BRAND MANAGEMENT Bhushan D. Sudhakar, Ph.D Assistant Professor & Co-ordinator (UG)
What is a Brand? • A brand is a name, term, sign, symbol, or design which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.
New Branding Challenges • Brands are important as ever • Consumer need for simplification • Consumer need for risk reduction • Brand management is as difficult as ever • Savvy consumers • Increased competition • Decreased effectiveness of traditional marketing tools and emergence of new marketing tools • Complex brand and product portfolios
The Customer/Brand Challenge • In this difficult environment, marketers must have a keen understanding of: • customers • brands • the relationship between the two
The Concept of Brand Equity • The brand equity concept stresses the importance of the brand 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.
The Concept of Customer-Based Brand Equity • Customer-based brand equity • Differential effect • Customer brand knowledge • Customer response to brand marketing
Determinants of Customer-Based Brand Equity • Customer is aware of and familiar with the brand • Customer holds some strong, favorable, and unique brand associations in memory
Building Customer-Based Brand Equity • Brand knowledge structures depend on . . . • The initial choices for the brand elements • The supporting marketing program and the manner by which the brand is integrated into it • Other associations indirectly transferred to the brand by linking it to some other entities
Benefits of Customer-Based Brand Equity • Enjoy greater brand loyalty, usage, and affinity • Command larger price premiums • Receive greater trade cooperation & support • Increase marketing communication effectiveness • Yield licensing opportunities • Support brand extensions.
Customer-Based Brand Equityas a “Bridge” • Customer-based brand equity represents the “added value” endowed to a product as a result of past investments in the marketing of a brand. • Customer-based brand equity provides direction and focus to future marketing activities
The Key to Branding • For branding strategies to be successful, consumers must be convinced that there are meaningful differences among brands in the product or service category. • Consumer must not think that all brands in the category are the same. • PERCEPTION = VALUE
Strategic Brand Management • Strategic brand management 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
Strategic Brand Management Process STEPS KEY CONCEPTS Mental maps Competitive frame of reference Points-of-parity and points-of-difference Core brand values Brand mantra Identify and Establish Brand Positioning and Values Mixing and matching of brand elements Integrating brand marketing activities Leveraging of secondary associations Plan and Implement Brand Marketing Programs Brand Value Chain Brand audits Brand tracking Brand equity management system Measure and Interpret Brand Performance Brand-product matrix Brand portfolios and hierarchies Brand expansion strategies Brand reinforcement and revitalization Grow and Sustain Brand Equity
Motivation forCustomer-Based Brand Equity Model • Marketers know strong brands are important but aren’t always sure how to build one. • CBBE model was designed to be … • comprehensive • cohesive • well-grounded • up-to-date • actionable
Rationale of Customer-Based Brand Equity Model • Basic premise: Power of a brand resides in the minds of customers • Challenge is to ensure customers have the right types of experiences with products & services and their marketing programs to create the right brand knowledge structures: • Thoughts • Feelings • Images • Perceptions • Attitudes
Building Customer-Based Brand Equity • Building a strong brand involves a series of steps as part of a “branding ladder” • A strong brand is also characterized by a logically constructed set of brand “building blocks.” • Identifies areas of strength and weakness • Provides guidance to marketing activities
CUSTOMER-BASED BRAND EQUITY PYRAMID 4. RELATIONSHIPS = What about you & me? RESONANCE 3. RESPONSE = What about you? FEELINGS JUDGMENTS 2. MEANING = What are you? PERFORMANCE IMAGERY 1. IDENTITY = Who are you? SALIENCE
Salience Dimensions • Depth of brand awareness • Ease of recognition & recall • Strength & clarity of category membership • Breadth of brand awareness • Purchase consideration • Consumption consideration
Performance Dimensions • Primary characteristics & supplementary features • Product reliability, durability, and serviceability • Service effectiveness, efficiency, and empathy • Style and design • Price
Imagery Dimensions • User profiles • Demographic & psychographic characteristics • Actual or aspirational • Group perceptions -- popularity • Purchase & usage situations • Type of channel, specific stores, ease of purchase • Time (day, week, month, year, etc.), location, and context of usage • Personality & values • Sincerity, excitement, competence, sophistication, & ruggedness • History, heritage, & experiences • Nostalgia • Memories
Judgment Dimensions • Brand quality • Value • Satisfaction • Brand credibility • Expertise • Trustworthiness • Likability • Brand consideration • Relevance • Brand superiority • Differentiation
Feelings Dimensions • Warmth • Fun • Excitement • Security • Social approval • Self-respect
Resonance Dimensions • Behavioral loyalty • Frequency and amount of repeat purchases • Attitudinal attachment • Love brand (favorite possessions; “a little pleasure”) • Proud of brand • Sense of community • Kinship • Affiliation • Active engagement • Seek information • Join club • Visit web site, chat rooms
Customer-Based Brand Equity Model INTENSE, ACTIVE LOYALTY Consumer- Brand Resonance RATIONAL & EMOTIONAL REACTIONS Consumer Judgments Consumer Feelings POINTS-OF-PARITY & POINTS-OF-DIFFERENCE Brand Performance Brand Imagery DEEP, BROAD BRAND AWARENESS Brand Salience
Brand Positioning • Define competitive frame of reference • Target market • Nature of competition • Define desired brand knowledge structures • Points-of-parity • necessary • competitive • Points-of-difference • strong, favorable, and unique brand associations
Issues in Implementing Brand Positioning • Establishing Category Membership • Identifying & Choosing POP’s & POD’s • Communicating & Establishing POP’s & POD’s • Sustaining & Evolving POD’s & POP’s
Establishing Category Membership • Product descriptor • Exemplar comparisons
Identifying & Choosing POP’s & POD’s • Desirability criteria (consumer perspective) • Personally relevant • Distinctive & superior • Believable & credible • Deliverability criteria (firm perspective) • Feasible • Profitable • Pre-emptive, defensible & difficult to attack
Major Challenges in Positioning • Find compelling & impactful points-of-difference (MacMillan & McGrath, HBR, ‘97) • How do people become aware of their need for your product and service? • How do consumers find your offering? • How do consumers make their final selection? • How do consumers order and purchase your product or service? • What happens when your product or service is delivered? • How is your product installed? • How is your product or service paid for?
Major Challenges in Positioning • Find compelling & impactful points-of-difference (cont.) • How is your product stored? • How is your product moved around? • What is the consumer really using your product for? • What do consumers need help with when they use your product? • What about returns or exchanges? • How is your product repaired or serviced? • What happens when your product is disposed of or no longer used?
Communicating & Establishing POP’s & POD’s • Create POP’s and POD’s in the face of attribute & benefit trade-offs • Price & quality • Convenience & quality • Taste & low calories • Efficacy & mildness • Power & safety • Ubiquity & prestige • Comprehensiveness (variety) & simplicity • Strength & refinement
Strategies to Reconcile Attribute & Benefit Trade-Offs • Establish separate marketing programs • Leverage secondary association (e.g., co-brand) • Re-define the relationship from negative to positive
Sustaining & EvolvingPOP’s & POD’s • Core Brand Values & Core Brand Proposition
Core Brand Values • Set of abstract concepts or phrases that characterize the 5-10 most important dimensions of the mental map of a brand. • Relate to points-of-parity and points-of-difference • Mental Map Core Brand Values Brand Mantra
Brand Mantras • A brand mantra is an articulation of the “heart and soul” of the brand. • Brand mantras are short three to five word phrases that capture the irrefutable essence or spirit of the brand positioning and brand values. • Nike • Authentic Athletic Performance • Disney • Fun Family Entertainment
Introduction to Advertising Outline • The mandate for effectiveness • What makes an ad effective? • The world of advertising • The five players of advertising • The evolution of advertising
TheMandateforEffectiveness • Today advertising is in a bind • Advertisers expect specific results that lead to sales • Advertising must be effective
WhatMakesanAdEffective? • Effective ads work on two levels: with consumers and with advertisers • Characteristics of effective ads: • Strategy • - • Execution • Advertising must be goal directed Creativity
The World of Advertising Defining advertising • A paid form of communication • A sponsor is identified • Tries to persuade or influence the consumer to do something • Conveyed through mass media • Reaches a large audience • Is nonpersonal
Brand advertising Retail/local advertising Political advertising Directory advertising Direct-response advertising Business-to-business advertising Institutional advertising Public service advertising (PSA) Interactive advertising Types of Advertising
The Roles of Advertising • Marketing role • Communication role • Economic role • Societal role
FunctionsofAdvertising • Provide product and brand information • Provide incentives to take action • Provide reminders and reinforcement
The Five Players of Advertising • Advertiser • Advertising agency • The advertising department • The in-house agency • Media • Vendors • Target audience
The Evolution of Advertising • Age of print • Industrial revolution and emergence of consumer society • Modern advertising: Agencies, science and creativity • Accountability era
Current Advertising Issues • Interactive advertising • Globalization • Niche marketing • Integrated marketing communications (IMC) • Consumer Power
How Brands Work • Brand personalities • Branding • Trust • Brand image • Brand relationships • Brand equity
MARKETING PLANNING PROCESS Complex, Varied Marketing Activity Detailed, Rich Marketing Models Comprehensive, Robust Marketing Measures
Role of Integrated Marketing Communications • Marketing communications … • are the “voice” of the brand and are a means by which it can establish a dialogue and build relationships with consumers. • allow marketers to inform, persuade, incent, and remind consumers directly or indirectly • can contribute to brand equity by establishing the brand in memory and linking strong, favorable, and unique associations to it.