2. What is a Brand?
Old Norse word – brandr – to burn.
AMA – 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 the competition.
Branding basis – people, place, animal or bird, scientific term, and things or objects.
Branding contain – inherent product meaning, and attributes or benefits.
Branding could be done for product (physical good, retail store, person,
organization, place, or an idea.
Brand = product + other differentiating dimensions (physiological and
psychological)
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3. Product Levels?
Core benefits – fundamental need or want.
Generic product – basic offering.
Expected product – normal expectation from a product in the market.
Augmented product – differentiating and distinguishing attributes, benefits, or
related service.
Potential product – ideal and in future.
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4. Branding - benefits?
Consumers Manufacturers
Identification of source Means of identification for handling or
tracing
Assignment of responsibility Legal protection
Risk reducer – functional, Signal of quality to consumers
physical, financial, social,
psychological, and time
Search cost reducer Endowing product with unique association
Promise, bond, or pact Competitive advantage
Symbolic, cultural Source of financial return
Signal of quality
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5. Branding is Universal (anything can be branded)
Commodity – Chicken, Coffee, salt, fruits, vegetables, water, etc.
Physical good - Consumer products; Business to Business; High-tech products.
Services – KPMG, Citi, Airlines, Energy firms, etc.
Retailers and distributors – Sears, Wal-Mart, private or store brands.
On-line product and services – google, e-bay, etc.
People and Organizations – Paul Newman.
Sports, Arts, and Entertainment – Cowboys?
Geographic Locations – Australia, Alaska.
Ideas and Causes – Red Cross, NRA.
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6. Determinants of Brand Longevity
Vision of the mass market?
Managerial persistence?
Financial commitment?
Relentless Innovation?
Asset leveraging.
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7. Some Challenges…
Savvy consumers, maturing market, decreasing brand loyalty.
Brand proliferation, complex brand families, .
Media fragmentation, eroding traditional media, new options,
changes in advertising and promotional expenditures.
Increased competition, difficulty differentiating, private
labels.
Increased cost, increasing trade power.
Increased accountability, job turn-over.
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13. Brand Associations
Stolichnaya Absolut
– Experienced – Young
– Self-assured – Contemporary
– Successful – Flashy
– Male – Male
– Lexus – Bars
– Not-trendy – Advertising or arts
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14. Evolution of Brand Elements,
GE
1876-1960’s electronics
1900 trademark’s logo
1900 slogan – Better Living Electronically
1960’s General Electric -> GE
1970’s slogan – Progress for People
1979 slogan – We Bring Good Things to Life
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15. Brand Equity
But how does one develop brand equity?
The goal of this course is to learn how to manage
brands (via marketing programs) in order to create
brand equity - that is, create an enduring
advantage for your brands.
Strategic Brand Management Process:
1. Identifying and Establishing brand position 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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16. Building Customer-Based Brand Equity
TOOLS AND OBJECTIVES KNOWLEDGE EFFECTS BENEFITS
Choosing Brand Elements (4)
Possible Outcome
Brand name
}
Logo Memorability Brand Awareness (2) Greater loyalty
Symbol Meaningfulness Depth Recall
Character Transferability Recognition
Less vulnerability to competitive
Packaging Adaptability marketing actions and crises
Slogan Protectability Breadth Purchase
Consumption Larger margins
Developing Marketing Programs (5 & 6) More elastic response to price
increases
Product Functional & symbolic benefits
Price Value perceptions
Brand Associations (2&3) More inelastic response to
Distribution channels Integrate “Push” & “Pull”
price increases
Communications Mix and match options
Strong Relevance
Consistency Increased marketing communica-
Leverage of Secondary Associations (7) tion efficiency and effectiveness
Favorable Desirable
}
Company Deliverable Possible licensing opportunities
Country of origin
Channel of distribution Awareness Unique Point of parity More favorable brand extension
Other brands Meaningfulness Point of difference evaluations
Endorsor Transferability
Event
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17. Building Equity
1. Determine brand knowledge structures
a. Breadth of awareness (brand salience)
b. Positioning (points of parity/difference)
c. Image (strong & favorable brand associations)
2. Develop marketing programs
3. Integrate across product lines and geographies
4. Measure and control
a. Feelings/judgments/loyalty
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18. Brand Value:
Brand Hierarchy Pyramid
Very meaningful in
The emotional beliefs and
differentiating our Brand but
values that consumers feel
very difficult to deliver
are being addressed by our
consistently to our
brand (CENTRAL)
Beliefs & consumers
Core
Values
The functional and emotional
benefits that our
product/services provides to
the consumer
Benefits
(EXPRESSIVE)
Product/Service features Features & Easy to deliver and explain
and/or attributes that must be to consumers but also easy to
addressed (FUNCTIONAL)
Attributes imitate
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19. Brand Management
Brand management is the act of
designing and implementing
marketing programs to build and
maintain brand equity.
– Product
– Price
– Distribution
– Communications
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20. The Role of a Brand or
Product Manager
Prepare Marketing Plan
Develop Copy, Programs, and Campaigns
Stimulate Sales and Distribution
Market Intelligence
Product Improvements
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21. The Role of a Brand or
Product Manager
Pluses
- Cost effective mix, quick market reaction,
attention for small brands, good training for
executives
Minuses
- Conflict and frustration (responsibility and no
authority), administrative work with executive
expectations, learns products not functions,
short horizon, costs of associates and assistants
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22. A Product Manager -
Computer Software Firm
Typical day
– Meetings - new product line, marketing mix,
marketing staff, organizational design and
integration
– E-mail/Phone - 3rd party developers, sales
force, product support
Marketing planning - drafting the marketing
plan
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23. A Product Manager
Computer Software Firm
Marketing mix - recommends price to
corporate committee, manages advertising,
conducts focus groups for product positioning
and development, decides on channels
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24. A Product Manager -
Consumer Packaged Goods Firm
Typical day
– 75% fighting fires, 25% planning
Marketing planning - key is volume forecasting
since unsold inventory is perishable
Mix - 1/3 on pricing issues (list & trade), 20%
on consumer promotions, president handles
ads, 15% on distribution, little on sales and
service
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25. A Product Manager
Packaged Goods Firm
Marketing mix - recommends price to
corporate committee, manages advertising,
conducts focus groups for product positioning
and development, decides on channels.
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26. Brand Management Issues
Media
Purchasing Packaging
Promotion Salesforce
Services
R&D
Product Distribution
Manager
Fiscal
Manufacturing
Legal Publicity
Market Advertising
Research Agency
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