For companies in almost every industry, brands are of paramount importance. The main reason for this is that customer has a staggering number of choices. Along the real world shopping, virtual shopping on the Net becomes more and more prominent. Facing literally thousands of, seemingly, identical products or services, all of which promise “the best, unique, new, perfect” etc., how the customer be certain to obtain promised, expected an always the same quality for his money? Simply, customer chooses the brand. He trusts products or services which are known to him, which he has tried and which gave him satisfaction. Brand becomes a stamp of quality recognized by the customer, trusted, seeked out and loyal to

1. Jerusalem, November 20th, 2008 Brand: A Mark of Quality
PODRAVKA DD.
KOPRIVNICA, CROATIA
BRAND: A MARK OF QUALITY
Katarina Gaži Pavelić

2. BRAND: A MARK OF QUALITY
Presentation topics:
• The importance of brand
• The perceived brand quality
• Aligning the percived quality with the actual
brand quality
Author: K. Gaži Pavelić, dipl.oec.,
EOQ Quality Systems Manager and Auditor
Jerusalem, 10. srpanj 2013.g. Brand: A Mark of Quality

3. Jerusalem, 10. srpanj 2013.g. Brand: A Mark of Quality
What is a brand?
3
“Brands are solaces for our soul – beacons in
the chaotic world.”
R. Ridderstråle, K.A. Nordström
A brand is a name, term, sign, symbol or
design, or a combination of them, intended to
identify the goods or services of one seller or
group of sellers and to differentiate them
from those of competitors.
Kotler et al. 1999

4. " A product is something
that is made in a
factory; a brand is
something that is
bought by a customer.
A product can be copied by a competitor, a brand is
unique. A product can be quickly outdated; a successful
brand is timeless.“
Brand is unique
Source: Stephen King, WPP Group, London

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Reasons for branding
• Product differentiation
Brand gives customers clear emotional and logical reasons to
buy a product
• Value perception
Customers perceive brands as products of a higher quality, more
reliable and as those who offer higher value for money.
- Brand no one > 10% more expensive then brand no two, > 40%
more expensive then a private brand.
• Brand loyalty
Repeat business is significant to long-term business success
- Costs are up to 90% lower
• Pride
Known brand makes company employees proud

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Reasons against branding
• Inability to identify: if brand cannot be identified
or distinguished from substitutes
• Inability to maintain quality: branding would mark
out items to avoid
• Very small market: not cost effective
• Irregular availability: must assure steady supply

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Brand Equity
Brand equity is the added value endowed on
products and services, which may be reflected
in the way consumers, think, feel, and act with
respect to the brand.
Kotler et al. 1999

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What is Brand Equity?
Brand Equity
Brand loyalty
Brand awareness
• Reason-to-buy
• Differentiate/ position
• Price
• Channel member interest
• Extensions
Perceived brand
quality
Brand associations
Other proprietary brand assets

9. "It is only shallow people who do not judge by
appearances."
Oscar Wilde

10. Percieved Quality
Perceived quality is defined as a consumer’s
evaluation of a brand’s overall excellence
based on intrinsic (e.g., performance,
durability) and extrinsic cues (e.g., brand
name, warranty) (Kirmani and Baumgartner, 2000)

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Perceived Brand Quality
• Reason to buy
- Customer has not the time or ability to evaluate the quality
objectively.
- Perception of quality is the determinant factor in the buying decision.
• Differentiation/ positioning
- Establishing a specific image for a brand (the best, premium,
excellent) in relation to competing brands and their quality
• Premium price
- When the perceived quality is high, price may be/ must be
accordingly higher
- perceived quality enhances profit growth (premium price = quality)

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Perceived Brand Quality/ cont.
• Marketing chanell members' interest
- Strong influence on the marketing chanell members
(distributors, wholesale, retailers).
• Brand extentions
- Giving of a popular brand name to a new product in an
unrelated product category
• Brand contraction (only one, supreme brand), A. Ries
- a company is positioning itself as a specialist

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Customer Expectations
• Performance: fulfillment of product’s primary operating
characteristics.
• Features: desirable product characteristics that supplement
basic functioning
• Conformance to specifications: failure incidence,
occurence of defects (production oriented quality)
• Reliability/consistency: allways the same level of
Performance, Aesthetics, taste etc.
• Durability: actual equals the promised and the expected
• Service : efficient, competent and appropriate
• Aesthetics: product looks and feels like a quality product
Acc. to D. Garvinu

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Transforming the real quality into the
percieved quality
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• Commitment to quality
• Quality culture
• Customer feedback
• Measuring, goals and standards
• Customer expectations
Transformation of the real quality into the
percieved quality is possible only if a company
has:

15. Brand is the quality pledge
It is not enough to claim "We are the best!"
Customers need a quality warranty that a
company is really behind it's brand promises
The pledge must be:
– unconditional
– understandable
– easily fulfilled
– significant for a customer

16. THANK YOU!