Brand and Brand Management
description
Transcript of Brand and Brand Management
BRAND AND BRAND MANAGEMENT
Lecturer – Md Shahedur Rahman
What is brand? American Marketing
Association(AMA), a brand is a name, term, sign, symbol, or design, or a combination of them.
These different components of a brand that identify and differentiate it are brand elements.
What is 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.
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.
Five Levels of Meaning for a Product
Core benefit level: Fundamental need or want that
consumers satisfy by consuming the product or service.
(Musical entertainment on the move)
Generic product levelBasic attributes or characteristics
absolutely necessary for its functioning but with no distinguishing features.
(Ability to play music downloaded from the WEB or ripped from CD collections)
Five Levels of Meaning for a Product
Expected product levelSet of attributes or characteristics that buyers
normally expect and agree to when they purchase a product.
(Consumer expect a solid device with no moving parts and a certain amount of memory, option to add more memory in future)
Augmented product levelAdditional product attributes, benefits, or related
services that distinguish the product from competitors.
(Color LCD screen, equalizer, including different types of files, including text image and video files)
Five Levels of Meaning for a Product
Potential product levelTransformations that a
product might ultimately undergo in the future.
( Voice controlled programming, infinite batteries life)
Some brands create competitive advantages with product performance;
Other brands create competitive advantages through non-product-related means.
Why do brands matter? What functions do brands perform that
make them so valuable to marketers?
Yes, it is matter to both Manufacturer and Consumers
Importance of Brands to Consumers
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
Reducing the Risks in Product Decisions
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.
Reducing the Risks in Product Decisions
Social risk The product results in
embarrassment from others. Psychological risk
The product affects the mental well-being of the user.
Time risk You have to spend time again
to search another one.
Importance of brands to Firms Identification Simplify product handling
and tracing Organize Inventory Legal procedures Creates credibility which
can act as a barrier to entry for other firms
It’s a valuable intangible asset
Source of financial return
An Example of Branding a commodity
De beers group added the phrase
“ A Diamond Is Forever”
Three stone rings Right Hand rings
with multiple diamonds
Ad promoting We vs Me
What is branded? Physical goods Services Retailers and distributors (Walmart) Online products and services ( Google, Walmart ) People and organizations ( Richard Bronson,
National Geographic ) Sports, arts, and entertainment ( Manchester
united, Star Wars ) Geographic locations ( Malaysia – Truly Asia ) Ideas and causes
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.
What are the strongest brands?
Top Ten Global BrandsBrand 2006
($Billion)2005 ($ Billion)
1. Coca-Cola2. Microsoft3. IBM4. GE5. Intel6. Nokia7. Toyota8. Disney9. McDonald’s10. Mercedes-
Benz
67.0056.9356.2048.9132.3230.1327.9427.8527.5021.80
67.5359.9453.3847.0035.5926.4524.8426.4426.0120.00
Branding Challenges and opportunities
Savvy customers ( knowledge and demanding )
Brand proliferation ( Nivea ) Media fragmentation Increased competition Increased costs Greater accountability ( Short term profit
)
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
Strategic Brand management It is important that you Build Measure, and Manage brand equity
Strategic brand management 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 programs3. Measuring and interpreting brand
performance4. Growing and sustaining brand equity
1.23
Strategic Brand Management Process
Mental mapsCompetitive frame of referencePoints-of-parity and points-of-differenceCore brand valuesBrand mantra
Mixing and matching of brand elementsIntegrating brand marketing activitiesLeveraging of secondary associations
Brand value chainBrand auditsBrand trackingBrand equity management system
Brand-product matrixBrand portfolios and hierarchiesBrand expansion strategiesBrand reinforcement and revitalization
Key ConceptsSteps
Grow and sustainbrand equity
Identify and establishbrand positioning and values
Plan and implement brand marketing programs
Measure and interpretbrand performance
Can everything be branded? Ultimately a brand is something that
resides in the minds of consumers.