CHAPTER 1: BRANDS AND BRAND MANAGEMENT

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Learning Objectives

Define brand, state how brand differs from a product, and explain what brand equity is Summarize why brands are important Explain how branding applies to virtually everything Describe the main branding challenges and opportunities Identify the steps in the strategic brand management process
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.

What is a Brand?

Brand Elements Brands versus Products

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Brand Elements

Different components that identifies and differentiates a brand

Name,

logo, symbol, package design, or other characteristic

Can be based on people, places, things, and abstract images

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Brand versus Product

Brand Product

Has dimensions that differentiate it in some way from other products designed to satisfy the same need
Can be differentiated on the basis of: Packaging Services provided Customer advice Financing Delivery arrangements Warehousing Other things valued by the customers

Anything available in the market for use or consumption, that may satisfy a need or want
Can be categorized into five levels namely: Core benefit level Generic product level Expected product level Augmented product level Potential product level

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.

To Sum Up ....

Through branding, organizations:

Create

perceived differences amongst products Develop loyal customer franchise Create value that can translate to financial profits

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Why Do Brands Matter?

Consumers

Firms
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Consumers

Encompass all types of customers, including individuals as well as organizations Functions provided by brands to consumers
Identify

the source or maker of the product Simplify product decisions Lower the search costs for products internally and externally Helps set reasonable expectations about what consumers may not know about the brand

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Consumers
Signal
On

product characteristics and attributes

the basis of attributes products can be classified

Search goods Experience goods Credence goods

as:

Reduce
These

risks in product decision

risk can be categorised as

Functional ,physical, financial, social psychological, and time

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Firms

Brands provide valuable functions

Simplify

product handling and tracing Help organizing inventory and accounting records Offer the firm legal protection for unique features or aspects of the product Provide predictability and security of demand for the firm and creates barriers of entry for competitors Provide a powerful means to secure competitive advantage
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Figure 1.3 - Roles that Brands Play

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Can Anything Be Branded

Physical Goods
Services

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Physical Goods
Business-to-Business Products

High-tech Products

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Services
Role of Branding with Services Professional Services

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Can Anything Be Branded

Retailers and Distributors Online Products and Services People and Organizations

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Role of Branding

Sports , Arts, and Entertainment Geographic Locations

Ideas and Causes

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.

To Sum up....

Branding is universal and pervasive in different product categories Applicable to both tangible and intangible offerings of an organization Technological developments have impacted the way firms market their offerings Organizations reap financial benefits from positive brand images

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Strong Brands

Brands that have been market leaders in their categories for decades Any brand is vulnerable and susceptible to poor brand management

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Factors Responsible for Branding Challenges

Savvy customers

Economic downturns Brand proliferation Media transformation

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Factors Responsible for Branding Challenges

Increased Competition

Increased costs

Greater accountability
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Figure 1.9- Challenges to Brand Builders

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Brand Equity

Principles of branding and brand equity

Differences in outcomes arise from the added value endowed to a product The added value can be created for a brand in many different ways Brand equity provides a common denominator for interpreting marketing strategies and assessing the value of a brand There are many different ways in which the value of a brand can be exploited to benefit the firm

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Strategic Brand Management Process

Identifying and Developing Brand Plans Designing and Implementing Brand Marketing Programs Measuring and Interpreting Brand Performance Growing and Sustaining Brand Equity

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Identifying and Developing Brand Plans

Brand Positioning Model

Brand Resonance Model

Brand Value Chain

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Designing and implementing Brand Marketing Program

Choosing Brand Elements Integrating the Brand into Marketing Activities and the Supporting Marketing Program Leveraging Secondary Associations

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Measuring and Interpreting Brand Performance

To manage brands profitably, managers must d implement a brand equity measurement system Brand equity measurement system involves:
Brand

audits Brand tracking studies Brand equity management system

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Growing and Sustaining Brand Equity

Defining Brand Architecture

Managing Brand Equity over Time Managing Brand Equity over Geographic Boundaries, Cultures, and Market Segments

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Figure 1.12 - Strategic Brand Management Process

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall