Session 1 Brand Management

8/8/2019 Session 1 Brand Management

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Brand

Management


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If all Coca-Colas asset were destroyedovernight. Whoever owned the Coca-Cola

name could walk into a bank the next

morning and get a loan to rebuild everything

Carlton CurtisVP Corporate Communications,Coca Cola


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Brands are

Valuable


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Paying apremium over

other customers

Increase usageover time

Require lessmarketing& sales

investment

Experimentingless with thecompetition Less Vulnerable

to price basedcompetition

MakingReferrals

Brands are valuablebecause they changeconsumer behavior

Brands

secure afuture

stream of

profits


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1United States Beverages 68,734

2 United States Computer Services 60,211

3 United States Computer Software 56,647

4United States Diversified 47,777

5 Finland Consumer Electronics 34,864

6 United States Restaurants 32,275

7

United States Internet Services 31,980

8 Japan Automotive 31,330

9 United States Computer Hardware 30,636

10United States Media 28,447


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But What is a

Brand?


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"a name, sign or symbol used to identifyitems or services of the seller's and to

differentiate them from goods ofcompetitors."


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"a set of assets (or liabilities) linked to abrand's name and symbol that adds to (or

subtracts from) the value provided by aproduct or service"


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A Brand is

A collection of perceptions in the mind of

the consumers (all other stake holders).

Properly managed theseperceptions secure long termrevenue for the business and

create lasting value


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"A brand is the most valuable real-estate

in the world, a corner of the consumer'smind."


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IMPLICATIONS OF THIS DEFINITIONu

A brand is very different from a product,

a brand exist in the mind These perceptions if properly managed

change the consumer behavior

The role of advertising is to positivelyinfluence peoples perception


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Brand value delivered by the Company

Results in change in consumer behavior

And therefore creates business value

Which secures long term revenue and growth

BVEXCHANGEB/WCOMPANY &

CONSUMERS WORKS LIKEu


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A strong brand

Gives Peace of

mind

A Strong brand

saves Time

How does a

Brand deliver

value

A Strong brand helps us express

ourselves: our attitudes,

values and place in society

A strong brand

transforms the

consumption exp.

A Strong brand

gives consumers a

good news story


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THE OBJECTIVE OFBRAND

MANAGEMENT..

Motivating to the customers

Distinctive from Competition

Consistently delivered

Enduring over time

In line with business objectives

To build and maintain a strongbrand which is


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Brand value in built in the mind

Brands are built through every thing theydo & say

A brand can be the driving force for yourbusiness

Brands draw strength from consistency

over time A brand can live for ever

PRINCIPLES OF SUCCESSFULBRAND

MANAGEMENTu


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Three Principles ofBrand Performance

Market Leaders & Superior Brand

performance are interlinked

Market Leading brands tend to Have

higher Profit Margins

There is No Such Thing As Brand

Lifecycle


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Offer Superior perceived quality

Managed Consistently over a long periodto develop a dominant positioning

A Successful Brand Must

Market Leadership

Profitability


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Very Important to Remember

Branding = Marketing Customers ususally never Understand the

product or the company selling it Customers Perceive a Product in their own

terms

Customer Perception will focus on benefits,which are often intangible

Customer perception is not always at theconscious level


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Criteria of Success

At the Product level it must deliver functionalbenefits to meet the market need al least aswell as the competition

A brand will offer intangible benefits over andabove the product

The various benefits of a brand must be

consistent with each other and present a unifiedcharacter or personality

The values offered must be wanted by theconsumer


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A brand must be a blend ofcomplementary physical. rational, and

emotional appeals. The Blend must bedistinctive and result in a clear personality

that will offer benefits of value to

customers


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Brand EssenceThe heart & soul of a brand, a brands fundamentalnature or quality usually stated in two or there words

Brand PromiseA differentiated benefit the brand offers to theconsumer

Brand PositioningThe way a brand is perceived by the consumers


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Brand PersonalityThe adjectives that define a brand

Brand Associations

Any thing that a consumer associates in his mind withthe brand

Brand Identity

This refers to a combination of visual, auditory andother components that create recognition, representthe brand promise, provide differentiation, createscommunications synergy & proprietary


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Brand ArchitectureThe family tree or brands hierarchy. It is how theorganization organizes the various named entities inits portfolio

Brand Portfolio

The mix of brands a company possesses

MasterBrandThe most dominant and highest level brand in thehierarchy. Corporate brands are master brands.Parent brand may or may not be the master brand


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Parent BrandThis is a brand that has extended into more then onecategory

Sub-BrandA new brand that is combined with a parent or masterbrand

Brand ExtensionThis refers to the introduction of the brand into a newproduct category or segment


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Brand EquityThe positive differential effect that knowing the brandname has on customers response to the product orservice

The commercial value of all associations (positive ornegative) that people have of an organization and itsproducts and services

The power of the brand to shift the consumer demandcurve of a product

It is a set of assets (and liabilities) linked to a brand

its symbol that adds to or subtract the value provided


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Very Important to Remember

Brand strength is directlyproportionate to Brand Equity

A Strong Brand is one which has

High Equity


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There are 4 major elements that enhance brandsequity, these elements are called asset categories

These are1. Brand name awareness

2. Brand Loyalty

3. Perceived Quality

4. Brand Associations

Asset Categories


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The management of brand Equity involvesinvestment to create and enhance these assets

Each brand equity asset creates value in a noof ways

Brand equity creates value for customer and thefirm as well

For assets to underlie brand equity, they mustbe linked to the name or symbol of the brand

Implications


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Brand Loyalty Reduced Marketing Costs

Trade Leverage

Attracting new Consumers- Create Awareness- Reassurance

Time to Respond to Competitive Threats


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Brand Awareness Anchor to Which OtherAssociations can be

attached

Familiarity Liking

Signal of substance/commitment

Brand To be Considered


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Brand Recognition Brand Recall

Brand

Awareness

Recognition reflects familiaritywith the brand.

It is simply remembering thatthere was a past exposure to

the brand

Where ?

Why?

What?

NoConcern

The ability of a brand to cometo mind when its productcategory is mentioned

Deciding Factor in getting on

a Shopping list


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Brand AwarenessBrand Name Dominance

Consumers can provide only the name of a single

brand


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Third Asset CategoryPerceived Quality

The customers perception of the overall quality orsuperiority of a product or service relative to itsalternatives"


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Perceived Quality Reason To Buy

Differentiation / Position

Price

Channel Member Interest

Extensions


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Perceived Quality Among all brand elements only perceived quality

has been shown to drive financial performance

Perceived quality is often the major (if notprincipal) thrust of a business

Perceived quality is linked to and often drives theother aspects of how a brand is perceived


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Why Perceived Quality May Differ FromA

ctualQuality?

Customer may be over influenced by a previousimage of quality

A company may be achieving quality in adimension which is not important to a consumer

Customers rarely have all the information to makea sound judgment about quality- even if they dothey lack the motivation and hence depend on 1 or2 cues.


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Why Perceived Quality May Differ FromA

ctualQuality?

Since they dont know how to best judge brandsthey may be looking at wrong cues


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Third 4th

Asset CategoryBrand Associations

A

ny thing linked in memory to brand"


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Brand Associations Help Process orRetrieve information

Reason to Buy

Create Positive attitude / Feeling

Extensions


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Brand Loyalty BrandAwareness

BrandAssociations

PerceivedQuality

Value to customer

Interpretation / processing ofInformation

Confidence in the purchase

decisionUse Satisfaction

Value to Firm

Efficiency& Effectiveness ofmarketing Program

Brand Loyalty

Prices / margins

Brand extensions

Trade Leverage

CompetitiveAdvantage


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BiasAgainstInnovation

Pressure to investelsewhere

Short Term

Pressures

Complex BrandStrategies&Relationships

FragmentingMarkets and Media

Pressure toCompete on

pricesProliferation of

Competitors

Bias towardschanging the

strategies

Why it is difficultto build strongbrands


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Brand IdentityA unique set pfBrand associations that a brandstrategist create or maintain. These associationsrepresent what a brand stands for and imply a

promise to customer from the organizationmembers

ABrand identity should help establish arelationship between the brand and thecustomer by generating a value proposition

involving functional, emotional or self

expressive benefits


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Brand AsSymbol

Brand as aProduct

Brand asPerson

Brand As

Organization

Brand Identity


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ExternalPerspective

trap

BrandImage Trap

Product

Attribute

fixation trap

Brand

PositionTrap

Brand IdentityTraps


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Brand Position TrapBrand Position is that part of brand Identity & valueproposition that is to b e actively communicated tothe target audience and that demonstratesadvantage over competition

Product Attribute fixation trap

When the strategic&

tactical management of the bradfocuses solely on product attributes, based on parton the erroneous assumption that those attributesare the only relevant basis for consumer decisions&

competitive dynamics


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Product Attribute ResearchThe attribute fixation trap is the often caused by

product attribute research

Why?

It is often effective because attributes areimportant to the purchase decision and the useexperience.

It is relatively easy since customers are morecomfortable talking about attributes then aboutless tangible benefits


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Product Attribute Research It reassures managers that customers evaluate

brands using a logical model, which means thattheir decisions are easier to predict & understand


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Limitations of Product-Attribute basedIdentity

Fail to Differentiate

Are easy to copy

Assume a rational customer

Limit brand extension strategies

Creating a frame of reference

Reduce strategic flexibility


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Breaking out of the traps A brand as a product perspective

Identity based on brand as an organization

perspective A value proposition that includes emotional and

self expressive benefits also

The ability of a brand to provide credibility

The internal as well as an external role of brandidentity

Brand Characteristics broader then brand position


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4 Brand Identity

Perspectives


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The Brand as a ProductProduct Related associations will almost alwaysbe an important part of a brand identity becausethey are directly linked to brand choice decisionand the use experience

The Product Scope Association with a productclass

Product related Attributes

Quality / Value

Association withy use occasion


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The Brand as a Product Association with the users

Link to a country or region


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The Brand as OrganizationIt focuses more on attribute of the organizationthen on attributes of products

Organization attributes are more enduring & moreresistant to competitive claims then are productattributes

It is easy to duplicate products then to duplicateorganizations

Organizational attributes usually apply to a set ofproduct classes, competitor in only 1 product

classes may find it difficult to compete


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The Brand as Organization Because organizational attributes such as

innovation is hard to evaluate and communicate, itis difficult for the competitor to show that they haveover come any perceived gap


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The Brand as a Person BrandPersonality

A brand personality can create a stronger brand in

several ways Helps create a self expressive benefit which

becomes a vehicle for person to express his/herpersonality

Brand personality can be the basis for relationshipbetween the customer and the brand


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The Brand as a Person BrandPersonality

Brand personality may help communicate a

product attribute and thus contribute to a functionalbenefit


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The Brand as a SymbolA strong brand symbol can provide cohesion &

structure to an identity and make it much easier togain recognition and recall

It is easy to duplicate products then to duplicateorganizations

Organizational attributes usually apply to a set ofproduct classes, competitor in only 1 productclasses may find it difficult to compete


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Self

Expressive

benefits

EmotionalBenefits

Functional

Benefits

ValueProposition


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Functional benefitsThe most visible and common basis for a value

proposition

If a brand can dominate a key functional benefit, itcan dominate a category

Limitations

Attribute fixation trap


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Emotional benefitsWhen the purchase of a band gives the consumer a

positive feeling, that brand is providing anemotional benefit

Emotional benefits add richness and dept to theexperience of use and owning of a brand

To discover what emotional benefits are or could beassociated with a brand


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Self Expressive BenefitsRussell Belk

We are what we have is perhaps the most basic &

power fact of consumer behaviorBrands can become the symbol of a persons self

concept

Thus it provides a self expressive benefit by providingconsumer a way to communicate their self image


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Self expressive Vs emotionalB

enefitsAt times there is a close relationship between

emotional & self expressive benefits

In general in comparison to emotional benefits, selfexpressive benefits focus on

Self rather then feelings

Public setting and products rather then privateones

Aspirations and future rather then memories fromthe past


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Self expressive Vs emotionalB

enefits The permanent rather then transitory

The act of using the product, rather then the

consequences of using the product


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PriceA brands price is also related to the benefits a brand

provides

Brands are not evaluated independent of price A price too high relative to the benefits offered will

severely undercut the value proposition

FunctionalBenefits

EmotionalBenefits

Self ExpressiveBenefits

Price

Value Proposition


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Price Price is a complex construct

The goal of identity creation &

management is usually to focus onbenefits rather then price

Challenge is to make sure that thebenefits are anchored to elements otherthen price


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Providing CredibilityAt times the brand does not need to drive the

purchase decision, but to endorse it


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TheB

rand as PersonBrand Personality

the set of human characteristics associated with a

given brand Brand personality like human personality is both

distinctive & enduring

The same vocabulary that can be used to describea person can be used to describe a brandpersonality


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Brand

Personality

Product Class

Package

Price

Attributes

User Imagery

SponsorshipsSymbol

Age

Ad Style

Country of Origin

Company Image

CEO

Celebrity Endorsers

Products Related

Characteristics

Non Products

Related

Characteristics

Brand Personality Drivers


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Guides theCommunicat

ion effort

Enriches

Understanding

Creates

Brand equity

Contributes to a

differentiatingIdentity

Why use

BrandPersonality


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Self expression

Model

Relationship Based

Model

How Brand PersonalityCreates Brand Equity?

Functional benefit

RepresentationM

odel


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Self Expression ModelFor certain groups of customers, some brands

become vehicles to express a part of their selfidentity

This identity could be their actual identity or anideal self to which they might aspire

In order to be effective, a brand personality needsto be desirable and important enough to matter tothe person using it


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Relationship

Basis Model

Some people may not aspire to have a certainpersonality trait but would like to have a

relationship with some one having that trait

e,g

One may not aspire to have the personality of acompetent leader but would like to associated withone.

Some types of relationships might be as follows


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Down to earth, family oriented, genuine, old

fashioned

Spirited, young, up to date, out going

Accomplished, influential competent

Pretentious, Wealthy

Athletic Outdoorsy


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Brand

As Friend

An important relationship for many brands isfriendship li


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Frequent changes in position, productforms, symbols, advertising etc

Frequent Deals & coupons

Advertises extensively

Strong customer service, easy-to-usepackage

Continuity of character, packaging

High price, exclusive distribution,advertises in upscale magazine

Friendly advertising, endorsers

Association with cultural events,

Flighty,schizophrenic

Cheap, uncultured

Outgoing, popular

Approachable

Familiar,comfortable

Snobbish,sophisticated

Friendly

Culturally aware

Brand Behavior Personality


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Brand

Relationship Quality

One of the goals of brand management is to achievehigh brand relationship quality (BRQ)

How can we measure BRQ???7 dimensions of associated with strong relationships

between people and suggest how brand customerrelationship should be conceived


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B

R

Q

Behavioral Interdependence

The degree to which actions of related partnersare intertwined is indicated

This brand plays an important role in my life

I feel like some thing is missing when I haventused the brand in a while


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B

R

Q

Personal CommitmentThe partners are committed to each other. Thereis a desire to improve or maintain the quality ofthe relationship over time, and guilt is felt when itis compromised

I feel very loyal to this brand

I will stay with this brand through good times andbad


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Hoe Does TheB

rand Help ToExpress Personality

For certain groups of customers, some brands

become vehicles to express a part of their selfidentity

This identity could be their actual identity or anideal self to which they might aspire


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Organizational

Associations

A host of organizational associations are availableto managers, few moat prevalent are

Society/community orientation Perceived Quality

Innovation

Concern for Customers

Presence & Success

Local vs Global


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Society/community orientationSome organizations are Good citizens

78% consumers said they would buy from a firm

that contributed to medical research, educationand similar causes rather then one that did not

2/3 said they would switch brands to amanufacturer that supported a cause they deemed

worthwhile


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Have a Program Have Focus

Be consistent over time

Link the program to the brand

Be branded


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Sources ofB

rand Identity1. The Product

2. The Name

3. Brand Character& Symbols

4. Geographical & Historical Roots

5. Advertising & Promotion

Session 1 Brand Management

Documents