Study material for MBA marketing specialization, APJ Abdul Kalam Technological University kerala. Useful for Brand management subject.

1. Unit 1: Branding Brand Management
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KTU –MBA
APJ Abdul Kalam Technological University
MASTER OF BUSINESS ADMINISTRATION
Study Material
MKT-T5-8 BRAND MANAGEMENT
Mr.Scaria Thomas
Assistant professor
Rajadahani Business school

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Units 1
Branding: Brand equity, Brand value, Brand awareness and Brand loyalty, Brand identity system
– identity perspectives, identity traps, identity structure, providing value proposition; Managing
multiple brand identities– Brand identity planning model
What is 'Brand Management?'
Brand management is a function of marketing that uses techniques to increase the perceived
value of a product line or brand over time. Effective brand management enables the price of
products to go up and builds loyal customers through positive brand associations and images or a
strong awareness of the brand. Developing a strategic plan to maintain brand equity or gain
brand value requires a comprehensive understanding of the brand, its target market, and the
company's overall vision.
BRAND
A Brand is a name, term, sign, symbol or design or a combination of them, which is
intended to identify the goals or services of one seller or another seller and differentiate them
from other manufacturers .The American Marketing Association defines ‘brand’ as “a name,
term, design, symbol, or any other feature that identifies one seller's good or service as distinct
from those of other sellers…A brand may identify one item, a family of items, or all items of that
seller.”
ELEMENTS OF A BRAND :Name ,Logo , Tagline or catchphrase, Graphics , Shapes , Colors ,
Sounds , Scents ,Tastes , Movement
FEATURES OF A BRAND: A brand has physical qualities, A brand has its own personality A
brand has its own culture, A brand is a relationship
FUNCTIONS OF A BRAND, Identification, Practicality, Guarantee , Optimization, Continuity ,
Characterization , Ethics
TYPES OF BRANDS TYPES OF BRANDS
 PERSONAL BRAND

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 INDIVIDUAL BRAND
 FAMILY BRAND
PERSONAL BRAND:
of the
particular popular celebrity. For example: Abdul Kalam
INDIVIDUAL BRAND
Individual branding, also called individual product branding or multi branding, is the
marketing strategy of giving each product in a portfolio its own unique brand name. This
facilitates the positioning of each product, by allowing a firm to position its brands differently.
FAMILY BRANDING
Family branding is a marketing strategy that involves selling several related products
under one brand name. Family branding is also known as umbrella branding. It contrasts with
individual product branding, in which each product in a portfolio is given a unique brand name
and identity.
BRAND EQUITY
Brand Equity is the value of a brand built up over a period of time. It is composed of four
components namely Image, Perception, Awareness and Loyalty. David Aaker defines brand
equity as: “A set of assets and liabilities linked to a brand's name and symbol that adds to or
subtracts from the value provided by a product or service to a firm and/or that firm's customers”
Brand Equity is an asset that can be sold or leased.
Brand equity refers to the marketing effects and outcomes that accrue to a product with its brand
name compared with those that would accrue if the same product did not have the brand name.
Brand equity is one of the factors which can increase the financial value of a brand to the brand
owner. BE is an important intangible assets that has psychological and financial value to the
firm.
FACTORS INFLUENCING BRAND EQUITY
 Changing market share
 Profit margins
 Consumer recognition of logos and other visual elements
POSITIVE BRAND EQUITY

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The positive effect of the brand on the difference between the prices that the consumer
accepts to pay when the brand known compared to the value of the benefit received
NEGATIVE BRAND EQUITY
If consumers are willing to pay more for a generic product than for a branded one,
however, the brand is said to have negative brand equity.
MANAGING BRAND EQUITY
 Brand Reinforcement
 Consistently convey the meaning of the brand to customers
 What the core brand represents, benefits supplied, which needs it satisfies
 How brand makes those product/service superior and which strong favorable unique
brand association should exist in the mind of customer
 Requires new product introduction
MANAGING BRAND EQUITY Requires consistency of marketing support (new offerings, new
promotions) . Example-
70s brand still a leader-coke kodak, hienz,wrigleys
BRAND AWARENESS
Brand Recognition: Consumer’s ability to confirm prior exposure to the brand when they go to
the store .Brand Recall: Ability to retrieve the brand from the memory when given the product
category
BRAND LOYALITY
American Marketing Association defines brand loyalty as: “The situation in which a consumer
generally buys the same manufacturer-originated product or service repeatedly over time rather
than buying from multiple suppliers within the category" "The degree to which a consumer
consistently purchases the same brand within a product class" (consumer behavior definition).
It consists of a consumer's commitment to repurchase or otherwise continue using the brand. It
can be demonstrated by repeated buying of a product or service, or other positive behaviors such
as word of mouth advice. Loyalty includes some degree of pre-dispositional commitment toward
a brand Versatile.
http://www.managementstudyguide.com/brand-loyalty.htm

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FACTORS INFLUENCING CUSTOMER LOYALTY
 Core offering
 Satisfaction
 The marketplace
 Demographics
 Share of wallet
 Customers' perceived value
BENEFITS OF BRAND LOYALTY : Brand loyal consumers start building a relationship with
the brand . They become advocates of the brand by their positive word of mouth. Brand loyal
consumers become passionate about the brand and form clubs which results in further
strengthening the brand. Loyal consumers may be prepared to try out the variants of the brand.
They may be prepared to pay a premium
TYPES OF BRAND LOYALTY
 Hard-core Loyal - who buy the brand all the time.
 Split Loyal - loyal to two or three brands.
 Shifting Loyal - moving from one brand to another.
 Switchers - with no loyalty (possibly 'deal-prone', constantly looking for bargains or
'vanity prone', looking
Brand equity is a set of assets or liabilities in the form of brand visibility, brand associations and
customer loyalty that add or subtract from value of a current or potential product or service
driven by the brand. To elaborate:
Brand visibility means that the brand has awareness and credibility with respect to a particular
customer need—it is relevant. If a customer is searching for a buying option and the brand does
not come to mind, or if there is some reason that the brand is perceived to be unable to deliver
adequately, the brand will not be relevant and not be considered.
(Brand Equity vs. Brand Value-
https://www.prophet.com/thinking/2016/09/brand-equity-vs-brand-value/)

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Brand Identity isa unique set of brand associations that the brand strategist aspires to create or
maintain.These associations represent what the brand stand forand imply a promise to customers
from the organization members.
 Brand Identity provides direction, purpose and meaning for the brand
 It is central to a brand’s strategic vision
 It is the driver of one of the four principal dimensions of brand equity
– Namely, Associations
 There is value in expanding the concept of a brand
 A limited/tactical perspective inhibits strategists from building a strong brand even when
potential exists
 To achieve maximum brand strength:
o Scope of a brand identity should be broad rather than narrow
o Thrust should be strategic rather than tactical
o There should be internal and external focus to brand creation
Brand Identity Traps represent approaches to creating an identity that are excessively limiting
or tactical and that can lead to ineffective, and often dysfunctional, brand strategies.
Types
• The Brand ImageTrap
• The Brand PositionTrap
• The External PerspectiveTrap
• The Product-Attribute FixationTrap
(https://www.slideshare.net/momarmorsi/intro-to-branding-brand-management-elkottab/52-
Domestic_Honest_Genuine_Cheerful_Sincerity _slide 52)
The Brand ImageTrap
Brand image is how customers perceive the brand. It provides useful and necessary background
information when developing brand identity. A brand image trap results when efforts to go

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beyond the brand image is lacking. The brand image becomes the brand identity rather than just
one input to be considered
The Brand PositionTrap
A brand position is the part of brand identity and value proposition that is to be communicated
and that demonstrates an advantage over competing brands. The Brand Position trap occurs
when the search for a brand identity becomes a search for a brand position. This inhibits
evolution of a full-fledged brand identity
The External PerspectiveTrap
This occurs when firms fail to realize role that brand identity plays in helping organization
understand its basic values and purpose.It is hard to expect employees to make a vision happen
if they do not understand and buy into that vision.
Here the strategic and tactical management of the brand is focused solely on product
attributes.Attributes are not the only relevant bases for customer decisions and competitive
dynamics.
The Product-Attribute FixationTrap
This trap is often caused in part by a reliance on research focusing on attributes. Product
attributes as the basis for brand identity have important limitations:
– They fail to differentiate
– They are easy to copy
– They assume a rational customer
– They reduce strategic flexibility
+
What are the basic elements of a Brand Identity System?
The basic elements include a set of well-prepared guidelines that anticipate all of the expected
encounters with your Brand Identity. It is a system that allows your communications to speak as
a consistent voice. Visual distinction is an important tool in this management process.

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 Brand Promise Overview — Explain the business mission and values. What are the
philosophy and goals of your company? This information should be understood and
accessible to all employees and representatives.
 Logo Guidelines — Provide size, spacing requirements and standards for formatting. A
good way to depict this information is through examples of real world applications
including the dos and don’ts of logo usage. The logo is considered as a final piece of art,
not to be modified or duplicated without authorized oversight or approval.
 Color Palette — Define a standard for the use of color. This is a powerful tool in your
brand identity. A primary and secondary palette should be designated for print and web
standards. This is usually indicated with formulations in Pantone, CMYK, RGB and
HSB.
 Font Standards — State primary font options for a consistent text standard that can be
maintained in deploying company content. Choose a robust font family with a variety of
weights for headlines and a readable font for blocks of text. Make sure there are matching
web fonts. And most of all, follow proper licensing procedures.
 Templates — Offer designed layouts of content style, grids, margins, font usage and
white space. Print collateral, signage standards and requirements for media usage are
examples of real-world demands on your brand identity.
 Web Standards — Name a webmaster educated in the company’s role for users of the
website. Specify a strategy for the use of social media tools and formalize a hierarchy of
messages. Company size plays a large role in the degree of responsibility for social media
strategy.
 Assets — Create a library of file formats with access through a designated authority.
These assets should be maintained and updated as the company grows and new
requirements need to be addressed. The content can include photographs, design
elements, font folders (properly licensed), and file formats such as PNG, EPS, JPG, TIFF
and RGB.

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Brand identity planning model
David A. Aaker, a marketing professor at the
University of California at Berkeley and
author of the popular Building Strong Brands
(1996), has developed a comprehensive brand
identity planning model. At the heart of this
model is a four-fold perspective on the
concept of a brand. To help ensure that a
firm’s brand identity has texture and depth,
Aaker advises brand strategists to consider
the brand as:
1) a product; 2) an organization; 3) a person;
and 4) a symbol.
1) The brand-as-product
Product-related associations will almost be an important part of a brand identity. They
are directly linked to brand choice decisions/use experience
• The product scope
• Product related attributes
• Quality / Value
• Association with use occasion
• Association with users
• Link to a country or region
2) The brand-as-organization
This perspective focuses on attributes of organization rather than those of the product
.Organizational attributes are enduring / resistant to competitive claims than are product
attributes
• It is much easier to copy a product than to duplicate an organization with unique
people, values & programmes
• Organizational attributes usually apply to set of product class, & competitor in 1
product class may find difficult to compete

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• Organizational attributes like being innovative is hard to evaluate / communicate
and it is difficult for competitors to demonstrate that they have overcome any
perceived gap
3) The brand-as-person
This perspective suggests brand identity that’s richer/ more interesting than one based on
product attributes. Brand personality can create a stronger brand in several ways:
• Help create a self-expressive benefit that becomes a vehicle for customer to
express his/her personality
• Can be the basis of relationship between customer and brand
• Help communicate a product attribute and thus contribute to a functional benefit
4) Brand-as-symbol
This perspective can provide cohesion and structure to an identity and make it easier to
gain recognition and recall. Elevating symbols to the status of being part of the identity
reflects their potential power
• Visua+l Imagery: Nike’s swoosh, McDonald’s arches
• Metaphors: Energizer bunny, Rin’s lightening
• Heritage: Amul, Aavin, Vicks, Doordarshan
Brand identity planning model

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The Identity Structure
 The core identity
Represents the timeless essence of the brand.Associations that are mostly constant as the
brand travels to new markets. More resistant to change. Includes elements that make the
brand both unique and valuable
Eg: McDonald’s
Value Offering, Quality, Service, Cleanliness, User

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 The extended identity
Includes elements that provide texture and completeness. Fills in the picture, adding
details that help portray what the brand stands for.
Eg: McDonald’s:Sub-brands, Logo, Characters, Convenience
Value proposition
A brand’s value proposition is a statement of
the functional, emotional and self-expressive
benefits delivered by the brand that provide
value to the customer. An effective value
proposition should lead to a brand-customer
relationship and drive purchase decisions.
Functional benefits
Benefit based on a product attribute that
provides functional utility to the customer. Most visible and common basis for value
proposition.Such a benefit will usually relate directly to the functions performed by the product.
If a brand can dominate a key functional benefit, it can dominate a category
Eg:Close up and fresh breath
Surf and stain removal
Emotional benefits
When purchase or use of a brand gives a positive feeling, that brand is providing an emotional
benefit. Emotional benefit adds richness and depth to the experience of owning and using the
brand. Most functional benefits will have a corresponding feeling or set of feelings.
Eg:Freshness and confidence
In the case of DFT
Self-Expressive benefits

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A brand can provide a self-expressive benefit by providing a way for a customer to
communicate his/her self-image. Purchase and use of brands is one way to fulfill the need for
self-expression.
Eg: Feeling ‘smart’ by buying Surf
The ‘can do’ attitude by wearing a Nike
Critical supports
Critical supports are also known as ‘reason to believe’ or ‘reason why’. The evidence
that shows how and why the brand is better than alternative brands. Provides credibility.They
could have a rational component and/or an psychological component
Multi-Branding
Marketing of more than two competing and almost identical products, that belongs to a single
organization and is filled under different and unrelated brands, is called multi-branding.
Eg:Unilever – Is the biggest manufacturer of ice-cream and a multinational consumer
goods company, that also produces several worldwide brands. For instance, Persil, Axe,
Rexona, Sunsilk, Dove, Lipton and more.
THE ADVANTAGES OF MULTI-BRANDING

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 Leaving less shelf space for competitors and obtaining more for yourself.
 Effectively using brand-switchers, who love to experiment with different brands.
 Competition between managers
 If the initial business succeeds,it can develop a second brand without noticeable expenses,
through the franchise.
THE DISADVANTAGES/RISKS OF MULTI-BRANDING
 Cannibalization between brands.
 Confusion caused by overlapping segments,that will result in brand switching.
 The public image of your brand may become profit oriented, rather than the customer.
 Failure due to poor management.
 Failure from wrong business choices.