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Marketing
Brand Management
MGT515
LECTURE 01
Instructor: Laeeq Hassan Jaswal
Brand Management
• Prerequisite:
MGT 411
Course objectives
• If strong brands are among the company's most
valuable assets, managing and developing them
becomes of crucial importance for the long term
profitability of a firm.
• Brands are special, they are managed by
companies, but their positions will often reside in
consumers' minds. This implies that a brand
strategist has to combine skills: deep customer
insight, and clear strategic vision. This course
gives an introduction to both of these areas of
skills
Course Outline
• 1) To increase understanding of the important issues in
planning and evaluating brand strategies;
• 2) To provide the appropriate theories, models, and other
tools to make better branding decisions; and
• 3) To provide a forum for students to apply these principles.
• It is not enough to simply tell marketplace war stories or just
read cases for examples of how to do something. This is
because every situation is different. Therefore, in order to
learn how to create and manage brands, you need to analyze
and deconstruct examples and cases. From these exercises
you will begin to get insights into WHY things happen or don’t
happen. In other words, you will begin creating your own
theories of how branding is done and learn to compete in
local and global market.
Major Segments To Be Covered
1. Introduction to brand management. History of branding,
future challenges. Consumers and their brands.
2. The Customer Based Brand Equity framework. Brand
knowledge and associations
3. Brand elements
4. Brand Identity planning and positioning strategies
5. Tying the knot: The relationships between brands and their
buyers
6. Secondary brand associations: how can they help to
leverage and fortify the brand position
7. Leveraging the brand: gaining competitive advantage
through brand and line extensions
7. Leveraging the brand: gaining competitive
advantage through brand and line extensions
8. Establishing a brand portfolio strategy: from
house of brands, endorsed brands, sub-brands,
to a branded house
9. Corporate branding issues
10. Brands and the role of the www: critical isses
when integrating the off- and online world
11. Brand revitalization and repositioning
Text Book
• Kevin Lane Keller, M.G. Parameswaran, Isaac
Jacob. (2011); Strategic Brand Management:
Building, Measuring, and Managing Brand
Equity, 3rd. Edition; Pearson, Prentice Hall Low
Price Edition
CHAPTER 1:
BRANDS & BRAND MANAGEMENT
1.8
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.
1.9
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.
• We can make a distinction between the AMA definition of a
“brand” with a small b and the industry’s concept of a “Brand”
with a capital b.
1.10
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.
1.11
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.
1.12
• 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.
1.13
• Some brands create competitive advantages
with product performance; other brands
create competitive advantages through nonproduct-related means.
1.14
Why do brands matter?
• What functions do brands perform that make
them so valuable to marketers?
1.15
Importance of Brands to Consumers
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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
1.16
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 wellbeing of the user.
• Time risk—The failure of the product results in an
opportunity cost of finding another satisfactory product.
1.17
Importance of Brands to Firms
• To firms, brands represent enormously
valuable pieces of legal property, capable of
influencing consumer behavior, being bought
and sold, and providing the security of
sustained future revenues.
1.18
Importance of Brands to Firms
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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
1.19
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 (Maxwell House), bath soap (Ivory), flour
(Gold Medal), beer (Budweiser), salt (Morton),
oatmeal (Quaker), pickles (Vlasic), bananas
(Chiquita), chickens (Perdue), pineapples (Dole),
and even water (Perrier)
1.20
An Example of Branding a Commodity
• De Beers Group added the phrase “A Diamond
Is Forever”
1.21
What is branded?
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Physical goods
Services
Retailers and distributors
Online products and services
People and organizations
Sports, arts, and entertainment
Geographic locations
Ideas and causes
1.22
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.”
Gerald J. Tellis and Peter N. Golder, “First to Market, First to
Fail? Real Causes of Enduring Market Leadership,” MIT Sloan
Management Review, 1 January 1996
1.23
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.
1.24
What are the strongest brands?
Top Ten Global Brands
Brand
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Coca-Cola
Microsoft
IBM
GE
Intel
Nokia
Toyota
Disney
McDonald’s
Mercedes-Benz
2006 ($Billion)
2005 ($ Billion)
67.00
56.93
56.20
48.91
32.32
30.13
27.94
27.85
27.50
21.80
67.53
59.94
53.38
47.00
35.59
26.45
24.84
26.44
26.01
20.00
1.26
Branding Challenges and Opportunities
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Savvy customers
Brand proliferation
Media fragmentation
Increased competition
Increased costs
Greater accountability
1.27
The Brand Equity Concept
• No common viewpoint on how it should be
conceptualized and measured
• It stresses the importance of brand role in
marketing strategies.
• Brand equity is defined in terms of the
marketing effects uniquely attributable to the
brand.
– Brand equity relates to the fact that different outcomes
result in the marketing of a product or service because of its
brand name, as compared to if the same product or service
did not have that name.
1.28
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
1.29
Strategic Brand Management Process
Steps
Key Concepts
Identify and establish
brand positioning and values
Mental maps
Competitive frame of reference
Points-of-parity and points-of-difference
Core brand values
Brand mantra
Plan and implement
brand marketing programs
Mixing and matching of brand elements
Integrating brand marketing activities
Leveraging of secondary associations
Measure and interpret
brand performance
Grow and sustain
brand equity
Brand value chain
Brand audits
Brand tracking
Brand equity management system
Brand-product matrix
Brand portfolios and hierarchies
Brand expansion strategies
Brand reinforcement and revitalization
1.30