+minu.png -
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Moov
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Brand Positioning
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Brand Positioning
act of designing the companys offer and image so that
it occupies a distinct and valued place in the target
customers mind (Kotler)
Deciding on a positioning requires determining points-of-parity & points-of-
difference brand associations.
(1) Who are the target consumers ?
(2) Who are the main competi tors ?
(3) How the brand is similar to these competitors ?
(4) How the brand is different from these competitors ?
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Brand Positioning
act of designing the
companys offer and image
so that it occupies a distinct
and valued place in the targetcustomers minds. Philip Kotler
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Optimal Brand PositioningIdentifying the optimal location of a brand vs. its
competitorsin the mind of consumer/market
segmentto maximize potential benefitfor the
firm. Deciding a positioning requires:
Identifying the target segment(s)
Nature of competition
How the brand is similar to competitors?
How the brand is different from competitors?
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TARGET MARKET Ident i fy ing the target consumerbased
on sim i lar percept ions /preferencesin
the market.
Dividing the market into dist inct groups ofhomogeneous consumerswith similar
needs, likes/dislikes, opinionsrequiring
similar marketing mixcustomisedmarketing programsstandardization/cost
effectivenessbetter profits in future
Basis of Segmentation
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Basis of Segmentation Behavioural
User Status, Usage Rate,
Usage
Occasion, Brand Loyalty,
Benefits Seeked.
Demographic
Income level, Age, Gender,
Family size etc.
Psychographic
Values, Opinions, lifestyle and
Attitude.
Geographic
International, regional,
national and local.
Nature of Product
Kind of product
Where to be
used?
Type of buy
Buying Conditions
Purchase location
Who buys
Demographic
Sales volumeOrganization size
Production
capacity
CONSUMER
SEGMENTATIO
N
INDUSTRIAL(B2B)
SEGMENTATION
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Criteria for Segmentation Identif iabi l i ty
Can segment(s) identified are easily determined?
Size
Is there adequate sales potential in the segment?
Accessib i l i ty
Are distribution networks & communication
mediums available to reach the segment?
ResponsivenessHow favourable will be segment to the tailored
marketing program?
Guidelines for Brand Positioning
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Guidelines for Brand Positioning
Def in ing & communicat ingthe competitive
frame of reference:
Determining Category membership: Set of productswith which brand competes.
Determining Point-of-parity(POPs) and Point-of-Difference(PODs).
ChoosingPoint-of-Parity &Point-of-Difference:
Desirabilitycriteria
Deliverabilitycriteria
Establ ishingPOPs and PODs:Low price vs.high quality; Taste vs.low calories; Nutritious
vs.good taste; strong vs.refined; range vs.exclusive etc.
Updat ingthe Positioningover time.
P i t f P it (POP )
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Point-of-Parity (POPs) Category:
associations that consumers perceive
necessaryto be a offering within a product/
service categorygeneric product level. May
change over time due to techn. advancements,
legal formats and consumer trendsetc.
e.g. Niveabecome leader in Skin cream categoryby
creating strong POD on the benefit gentle, protective
and caring. They leveraged brand equity into other
categories like deodorants, shampoos and cosmetics.
P i t f P it (POP )
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Point-of-Parity (POPs) cont
Competitive:
associations designed to negatethe competitors
point-of-difference (POD).
To achieve POP on a particular attribute/ benefit
sufficient number of consumers must believe that
the brandis a su i tab le subst i tu te on that
d imens ion.
P i t f Diff (POD )
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Point-of-Difference (PODs)
Strongfavourableuniquebrand associations.
Concept of POD is similar to the Unique Selling
Proposition (USP)proposed by Rosser Reeves & TedBates in 1950s.
Reason to buy a product/ service that acompetitor could not achieve.
Communicating a distinctunique product
attribute/benefit. (ad message)
e.g. Anacins fast, fast, fast relief ad message got
effectively in consumers mind brand gained
considerable market share.