resonance

Christies Auction 2000 Actress Judy Garland’s slippers from

‘Wizard of Oz’, was sold for over $80,000 (actual cost $12.50)

Actor Christopher Reeve’s Super Man suit fetched over $30,000.

‘Gilligan Island’s’ skipper hat was sold for $8,000.

It is the celebrity associations that led to such high prices for these items which are otherwise trivial cost wise.

Brand Management

An Introduction

Definitions of Brand

American Marketing Association (AMA) -

A brand is a name, term, sign, symbol or design or a combination of them ----- to identify the goods and services of one seller from those offered by another.

Branding is all about creating differences Brand Elements – key to creating a brand. Choose a Name Logo Symbol Package Design or other attributes that distinguishes the product.

Definitions of Brand

One of the most popular and potentially important marketing concepts to arise in the 1980’s was the concept of Brand Equity.

Fundamentally, branding is all about endowing products and services with the power of brand equity.

The brand equity concept stresses the importance of the role of brand in marketing strategies.

Why Do Brands Matter?

Advantages of Branding to consumers and also to firms.

ROLES THAT BRANDS PLAY

Advantages for Consumers Identification of source of product: assignment of

responsibility to product maker. Past experiences and marketing programmes help consumers to learn about brands and provide as a short hand device.

Risk reducer: Functional risk, physical risk (user), financial risk, social risk, psychological risk (mental well being) & time risk

Search cost reducer: consumers already know about quality , product characteristics of the brand it enables lesser search for solutions.

Promise, bond or pact with maker of product: helps in building relationships.

Symbolic device: Benefits may not be always functional Brands allow consumers to project their self image

Signal of quality

ROLES THAT BRANDS PLAY

Advantages for Firms Means of identification: fundamentally they help in the

identification of product and helps in accounting and administration / operations.

Legal protection for the invention/ the unique features of your product.

Signal of quality level to satisfied customers. Means of endowing products with unique

associations Source of competitive advantage Source of financial returns

Three Levels Of Product (Old)

Core benefit

or service

Packaging

Features

StylingQuality

Brand Name

Installation

Delivery & Credit

After sales service

Warranty

Core Product

Tangible Product Augmented

Product

Brand vs. Product Kotler defines 5 levels to a product (Air-conditioner) The Core Benefit (cooling & comfort) Generic product (Sufficient cooling capacity (ton), economic

electricity consumption, adequate fresh air intake etc) Expected product: (Adjustable cooling speeds, adjustable

louvers, removable air filters, aesthetic panels/looks, parts & service warranty, split unit, non Freon refrigerant gas etc.)

Augmented Product: Electric touch pad controls, display to shoe indoor and outdoor temperature, automatic mode to adjust temp based on outside temp. – personal liking)

Potential product: Cooling balanced throughout room, low price, low energy consumption.

Five Levels Of Product

Core Benefit

Expected Product

Core Product

Basic Product

Augmented Product

Basic Features

Common Attributes

Latest Style

Warranty A.S.S

Payment terms / Credit

Product Differentiation

Brand Persona

CRM / Services

Brand Name

Loyalty Club

Superior value

Potential Product

Brand Image

Brand vs. Product -2

Kotler: Competition essentially takes place at the augmentation level as most firms can successfully build satisfactory products (expected level).

Theodore Levitt: “The new competition is not between what companies produce in factories but ---------------------------------------- between what they add to their factory output in the form of packaging, services, advertising, customer advice, financing, delivery / logistics, warehousing and other things which people value”.

Branding

A brand is basically a product, but one that adds other dimensions that differentiate it from other products designed to satisfy the same need.

These differences may be tangible and rational, or can be symbolic, emotional and intangible (but related to what the brand represent).

Brand vs. Product - 3

What distinguishes a brand from its unbranded commodity and gives it its equity ----- is the sum total of consumers perceptions and feelings ----------

about the product attributes and how they perform

about the brand name, brand associations and what it stands for

and about the company associated with it.

Brand vs. Product - 4

Coca-cola, Marlboro, Colgate: understood consumer motivations & desires and created relevant and appealing images surrounding their products

Often these intangible image associations are the only way by which you can distinguish different brands.

Brand vs. Product - 5

Creating a successful brand entails blending all these various elements together:

The product/service will have to be of high quality and appropriate to consumer needs

The brand name must be appealing and in tune with consumers perceptions about the product.

Packaging, pricing, promotion and all other elements must similarly meet tests of appropriateness, appeal and differentiation.

Can Anything Be Branded?

Branding Applications

Physical goods Components – Intel, Material – Dupont,

Chicken – Purdue, Venky’s etc. Services: American Express, FedEx, Marriot Hotels,

AC Nielsen, Goldman Sachs. Online Products & Services Google, Yahoo, Amazon.com, Bazee.com,

e-bay

Branding Applications

People & Organizations Amitabh Bachan, Beckham, Michael Jordan Tata Steel, Infosys, Genpact Retailers & Distributors Wall-Mart, Sears, Metro, Mearsk, Geographic Locations Kerala, Singapore Ideas & Causes World Wild Life Fund

Commodity To Brand

Marketers can benefit from branding whenever consumers are in a choice situation.

A commodity is a product so basic that it cannot be physically differentiated in the minds of consumers.

Number of product categories that were seen one time as commodities have seen the emergence of highly differentiated brands.

Branding

Brands are something that resides in the minds of consumers ……..

(include all other perceptions such as their fantasies etc.)

Branding (endowing products/services with the power of brand) – Its all about creating differences.

Branding

The key to branding is that consumers must be made to think that all brands in the category are not the same.

It involves creating mental structures & helping consumers organize their knowledge about products/services which provides clarity for customers in decision making.

Brand as a short-hand

Branding

Brand differences are often related to attributes or benefits of the product itself. Gillette, Birla-White, 3M, Harpic, Surf, Colgate, LG-Golden Eye, Samsung, Kelvinator, Godrej PUF etc.

Other brands create competitive advantages through non product related means. Pepsi, Lux, Marlboro, Kingfisher, Onida, Boomer, M. Dew

They have understood consumer motivations & desires and created appealing images around their products.

Brand Promise A brand is essentially a marketer’s promise

to provide predictable product or service performance.

Brand promise is the marketers vision of what the brand must be and what it should do for the consumers.

True value and future prospects of a brand lies with the customers.

Their knowledge about the brand and their likely response to company’s marketing activities which again will be based on brand knowledge.

Building Strong Brands

What are the core aspects involved in developing strong brands?

Models of Aaker, Kapferer & Keller

BRAND ANATOMY

David Aaker’s work on Brand personality leads to Brand anatomy.

It consists of an innermost level which is termed as the “essence”.

Followed by the next outer level, the “benefits” and the final level, the “attributes”.

David Aaker seems to treat essence to be synonymous with Brand personality.

Essence is the basic idea behind the brand When a brand is configured, it is important to get

its essence first.

BRAND ANATOMY -1

Essence is the basic idea behind the brand. This essence translates into benefits . These benefits should be converted to specific

attributes. Ultimately it is these benefits and attributes that form

what he calls Brand Anatomy. For instance essence of a brand like Close-up is youth.

(Typically toothpaste uses the plank of dental health – prevents cavities, dental decay prevention etc.).

This essence translates into benefits like joy, fun, energy & modernity.

BRAND ANATOMY -2

Close Up- Brand anatomy: The above mentioned benefits gets reflected in the attributes

of the product. The bright packaging of Close-Up signals modernity. Also the bright

colour and the gel reflect youth. The endorsement of close up Anthakshari is the celebration, joy and

energy dimension of the brand.

(Youth)Essence

BenefitsFun

JoyModern

Energetic

Attributes Bright colour

Gel

Bright packaging

Soft squeeze tube

Endorsement of Anthakshari

Price

BRAND ANATOMY – 3(Compiled YLR Moorthy)

Brand Essence Benefits Attributes

Coorg Coffee 100% Coffee Purity No Chicory

Little Hearts Romance Fun Heart shaped

Marlboro Macho Socially admired Strong tobacco

Mohawks shoe Modern Comfort Casual wear

Pepsi Youth Merriment Fizzy drink

Impact Bicycle Rebellion Trendiness Sleek Body

Elanza luggage Top-of-the-line Sophisticated Premium quality

Brand Identity Prism

Jean Noel Kapferer

BRAND IDENTITY KAPFERER’S FRAMEWORK KAPFERER arranges elements of brand identity as a sum of

certain tangible and intangible elements. Both Aaker and Kapferer describe brand personality as a subset of

brand identity. Brand Identity Prism

Picture of sender

Picture of recipient

PersonalityPhysique

CultureRelationship

Reflection Self-Image

Ext

erna

lizat

ion

Inte

rnal

izat

ion

BRAND IDENTITY PRISM -2

Elements of the Brand Identity prism Kapferer represents brand identity as a six sided

prism Six faces of the prism are 1.Physique 2.Personality 3. Culture,

4.Relationship 5.Reflection & 6. Self Image. Physique: is the basis of the brand. The physique of Philips is technology and

reliability, while for the brand Tata it is trust. MRF it will be strength & reliability.

Brand Identity Prism -3

1. Physique Brand first of all physical specifications &

qualities. It is brand’s back bone the tangible values added.

If brand is a flower then stem is its physique. Traditionally branding works on positioning

the product relying on certain key product and brand attributes /benefits.

Physique

The first step in defining a product is to define its physical product – what is it concretely? What does it look like? What does it do?

Picture of famous coca-cola bottle in its cans.

By showing the traditional bottle, coke aims to remind us of its roots.

Brand Identity Prism -2

2. Brand Personality: It answers the question, “what happens to

this brand if it became a person”. It can be human being or animated objects or

animals. Brand has a personality. By communicating it

gradually builds up character. Highly used in advertising to bring / project

all the intangibles associated with brand.

Brand Personality:

It has been the main focus of advertising since 1970’s.

Easiest way to creating personality is to have a brand spokesperson.

Brand identity is the personality facet of the source. It should not be confused with Self image which is a portrayal of the ideal receiver.

BRAND IDENTITY PRISM -5

3. Culture : Brand is a culture. Every product do

represent this culture it derives & is a means of communication.

It is the set of values feeding the brand’s inspiration. It refers to the basic principles governing the brand in its outward signs.

Mercedes embodies German values. Order prevails even at 260 km/hr – landscape may be whizzing by, but the Merc remains stable and unperturbed.

Culture

Culture is what links a brand to the firm when both share the same name.

Because of its culture Nestle has not succeeded in conveying the image of a fun & enjoyable brand.

Maggi does not carry Nestle Logo.

Culture

Symbolizes the organization, its country-of-origin and the values it stand for.

India is known for its traditional remedies which is why Balsara, Dabur, Zandu evoke a good response abroad.

Germany for its precision engineering, Japan for consumer electronics and US for services. Mercedes Benz, Hitachi, Fed Ex, MC-Donald’s benefit from this.

IBM, Coca-cola, Nike and Levis stands for American culture.

Culture

Brand culture plays an essential role in differentiating the brand. This facet is the one that helps to differentiate the luxury brands the most because it refers to their source.

Calvin Klein's minimalism, and Benetton's controversy orientation provide a set of values and different from that of Esprit.

Cultural facets is the key to understanding the differences between Nike, Reebok and Adidas.

BRAND IDENTITY PRISM - 4

4. Relationship: A brand is a relationship. Indeed, brands are often

at the crux of transactions and exchanges between people.

Its the hand shake between the consumer and the organization.

The relationship with Colgate is one of depe-ndebility (oral hygiene) and that with Saffola edible oil is one of safety.

Relationship

This is particularly true for brands in the service sector and also for retailers.

Yves Saint Laurent brand functions with charm: the underlying idea of a love affair permeates both its products and advertising.

Christian Dior’s symbolizes another type of relationship: one that is grandiose, ostentatious, the desire to shine like gold.

Relationship

This facet defines the mode of conduct that most people will identify with the brand.

The way the brand acts, delivers services and relates to its customers.

Nike suggests a peculiar relationship based on provocation, it encourages us to let loose (let’s do it).

IBM symbolizes orderliness, while Apple conveys friendliness. Moulinex defines itself as ‘the friend of women’.

BRAND IDENTITY PRISM - 5

5. Reflection: The consumers perception of what the brand

stands for. Pepsi stand for young, while Coke cuts across all age groups.

When asked on views about car brands, people immediately answer in terms of the brand’s perceived client type…. For young people, for fathers; for show off’s; for old folks etc.

Brand will always tend to build a reflection or an image of the buyer or user.

Reflection

Reflection and target (group) often gets mixed up. Target describes the brand’s potential buyer or

user. Reflecting the customer is not the target group. Customer should be reflected as he/she wishes to

be seen as a result of using the brand. Pepsi for instance has a much higher clientele than

the 15-20 year old, narrow segment which its Ads projects. How can such a paradox be explained.

Reflection

How can such a paradox be explained

For the younger segment (8-14 year olds) Pepsi embodies their dream, of what they want to be when they grow up.

Youth identifies with the heroes. For adults they represent a certain way of life

and of certain values rather than of a narrowly defined age group.

Thus the brands brings in 40 year olds also to identify with this special way of life.

Reflection

The confusion between reflection and target is quite frequent and causes problems.

Many managers show in their ads - their consumers as the way they are.

Fallacy behind this is - Consumers indeed use brands to enhance their identity.

In the ready-to-wear industry, the obsession to look younger should concern the brand’s reflection, and not necessarily their target.

BRAND IDENTITY PRISM - 6

6. Self Image: Finally a brand speaks to our self image. If reflection is targets outward mirror, self image is

the consumers internal mirror. What the consumer thinks of himself. Mercedes

owner tells himself that as he belong to the elite he is treating himself to the best car.

Porsche owners simply want to prove themselves that they have the ability to buy such a car.

Self Image

Even if you don’t practice any sports, Lacoste clients inwardly picture themselves as members of an elegant sports club –

An open club with no race, sex or age discrimination but endows its members with distinction.

This works because sports is universal. When two Harley Davidson customers meet,

they can strike up a conversation immediately

BRAND IDENTITY PRISM

Mahindra Maxx - Brand Prism Physique : Tough, spacious and economy Personality: Family man - dependable Relationship: Companion traveler Culture: Family values (caring) Reflection / user image: Semi urban business man Self image: Prudent (Smart choice).

Components of Brand Building Blocks

Customer Based Brand Equity Model – Kevin L. Keller

Customer Base Brand Equity Pyramid

Resonance

Judgments Feelings

Performance Imagery

Salience1. Identity

(Who are you?)

2. Meaning(What are you?)

3.Response(What about you?)

4. Relationships(What about you & me?)

BUILDING A STRONG BRAND

The Four Steps of Brand Building: (Customer Based Brand Equity Model)

They represent those basic questions that customers ask about brands.

1. Who are you? (Brand Identity) – Ensure identification of the brand in customers

minds by associating it with a particular product class or need.

2. What are you? (Brand Meaning) – Establish the Brand meaning in the minds of

consumers by strategically linking tangible and intangible brand associations.

BUILDING A STRONG BRAND -1

The Four Steps of Brand Building: 3. What do I think or feel about you?

(Brand Response) Elicit proper customer response to this brand

identification and brand response. 4. What about you & me? (Brand Relationships) What kind of and to what degree of association I

like to have with you? Convert brand response to an intense, active

loyalty relationship between customers and the brand.

Brand Salience

Achieving the right brand identity involves creating brand salience with customers. It relates to aspects of brand awareness.

How easily & often the brand is evoked and the circumstances leading to it? Is the brand at the top of the mind or has it brand recall and brand recognition?

Brand awareness is not just knowing the brand. It should link it with product/service category.

Brand awareness provide identity by linking brand elements to a product category and associated consumption situations.

Brand Salience The depth of brand awareness concerns the

likelihood and the ease at which a brand element comes to the mind of the consumer.

Breadth of brand awareness concerns the range of purchase and usage situations in which the brand element comes to the mind.

A highly salient brand is one that has both depth and breadth of brand awareness such that customers make sufficient purchases and always think about the brand across a variety of settings in which it could possibly be consumed.

Brand Performance The product itself is at the heart of brand equity.

Designing and delivering a product that fully satisfies a customer needs/wants is a prerequisite for successful marketing.

Brand performance relates to the ways in which the product or service attempts to meet customers more functional needs.

Brand performance transcends the ingredients and features that make up the product / service to encompass the aspects related to the brand that augment these characteristics.

Brand Performance

Five important types of attributes and benefits 1. Primary ingredients and supplementary features. 2. Product reliability, durability & serviceability. 3. Service effectiveness, efficiency and empathy. 4. Style and design 5. Price Some attribute are essential necessary for the

product to work, whereas other attributes are supplementary features that allow for customization or more personalized usage.

Brand Imagery

It deals with the extrinsic properties of the product or service.

Brand Imagery is about how people think abstractly about the brand rather than what they think that the brand actually do. It deals with the Intangibles.

Refers more to the intangibles; 4 primary types are: 1. User profiles 2. Purchase & usage situations 3. Personality & values 4. History, heritage & experiences.

Brand Imagery -2

Brand imagery association based on the user type – may result in a profiling of actual users or more aspirational or idealized users.

May be based on descriptive demographic factors (age, gender, race, income) or more abstract psychographic factors (lifestyle).

Another set of associations is based on conditions when the product should be bought and used.

Purchase situation may be based on factors such as place of buying (super markets, specialty stores) and ease of purchase or any reward attached.

usage based on when to use (time of year etc), occasion (formal/informal; perk from home to outdoor snack) etc.

Brand Imagery - 3

Brands may also take on personality traits. Brand like a person can be characterized as being

modern, old fashioned, lively, exotic etc. Advertising is most influential in creating brand

personality as it can project the brand in the usage/user based situation.

Personification through brand characters (Marlboro cigarette, Lux and Bollywood heroines) or using user imagery (Mountain dew dudes) or product animation techniques (Bajaj Kawasaki, Fido –Dido of 7-up)

Consumers often choose and use brands that have a personality that is consistent with their self concept.

Brand Imagery - 4

Finally brands may take on associations to their past and certain noteworthy events in the brand history, heritage, country of origin etc.

Creating strong, favorable and unique associations is a challenge to marketers, but its essential for building brand equity.

Strong brands have established brand associations Volvo & Michelin (safety), Intel (performance & compatibility)

Marlboro (macho/ western imagery), Coke (American & refreshment), BMW (Styling & performance), Nike (innovation & peak athletic performance), Hall Mark (caring), Harley Davidson (adventure), Close-up (youth) etc.

Brand Judgments

Customers personal opinions and evaluations of the brand, based on the performance and all the imagery associations.

Brand Quality: an important factor that affect consumer’s brand attitude is perceived quality.

Brand Credibility: extent to which brand as a whole is credible is from the three dimensions

1. Brand Expertise – is the brand competent, innovative and a market leader

2. B. Trust worthiness: dependable and keeping customer interests in mind.

3. B. Likeability: fun, interesting & worth spending time with.

Brand Judgments -2

Brand Consideration: Eliciting favorable attitude and perceptions of credibility will be insufficient if customers do not seriously consider the brand for purchase and usage.

It is beyond awareness & deals with whether customers include the brand in their choice set.

Brand Superiority: Superiority relates to the extent to which customers view the brand as unique and better than other brands.

A critical factor in building intense & active relation-ships and depends on the unique brand associations that make up the brand image.

Brand Feelings

Are customers emotional responses and reactions with respect to the brand. (feelings evoked by the marketing programmes for the brand).

How does the brand affect customers feelings about themselves and their relationship with others.

These feelings can be mild or intense; negative or positive. Six important types of Brand building feelings 1. Warmth (soothing type of feelings): makes one feel a

sense of calm, creates sentimental or affectionate feelings toward the brand..

2. Fun (upbeat type of feelings): makes on feel lighthearted, joyous, playful and cheerful

Brand Feelings Six important types of Brand building feelings 3. Excitement (a different form of upbeat feeling):

this makes consumers feel a sense of elation, excitement – being alive, being cool or sexy.

4. Security: Brand produces feelings of safety, comfort and self assurance. It takes of the worry & concern.

5. Social Approval: Consumers feel that others look favorably on their appearance, behavior and so on.

6. Self Respect: the brand makes consumer feel better about themselves. Consumers feel a sense of pride, accomplishment or fulfillment.

Brand Resonance Final step – focuses on the ultimate relationship

and level of identification that the customer has with the brand.

Brand resonance refers to the nature of this relationship and the extent to which customers feel they are in sync with the brand.

Examples of brands with high resonance – Harley Davidson, Apple and e-Bay.

Can be broken down into four categories 1. Behavioral loyalty 2. Attitudinal attachment 3. Sense of community 4. Active engagement

Brand Resonance

Behavioral loyalty is depicted in terms of repeated purchase.

It reflects on the share of the brand in the product category volumes.

The life time value of behavior customers can be enormous (due to more frequent purchase than someone who postpones the purchase and then buys).

Behavioral loyalty is not just sufficient for resonance to occur. Customers should go on and build a positive attitude by which they start to see the brand as something special.

Brand Resonance

Loyalty requires a deep attitudinal attachment. (90% of people who said they are satisfied to highly s. did not buy the same brand of car next time – Frederick Reichheld).

Brand can also take a broader meaning to the consumer in terms of a sense of community.

Identification with a brand community gives customers kinship or affiliation with others who are associated with the brand.

Brand Resonance

Finally the strongest affirmation of brand loyalty is when customers are willing to invest, time, energy, money or other resources in the brand beyond those expended during purchase or consumption of the brand.

Customers may join a club centered on the brand, get updates, get to correspond with other brand users etc.

Strong attitudinal attachment and social identity are necessary for active engagement to occur.