Module 6- Branding

8/6/2019 Module 6- Branding

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MODULE 6

MBA I SEM, ITM-Bangalore



IMPORTANCE

OF BRANDING



AGENDA

Brand- Definition, Scope, Importanceof Branding and Emotional Branding

Brand Personality Brand Equity- Building and Managing

Brand Equity

Branding Strategy- Brand portfolio Customer Equity



BRAND- DEFINITION

AMA defines Brand as name, term, sign, symbolor design or combination of them, intended toidentify and differentiate the goods or services

of one seller to that of another. Branding is about creating differences between

products. For Brand strategies to be successfuland Brand value to be created, consumers must

be convinced about meaningful differences amongbrands.

Marketers can apply branding to physicalproduct, store, services, people etc..



BRANDING, CONTD..

According to Al Ries and Laura Ries, ´Brandingµ

presells the product or service to the user.

Scott Bedbury admitted that ¶consumers don·t truly

believe there·s a huge difference between

products,· which means brands have to establish

¶emotional ties· with their customers.



EMOTIONAL BRANDING

It·s a new paradigm for connecting brandswith people.

In this hypercompetitive market, emotionalaspect of products and their distributionsystems will be the key differentiator.

How a brand engages consumers on the level

of the senses and emotions and how a brandcomes to life for people and forges a deeperlasting connection.



ACTIVITY TIME

Hitesh switched on _____________ aircon andthe tv which he bought from _____________ retail store, used his DTH ____________ to doso. Soon he started reading his favorite book while

lounging on cushions he bought last week from ____________. He just checked time on his _____________ watch, surfed internetwith______________ , made calls with

________________ and quickly grabbedsomething to eat. He sprinkled ___________salton his grub while sipping ____________ ,took outhis _____________ car and drove to

_________________ for the weekend on abridge constructed with _____________.



BRAND PERSONALITY

As per Jennifer L. Aaker (1997) brandpersonality can be defined as ´the set of humancharacteristics associated with a brand.µ

In simpler words, brand personality is about giving asymbolic meaning and ´Lifeµ to the brand as if it

were a person with a distinct personality.

Every brand has a personality. If it doesn·t, it is more

likely to be trodden on by those who have distinct

brand personality in the minds of the customers.



BRAND EQUITY

Customer based brand equity emphasizes thatpower of the brand lies in what customers havelearned, thought and felt about the brand over

time. David Aaker distinguished 5 levels of customer

attitude toward the brand-

� Customer will change brands, esp because of

price reasons.� Customer is satisfied and has no reason to

change the brand.



BRAND EQUITY, CONTD..

� Customer is satisfied and would incur costs bychanging brand.

� Customer values the brand and sees it asfriend.

� Customer is devoted to the brand.

Another very popular Brand equity Model is

Brand Resonance Pyramid which also showsvarious stages of Brand Development.



BRAND RESONANCE PYRAMID

Resonance

J entseelin s

Perfor ance

I a ery

Salience

Relationships

Response

Meaning

Identity



BUILDING BRAND EQUITY

From marketing management perspective,building brand equity is a three step process-1) The initial choices for the brand identities:

logo, symbol, slogans etc. While Choosing these

brand elements, marketers should try to makethem easy, memorable, meaningful, likeable,protectable etc.

2) Marketing activities and supporting MarketingPrograms: Word of mouth, interactions with

company personnel, telephone experiences andpayment interactions, all these touch points buildbrands. Personalization, Integration andInternalization are some of the brand buildingmarketing programs.



BRAND BUILDING, CONTD..

3) Other associations indirectly transferred tothe brand.



MANAGING BRAND EQUITY

Brand Reinforcement: To reinforce brandequity, marketers should consistently convey themeaning of their brands in terms of their core

benefit and their superiority along with theirunique brand associations.

Brand Revitalization: Brand revitalizationbecomes necessary with changing consumer

tastes and preferences, changing technology andwith changing marketing environment. It alsoconsiders decision regarding repositioning.



MANAGING BRAND EQUITY..

Brand Promise: It is the marketer·s vision ofwhat the brand must do for consumers.

Brand Identity: Brand Identity is what we

transmit to the market place- it is what is underour control provided we understand the essenceand expression of our brand.

Brand Image: The image of the brand is what

exists in the minds of consumers. It is the totalof all the information they have received aboutthe brand.



BRAND DIMENSIONS

SOURCE DIFFERENCES

PERSONALI Y FUNC IONS

What is it?

What is it for?What does it

do?

How do people

feel about it?

Do they like it?

What does thecompany stand

for?

What are itsaims?

How is itbetter?

How is itdifferent?



BRAND LOYALTY, CONTD..

� Consumers might tell others about the brandwhich will benefit from positive word of mouthpublicity.

�Since it is less expensive to retain existingcustomers than acquiring new ones, marketingcosts are reduced.



BRANDING STRATEGY

Brand Extension: It refers to the use ofsuccessful brand name to introduce a newproduct. It can be line extension or category

extension. Branding Decisions: Marketers need to decide

on four general strategies :-a) Individual namesb) Blanket family namesc) Co brandsd) Corporate name combined with individual product

names.



BRANDING STRATEGY

Brand Portfolio: It is the set of all the brands aparticular firm offers in a particular category. Inoptimal brand portfolio, each brand maximizes its

equity in combination with all other brands.Specific roles of brands are:

a) Flankers

b) Cash Cows

c) Low-end Entry Leveld) High-end Prestige



MEASURING BRAND EQUITY

Since power of the brand resides inconsumers· minds, marketers canunderstand this through assessing the

actual impact of Brand Knowledge onconsumer responses to different aspects ofmarketing.

Brand Valuation is about total financial valueof the brand. Brand Value can be defines asNet Present value of future brand earnings.



CUSTOMER EQUITY

Customer equity can be defined as the sum oflifetime values of all customers.

Rust, Zeithaml, and Lemon distinguish 3 drivers

of Customer equity-Value Equity, Brand Equityand Relationship equity.

The aim of CRM is to produce higher customerequity.



No-Brand Brand

A visit to a Muji store in apan is an eye opener.One of the first things you notice is that theclothes are all bland, mostly white or beige and

never bright. Beige works. There is no logo onshirtfronts; in fact, there are no labels at all,even on the inside. Why would you want a label?The furniture, cookware and office equipment

are plain but functional. The designs are simple.They just provide what is needed to deliverfunction. The prices are low not by using cheapmaterials or design, but by cutting frills andusing design with the right objectives.



BRAND EXTENSIONS- A GOOD

STRATEGY

Brand extensions are the use of an existing brandname on a new product in a new category to benefitfrom the existing brand name·s awareness andassociations³leverage the investments a companymakes in its existing brand names and hedge againstthe risk of new product failures. The popularity ofthis strategy is due to the belief that it leads tohigher consumer trial than the use of a new brand

name because of the awareness levels and associationequities of the brand name being leveraged. However,not all brand extensions succeed, and there is a riskthat failure will backfire on the image of the parentbrand. Relying on single brand strategy can also

constrain flexibility.



THANK YOU

Module 6- Branding

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