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Learn Brand Management - Create Successful Brands
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)
Brand and Branding Basics:
What is Brand Identity?
 A promise that gets kept consistently.
 It creates a personality and a life for your products/services.
 A unique and consistent look, feel, tone and voice for all
communications.
 It’s essential to your success in the market place.
Anything can be Branded – Branding is Universal
 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.
 Ideas and Causes – Red Cross, NRA.
Management of Brand
Brand Equity (Phrase used in Marketing Industry): It describes value
of a well-known brand name, based on the idea that the owner of a well-known
brand name can generate more money from products with that brand name than
from products with a less well known name, as consumers believe that a product
with a well-known name is better than products with less well-known names.
Sources of Brand Knowledge
 Associative node model of memory
 Brand awareness
 Brand image
 Strength of brand associations
 Favorability of brand associations
 Uniqueness of brand associations
Why Brand Equity?
Positive brand equity leads to:
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Loyalty
Larger Margins
Greater Trade Support
More Efficient Communications / Marketing
Resiliency to Crises
Licensing Opportunities
Brand Extension Opportunities
Reduced Vulnerability to Competition
Greater financial returns
Building Equity:
1.
Determine brand knowledge structures
a.
b.
c.
2.
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4.
Breadth of awareness (brand salience)
Positioning (points of parity/difference)
Image (strong & favorable brand associations)
Develop marketing programs
Integrate across product lines and geographies
Measure and control
a.
Feelings/judgments/loyalty
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
The Value of Brand Equity:
Online Branding:
 A key marketing challenge in today’s multi-channel, multi-
device world is the integration of digital marketing
opportunities into the traditional marketing mix.
 Leveraging the capabilities of the Internet’s network
connectivity and interactivity to drive revenue is of
paramount importance to today's marketer.
Branding in 21st century:
 Who creates brands?
 How do you create a brand?
 How do you value a brand?
 What is brand immersion?
• What is brand immersion?
• Tell me about a time that you felt immersed in a brand.
In the 21st century, this is what your job is all
about:
 Find ways to make your brand more experiential and hence more memorable!
 careful spatial planning
 live, real-time, event-based nature of the brand interaction
 Shift consumers’ perception and practice of what constitutes a marketing
‘space’.
 Immersion marketing seeks to achieve a much more proximal relationship
between consumers and brands.
 as theorists of the ‘experience economy’ put it:
 ‘the more effectively an experience engages the senses, the more memorable it
will be’ What makes a medium or environment immersive?
What makes a medium or environment immersive?
Wmake a medium or environment imme
•
What makes a medium or environment immersive?
hat makes a medium or environment im
Branding Strategies:
 Speaking to the Head and the Heart
To acquire, retain, and grow customers, companies need to
know how customers make brand decisions.
The brand decision can be primarily cognitive or
experiential depending on the product category and
situation.
Brand decision-making is partly rational and partly
emotional, so brands must speak to both the head and
the heart.
Factors That Influence Brand Decisions:
Three factors influence decision-making:
 Level of involvement (high to low)
 Customers (retention) versus Prospects (acquisition)
 Consumers versus Businesses
The Head to Heart Decision-making Continuum:
Three Approaches to Making a Brand Decision
Basic Brand Decision-making Steps
 Step 1: Problem and Opportunity Recognition
 Step 2: Information Search
 Step 3: Evaluation of Choices
 Step 4: Behavior and Action
 Step 5: Review of Buying Decision
Problem and Opportunity Recognition:
What are the needs and wants?
Before brand messages can influence customers or prospects,
brand messages must first get the attention of these
customers and prospects.
Selective perception is the process used to decide what is
worthy of attention.
Maslow’s Hierarchy of Needs:
Safety and Security Needs: We often see marketers use the
safety need of Maslow’s Hierarchy of needs in automobile
needs.
Social Needs-Example
Step 2: Information Search
 During the search for information, customers usually focus on the
differences they perceive among competing brands.
 Brand awareness and brand knowledge are crucial here.
 Research shows that when customers see marketing
communication that is relevant to them, they are more likely to pay
attention and think about it.
 Two routes used in information searching:
 Central Route
 Peripheral Route
Step 3: Evaluation of Choices – Affective Responses
 An affective response involves emotional processing and
results in preferring (or not preferring) a brand and
developing a conviction about it.
Step 4: Behavior and Action
 Attitudes and behavior are linked, however the links are
not always direct or clear.
 People act according to their attitudes and beliefs, as well
as what they know.
Step 5: Review of Buying Decision
Customers evaluate purchases consciously or subconsciously and
arrive at some level of satisfaction.
This leads to either a repeat purchase or a return to a search for a
different brand.
The review process involves learning.
Two theories of learning:
 Cognitive Learning
 Conditioned Learning
Persuading People to Persuade Themselves
 Marketing communication is a type of intervention in a customer’s
brand decision process.
 The intervention works only if the planner truly understands the
customer’s relationship to the brand.
 From an IMC perspective, communication that helps customers
and responds to them in a personal way is much more persuasive
than communication that tries to manipulate them.
Brand Architecture and Brand portfolio:
Brand Architecture:
 The branding strategy of the firm which tells marketers which
brand names, logos, symbols apply to which new and existing
products.
 Umbrella, family or corporate branding (branded house)
 Individual brands (house of brands)
The Role Of Architecture:
 Clarify-brand awareness
 Improve customer understanding and communicate similarity and
differences between individual products
 Motivate-brand image
 Maximise transfer of equity to/from the brand to individual products
to improve trial and repeat purchase
Brand Portfolio:
 Brand Line
 Products within a brand (original +extensions)
 Brand portfolio is a set of all brand lines targeted at various segments
 Product line
 Set of products with similar function
 Product across brands or brand extensions
 Branding strategy
 Number of common and distinct brand elements to be used
 Breadth ( in terms of brand – product relationship and brand extension
strategy)
 Depth (in terms of product-brand relationship and brand-portfolio)
Other Special Roles of brand in a portfolio
 Tap into untapped segment
 Serve as flanker and protect flagship brand
 Serve as cashcow and be milked for profits
 Low end entry level product – customer acquisition
 High end prestige product
Brand Hierarchy:
Kapferer’s Branding System:
 Product Brand (Ariel, tide and Dash by P & G)
 Line brand.. Across different products (Chevrolet: GM)
 Range Brand or Umbrella brand … (maggi food range)
Other Way of classifying:
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Corporate brand (GM)
Family Brand (Chevrolet)
Individual Brand (optra)
Modifier (GLX)
Corporate Branding:
 A corporate brand is distinct from a product brand because it
can encompass a whole new set of associations
 It’s a powerful means to express the company philosophy in a
way that is not tied to the product or the service
Corporate Branding :
Examples of Corporate Branding:
Family Brands:
 Distinct family brands creates a special set of associations
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across a group of related products
Cost of introducing a related new product is lower
Acceptance of new products is higher
However, failure of one can effect others
Marketing activities need to be closely coordinated
Family Brand Level:
Corporate Image Dimensions:
Product Related
 High Quality
 Innovative
People and Relationships
 Customer Orientation
Values & Programs
 Socially responsible
 Environmentally concerned
Brand Promotion and Planning:
Advertising Plan and Its Marketing Context:
Specifies thinking and tasks needed to conceive and implement an effective
advertising effort
Advertising Plan Components: Objectives:
 To create or maintain brand awareness.
 To change consumer beliefs or attitudes.
 To influence purchase intent.
 To stimulate trial use.
 To convert one-time users into repeat purchasers.
 To encourage brand switching.
Sales vs. Communication Objectives
Advertising = Sales?
Advertising = Communication?
Effective Communication = Sales?
Focusing on communications objectives allows advertisers to consider a broad
range of strategies. Building brand loyalty can take years.
Advertising Plan Components
Objectives:
Characteristics of Workable Objectives:
 Quantitative benchmarks
 Measurement methods
 Criteria for success
 Time frame
Budgeting Methods:
 Percentage of sales
– Does not relate spending to objectives
 Share of market/voice
– Likely to maintain “status quo” market share
 Response models
– Depends on sales = advertising relationship
Ad In Context Example:
What is the Strategy in this ad?
Advertising Plan Components:
1. Execution:
Copy Strategy
Media Plan
Integrated Brand Promotion
2. Evaluation:
Criteria
Methods
Consequences
The Role of the Advertising Agency in Planning
Advertising and IBP
 Advertiser must bring to the table an assessment of the brand’s
value, the external environment, and opportunities and threats.
 The advertising agency’s role is to translate the current
marketing plan and market status of the brand into:
– advertising objectives
– advertising strategies
– finished advertisements and IBP materials
– placement and execution of advertising and IBP
Protecting Brands through Trademarks:
TRADEMARK
 A sign used to distinguish the goods and services offered by one
undertaking from those offered by its competitors.
 A trademark should allow a consumer to recognize the origin of
the goods or services traded under the sign, so he may in future
decide on that basis whether (or not) to repeat his choice of
purchase.
 When a trademark no longer just serves to distinguish its
company’s goods or services but carries with it a message of the
company’s values and outlook, it becomes the most valuable longterm asset of a Brand.
Trademark Protection Against Infringement: Basic Considerations
Protection of registered marks worldwide;
International treaties on trademark law – multi-lateral protection;
broader scope of protection - likelihood of confusion - reputation;
prima facie recognition of exclusive right;
ex-officio protection against subsequent trademark applications;
record registered trademarks with Customs for detention and
seizure of infringing products
Protection of unregistered marks
 goodwill
 not uniformally applied (Common – Civil Law);
 burden of proof.
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Trademark Infringement:
Trademark infringement: the violation of the exclusive rights to a registered
trademark without the consent of the trademark owner.
Infringement occurs when one party uses a trademark identical with or confusingly
similar to a trademark owned by another party, in relation to identical or similar
goods or services covered by the registration.
The owner of a registered trademark may start legal proceedings against the party
that infringes its registration. In many countries (but not those
recognizing common law) the trademark owner cannot bring infringement
proceedings if its trademark is not registered.
In such cases, the trademark owner may start proceedings under the common law
for passing off
or misrepresentation, or under legislation which prohibits unfair business
practices, provided is can prove goodwill / reputation in the mark.
What Constitutes A Trademark?
A trademark may consist of any signs capable of being
represented graphically, particularly words, including
personal names, designs, letters, numerals, the shape of
goods or their packaging, provided that such signs are capable
of distinguishing the goods or services of one undertaking
from those of other undertakings
Using a Trademark as a Business Assest:
 Licensing: owner retains ownership and agrees to the use of
the TM by other companies in exchange of royalties >
licensing agreement (business expansion/diversification)
 Franchising: licensing of a TM central to franchising
agreement. The franchiser allows franchisee to use his way of
doing business (TM, know-how, customer service, s/w, shop
decoration, etc)
 Selling/assigning TM to another company (merger &
acquisitions/raising of cash)