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Week 1 A

The document discusses branding and brand management. It defines what a brand is according to the American Marketing Association as a name, symbol or design that identifies a seller's goods/services and differentiates them from competitors. A brand is more than just a product - it can create advantages through product performance or non-product means. Strong brands benefit both consumers by reducing risks and firms by creating value. The concept of brand equity is introduced as well as the strategic brand management process of identifying brand positioning, implementing marketing programs, measuring performance, and growing brand equity over time.

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59 views

Week 1 A

The document discusses branding and brand management. It defines what a brand is according to the American Marketing Association as a name, symbol or design that identifies a seller's goods/services and differentiates them from competitors. A brand is more than just a product - it can create advantages through product performance or non-product means. Strong brands benefit both consumers by reducing risks and firms by creating value. The concept of brand equity is introduced as well as the strategic brand management process of identifying brand positioning, implementing marketing programs, measuring performance, and growing brand equity over time.

Uploaded by

HuNtEr GamerYT
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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CHAPTER 1:

BRANDS & BRAND MANAGEMENT

Kevin Lane Keller


Marketing is building a brand in
the mind of the prospects

1.2
What is a brand?

 For the American Marketing Association (AMA), a brand is a “name,


term, sign, symbol, or design, 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.”

 These different components of a brand that identify and differentiate


it are brand elements.
Classroom Exercise
 Exercise :- Name at least 3 brands whose
names are based on following :-
People = ex: Tommy Hilfiger
Places= ex: British airways
Animals/birds= ex: dove
Things or objects= ex: apple
Attributes or benefits = ex: sugar free
What is a brand?

 Many practicing managers refer to a brand as more than that—


as something that has actually created a certain amount of
awareness, reputation, prominence, and so on in the
marketplace.
Brands vs. Products

 A product is anything we can offer to a market for


attention, acquisition, use, or consumption that might
satisfy a need or want.

 A product may be a physical good, a service, a retail


outlet, a person, an organization, a place, or even an idea.
Five Levels of Meaning for a
Product

1.7
Five Levels of Meaning for a
Product
 The core benefit level is the fundamental need or want that
consumers satisfy by consuming the product or service.
 The generic product level is a basic version of the product containing
only those attributes or characteristics absolutely necessary for its
functioning but with no distinguishing features. This is basically a
stripped-down, no-frills version of the product that adequately
performs the product function.
 The expected product level is a set of attributes or characteristics that
buyers normally expect and agree to when they purchase a product.
 The augmented product level includes additional product attributes,
benefits, or related services that distinguish the product from
competitors.
 The potential product level includes all the augmentations and
transformations that a product might ultimately undergo in the
future.
 A brand is therefore more than a product, as it
can have dimensions that differentiate it in
some way from other products designed to
satisfy the same need.
 Some brands create competitive advantages
with product performance; other brands create
competitive advantages through non-product-
related means.
Why do brands matter?
 What functions do brands perform that make
them so valuable to marketers?
Importance of Brands to Consumers
 Identification of the source of the product
 Assignment of responsibility to product maker
 Risk reducer
 Search cost reducer
 Promise, bond, or pact with product maker
 Symbolic device
 Signal of quality
Reducing the Risks in Product Decisions
 Consumers may perceive many different types of risks in
buying and consuming a product:
 Functional risk—The product does not perform up to
expectations.
 Physical risk—The product poses a threat to the physical well-
being or health of the user or others.
 Financial risk—The product is not worth the price paid.
 Social risk—The product results in embarrassment from others.
 Psychological risk—The product affects the mental well-being
of the user.
 Time risk—The failure of the product results in an opportunity
cost of finding another satisfactory product.
Importance of Brands to Firms
 Identification to simplify handling or tracing
 Legally protecting unique features
 Signal of quality level
 Endowing products with unique associations
 Source of competitive advantage
 Source of financial returns
Can everything be branded?
 Ultimately a brand is something that resides in
the minds of consumers.
 The key to branding is that consumers perceive
differences among brands in a product category.
 Even commodities can be branded:
 Coffee (Nestle), bath soap ( Dove), flour (Ashirwad
Atta), salt (Tata Salt), oatmeal (Quaker), pickles
(mothers receipe), bananas (balaji), chickens
(Goodrej- real good chicken ),and even water
(Bisleri ) , People ( celebrities)
What is branded?
 Physical goods
 Services
 Retailers and distributors
 Online products and services
 People and organizations
 Sports, arts, and entertainment
 Geographic locations
 Ideas and causes
 Retailers & Distributors :- loyalty in a store &
consumers learn to expect certain brands & products
from a store .
Shoppers Stop
Bigbazaar
 Online Products & Services
Google
Ebay
Amazon
Flipkart …..
CAN ANYTHING BE BRANDED ?
Commodity :- a commodity is aYES
product so basic that it cannot be
physically differentiated in the minds of consumers . Commodities have
also become highly differentiated as strong brands have emerged in the
category . ex:- coffee , salt , flour , water .
A time when Evian was selling 20% more than budweiser
 Physical Goods :- Consumer products

Services :-

Airlines

Telecommunications

Banking

Hospitality

Courier
 People And Organization :- People and organization also can be viewed as
brands , considering public figures such as politicians , entertainers and
professional athletes . Public figures in some sense bring public approval &
acceptance & benefit from conveying a strong & desirable image .
Amitabh Bachan – beard look
 Sports , Arts & Entertainment

Movie titles , sequels – batman , superman , IPL –teams


 Geographic Locations

Go Goa
Malayasia ( truly Asia )
 Ideas & Causes

Do boond zindagi ki :- Polio


AIDS Red Ribbons
Source of Brands Strength
 “The real causes of enduring market leadership
are vision and will. Enduring market leaders
have a revolutionary and inspiring vision of
the mass market, and they exhibit an
indomitable will to realize that vision. They
persist under adversity, innovate relentlessly,
commit financial resources, and leverage
assets to realize their vision.”
Importance of Brand Management
 The bottom line is that any brand—no matter
how strong at one point in time—is vulnerable,
and susceptible to poor brand management.
What are the strongest brands?
Top Global
Brands 2019
1.24
Branding Challenges and Opportunities

 Savvy customers
 Brand proliferation( rise in line & brand extension , ex:-
Vaseline )
 Media fragmentation( interactive & non traditional
media )
 Increased competition
 Increased costs
 Greater accountability
 Company failed to understand the customer’s expectations &
went ahead to launch NEW COKE
 Research had shown that – 68 % customers in US liked the
taste of the new formula developed by Coca-Cola
Corporation .the new formula tried to make it sweeter like
Pepsi .

Coca-Cola took biggest risk in consumer goods history , of announcing


the change in formula & referred to as “New COKE” in 99 years . As a
result in 1985 within 79 days – it had to return to the original formula
now called – “COCA-COLA- Classic”
1.26
The Brand Equity Concept
Strategic Brand Management
 It involves the design and implementation of marketing programs
and activities to build, measure, and manage brand 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
Strategic Brand Management Process

Steps Key Concepts


Mental maps
Identify and establish Competitive frame of reference
brand positioning and values Points-of-parity and points-of-difference
Core brand values
Brand mantra

Plan and implement Mixing and matching of brand elements


brand marketing programs Integrating brand marketing activities
Leveraging of secondary associations

Brand value chain


Measure and interpret Brand audits
brand performance Brand tracking
Brand equity management system

Brand-product matrix
Grow and sustain Brand portfolios and hierarchies
brand equity Brand expansion strategies
Brand reinforcement and revitalization

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