Importance of branding

1. Branding promotes recognition. 2. Your brand helps set you apart from the competition. 3. Your brand tells people about your business DNA.4. Your brand provides motivation and direction for your staff.

5. A strong brand generates referrals: People love to tell others about the brands they like. People wear brands, eat brands, listen to brands, and theyre constantly telling others about the brands they love. On the flip side, you cant tell someone about a brand you cant remember.6. A strong brand helps customers know what to expect: A brand that is consistent and clear puts the customer at ease, because they know exactly what to expect each and every time they experience the brand.7. Your brand represents you and your promise to your customer.8. Your brand helps you create clarity and stay focused. 9. Your brand helps you connect with your customers emotionally. 10. A strong brand provides your business value.

11. Wrapping it up : The best branding is built on a strong idea an idea that you and your staff can hold on to, can commit to, and can deliver upon.

Types of brand1. Personal brands: Whether you know it or not, you have a personal brand. If people know your name or recognize your face, they hold your brand image in their minds.2. Product brand: Products (commodities) become branded products when you win awareness in the marketplace that your product has compelling characteristics that make it different and better than others in the product category.3. Service brands: Services are products that people buy sight-unseen. People buy services purely based on their trust that the person or business theyre buying from will deliver as promised.4. Corporate brand Otherwise known as the organizational brand. David Aaker puts it very well: The corporate brand defines the firm that will deliver and stand behind the offering that the customer will buy and use.5. NGO (Non Governmental Organization) or Non Profit brand An area of transition, as the sector shifts gear looking for value models beyond just fundraising to drive social missions.6. Investor brand Normally applied to publicly listed brands and to the investor relations function. Positions the listed entity as an investment and as a performance stock, blending financials and strategy with aspects such as value proposition, purpose and, increasingly, wider reputation via CSR.7. Public brand Otherwise known as government branding. Contentious. Many, including myself, would argue that you cant brand something that doesnt have consumer choice and a competitive model attached to it.8. Place brand , national brand, ethical brand, celebrity brand, private brand, employer brand9. Global brand The behemoths. These brands are easily recognized and widely dispersed. .10. Luxury brand Prestige brands that deliver social status and endorsement to the consumer.

Strategic Brand Management Process

1. Identifying and establishing brand positioning.Brand Positioning is defined as the act of designing the company's offer and image so that it occupies a distinct and valued place in the target consumer's mind. Points of difference: convinces consumers about the advantages and differences over the competitors Mental Map: visual depiction of the various associations linked to the brand in the minds of the consumers Core BrandAssociations: subset of associations i.e. both benefits and attributes which best characterize the brand. Brand Mantra: that is the brand essence or the core brand promise also known as the Brand DNA.2.Planning and Implementation of Brand Marketing Programs Choosing Brand Elements: Different brand elements here are logos, images, packaging, symbols, slogans, etc. Since different elements have different advantages, marketers prefer to use different subsets and combinations of these elements. Integrating the Brand into Marketing Activities and the Support Marketing Program: Marketing programs and activities make the biggest contributions and can create strong, favorable, and unique brand associations in a variety of ways. Leveraging Secondary Associations: Brands may be linked to certain source factors such as countries, characters, sporting or cultural events,etc. In essence, the marketer is borrowing or leveraging some other associations for the brand to create some associations of the brand's own and them to improve it's brand equity.3.Measuring and Interpreting Brand Performance Brand Audit: Is assessment of the source of equity of the brand and to suggest ways to improve and leverage it. Brand Value chain: Helps to better understand the financial impacts of the brand marketing investments and expenditures. Brand Equity Measurement System: Is a set of tools and procedures using which marketers can take tactical decision in the short and long run.

4. Growing and Sustaining Brand Equity:Key Concepts: Defining the brand strategy: Captures the branding relationship between the various products /services offered by the firm using the tools of brand-product matrix, brand hierarchy and brand portfolio Managing Brand Equity over time: Requires taking a long -term view as well as a short term view of marketing decisions as they will affect the success of future marketing programs. Managing Brand Equity over Geographic boundaries, Market segments andCultures: Marketers need to take into account international factors, different types of consumersand the specific knowledge about the experience and behaviors of the new geographies ormarket segmentswhen expanding the brandoverseas or into new market segments.Brand Identity PrismBrand Identity Prism enables brand managers to assess the strengths and weaknesses of their brand using the six aspects of this prism. It also helps to find the ways of creating the brand loyalty and financial value.1) Physique Physique is the basis of the brand. It may include product features, symbols and attributes.2) Personality Personality defines what personality will the brand assume if it were a person. Personality includes character and attitude.3) Culture Culture takes a holistic view of the organization, its origins and the values it stands for.4) Relationship The strength of the relationship between the brand and the customer. It may represent beliefs and associations in the human world.5) Reflection What does the brand represent in the customers mind or rather the customer mindset as reflected on the brand6) Self image How does the customer see himself when compared to the brand. Example A customer might see himself capable or incapable of buying a BMW car.

Brand Identity PerspectivesAny brand has different facets on which its identity can be built. Typically, brand managers choose one or more from the following four facets: Product Organisation Personality SymbolProduct: Product attributes are closely related to customers' choice decisions and experience. Product related associations therefore invariably find a place in the brand identity. Organisation: In some cases, the organisation is itself the brand. Here all products are marketed under the halo of the organisation brand. In such situations, the organisational attributes are used as basis for brand building. Personality: Some brand managers attempt to 'humanise' their brands. This, they believe, will serve to move the brand from a mundane to a richer and more interesting plane. A successful brand personality will result in the brand becoming a vehicle for customers who want to express their own personality. Symbol: In a marketplace proliferating with different brands, it is imperative that a brand stands out grabbing customer's attention. Symbols and logos are used to achieve this purpose.

Brand EquityBrand Equity is the value and strength of the Brand that decides its worth. It can also be defined as the differential impact of brand knowledge on consumers response to the Brand Marketing. Brand Equity exists as a function of consumer choice in the market place. The concept of Brand Equity comes into existence when consumer makes a choice of a product or a service. It occurs when the consumer is familiar with the brand and holds some favourable positive strong and distinctive brand associations in the memory.measures of brand equityBrand equity is the combined measure of brand strength and consists of knowledge preferences and financial considerations. Each of the three measures under these three metrics is critical. Knowledge metrics It measures a brands awareness and association through top of the mind recall, recognition aided and unaided. Functional and emotional associations of a brand are also key drives of brand equity. Brand should score high on both the awareness and association attribute. Example 1 : Consumers are aware of the energy drink Boost and they recalls it by associating with Sachin Tendulkar with the brand and when they watch Sachin they recall the add and which will end up into buying behavior. Preference metric Measure a position of your brand and competitors. Customers preference towards the brand comes from awareness and familiarity to strong loyalty and frequent revenues. Awareness and familiarity make the brand strong which convert in to the customer loyalty When customers become loyal to a brand which make them a frequent buyer Frequent buyer gives you frequent revenue to the organization. Financial metrics Measure a brands monetary value via the different parameters of market share, price premium brand information. The revenue generation capabilities of a brand, the transaction value, the product quality should be constant with what the consumers expect of the brand. The distribution channels should be constant with what is expected of a premium brand. Also, the promotional campaign should build constant associations. The expectation of the customer should be fulfilled with the brand product, price and quality. Customer to company

Brand assets and liabilitiesBrand Equity is a set of assets linked to a brands name and symbol that adds to the value provided by a product or service to a firm and/or that firms customers Brand Equity is a set of liabilities linked to a brands name and symbol that subtracts from the value provided by a product or service to a firm and/or that firms customers Aaker Model of Brand EquityThe Aaker Model, created by David A. Aaker, a marketing professor at the University of California-Berkeley. it is a marketing model which views brand equity as a combination of brand awareness, brand loyalty and brand associations, which add up to give the value provided by a product or service.There are a set of five categories of brand assets and liabilities which add value to the product. They are: Brand loyalty Brand awareness Perceived quality Brand associations Other proprietary assets Brand Loyalty - For any business, it is expensive to gain new customers and relatively inexpensive to retain existing ones, especially when the existing customers are satisfied or happy with the brand.Brand Name Awareness - People will often buy a familiar brand because they are comfortable with the familiarity or they assume that a brand that is familiar is probably reliable and of reasonable quality. When consumers feel uneasy about a product's name, they will avoid the productPerceived Quality - A brand will have associated with it a perception of overall quality, which is not necessarily based on knowledge of detailed specifications. The quality perception may take on somewhat different forms for different types of industries. Perceived quality means something different for Compaq or IBM than for Coca-Cola or Pepsi. Perceived quality will directly influence purchase decisions and brand loyalty, especially when a buyer is not motivated or able to conduct a detailed analysis.Brand Associations -

The underlying value of a brand name often is based upon specific associations linked to it. The associations, for example, of the car brand Jaguar may make the experience of owning and driving one "different". If a brand is well positioned upon a key attribute in the product class (such as technological superiority), then competitors will find it hard to attack.Other Proprietary Brand Assets -

This fifth category represents such other proprietary brand assets as patents, trademarks, and channel relationships. Brand assets will be most valuable if they inhibit or prevent competitors from eroding a customer base and loyalty. These assets can take several forms. For example, a trademark will protect brand equity from competitors who might want to confuse customers by using a similar name, symbol, or package.

Designing Marketing Programs To Build Brand Equity

The 4 P's PlacePricePromotionProduct

Channel Strategy Involves the design and management of intermediaries such as wholesalers, distributions, brokers, and retailers.

Pricing Strategy Value Pricing and Everyday Low Pricing

Affects the consumers perception of the brands position in its product category and of its overall quality

Indirect Channels Sell via a third party intermediaries such as agents or brokers representatives, wholesalers, distributors, and retailers or dealers.

Direct Channels Sell through personal contacts from the company to prospective customers via mail, phone, electronic means, in-person visits and so on.

Everyday Low Pricing (EDLP) Entails or eliminating discounts and sales promotions in favor of an everyday fair price, an approach to determine the discount pricing policy over time.

Value Pricing Set prices based on considerations of product quality, costs and product price that satisfies consumer needs as well as the profit goals of the firm

Product Strategy The product itself is the heart of brand equity because it is the primary influence on what consumers experience with a brand, what they hear about a brand from others and what the firm can tell customers about the brand in their communication.

It fully satisfies consumers needs and wants is a prerequisite for successful marketing.

Perceived Quality and Value Customers perceptions of the overall quality or superiority of a product/ service compared to the alternatives and with respect to its intended purpose.

Attributes include (performance, features, conformance quality, reliability, durability, service, style and design)

Relationship Marketing Attempts to provide a more holistic, personalized brand experience to create stronger customer ties.

Based on premise that current consumers are the key to long term brand success

customer based brand equityCustomer-based brand equity (CBBE) is a way of assessing the value of a brand in customers' minds. Branding can increase profitability in large and small-scale businesses by filling in gaps in customers' knowledge and by offering assurances. The CBBE model centers that value in the minds of customers. It compels businesses to define their brands according to a defined hierarchy of qualitative, or common-sense, customer impressions. These impressions are often laid out in pyramid-shaped levels; they consist of salience, performance, imagery, meaning, judgments, feelings, and resonance.

Step 1: Salience talks about Brand Awareness (depth and breadth)Depth of brand awareness: how likely the brand will spring to mind (recognition and recall) much the customer knows your brand when they see/hear about itBreadth of brand awareness: when the customer thinks about your brand, and the range of purchase/usage situations in which the brand comes to mind. Performance Dimensions Primary characteristics & supplementary features Product reliability, durability, and serviceability Service effectiveness, efficiency, and empathy Style and design Price Imagery Dimensions . user profile 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 MEMORIES Judgment Dimensions Brand quality--Value AND Satisfaction Brand credibility ---Expertise, Trustworthiness AND 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) AND Proud of brand Sense of community --Kinship AND Affiliation Active engagement Seek information Join club Visit web site, chat rooms

Brand LoyaltyWhen consumers become committed to your brand and make repeat purchases over time. Brand loyalty is a result of consumer behavior and is affected by a person's preferences. Loyal customers will consistently purchase products from their preferred brands, regardless of convenience or price. 5 Key Metrics for Measuring Brand Loyalty1. Customer satisfaction2. Trust3. Esteem : Brand esteem or goodwill is customers respect for and attraction to a particular brand. Its not to be confused with brand awareness or familiarity,4. Perceived quality and value

Umbrella branding (also called a family brand) is when a firm uses a brand name for two or more products. All products use the same means of identification and have no additional brand names or symbols attached. Umbrella branding does not mean that the whole product portfolio of a firm will fall under one brand name as company can go for different approaches of branding for different product linesBRANDING STRATEGIESTHE PRODUCT BRAND STRATEGY This strategy involves the assignment of a particular name to one and only one product as well as one exclusive positioning.2. THE LINE BRAND STRATEGY In this strategy the line responds to the concern of offering one coherent product under a single name by proposing many complimentary products.3. The RANGE BRAND STRATEGY Range brands bestow a single brand name and promote through a single promise a range of products belonging to the same area of performance.4. UMBRELLA BRAND STRATEGY The same brand supports several products in different markets. Each of them has its own advertising tools and develops its own communications.5. SOURCE BRAND STRATEGY This is identical to umbrella branding strategy except for one key point the products are now named directly. Within the source brand strategy the family spirit dominates even if the offspring all have their own individual names.

Brand Personality Brand Personality is a set of human characteristics associated with a brand. Personality is how the brand behaves A set of human characteristics that are attributed to a brand name. A brand personality is something to which the consumer can relate, and an effective brand will increase its brand equity by having a consistent set of traits. There are five main types of brand personalities: excitement, sincerity, ruggedness, competence and sophistication.

A functional brand is that one which is purchased by the consumers to satisfy a functional need such as to shave, to clean clothes, to relieve a headache. Functional brands have the best chance to satisfy customers if they are seen as providing superior performance. Functional brands rely heavily on product or price features.A symbol-intensive brand is a brand adopted not only for its functional benefits, but above all, for the strong symbolism and significance that it is able to transmit, allowing a consumer to express his or her identity, to signal status or manifest a sense of belonging to a group.

brand positioning Brand positioning describes how a brand is different from its competitors and where, or how, it sits in a particular market. These differences might be real ones, but not have any motivating qualities about them. They would still, however, give a brand a 'positioning' in a market. For example, a beer might have the positioning of being an 'Alaskan beer', but this might not be very motivating to the consumer..Brand positioning must make sure that: Is it unique/distinctive vs. competitors ? Is it significant and encouraging to the niche market ? Is it sustainable - can it be delivered constantly across all points of contact with the consumer ? Is it helpful for organization to achieve its financial goals ? there are three types of positioning concepts:1. Functional positions Solve problems Provide benefits to customers Get favorable perception by investors (stock profile) and lenders2. Symbolic positions Self-image enhancement Ego identification Belongingness and social meaningfulness Affective fulfillment3. Experiential positions Provide sensory stimulation Provide cognitive stimulation

3cs of positioningEffective positioning of B2B software and technology products is written in the key of C. Actually, three Cs. Because positioning requires a thorough understanding of your Customers, your Competition and your Channel.The Channel: a great source of information about all three CsThe channel is how your product reaches the customer, whether you sell direct or through partners or VARs. It is one of your best sources of information about the other two Cs.

Know your customer at least as well as you know your own productYou cant successfully position your product unless you know the answer to this basic question: What is my target customers most pressing problem? Your positioning statement should address this problem in a benefit way.Know the competition, intimatelyLong before marketers discovered positioning, early baseball great Wee Willie Keeler (lifetime batting average .345) summed up how to score on the competition: Hit em where they aint, advised the games greatest place hitter. In positioning your B2B software, that means make a unique claim that sets you apart from the competition.

Positioning and differentiation are much like genus and species in biology:Positioning puts your company in a categoryDifferentiation separates your company from others in that same categoryKotler defines differentiation as the process ofadding meaningful and valued differences todistinguish the product from the competition. There are a number of differentiation dimensionsand strategies for their accomplishment.Differentiation Dimensions A firm can differentiate along 5 dimensions: Product Services Personnel ChannelDifferentiation Strategies Differentiation strategies are particularly important on the Internet.Internet marketing strategy revolves around company image and product information available on the Web. Specific strategies may include: 1. Being the first to enter the market.2. Owning a product attribute or quality in the mind of the consumer.3. Utilizing an impressive company history or heritage4. Supporting and demonstrating the differentiating idea.5. Communicating the difference.

There are 6 differentiation strategies unique to online businesses.1. Site Environment/Atmospherics--Easy downloads; easy navigation.2. Making the Intangible Tangible-- Virtual tours, 3-D images, trial downloads.3. Build Trust-- Strong brand recognition.--Privacy policy.4. Efficient and Timely Order Processing-- Deliver timeliness as an important benefit.5. Pricing In the early days of the Web, companies offered discounts as purchase incentives. Majority of firms today differentiate themselves in other ways besides pricing.6. Customer Relationship Management-- Managing long term relationships with customers.celebrity endorsementA form of brand or advertising campaign that involves a well known person using their fame to help promote a product or service. Manufacturers of perfumes and clothing are some of the most common business users of classic celebrity endorsement techniquesMarket Repositioning StrategiesIf a product is not selling as well as might be expected, or if its performance has declined from previous rates of success, it may well be that the brand positioning strategy needs to be reconsidered, in order either to promote the product more effectively to its target audience, or to identify a new customer segment to whom it might be better suited.

Brand extension

Brand extension is marketing strategy in which a marketer launches a new product with well-developed brand using the same brand name. Brand use this strategy to increase visibility and leverage equity.

An existing brand that develops brand extension is known as parent brand. For example, Nike dealt only with shoes but now it has variety of products like watches, caps, jackets and so on.

The advantages of brand extension:

A. It increases brand image. B. Cost of developing new brand is reduced.C. Consumers can now seek for varietyD. There are packaging and labeling efficiencies.E. The expense of introductory and follow up marketing programs is reduced

The disadvantages of brand extension:

A. Brand extension may get loss of reliability, if it is extended too far.B. There can be chances of damaging the image of the brand by the new product.C. If the brand extension has no advantage over competing brands then it may lead to failure.

Managing Brands Over TimeBrand Concept Management Functional benefits - solve consumer related problems Symbolic benefits - needs for social approval or personal expression; badge brands Experiential benefits - sensory pleasure, varietyBrand Consistency Why consistency is so important: Own a position in the customers mind Ownership/link to your brand symbol Cost efficiencies Simplicity Clarity of message

Improving Brand Image Repositioning with points of difference or points of parity Changing brand elements (KFC) Entering new markets (Frosted Flakes) Targeting new segments (Brylcreen Power Gel)Expanding the Breadth of Brand Awareness Finding new uses for the brand with TOM awareness (Cheeze Whiz recipes, Folgers coffee singles) Reminding consumers to replace products with short lifespan (Oral-B) Providing innovative package design (MentaDent)

Brand Reinforcement Brand Reinforcement is all about maintaining brand equity; in other words, it is about making sure that the consumers do have the desired knowledge structures so that the brands continues having its necessary sources of brand equity. This could be done by marketing activities related to brand awareness and brand image that would carry the identity and meaning of the brand to the consumers.Brand Revitalization

A strategy to recapture lost sources of brand equity and identify and establish new sources of brand equity. This may include product modification or brand repositioning. Brand Revitalization Recapturing lost sources of equity Returning to values of original brand Repositioning Expanding awareness and image

Seven Avenues for Brand Revitalization. 1. Increasing Usage 2. Finding new uses 3. Entering new markets Brand Revitalization 4. Repositioning 5. Augmenting the Product/services 6. Obsoleting Existing Products 7. Extending the Brand