how to manage brands

8/3/2019 How to Manage Brands

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Chapter -1

1-What is Brand?

A brand is a name, term, sign, symbol or a combination of them intended to identify the goods

and services of one seller or group of sellers and to differentiate them from those of competition.For example, Coke, Nestle and Microsoft are well renowned brands. In technical speakingwhenever a marketer creates a name logo symbol he or she has created a brand.

2-Why do Brands matters?

Brands really matter for both consumer and manufacturer.

From consumer’s point of view

Identification of source of product Assignment of responsibility to product maker

Risk reducer Search cost reducer Promise, bond, or pact with maker of product Symbolic device Signal of quality

Brands identify the source or maker of a product and allow consumers to assignresponsibility to a particular manufacturer. From an economic perspective, brands allowconsumers to lower search costs for products both internally and externally.

Consumers offer their trust and loyalty with the implicit understanding that the brand willbehave in certain ways and provide them utility through consistent product performanceand appropriate pricing, promotion, and distribution programs and actions. Brands canserve as symbolic devices, allowing consumers to project their self-image.

Certain brads are associated with being used by certain types of people and thus reflectdifferent values or traits. Researched have classified products and their associatedattributes into three major categories: search goods, experience goods and credence

goods. There is difficulty in assessing and interpreting product attributes and benefits sowith experience and credence goods, brands maybe particularly important signals of quality. Brands can reduce the risk in product decisions. These risks involve functional,physical, financial, social psychological and time risk.

From manufacturer’s point of view:



Means of identification to simplify handling Means of legally protecting unique features Signal of quality level to satisfied customers Means of endowing products with unique associations Source of competitive advantage

Source of financial returns

Brands help manufacturers to organize inventory and accounting records. A brand also offersthe firm legal protection for unique features of the product. A brand can retain intellectualproperty rights, giving legal title to the brand owner. Brands can signal a certain level of qualityso that satisfied buyers can easily choose the product again. This brand loyalty providespredictability and security of demand for the firm and creates barriers of entry that make itdifficult for other firms to enter the market. The annual list of the world‟s most valuable

brands, published by Interbrand andBusiness Week, indicates that the market value of companies often consists largely of brand equity. Research by McKinsey & Company, a globalconsulting firm, in 2000 suggested that strong, well-leveraged brands produce higher returns to

shareholders than weaker, narrower brands. Taken together, this means that brands seriouslyimpact shareholder value, which ultimately makes branding a CEO responsibility Companiessometimes want to reduce the number of brands that they market. This process is known as"Brand rationalization." Some companies tend to create more brands and product variationswithin a brand than economies of scale would indicate. Sometimes, they will create a specificservice or product brand for each market that they target. In the case of product branding, thismay be to gain retail shelf space (and reduce the amount of shelf space allocated to competingbrands). A company may decide to rationalize their portfolio of brands from time to time togain production and marketing efficiency, or to rationalize a brand portfolio as part of corporaterestructuring.

3-What are the strongest Brands?

A list of top twenty strongest brands is as follows

2005BrandRank Brand Name Country of ownership 2005 Brand Value ($million)

1 Coca-Cola U.S 67,525 2 Microsoft U.S 59,941 3 IBM U.S 53,376 4GE U.S46,996 5 Intel U.S 35,588 6 Nokia Finland 26,452 7 DisneyU.S 26,441 8 Mc Donald U.S 26,014 9 Toyota Japan 24,837 10Marlboro U.S 21,189 11 Mercedes-Benz Germany 20,006 12 CitiU.S 19,967 13 Hewlett Packard U.S 18,866 14

American Express U.S 18,559 15 Gillette U.S 17,534 16 BMWGermany 17,126 17 Cisco U.S 16,592 18 Louis VuittonFrance 16,077 19 Honda Japan 15,788 20 Samsung S.Korea 14,956



Chapter 2

Customer Based Brand Equity

Customer based brand equity model is that the power of a brand lies in what customers have

learned, felt, seen, and heard about the brand as a result of their experience over time.Customer-based brand equity is defined as the differential effect that brand knowledge has onconsumer response to the marketing of that brand. There are three key ingredients of thisdefinition: (1) “differential effect,”(2) “brand knowledge,” (3) “consumer response tomarketing.”

Brand Equity as a Bridge

The power of a brand lies in the minds of consumers and what they have experienced andlearned about the brand over time. Consumer knowledge drives the differences that manifestthemselves in terms of brand equity. This realization has important managerial implications.

According to this view, brand equity provides marketers with a vital strategic bridge from theirpast to their future. Brand equity can provide marketers with a means to interpret their pastmarketing performance and design their future marketing programs.

Building a strong Brand

There are four steps of building a strong brand. These are as follows:

1. Ensure identification of the brand with customers and as association of the brand incustomers‟ minds with a specific product class or customer need.

2. Firmly establish the totality of brand meaning in the minds of customers by strategicallylinking a host of tangible and intangible brand associations with certain properties.

3. Elicit the proper customer responses to this brand identification and brand meaning.

4. Convert brand response to create an intense, active loyalty relationship between customersand the brand.

These steps represent fundamental questions that customers can ask about brands as follow:

1. Who are you? (Brand identity)

2. What are you? (Brand meaning)

3. What about you? (Brand responses)

4. What about you and me? (Brand relationship)



Brand Building Blocks

To provide some structure, it is useful to think of sequentially establishing six brand buildingblocks with customers. These brand building blocks can be assembled in terms of a brandpyramid. Each brand building block will be examined in the following section.

Brand Salience

Achieving the right brand identity involves creating brand salience with customers. It relates tothe aspects of the awareness of the brand, for example how often and easily the brand is evokedunder various situations? Brand awareness refers to customers‟ ability to recall and recognizethe brand, as reflected by their ability to identify the brand under different conditions.

Brand Performance

Designing and delivering a product that fully satisfies consumer needs and wants is a

prerequisite for successful marketing. To create brand loyalty and resonance consumerexperience with the product must at least meet. Brand performance relates to the ways in whichthe product or service attempts to meet customers more functional needs. Customers can viewthe performance of products or services in a broad manner. Reliability refers to the consistencyof performance over time and from purchase to purchase. Durability refers to the expectedeconomic life of the product. Serviceability refers to the ease of servicing the product.Performance may also depend on sensory aspects such as how a product looks and feels.

Brand Imagery

Brand imagery deals with the extrinsic properties of the product including the ways in which

the brand attempt to meet customer psychological needs. Brand imagery is how people think about a brand abstractly rather than what they think the brand actually does. Thus imageryrefers to more intangible aspects of the brand.

Brand Judgments

Brand judgments focus on customers‟ personal opinions and evaluation with regard to thebrand. To create a strong brand four types of brand judgments summary are particularimportant: Quality, Credibility, Consideration and Superiority.

Brand Feelings

Brand feelings are customers‟ emotional responses and reaction with respect to brand. Brandfeelings also relate to the social currency evoked by the brand. The following are six importanttypes of brand-building feelings1. Warmth: The brand makes consumers feel a sense of calm.2.Fun: The brand makes consumers feel amused, playful, and cheerful and so on.3. Excitement:The brand makes consumers feel energetic and feel that they are experiencing with somethingspecial.4. Security: The brand produces a feeling of safety.5. Self-respect: The brand makes



consumers feel better about themselves.6. Social approval: The brand results in consumershaving positive feeling about the reactions of others.Brand ResonanceBrand resonance refers to the nature of the relationship and the extent to which customers feelthat they are “in sync” with the brand. Brand resonance can be broken down into four categories

Behavioral Loyalty Attitudinal Attachment Sense of Community Active Engagement

The fist dimension is behavioral loyalty in terms of repeat purchase. How often do customerspurchase a brand and how much do they purchase? Behavioral loyalty is necessary but notsufficient for resonance to occur. To create resonance, there are also needs to be a strongpersonal attachment. Customers should go beyond having a positive attitude to viewing the brandas being something special. Creating greater loyalty requires deeper attitudinal attachment,which can be generated by developing marketing programs and products and services that fully

satisfy consumer needs. Identification with a brand community may reflect an important socialphenomenon whereby customers feel affiliation with other people associated with the brand.Strong attitudinal attachment or social identity or both are typically necessary, however, foractive engagement with the brand to occur.



Chapter-3

Identifying and Establishing Brand Positioning

Brand positioning is defined as 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. Positioning is all aboutidentifying the optimal location of a brand and its competitors in the minds of consumers tomaximize potential benefit to the firm. According to customer based brand equity model,deciding on a positioning requires determining a frame of reference by identifying the targetmarket and the nature of competition and the ideal points-of-parity and points-of-differencebrand association.

Target Market

A market is the set of all actual and potential buyers who have sufficient motivation, ability andopportunity to buy a product. Market segmentation involves dividing the market into distinct

groups of homogeneous consumers who have similar needs and consumer behavior and thusrequire similar market mixes. All companies never target all of its segments. There is a criterionunder which segments are targeted. Identifiably: Can segment identification be easily determined? Size: Is there adequate sales potential in the segment? 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?

From manufacturer perspective the model segments users of a brand is divided into four groups

based on strength of commitment from low to high, as follows:1. Convertible: High likely to switch brands2. Shallow: Not ready to switch, but may be considering alternatives3. Average: Comfortable with their choice; unlikely to switch in the future4. Entrenched: Highly loyal; unlikely to change in the foreseeable future

From customer perspective the model also classifies nonusers of a brand into four groups basedon their openness to trying the brand from low to high, as follows:

1.Strongly unavailable: Strongly prefer their current brand

2.Weakly unavailable: Preference lies with their current brand, although not strongly

3.Ambivalent: As attracted to the other brand as to their current choice

4.Available: Prefer the other brand but have not yet switched



Points of Parity

Points of parity are those associations that consumers view as being necessary to be a legitimateand credible offering within a certain product category. A point of parity is easier to achieve thanpoints of difference. For example there is a minimal difference between Surf excel and Ariel

washing powder.

Points of Difference

Points of difference are attributes that consumers strongly associate with a brand positivelyevaluate, and believe that they could not find to the same extent with a competitive brand. Forexample when Telenor launch first time easy load it created points of difference at that time.Points of difference may involve performance attributes. Many top brands attempt to create apoint of difference on overall superior quality.

Defining and Establishing Brand Values

Core Brand Values

Core brand values are those set of attributes that characterize the five to ten most importantaspects of a brand. Core brand values can serve as the basis of brand positioning in terms of howthey relate to points of parity and points of difference. Core brand values can be identifiedthrough structured process. The first step is to create a detailed mental map of the brand. Amental map accurately portrays in detail all salient brand associations and responses for aparticular target market. Mental maps must reflect the reality of how the brand is actually

perceived by consumers in terms of their beliefs, attitudes, opinions, feelings, images andexperiences.

Brand Mantras

A brand mantra is highly related to handing concepts such as brand essence used by others. Abrand mantra is an articulation of the heart and soul of the brand. Their purpose is to ensure thatall employees within the organization and all external marketing partners understand what thebrand most fundamentally is to represent with consumers so that they can adjust their actionsaccordingly. Brand mantras are powerful devices. They can provide guidance what ad campaignsto run, where and how the brand should be sold and so on. Brand mantras can be broken down

into three terms brand functions, descriptive modifier and emotional modifier. The brandfunctions describe the nature of the product. The descriptive modifier is a way to circumscribethe business functions term to further clarify its nature. Finally emotional modifier providesanother qualifier in terms of how the brand delivers these benefits. For example Nikebrand function is performance, descriptive modifier is athletic and emotional modifier isauthentic.



Chapter No. 4

Criteria for Choosing Brand Elements

There are six criteria in choosing brand elements which are as follows: Memorability Meaningfulness Likeability

Transferability Adaptability Protect ability

Memorability

A necessary condition for building brand equity is achieving a high level of brand awareness.There are certain names, symbols, logos and visual properties that make a brand more attentiongetting and easy to remember and thus contribute to brand equity. In other words brand nameshould be such which is easily recalled and recognized.

Meaningfulness

Brand elements can also be chosen whose inherent meaning enhances the formation of brandassociations. Two particularly important dimension of the meaning of a brand element are theextent to which it conveys the following: General information about the nature of the productcategory In terms of descriptive meaning, to what extent does the brand element suggestsomething about the product category? Specific information about particular attributes andbenefits of the brand in terms of persuasive meaning, to what extent does the brand elementsuggest something about the products

Likeability

Brand elements can be chosen that are rich in visual and verbal imagery and inherently fun andinteresting. In terms of first three criteria, a memorable, meaningful, and likable set of brandelements offers many advantages. Because consumers often do not examine much information inmaking product decisions, it is often desirable that brand elements be easily recognized andrecalled and inherently descriptive and persuasive.

Transferability



It is the fourth general criterion concerns the transferability of the brand element in both aproduct category and geographic sense. First, to what extent can the brand element ad to thebrand equity of new products sharing the brand elements introduced either within the productclass. Second to what extent does the brand element add to brand equity across geographic

boundaries and market segments.

Adaptability

It is the fifth general criterion concerns the adaptability of the brand element. Due to changes incustomer values and opinions brand elements often must be updated over time. The moreadaptable and flexible the brand element, the easier it is to update it.

Protect abilityThe final criterion concerns the Protect ability of the brand element both in legal and competitivesense. Because suspicious persons ask sometimes detail about the product before purchase. So

manufacturers must legally protect their products by registered their patents.

Five B’s from the Customer Perspective:

1.Basic:There are some basic things which are required by customers.2.Background:Customers have background when they are going to purchase.3.Beauty:Packaging should be such that attract customers.4.Belief:Customer should be belief on the brand.5.Benefit:Customers purchase those things which give them benefit.

Five B’s from Brand Manager Perspective:

1.Brave:He should be bold in respect of taking initiatives.2.Brilliant:He should be adept in designing better brand strategies.3.Backing:Company should support him in sensitive situations.4.Bridge:He is a person that creates a link between customers and company and works as abridge.5.Beneficial:He should provide benefit to his company in which he is working.

Options and Tactics for Brand Elements

A good brand name should Be protected (or at least protect able) under trademark law

Be easy to pronounce Be easy to remember Be easy to recognize Be easy to translate into all languages in the markets where the brand will be used Attract attention Suggest product benefits (e.g.: Easy-Off) or suggest usage (note the tradeoff with strong

trademark protection) Suggest the company or product image



Distinguish the product's positioning relative to the competition. Be super attractive Stand out among a group of other brands < like that one compared to the others

Brand Names

The brand name is fundamentally very much important. It can be a key to success in the market.Sometimes brand name becomes so closely tied to the product in the minds of the consumers,however, it is very much difficult that brand element for marketers to subsequently change.Consequently brand names are often systematically researched before being chosen

Brand Awareness

Brand awareness improved the extent to which brand names are chosen that are simple and easyto pronounce. To enhance brand recall, it is desirable for the brand name to be simple and easy topronounce. Pronunciation also affects the willingness of consumers to order the brand orally.Ideally, the brand name should have a clear, understandable and unambiguous pronunciation andmeaning. The way a brand is pronounced can affect its meaning.

Brand Association

It is necessary for the brand to have broader meaning to consumers than just the product categoryit is in. Because the brand name is a compact form of communication, the explicit and implicit

meaning that consumers extract from the name can be critical. The brand name may be chosen toreinforce an important attribute or benefit association that makes up its product positioning. Forexample Johnson & Johnson baby shampoo was also able to transport its “gentleness“association to a more adult audience when they were forced to reposition in the1970s when thebirth rate declined.

URLs

URL stands for universal resource locator. It is also commonly referred to as domain names.

URL must register and pay for the name with a service such asRegister.com. The major issuetoday facing most of the companies with regard to URLs is protection of their brands fromunauthorized use in domain names. For example Nike not approve of its name appearing in theURL of a fictitious fan sitewww.nikerules.com.Logos and Symbols



There are many types of logos ranging from corporate names written in a distinctive form. Forexample the strong word marks include Coca-Cola, Dunhill,and Kit-Kat. There are some abstractlogos which may be completely unrelated to the word mark. These are called non-word mark logos. The non-word marks logos are also often called symbols. Some logos are literal

representations of the brand name, enhancing brand awareness such as Apple logos andAmerican Red Cross.Characters

Brand characters typically are introduced through advertising and can play a central role in theseand subsequent ad campaigns. Brand characters come in many different forms. Some brandcharacters are animated where as others are live-action figures. Consequently brand characterscan be quite useful for creating brand awareness. Characters often must be updated over time sothat their image and personality remains relevant to the target market.

Slogans

Slogans are short phrases that communicate descriptive information about the brand. Slogansoften appear in advertising but can play an important role on packaging and in other aspects of the marketing programs. Slogans can play off the brand name in a way to build both awarenessand image. Some slogans become so strongly linked to the brand that it becomes difficult tosubsequently introduce new ones. For example the slogan of Haleeb milk is “the thickest milk ”.



Chapter 5

Product Strategy

The product itself is at the heart of brand equity because it is the primary influence on whatconsumers experience with a brand, what they hear about brand from others, and what the firmscan tell customers about the brand in their communications. To create brand loyalty, consumers‟experiences with the product must at least meet once. Perceived quality has been defined ascustomers‟ perception of the overall quality of a product to relevant alternatives and with respect

to its intended purpose. There are some general dimensions of product quality which are asfollows: Performance: Levels at which the primary characteristics of the product operate. Features: Secondary elements of a product that complement the primary characteristics. Conformance quality: Degree to which the product meets specifications and is absent of

defects. Reliability: Consistency of performance over time and from purchase to purchase. Durability: Expected economic life of the product Serviceability: Ease of servicing the product Style and design: Appearance or feel of quality

Total quality management reflecting the importance of product quality. In total qualitymanagement all employees of the organization work in coordination in order to improve thequality of both the organization and the product.

Total Quality Management Tenets

1. Quality must be perceived by customers.

2. Quality must be reflected in every company activity.3. Quality requires total employee commitment.4. Quality requires high quality partners.

5. Quality improvement sometimes requires quantum leaps.6. Quality does not always does not always cost more.7. Quality is necessary but may not be sufficient.8. A quality drive cannot save a poor product.

Relationship Marketing



Relationship marketing attempts to provide a more holistic, personalized brand experience tocreate stronger consumer ties. Relationship marketing is based on the premise that currentcustomers are the key to long term brand success. The importance of customer retention can beseen by some of the benefits it provides:

Acquire new customers can cost five times more than the costs involved in satisfying andretaining current customers.

The average company loses ten percent of its customers each year. A five percent reduction in the customer defection rate can increase profits by twenty five

percent to eighty five percent, depending on the industry. The customer profit rate tends to increase over the life of the retained customer.

Loyalty Programs

Loyalty programs have become one popular means by which marketers can create stronger tiesto customers. There are some tips for building effective loyalty programs follow: Know your audience Change is good Listen to your best customers Engage people

Pricing Strategy

The pricing strategy can dictate how consumers categorize the price of the brand and how firmset that price. Consumers may infer the quality of a product on the basis of its price. Many

marketers have adopted value-based pricing strategies attempting to sell the right product at theright price to better meet consumer wishes. From a branding perspective, it is important tounderstand all price perceptions that consumers have for a brand.

Setting Prices to Build Brand Equity

There are many different approaches to setting prices that depend on a number of considerations.Many firms now are employing a value-pricing approach to set prices and an everyday-lowpricing approach to determine their discount pricing policy over time.

Value Pricing

The objective of value pricing is to uncover the right blend of product quality, product costs, andproduct prices that fully satisfies the needs and wants of consumers and the profit targets of thefirm. Several firms have been successfully by adopting a value-pricing strategy. For instance,Wal-Mart‟s slogan “we sell for less” describes the pricing strategy that has allowed them tobecome the world‟s largest retailer. In general, an effective value-pricing strategy should strikethe proper balance among the following:



Product design and delivery Product costs Product prices

Product Design and Delivery

The first key is the proper design and delivery of the product. Product value can be enhancedthrough many types of well-conceived and executed marketing programs. The value pricingpoint out that the concept does not mean selling the product at lower prices. Consumers arewilling to pay premium when they perceive added value in products and services. Somecompanies actually have been able to increase prices in some cases by introducing new products.For instance when Gillette introduced the Mach III, it priced the cartridges at a fifty percentpremium over its then-priciest blade, despite the prevailing deflationary climate. The priceincrease did not deter customers, and Gillette reached its highest market share, seventy onepercent in 1962.

Product Costs

The secondary key to a successful value-pricing strategy is to lower costs as much as possible.Meeting cost targets invariably requires additional cost savings through productivity gains,outsourcing, material substitution, product reformulations, process changes and so on. Forexample, by investing in efficient manufacturing technology, Sara Lee was able to maintainadequate margins for years on its L‟ eggs women‟s hosiery with minimal price increases. Thecombination of low prices and the strong L‟eggs brand image resulted in an almost fifty percentmarket share. At the same time, cost reductions cannot sacrifice quality.

Product Prices

The price suggested by estimating perceived value can often be used as a starting point indetermining actual marketplace prices, adjusting by cost and competitive considerations asnecessary. For example, General Motor‟s Cadillac division has used target pricing to arrive at theprice of its luxury cars. GM marketers determined the optimal price based on assumptions aboutthe consumer and then figured out how to make the car at the right cost to ensure the necessaryprofit.

Channel Strategy

The manner by which a product is sold can have a profound impact on the resulting equity andultimate sales success of a brand. Marketing channels are sets of interdependent organizationsinvolved in the process of making a product or service available for use.Channel DesignA number of possible channel types and arrangements exist. Broadly, they can be classified intodirect and indirect channels. Direct channels involve selling through personal contacts from thecompany to prospective customers by mail, phone, electronic means, in-person visits, and so



forth. Indirect channels involve selling through third party intermediaries such as agents,wholesalers and retailers.

Indirect Channels

Indirect channels consist of a number of different types of intermediaries. Retailers tend to havethe most visible and direct contact with customers and therefore have the greatest opportunity toaffect brand equity.Push and Pull Strategies

When manufacturers regain some of their lost power by creating strong brand through some of the brand building tactics, for example, by selling innovative and unique products at properlypriced and advertised that consumers demand for it. In this way consumer may ask retailers tostock and promote manufacturers

products. By devoting marketing efforts to the end consumer, a manufacturer is said to employeea pull strategy. On the other side when marketers devote their selling efforts to the channel

members by providing direct incentives for stock to them and sell products to the end customer.This approach is called push strategy. In pull strategy marketers use advertisement and salespromotion but in push strategy they use trade discounts and personal selling.

Direct Channels

To gain control over the selling process and build stronger relationships with customers, somemanufacturers are introducing their own retail outlets, as well as selling their product directly tocustomers through various means. These channels can take many forms. The most extensiveform involves company-owned stores. Hallmark, Goodyear and others have sold their ownproducts in their own stores for years.



Overview of Marketing Communication Options

Marketing communication options includes the following:

Media advertising

Direct response advertising Online advertising Place advertising Point of purchase advertising Consumer promotions Event marketing and sponsorship Publicity and public relations Personal selling

Media Advertising

Advertising is any paid form of non personal presentation and promotion of ideas, goods orservices by an identified sponsor. Media advertising includes TV, radio, newspaper andmagazines. From brand equity perspective television advertising demonstrate product attributesand consumer benefits. There are some benefits and drawbacks of TV, radio, newspaper andmagazines which are as under:

Medium Advantages Disadvantages

Television Mass coverage, High reach,High prestige, and attentiongetting

Low selectivity, Shortmessage life, High absolutecost and clutter

Radio Local coverage, Low cost,

High frequency, flexible andlow production cost

Audio only, Clutter, Fleeting

message and low attentiongetting device

Newspaper High coverage, Low cost,Short lead-time for placingads, Timely and can be usedfor coupons

Short life, Clutter, Lowattention getting capabilities,and poor reproduction quality

Magazines Segmentation potential,Quality reproduction and highinformation content

Long lead time for adplacement, visual only andlack of flexibility

Direct Response Advertising

Direct response advertising establish relationship with consumers and it helps to explain toconsumers new developments with their brands as well as allow consumers to provide feedback to marketers as to their likes and dislikes. Direct marketing is often seeing as a key component of



relationship marketing. To implement an effective direct marketing program, three criticalingredients are(1) developing an up-to-date and informative list of current and potential future customers,(2) putting forth the right offer in the right manner, and(3) tracking the effectiveness of the marketing program. Database marketing helps firms to retain

existing customers than to attract new ones. Direct response advertising includes, mail,telephone, broadcast media, print media, computer related and media related.

Online Advertising

Marketers can also promote their products through online advertising by developing their ownwebsites. Websites are low cost and contain much information about products. It should befamily friendly. Websites must be updated frequently and offer as much customized informationas possible, especially for existing customers.

Place Advertising

Place advertising also called out of home advertising that captures advertising outside traditionalmedia. Place advertising includes, billboards and posters, product placement and movies,airlines. Billboards are very effective means for advertising. It is showing up everywhere. Manymarketers pay fee for their product placement in television programs. Product place can becombined with special promotions to publicize a brand‟s entertainment tie-ins.

Point of Purchase Advertising

In-store advertising includes ads on shopping carts, cart straps, aisles, or shelves, as well aspromotion options such as in-store demonstrations, live sampling and instant coupon machines.

Consumer Promotions

Consumer promotions are designed to change the choices, quantity and consumers‟ product

purchases. Consumer promotion includes samples,

coupons, premiums, refunds and rebates, contests and sweepstakes, bonus packs and price-offs.Sampling is seen as a means of creating strong relevant brand associations.

Event Marketing and Sponsorship

Event marketing refers to public sponsorship of events. Event sponsorshipprovides a differentkind of communication option for marketers. Marketers reporta number of reasons whey theysponsor events•To identify with a particular target market•To increase awareness of the company•To create consumer perceptions of key brand image associations•To enhance corporate image dimensions•To create experiences and evoke feelings



•To express commitment to the community•To entertain key clients•To permit merchandising opportunities

Public Relations and Publicity

Public relations and publicity relate to a variety of programs and are designed to promote acompany„s image and its products. Publicity refers to non-personal communications such aspress releases, media interviews, press conferences, feature articles, newsletters, photographs,films and tapes. Public relations may also involve such things as annual reports, fund-raising andmembership drives, lobbying, special event management, and public affairs. There are threesteps for designing an ad It is also known as3M:1.Model:A person who works as an ambassador of a product and convey its benefits to targetconsumers.2.Message:The objective of an ad which a company is intended to deliver to target customers.

3.Masses:The target customers/market for whom an ad is designed.

Developing Integrated Marketing Communication Programs

Matching Communication Options

There are many ways to create integrated marketing communication programs. In assessing thecollective impact of an IMC program, the goal is to create the most effective and efficientcommunication program possible. Toward that goal, six relevant criteria can be identified:1. Coverage2. Contribution3. Commonality4. Complementary5. Versatility6. Cost

Coverage

Coverage relates to the proportion of the audience that is reached by each communication optionemployed, as well as how much overlap exists among communication options. The unique aspectof coverage relates to the inherent communication ability of a marketing communication option,as suggested by the second criterion. To what extent that there is some overlap in communicationoptions.

Contribution

Contribution relates to the inherent ability of a marketing communication to create the desiredresponse and communication effects from consumer in the absence of exposure to any othercommunication option. In other words, contribution relates to the main effects of marketingcommunication option on the target audience.



Commonality

Marketing communication program should be coordinated to create a consistent and cohesivebrand image in which brand association share content and meaning. Commonality means eachand every communication option which a marketers use should convey a common associationsabout the product.

Complementary

Complementary relates to the extent to which different associations and linkages are emphasizedacross communication options. For instance, research shows that promotion can be moreeffective when combined with advertising.

Versatility

Versatility refers to the extent that a marketing communication option is robust and effective fordifferent groups of consumers. There are two types of versatility: communication and consumer.The ability of a marketing communication to work at two levels effectively communicating toconsumers who have or have not seen other communications is critically important.

Cost

Finally evaluating the each communication option is also very much critical for marketer. Thecost of each communication option varies in the market. Now the problem is whichcommunication option should be chosen and which is best. Communication options vary in terms

of their breadth and depth of coverage. To select one communication option the marketer has totrade off the other.



Chapter 8

The Brand Value Chain

The brand value chain is a structured approach to assessing the sources and outcomes of brandequity and the manner by which marketing activities create brand value. The brand value chainrecognizes that numerous individuals within an organization can potentially affect brand equityand must be cognizant of relevant branding effects.

Value Stages

Brand value creation begins with marketing activity by the firm that influences customers in away affecting how the brand performs in the marketplace and thus how it is valued by thefinancial community.

Marketing Program Investment

In brand value chain marketer invest in a shape of by introducing new product, means which heuse to communicate, trade and employees to make the product best so that it can be differentiatedfrom others.

Program Multiplier

The ability of marketing program to affect the customer mindset will depend on the quality of that program investment. Four particularly important factors are as follows:1.Clarity: Do consumers properly interpret and evaluate the meaning conveyed by brand

marketing?2.Relevance: Do consumers feel that the brand is one that should receive serious consideration?\ 3.Distinctiveness:How unique is the marketing program from those offered by competitors?4.Consistency : How consistent and well integrated is the marketing program? Do all aspects of the marketing program combine to create the biggest impact with customers?

Customer Mindset

There are five dimensions that have emerged to highlight the CBBE model as particularlyimportant measure of the customer mindset:1Brand awareness: The extent and ease with which customers recall and recognize the brand andcan identify the products and services with which it is associated

2.Brand association: The strength, favorability and uniqueness of perceived attributes andbenefits for the brand.

3Brand attitudes: Overall evaluations of the brand in terms of its quality and the satisfaction itgenerates.



4.Brand attachment: How loyal the customer feels toward the brand. A strong form of attachment, adherence, refers to the consumer‟s resistance to change and the ability of a brand towithstand bad news.

5.Brand activity: The extent to which customers use the brand, talk to others about the brand,

seek out brand information, promotions and events.

Customer Multiplier

The extent to which value created in the minds of customers affects market performance dependson various contextual factors external to the customer. Three such factors are as follows1.Competitive superiority: How effective are the quantity and quality of the marketinginvestment of other competing brands.2.Channel and other intermediary support: How much brand reinforcement and selling effort isbeing put forth by various marketingpartners.3.Customer size and profile: How many and what types of customers are attracted to the brand.

Market Multiplier

The extent to which the value engendered by the market performance of a brand is manifested inshareholder value depends on various contextual factors external to the brand itself. Thesefactors are as follows: Marketing dynamics: What are the dynamics of the financial markets as a whole? Growth potential: What are the growth potential for the brand and the industry in which

it operates? Risk profile: what is the risk profile for the brand? How vulnerable is the brand likely to

be to those facilitating and inhibiting factors? Brand contribution: How important is the brand as part of the firm‟s brand portfolio and

all the brands it has?

Shareholder Value

Based on all available current and forecasted information about a brand as well as many otherconsiderations, the financial marketplace then formulates opinions and makes variousassessments that have direct financial implications for the brand value. Three particularlyimportant indicators are the stock price, the price earnings multiple, and overall marketcapitalization for the firm.

Designing Brand Tracking Studies

Tracking studies involve collection of information from customers on a routine basis over time.Tracking studies are a means of applying the brand value chain to understand where, how much,and in what ways brand value is being created, thus offering invaluable information about howwell a positioning has been achieved. Tracking studies play an important function for managersto facilitate their day to day decision making. Tracking studies provide valuable diagnostic



insights into the collective effects of a host of marketing activities on the customer mindset,marketing outcomes, and perhaps even shareholder value.

What to Track

This section provides some general guidelines for tracking. The tracking study is necessary tocustomize tracking surveys to address the specific issues faced by the brand.

Product Brand Tracking

Tracking an individual branded product involves measuring brand awareness and image for theparticular brand. Awareness measures should move from more general to more specificquestions. A range o more general to more specific measures be employed in brand trackingsurveys to measure brand image, especially in terms of specific perceptions and evaluations. It isalso important to measure all association that may distinguish competing brands. Brandassociations should include all potential sources of brand equity. At the sometime it is also

important to track more general, higher level judgments, feelings, and other outcome relatedmeasures.

When and Where to Track

Tracking studies in general depends upon the frequency of product purchase and on consumerbehavior and marketing activity in the product category. One useful tracking approach formonitoring brand associations involves continuous tracking studies in which information iscollected on continuous basis over time. When the brand has more stable associations, trackingcan be conducted on a less frequent basis.

How to Interpret Tracking Studies

Tracking measures must be reliable and sensitive as possible. One problem with many traditionalmeasures is that they do not change much over time. In this way they reflect the fact. Marketersmust identify the real value drivers for a brand that is, those tangible and intangible points of difference that influence and determine consumers‟ product and brand choices.

Establishing a Brand Equity Management System

A brand equity management system is a set of organizational processes designed to improve theunderstanding and use of the brand equity concept within a firm. Three major steps an

organization should take to implement a brand equity management system: creating brand equitycharters, assembling brand equity reports, and defining brand equity responsibilities.

Brand Equity Charter

The brand equity charter provides relevant guidelines to marketing managers within the companyas well as key marketing partners outside the company. This document should do the following:



Define the firm‟s view of the brand equity concept and explain why it is important Describe the scope of key brands in terms of associated products and the manner by

which they have branded and marketed. Specify what the actual and desired equity is for brand at all relevant levels of the brand

hierarchy at both the corporate level and at the individual product level.

Explain how brand equity is measured in terms of the tracking study and the resultingbrand equity report. Suggest how brand equity should be managed in terms of some general strategic

guidelines. Specify the proper treatment of the brand in terms of trademark usage, packaging and

communication. Outline how marketing programs should be devised in terms of some specific tactical

guidelines.

Brand equity charter may not change from year to year. As new products are introduced, brandprograms are changed, and other marketing initiatives take place.

Brand Equity Reports

Brand equity report is distributed to management on a regular basis. The brand equity reportshould provide descriptive information as to what is happening with a brand as well as diagnosticwhy it is happening. One section of the report should summarize consumers‟ perceptions of key

attributes, preferences and reported behavior as revealed by the tracking study. Another sectionof the report should include more descriptive market level information such as the following: Product shipments and movement through channels of distribution Relevant cost breakdowns Price and discount schedules where appropriate Sales and market share information broken down by relevant factors. Profit assessments

Brand equity is an intangible asset that depends on associations made by the consumer. Thereare at least three perspectives from which to view brand equity

Financial - One way to measure brand equity is to determine the price premium that a brandcommands over a generic product. For example, if consumers are willing to pay $100 more for abranded television over the same unbranded television, this premium provides importantinformation about the value of the brand. However, expenses such as promotional costs must betaken into account when using this method to measure brand equity.

Brand extensions - A successful brand can be used as a platform to launch related products. Thebenefits of brand extensions are the leveraging of existing brand awareness thus reducingadvertising expenditures, and a lower risk from the perspective of the consumer. Furthermore,appropriate brand extensions can enhance the core brand. However, the value of brandextensions is more difficult to quantify than are direct financial measures of brand equity.



Consumer-based - A strong brand increases the consumer's attitude strength toward the productassociated with the brand. Attitude strength is built by experience with a product. Thisimportance of actual experience by the customer implies that trial samples are more effectivethan advertising in the early stages of building a strong brand. The consumer's awareness andassociations lead to perceived quality, inferred attributes, and eventually, brand loyalty

Brand Equity Responsibilities

To develop a brand equity management system that will maximize long term brand equityorganizational responsibilities and process with respect to the brand must be clearly defined. Thissection considers internal issues related to assigning responsibilities and duties for properlymanaging brand equity. There must be a chief brand officer in every organization who reportsdirectly to the chief executive officer of the company and who protect the brand – the way itlooks and feels. The chief brand officer recognizes that the brand is the sum total of everything acompany does. He should not only help to build the brand but also plans, anticipates, researches,probes, listens, and informs.



Chapter 10

Comparative MethodsComparative methods involve experiments that examine consumer attitudes and behaviors

toward a brand directly estimate the benefits arising from having a high level of awareness andstrong, favorable, and unique brand associations. There are two types of comparative methods.

Brand-based Comparative Approach Marketing-based Comparative Approach

Brand-based Comparative Approach

Brand-based comparative approaches examine consumer response based on changes in brandidentification. These measurement approaches typically employ experiments in which one groupof consumers responds to questions about the product in its marketing program when it is

attributed to the brand and other groups respond to question asked about the same brand.Comparing the responses of the two groups provide some useful insights into the equity of thebrand. Consumer responses may be based on beliefs, attitudes, intentions, and actual behavior.

Marketing-based Comparative Approach

Marketing-based comparative approaches hold the brand fixed and examine consumer responsebased on changes in the marketing program. Marketing-based comparative approaches can beapplied in other ways. Consumer responds to different advertising strategies and executions.

Holistic Methods

Holistic methods attempt to place an overall value on the brand in either abstract utility term.Thus holistic methods attempt to net out various considerations to determine the uniquecontribution of the brand. The residual approach attempts to examine the value of the brand bysubtracting consumer‟s preferences for the brand based on physical product attributes alone fromtheir overall brand preferences. The valuation approach attempts to place a financial value onbrand equity for accounting purposes, mergers and acquisitions.



Chapter 11

The Brand Product Matrix

The brand product matrix is a geographical representation of all the brands and products sold by

the firm. The rows of the matrix represent brand product relationships and capture the brandextension strategy of the firm in terms of the number and nature of products sold under the firm‟s

brands. A brand line consists of all products original as well as line and category extensions soldunder a particular brand. The columns of the matrix represent product brand relationships andcapture the brand portfolio strategy in terms of the number and nature o brands to be marketed ineach category. The brand portfolio is the set of all brands and brand lines that a particular firmoffers for sale to buyers in a particular category.

Breadth of a Branding Strategy

The breadth of a branding strategy concerns the number and nature of different products linked

to the brands sold by a firm. There are some steps which can be used to measure includeaggregate market factors, category factors, and environmental factors.

Aggregate Market Factors

Aggregate market factors include the market size, market growth, stage in product life cycle,sales cycle, seasonality and profits.

Category Factors

Category factor is considered attractive if it is the case that the threat of new entrants is low due

to the barriers of entry from economies of scale, bargaining power of buyers is low e.g. when theproduct bought is a small percentage of buyers costs, current category rivalry is low when thereare few competitors in fast growing markets and few close product substitutes exist in the eyes of consumers and the market is operating at near capacity.

Environmental Factors

External forces unrelated to the product‟s customers and competitors that affect marketingstrategies. A host of technological, political, economic, regulatory, and social factors will affectthe future prospects of a category and should be forecasted.

Depth of a Branding Strategy

The depth of a branding strategy concerns the number and nature of different brands marketed inthe product class sold by a firm. For example Procter &Gamble is widely recognized aspopularizing the practice. P&G became proponents of multiple brands after recognizing thatintroducing its new detergent brand as an alternative to its already successful tide detergentresulted in higher combined product category sales.



Brand Hierarchy

A brand hierarchy is a means of summarizing the branding strategy by displaying the numberand nature of common and distinctive brand elements across the firm‟s products. A brandhierarchy is a useful means of graphically portraying firm‟s branding strategy. The highest level

of the hierarchy technically always involves one brand the corporate brand. For some firms thecorporate brand is virtually the only brand used e.g. as with General Motors and Hewlett-Packard. At the next lower level, a family brand is defined as a brand that is used in more thanone product category but is not necessarily the name of the company itself. An individual brandis defined as a brand that has been restricted to essentially one product category, although it maybe used for several different product types within the category. For example General Motor is acorporate brand, under General Motor Chevrolet, Pontiac, Oldsmobile, Buick, Cadillac andGMC are family brands. Under these brands there are an individual brands like Alero, regal,cutlass, sun fire etc.Corporate brand equity is the differential response by consumers, customers, employees, otherfirms or any relevant constituency to the words, actions, communications, products or services

provided by an identified corporate brand entity.

Corporate Image

Corporate image plays very much important role in any brand strategy. There are some importantcorporate image associations which are as follows:

Common Product Attributes, Benefits

A high quality corporate image association involves the creation of consumer perceptions that acompany makes products of the highest quality. A number of different organizations rateproducts and companies on the basis of quality. An innovative corporate image associationinvolves the creation of consumer perceptions of a company as developing new and uniquemarketing programs, especially with respect to product introductions. Being innovative is seen inpart as being modern and up to date investing in research and developing employing the mostadvanced manufacturing capabilities and introducing the newest product features. Perceivedinnovativeness is also a key competitive weapon and priority for firms in other countries.

People and Relationships

Corporate image associations may reflect characteristics of the employees of the company. Thusa customer focused corporate image association involves the creation of consumer perceptions of a company as being responsive to and caring about its customers. A company seen as customerfocused is likely to be described as listening to customers and having their best interests in mind.

Values and Programs



Corporate image associations may reflect values and programs of the company that do notalways directly relate to the products they sell. Firms can run corporate image ad campaign as ameans to describe to consumers, employees, and others the philosophy and actions of thecompany with respect to organizational, social and political issues.

Corporate Credibility

Corporate credibility depends upon three factors:

1. Corporate expertise: The extent to which a company is seen as able to competently make andsell its products or services.

2. Corporate trustworthiness: The extent to which a company is seen as motivated to be honest,dependable and sensitive to customer needs.

3. Corporate likeability: The extent to which a company is seen as likable, attractive, prestigious,dynamic and so forth.



Designing a Branding Strategy

Before designing a branding strategy if a firm does not identify its weaknesses in the research,might be it has negative effect on customers. When a firm‟s product cannot satisfy the needs of

the consumers they never purchase it again and as a result they have negative relationship withthe product and in future might be they never purchase of any product of that company on thebasis of previous experience.

Combining Brand Elements from Different Levels

If multiple brand elements from different levels of the brand hierarchy are combined to brandnew products, it is necessary to decide how much emphasis should be given to each brandelement. For example if a sub-brand strategy is adopted, how much prominence shouldindividual brands be given at the expense of the corporate brand? There are many different waysto connect a brand element to multiple products. The principle of commonality states that themore common brand elements shared by products, the stronger the linkages between the

products. The simplest way to link products is to use the brand element as is across the differentproducts involved. For example, a common prefix of a brand name may be adapted to differentproducts. Hewlett-Packard capitalized on its highly successful Laser Jet computer printers tointroduce a number of new products using the “Jet” prefix, for example, the DeskJet, Paint Jet,Think Jet, and Office Jet printers.

Corporate Image Campaigns

To maximize the probability of success, however, the objective of a corporate image campaignsmust be clearly defined and results must be carefully measured against these objectives. Anumber of different objectives are possible in a corporate brand campaigns.

Build awareness of the company and the nature of its business Create favorable attitude and perception of company credibility Link beliefs that can be leveraged by product specific marketing Make a favorable impression on the financial community Motivate present employees and attract better recruits Influence public opinion on issues



Chapter 12

New Products and Brand Extensions

For any company new products and brand extensions are vital and play very much important rolein the growth of the company. It entirely depends on the situation and the time where they shouldbe induction of a new brand or to extent the existing brand. When a company introduces a newproduct, it has three main choices as to how to brand it:1. It can develop a new brand, individually chosen for the new product.2. It can apply, in some way, one of its existing brands.3. It can use a combination of a new brand with an existing brand.

Managing Multiple Brands

Different companies have opted for different brand strategies for multiple products. Thesestrategies are:

Single brand identity - a separate brand for each product. For example, in laundrydetergents Procter & Gamble offers uniquely positioned brands such as Tide, Cheer,Bold, etc.

Umbrella - all products under the same brand. For example, Sony offers many differentproduct categories under its brand.

Multi-brand categories - Different brands for different product categories. CampbellSoup Company uses Campbell's for soups, Pepperidge Farm for baked goods, and V8 for juices.

Family of names - Different brands having a common name stem. Nestle uses Nescafe,Nesquik, and Nestea for beverages.

A brand extension is when a firm uses an established brand name to introduce a new product.An existing brand that gives birth to a brand extension is referred to as the parent brand. Thereare seven general strategies for establishing a category extension:1. Introduce the same product in a different for. For example, Haleeb DairyQueen2. Introduce products that contain the brand‟s distinctive taste, ingredient, or component. Forexample, Cornetto Ice Cream3. Introduce companion products for the brand. For example, McDonald offers free Pepsi with itsfast food.4. Introduce product that relevant to the customer franchise of the brand. For example, Mobil ink Black berry.5. Introduce products that capitalize on the firm‟s perceived expertise. For example, Sony TV

6. Introduce products that reflect the brand‟s distinctive benefit, attribute. Forexample,Safeguard.7. Introduce products that capitalize on the distinctive image or prestige ofthe brand. Forexample, Coca Cola

Advantages of Brand Extensions

There are different advantages of brand extension for a company. Some of them are as follows:



What is a brand extension?

It‟s simply a manner of leveraging the success and popularity of an existing brand name tosupport the launch of a new product. For example, Nike started outselling shoes and laterextended the brand into different types of shoes (i.e., line extensions) and different product

categories like clothing (i.e., category extensions). As a businessperson and marketer, it‟s important to understand the reasons why extending your brand can help your company.

Kellogg on Branding Includes a great chapter about brand extensions from which I extracted thefollowing top 5 reasons to extend brand1)Brand extensions can reduce the costs and risks associated with launching a new product.Since the brand name is already known and(hopefully) popular, using that brand name on a newproduct (particularly when it‟s in the same line as the original product) immediately communicates the same level of awareness and perception

2)Brand extensions typically garner more shelf space than unknown new product brands. Simplystated, retailers are more likely to stock a new product with a known brand name on it. Again,it‟s less risky, and a familiar brand comes with ready-made awareness and perceptions

3)Brand extensions may require a lower advertising investment. Consumers are already aware of the brand name, so advertising to create brand awareness and recognition is not necessary.Instead, advertising dollars can be invested in more targeted messaging

4)Brand extensions can boost the parent brand by creating increased interest in the brand as awhole and possibly growing the brand‟s customer base across the board

5)Brand extensions reduce a company‟s dependency on one product which could become lesspopular in the future

Facilitate New Product Acceptance Improve brand image Reduce risk perceived by customers Increase the probability of gaining distribution and trial Increase efficiency of promotional expenditures Reduce cost of introductory and follow up marketing programs Avoid cost of developing a new brand Allow for packaging and labeling efficiencies Permit consumer variety seeking

Provide Feedback Benefits to the Parent Brand and Company

Clarify brand meaning Enhance the parent brand image Bring new customers into brand franchise and increase market coverage Revitalize the brand



Permit subsequent extensions

Disadvantages of Brand Extensions Can confuse customers Can encounter retailer resistance

Can fail and hurt parent brand image Can succeed but cannibalize sales of parent brand Can succeed but diminish identification with any one category Can succeed but hurt the image of parent brand Can dilute brand meaning Can cause the company to forgo the chance to develop a new brand.

Evaluating Brand Extension Opportunities

1. Define actual and desired consumer knowledge about the brand.2. Identify possible extension of brand on the basis of parent brand associations and overall

similarity.3. Evaluate the potential of extension brand to create equity according to the three factor model: Salience of parent brand associations Favorability of inferred extension associations Uniqueness of inferred extension associations

4. Evaluate extension feedback effects according to the four factor model: How compelling the extension evidence is How relevant the extension evidence is How consistent the extension evidence is How strong the extension evidence is

5 Consider possible competitive advantages as perceived by consumers and possible reactionsinitiated by consumers.6. Design marketing campaign to launch extension7. Evaluate extension success and effects on parent brand equity

how to manage brands

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