SBM Lecture 1

8/3/2019 SBM Lecture 1

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CHAPTER 1:

BRANDS & BRAND MANAGEMENT

S. Rashid Hussain12th Sep, 2011


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Strategic Brand Management Process

Mental maps

Competitive frame of reference

Points-of-parity and points-of-difference

Core brand values

Brand mantra

Mixing and matching of brand elementsIntegrating brand marketing activities

Integrating Marketing Communications to Build

Brand Equity

Leveraging secondary association to build brand

equity

Brand audits

Brand tracking

Brand equity management system

Brand-product matrix

Brand portfolios and hierarchies

Brand expansion strategies

Brand reinforcement and revitalization

KEY CONCEPTSSTEPS

Grow and SustainBrand Equity

Identify and EstablishBrand Positioning and Values

Plan and ImplementBrand Marketing Programs

Measure and InterpretBrand Performance


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What is a brand? For the American Marketing Association (AMA), a brand is

a name, term, sign, symbol, or design, or a combination ofthem, intended to identify the goods and services of one

seller or group of sellers and to differentiate them fromthose of competition.

These different components of a brand that identify anddifferentiate it are brand elements.


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What is a brand?Many practicing managers refer to a brand

as more than thatas something that has

actually created a certain amount ofawareness, reputation, prominence, and soon in the marketplace.


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Brands vs. ProductsAproduct is anything we can offer to a

market for attention, acquisition, use, or

consumption that might satisfy a need orwant.

Aproduct may be a physical good, a service,

a retail outlet, a person, an organization, aplace, or even an idea.


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Five Levels of Meaning for a Product The core benefit levelis the fundamental need or want that

consumers satisfy by consuming the product or service. Thegeneric product levelis a basic version of the product

containing only those attributes or characteristicsabsolutely necessary for its functioning but with nodistinguishing features. This is basically a stripped-down,

no-frills version of the product that adequately performsthe product function. The expected product levelis a set of attributes or

characteristics that buyers normally expect and agree towhen they purchase a product.

The augmented product levelincludes additional productattributes, benefits, or related services that distinguish theproduct from competitors.

Thepotential product levelincludes all the augmentationsand transformations that a product might ultimately

undergo in the future.


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A brand is therefore more than

a product, as it can havedimensions that differentiate itin some way from other

products designed to satisfy thesame need.


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Some brands create

competitive advantages withproduct performance; other

brands create competitiveadvantages through non-product-related means.


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Why do brands matter?

What functions do brands

perform that make them sovaluable to marketers?


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Importance of Brands to Consumers

Identification of the source of the product

Assignment of responsibility to productmaker

Risk reducer

Search cost reducer

Promise, bond, or pact with product maker

Symbolic device

Signal of quality


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Reducing the Risks in Product Decisions

Consumers may perceive many different types of risks inbuying and consuming a product:

Functional riskThe product does not perform up toexpectations.

Physical riskThe product poses a threat to the physicalwell-being or health of the user or others.

Financial riskThe product is not worth the price paid.

Social riskThe product results in embarrassment from

others. Psychological riskThe product affects the mental well-

being of the user.

Time riskThe failure of the product results in an

opportunity cost of finding another satisfactory product.


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Importance of Brands to FirmsTo firms, brands represent

enormously valuable pieces of legalproperty, capable of influencingconsumer behavior, being bought

and sold, and providing thesecurity of sustained futurerevenues.


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Importance of Brands to Firms

Identification to simplify handling ortracing

Legally protecting unique featuresSignal of quality level

Endowing products with unique

associationsSource of competitive advantage

Source of financial returns


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Can everything be branded? Ultimately a brand is something that resides in the

minds of consumers.

The key to branding is that consumers perceivedifferences among brands in a product category.

Even commodities can be branded:

Coffee (Nescafe`), bath soap (Lux), flour

(Punjab No.1), salt (National), Ispaghol(Hashmi), pickles (Shezan), bananas (Chiquita),chickens (K&N`s), and even water (Aquafina)


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An Example of Branding a Commodity

De Beers Group added

the phrase ADiamondIs Forever


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What is branded?Physical goodsServices

Retailers and distributors

Online products and services

People and organizations

Sports, arts, and entertainmentGeographic locations

Ideas and causes


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Source of Brands Strength The real causes of enduring market leadership are

vision and will. Enduring market leaders have arevolutionary and inspiring vision of the mass market,and they exhibit an indomitable will to realize thatvision. They persist under adversity, innovaterelentlessly, commit financial resources, and leverageassets to realize their vision.

Gerald J. Tellis and Peter N. Golder, First to Market, First toFail? Real Causes of Enduring Market Leadership,MIT Sloan

Management Review, 1 January 1996


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Importance of Brand ManagementThe bottom line is that any

brand

no matter how strong atone point in timeisvulnerable, and susceptible to

poor brand management.


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Branding Challenges and Opportunities

Savvy customersBrand proliferation

Media fragmentationIncreased competition

Increased costsGreater accountability


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The Brand Equity Concept

No common viewpoint on how it should beconceptualized and measured

It stresses the importance of brand role inmarketing strategies.

Brand equity is defined in terms of the marketingeffects uniquely attributable to the brand.

Brand equity relates to the fact that different outcomesresult in the marketing of a product or service because of

its brand name, as compared to if the same product orservice did not have that name.


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Strategic Brand Management It involves the design and implementation of marketing

programs and activities to build, measure, and managebrand equity.

The Strategic Brand Management Process is defined as

involving four main steps:1. Identifying and establishing brand positioning and values

2. Planning and implementing brand marketing programs

3. Measuring and interpreting brand performance

4. Growing and sustaining brand equity


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Writing 1 Name different industries, those brands are being

represented in the course pack

Name different media being used by the brands

Identify the differences (if any) in the advertisement ofa brand through different mediums

Identify seasonality (if given) in the brands

Highlight major differences in the seasonal and regulartimes for brands

Which AD you like at most? And Why?

Which Ad you hate at most and Why?

SBM Lecture 1

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