brand-management

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THE HINDU COLLEGE –MBA, MACHILIPATNAM-V.V.S.K. PRASAD

BRAND

MANAGEMENT

Prof. V.V.S.K.PRASAD

THE HINDU COLLEGE –MBA

MACHILIPATNAM

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Brand Management

Brand management begins with having a thorough knowledge of the term “brand”. It includes

developing a promise, making that promise and maintaining it. It means defining the brand, positioning

the brand, and delivering the brand. Brand management is nothing but an art of creating and sustaining

the brand. Branding makes customers committed to your business. A strong brand differentiates your

products from the competitors. It gives a quality image to your business.

Brand management includes managing the tangible and intangible characteristics of brand. In case of

product brands, the tangibles include the product itself, price, packaging, etc. While in case of service

brands, the tangibles include the customers’ experience. The intangibles include emotional connections

with the product / service.

Branding is assembling of various marketing mix medium into a whole so as to give you an identity. It is

nothing but capturing your customers mind with your brand name. It gives an image of an experienced,

huge and reliable business.

It is all about capturing the niche market for your product / service and about creating a confidence in

the current and prospective customers’ minds that you are the unique solution to their problem.

The aim of branding is to convey brand message vividly, create customer loyalty, persuade the buyer for

the product, and establish an emotional connectivity with the customers. Branding forms customer

perceptions about the product. It should raise customer expectations about the product. The primary

aim of branding is to create differentiation.

Strong brands reduce customers’ perceived monetary, social and safety risks in buying goods/services.

The customers can better imagine the intangible goods with the help of brand name. Strong brand

organizations have a high market share. The brand should be given good support so that it can sustain

itself in long run. It is essential to manage all brands and build brand equity over a period of time. Here

comes importance and usefulness of brand management. Brand management helps in building a

corporate image. A brand manager has to oversee overall brand performance. A successful brand can

only be created if the brand management system is competent.

An organization’s Brand is among its most valuable assets. As such, smart organizations understand the

importance of building, nurturing and leveraging a strong brand, just as they do other assets, making it a

central strategic priority.

The terms brand and branding is thrown around a lot these days, usually with a very limited knowledge

of what the process of brand development is really about. The process is simultaneously both an art

and a discipline which, like most disciplined artful pursuits, takes practice to master.

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When we talk about branding and brand management, we are really talking about a process with

several central facets. It involves defining the brand essence; what the brand stands for. It involves

definition of the brand personality; the brand’s character and imagery. It involves development of

brand architecture; the central tool in defining the scope and depth of the brand’s extension across the

enterprise it represents. And, it involves brand positioning; differentiating and giving relevance to the

brand.

At the center of the process is the all-important essence of the brand. This is usually a product of sole-

searching, looking deep within the organization for that handful of distinguishing characteristics which

truly define its culture and the points of distinction which make it what it is. Defining a brand’s essence

is not an afternoon’s task. It is more typically an interactive, group process of evolution and refinement

that takes place over an extended period of time.

Effective brand management usually starts with a retrospective process of discovery and analysis.

Unless the brand’s been well-managed, this process will almost always uncover what I call “brand

creep,” the outgrowth of well-intentioned leaders within the organization who view their program,

product or services as the center of the organizational universe and overlay the brand accordingly. The

result is undisciplined brand extension and a multi-centered organizational universe.

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Down the left-hand side of the diagram are internal disciplines which serve to anchor the brand and

avoid brand creep. It is vital to formally document the parameters within which an organization’s brand

will be developed and that those parameters be purposefully endorsed by the organization’s executive

leadership, including the CEO. It has been my practice of seeking agreement from the organization’s

executive team that no changes will be made to the organization’s brand architecture without each

change being reviewed with and approved by that group, reflecting the value and importance of the

discipline.

Down the right-hand side of the diagram are external aspects of brand expression. It is the unifying

aspects of a well-managed brand architecture that allows an organization to effectively position itself as

an enterprise showcase its promise and creatively tell its story.

At the bottom of the diagram is the intersection of the internal disciplines and external expressions,

joined through internal communications. Building ownership of the brand and its essence on the part of

staff and stakeholders is a vital step toward fulfillment of the brand promise extended to the

marketplace through its marketing program.

It is through the practice of discipline brand management and the artful portray of a brand’s essence,

reflected in the actions of an engaged workforce, that organizations effectively live their brand.

Following are the important concepts of brand management:

ü Definition of Brand

ü Brand Name

ü Brand Attributes

ü Brand Positioning

ü Brand Identity

ü Sources of Brand Identity

ü Brand Image

ü Brand Identity vs Brand Image

ü Brand Personality

ü Brand Awareness

ü Brand Loyalty

ü Brand Association

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ü Building a Brand

ü Brand Equity

ü Brand Equity & Customer Equity

ü Brand Extension

ü Co-branding

Understanding Brand - What is a Brand ?

Brands are different from products in a way that brands are “what the consumers buy”, while products

are “what concern/companies make”. Brand is an accumulation of emotional and functional

associations. Brand is a promise that the product will perform as per customer’s expectations. It shapes

customer’s expectations about the product. Brands usually have a trademark which protects them from

use by others. A brand gives particular information about the organization, good or service,

differentiating it from others in marketplace. Brand carries an assurance about the characteristics that

make the product or service unique. A strong brand is a means of making people aware of what the

company represents and what are it’s offerings.

To a consumer, brand means and signifies:

Source of product

Delegating responsibility to the manufacturer of product

Lower risk

Less search cost

Quality symbol

Deal or pact with the product manufacturer

Symbolic device

Brands simplify consumers purchase decision. Over a period of time, consumers discover the brands

which satisfy their need. If the consumers recognize a particular brand and have knowledge about it,

they make quick purchase decision and save lot of time. Also, they save search costs for product.

Consumers remain committed and loyal to a brand as long as they believe and have an implicit

understanding that the brand will continue meeting their expectations and perform in the desired

manner consistently. As long as the consumers get benefits and satisfaction from consumption of the

product, they will more likely continue to buy that brand. Brands also play a crucial role in signifying

certain product features to consumers.

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To a seller, brand means and signifies:

Basis of competitive advantage

Way of bestowing products with unique associations

Way of identification to easy handling

Way of legal protection of products’ unique traits/features

Sign of quality to satisfied customer

Means of financial returns

A brand, in short, can be defined as a seller’s promise to provide consistently a unique set of

characteristics, advantages, and services to the buyers/consumers. It is a name, term, sign, symbol or a

combination of all these planned to differentiate the goods/services of one seller or group of sellers

from those of competitors. Some examples of well known brands are Mc Donald’s’, Mercedes-Benz,

Sony, Coca Cola, Kingfisher, etc.

A brand connects the four crucial elements of an enterprise- customers, employees, management and

shareholders. Brand is nothing but an assortment of memories in customers mind. Brand represents

values, ideas and even personality. It is a set of functional, emotional and rational associations and

benefits which have occupied target market’s mind. Associations are nothing but the images and

symbols associated with the brand or brand benefits, such as, The Nike Swoosh, The Nokia sound, etc.

Benefits are the basis for purchase decision.

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Brand Name

Brand name is one of the brand elements which helps the customers to identify and differentiate one

product from another. It should be chosen very carefully as it captures the key theme of a product in an

efficient and economical manner. It can easily be noticed and its meaning can be stored and triggered in

the memory instantly. Choice of a brand name requires a lot of research. Brand names are not

necessarily associated with the product. For instance, brand names can be based on places (Air India,

British Airways), animals or birds (Dove soap, Puma), people (Louise Phillips, Allen Solly). In some

instances, the company name is used for all products (General Electric, LG).Features of a Good Brand

Name

A good brand name should have following characteristics:

It should be unique / distinctive (for instance- Kodak, Mustang)

It should be extendable.

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It should be easy to pronounce, identified and memorized. (For instance-Tide)

It should give an idea about product’s qualities and benefits (For instance- Swift, Quickfix, Lipguard).

It should be easily convertible into foreign languages.

It should be capable of legal protection and registration.

It should suggest product/service category (For instance Newsweek).

It should indicate concrete qualities (For instance Firebird).

It should not portray bad/wrong meanings in other categories. (For instance NOVA is a poor name for a

car to be sold in Spanish country, because in Spanish it means “doesn’t go”).

Process of Selecting a renowned and successful Brand Name

Define the objectives of branding in terms of six criterions - descriptive, suggestive, compound, classical,

arbitrary and fanciful. It Is essential to recognize the role of brand within the corporate branding

strategy and the relation of brand to other brand and products. It is also essential to understand the role

of brand within entire marketing program as well as a detailed description of niche market must be

considered.

Generation of multiple names - Any potential source of names can be used; organization, management

and employees, current or potential customers, agencies and professional consultants.

Screening of names on the basis of branding objectives and marketing considerations so as to have a

more synchronized list - The brand names must not have connotations, should be easily pronounceable,

should meet the legal requirements etc.

Gathering more extensive details on each of the finalized names - There should be extensive

international legal search done. These searches are at times done on a sequential basis because of the

expense involved.

Conducting consumer research - Consumer research is often conducted so as to confirm management

expectations as to the remembrance and meaningfulness of the brand names. The features of the

product, its price and promotion may be shown to the consumers so that they understand the purpose

of the brand name and the manner in which it will be used. Consumers can be shown actual 3-D

packages as well as animated advertising or boards. Several samples of consumers must be surveyed

depending on the niche market involved.

On the basis of the above steps, management can finalize the brand name that maximizes the

organization’s branding and marketing objectives and then formally register the brand name.

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Brand Attributes

Brand Attributes portray a company’s brand characteristics. They signify the basic nature of brand.

Brand attributes are a bundle of features that highlight the physical and personality aspects of the

brand. Attributes are developed through images, actions, or presumptions. Brand attributes help in

creating brand identity.

A strong brand must have following attributes:

Relevancy- A strong brand must be relevant. It must meet people’s expectations and should perform the

way they want it to. A good job must be done to persuade consumers to buy the product; else inspite of

your product being unique, people will not buy it.

Consistency- A consistent brand signifies what the brand stands for and builds customers trust in brand.

A consistent brand is where the company communicates message in a way that does not deviate from

the core brand proposition.

Proper positioning- A strong brand should be positioned so that it makes a place in target audience mind

and they prefer it over other brands.

Sustainable- A strong brand makes a business competitive. A sustainable brand drives an organization

towards innovation and success. Example of sustainable brand is Marks and Spencer’s.

Credibility- A strong brand should do what it promises. The way you communicate your brand to the

audience/ customers should be realistic. It should not fail to deliver what it promises. Do not exaggerate

as customers want to believe in the promises you make to them.

Inspirational- A strong brand should transcend/ inspire the category it is famous for. For example- Nike

transcendent Jersey Polo Shirt.

Uniqueness- A strong brand should be different and unique. It should set you apart from other

competitors in market.

Appealing- A strong brand should be attractive. Customers should be attracted by the promise you make

and by the value you deliver

Brand Positioning - Definition and Concept

Brand positioning refers to “target consumer’s” reason to buy your brand in preference to others. It is

ensures that all brand activity has a common aim; is guided, directed and delivered by the brand’s

benefits/reasons to buy; and it focusses at all points of contact with the consumer.

Brand positioning must make sure that:

Is it unique/distinctive vs. competitors ?

Is it significant and encouraging to the niche market ?

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Is it appropriate to all major geographic markets and businesses ?

Is the proposition validated with unique, appropriate and original products ?

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 ?

Is it able to support and boost up the organization ?

In order to create a distinctive place in the market, a niche market has to be carefully chosen and a

differential advantage must be created in their mind. Brand positioning is a medium through which an

organization can portray it’s customers what it wants to achieve for them and what it wants to mean to

them. Brand positioning forms customer’s views and opinions.

Brand Positioning can be defined as an activity of creating a brand offer in such a manner that it

occupies a distinctive place and value in the target customer’s mind. For instance-Kotak Mahindra

positions itself in the customer’s mind as one entity- “Kotak ”- which can provide customized and one-

stop solution for all their financial services needs. It has an unaided top of mind recall. It intends to stay

with the proposition of “Think Investments, Think Kotak”. The positioning you choose for your brand will

be influenced by the competitive stance you want to adopt.

Brand Positioning involves identifying and determining points of similarity and difference to ascertain

the right brand identity and to create a proper brand image. Brand Positioning is the key of marketing

strategy. A strong brand positioning directs marketing strategy by explaining the brand details, the

uniqueness of brand and it’s similarity with the competitive brands, as well as the reasons for buying

and using that specific brand. Positioning is the base for developing and increasing the required

knowledge and perceptions of the customers. It is the single feature that sets your service apart from

your competitors. For instance- Kingfisher stands for youth and excitement. It represents brand in full

flight.

There are various positioning errors, such as-

Under positioning- This is a scenario in which the customer’s have a blurred and unclear idea of the

brand.

Over positioning- This is a scenario in which the customers have too limited a awareness of the brand.

Confused positioning- This is a scenario in which the customers have a confused opinion of the brand.

Double Positioning- This is a scenario in which customers do not accept the claims of a brand.

Brand Identity - Definition and Concept

Brand identity stems from an organization, i.e., an organization is responsible for creating a

distinguished product with unique characteristics. It is how an organization seeks to identify itself. It

represents how an organization wants to be perceived in the market. An organization communicates its

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identity to the consumers through its branding and marketing strategies. A brand is unique due to its

identity. Brand identity includes following elements - Brand vision, brand culture, positioning,

personality, relationships, and presentations.

Brand identity is a bundle of mental and functional associations with the brand. Associations are not

“reasons-to-buy” but provide familiarity and differentiation that’s not replicable getting it. These

associations can include signature tune(for example - Britannia “ting-ting-ta-ding”), trademark colours

(for example - Blue colour with Pepsi), logo (for example - Nike), tagline (for example - Apple’s tagline is

“Think different”),etc.

Brand identity is the total proposal/promise that an organization makes to consumers. The brand can be

perceived as a product, a personality, a set of values, and a position it occupies in consumer’s minds.

Brand identity is all that an organization wants the brand to be considered as. It is a feature linked with a

specific company, product, service or individual. It is a way of externally expressing a brand to the world.

Brand identity is the noticeable elements of a brand (for instance - Trademark colour, logo, name,

symbol) that identify and differentiates a brand in target audience mind. It is a crucial means to grow

your company’s brand.

Brand identity is the aggregation of what all you (i.e. an organization) do. It is an organizations mission,

personality, promise to the consumers and competitive advantages. It includes the thinking, feelings and

expectations of the target market/consumers. It is a means of identifying and distinguishing an

organization from another. An organization having unique brand identity have improved brand

awareness, motivated team of employees who feel proud working in a well branded organization, active

buyers, and corporate style. Brand identity leads to brand loyalty, brand preference, high credibility,

good prices and good financial returns. It helps the organization to express to the customers and the

target market the kind of organization it is. It assures the customers again that you are who you say you

are. It establishes an immediate connection between the organization and consumers. Brand identity

should be sustainable. It is crucial so that the consumers instantly correlate with your product/service.

Brand identity should be futuristic, i.e, it should reveal the associations aspired for the brand. It should

reflect the durable qualities of a brand. Brand identity is a basic means of consumer recognition and

represents the brand’s distinction from it’s competitors.

Sources of Brand Identity

SYMBOLS- Symbols help customers memorize organization’s products and services. They help us

correlate positive attributes that bring us closer and make it convenient for us to purchase those

products and services. Symbols emphasize our brand expectations and shape corporate images. Symbols

become a key component of brand equity and help in differentiating the brand characteristics. Symbols

are easier to memorize than the brand names as they are visual images. These can include logos,

people, geometric shapes, cartoon images, anything. For instance, Marlboro has its famous cowboy,

Pillsbury has its Poppin’ Fresh doughboy, Duracell has its bunny rabbit, Mc Donald has Ronald, Fed Ex

has an arrow, and Nike’s swoosh. All these symbols help us remember the brands associated with them.

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Brand symbols are strong means to attract attention and enhance brand personalities by making

customers like them. It is feasible to learn the relationship between symbol and brand if the symbol is

reflective/representative of the brand. For instance, the symbol of LG symbolize the world, future,

youth, humanity, and technology. Also, it represents LG’s efforts to keep close relationships with their

customers.

LOGOS- A logo is a unique graphic or symbol that represents a company, product, service, or other

entity. It represents an organization very well and make the customers well-acquainted with the

company. It is due to logo that customers form an image for the product/service in mind. Adidas’s

“Three Stripes” is a famous brand identified by it’s corporate logo.

Features of a good logo are :

It should be simple.

It should be distinguished/unique. It should differentiate itself.

It should be functional so that it can be used widely.

It should be effective, i.e., it must have an impact on the intended audience.

It should be memorable.

It should be easily identifiable in full colours, limited colour palettes, or in black and white.

It should be a perfect reflection/representation of the organization.

It should be easy to correlate by the customers and should develop customers trust in the organization.

It should not loose it’s integrity when transferred on fabric or any other material.

It should portray company’s values, mission and objectives.

The elements of a logo are:

Logotype - It can be a simple or expanded name. Examples of logotypes including only the name are

Kellogg’s, Hyatt, etc.

Icon - It is a name or visual symbol that communicates a market position. For example-LIC ’hands’, UTI

’kalash’.

Slogan - It is best way of conveying company’s message to the consumers. For instance- Nike’s slogan

“Just Do It”.

TRADEMARKS- Trademark is a unique symbol, design, or any form of identification that helps people

recognize a brand. A renowned brand has a popular trademark and that helps consumers purchase

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quality products. The goodwill of the dealer/maker of the product also enhances by use of trademark.

Trademark totally indicates the commercial source of product/service. Trademark contribute in brand

equity formation of a brand. Trademark name should be original. A trademark is chosen by the following

symbols:

™ (denotes unregistered trademark, that is, a mark used to promote or brand goods);

SM (denotes unregistered service mark)

® (denotes registered trademark).

Registration of trademark is essential in some countries to give exclusive rights to it. Without adequate

trademark protection, brand names can become legally declared generic. Generic names are never

protectable as was the case with Vaseline, escalator and thermos.

Some guidelines for trademark protection are as follows:

Go for formal trademark registration.

Never use trademark as a noun or verb. Always use it as an adjective.

Use correct trademark spelling.

Challenge each misuse of trademark, specifically by competitors in market.

Capitalize first letter of trademark. If a trademark appears in point, ensure that it stands out from

surrounding text.

Brand Image

Brand image is the current view of the customers about a brand. It can be defined as a unique bundle of

associations within the minds of target customers. It signifies what the brand presently stands for. It is a

set of beliefs held about a specific brand. In short, it is nothing but the consumers’ perception about the

product. It is the manner in which a specific brand is positioned in the market. Brand image conveys

emotional value and not just a mental image. Brand image is nothing but an organization’s character. It

is an accumulation of contact and observation by people external to an organization. It should highlight

an organization’s mission and vision to all. The main elements of positive brand image are- unique logo

reflecting organization’s image, slogan describing organization’s business in brief and brand identifier

supporting the key values.

Brand image is the overall impression in consumers’ mind that is formed from all sources. Consumers

develop various associations with the brand. Based on these associations, they form brand image. An

image is formed about the brand on the basis of subjective perceptions of associations bundle that the

consumers have about the brand. Volvo is associated with safety. Toyota is associated with reliability.

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The idea behind brand image is that the consumer is not purchasing just the product/service but also

the image associated with that product/service. Brand images should be positive, unique and instant.

Brand images can be strengthened using brand communications like advertising, packaging, word of

mouth publicity, other promotional tools, etc.

Brand image develops and conveys the product’s character in a unique manner different from its

competitor’s image. The brand image consists of various associations in consumers’ mind - attributes,

benefits and attributes. Brand attributes are the functional and mental connections with the brand that

the customers have. They can be specific or conceptual. Benefits are the rationale for the purchase

decision. There are three types of benefits: Functional benefits - what do you do better (than others

),emotional benefits - how do you make me feel better (than others), and rational benefits/support -

why do I believe you(more than others). Brand attributes are consumers overall assessment of a brand.

Brand image has not to be created, but is automatically formed. The brand image includes products'

appeal, ease of use, functionality, fame, and overall value. Brand image is actually brand content. When

the consumers purchase the product, they are also purchasing it’s image. Brand image is the objective

and mental feedback of the consumers when they purchase a product. Positive brand image is

exceeding the customers expectations. Positive brand image enhances the goodwill and brand value of

an organization.

Brand Identity vs Brand Image

Brand Identity Brand Image

1 Brand identity develops from the source or the company.

Brand image is perceived by the receiver or the consumer.

2 Brand message is tied together in terms of brand identity.

Brand message is untied by the consumer in the form of brand image.

3 The general meaning of brand identity is “who you really are?”

The general meaning of brand image is “How market perceives you?”

4 It’s nature is that it is substance oriented or strategic.

It’s nature is that it is appearance oriented or tactical.

5 Brand identity symbolizes firms’ reality. Brand image symbolizes perception of consumers

6 Brand identity represents “your desire”. Brand image represents “others view”

7 It is enduring. It is superficial.

8 Identity is looking ahead. Image is looking back.

9 Identity is active. Image is passive.

10 It signifies “where you want to be”. It signifies “what you have got”.

11 It is total promise that a company makes to consumers.

It is total consumers’ perception about the brand.

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What is Brand Personality ?

Brand personality is the way a brand speaks and behaves. It means assigning human personality

traits/characteristics to a brand so as to achieve differentiation. These characteristics signify brand

behaviour through both individuals representing the brand (i.e. it’s employees) as well as through

advertising, packaging, etc. When brand image or brand identity is expressed in terms of human traits, it

is called brand personality. For instance - Allen Solley brand speaks the personality and makes the

individual who wears it stand apart from the crowd. Infosys represents uniqueness, value, and

intellectualism.

Brand personality is nothing but personification of brand. A brand is expressed either as a personality

who embodies these personality traits (For instance - Shahrukh Khan and Airtel, John Abraham and

Castrol) or distinct personality traits (For instance - Dove as honest, feminist and optimist; Hewlett

Packard brand represents accomplishment, competency and influence). Brand personality is the result

of all the consumer’s experiences with the brand. It is unique and long lasting.

Brand personality must be differentiated from brand image, in sense that, while brand image denote the

tangible (physical and functional) benefits and attributes of a brand, brand personality indicates

emotional associations of the brand. If brand image is comprehensive brand according to consumers’

opinion, brand personality is that aspect of comprehensive brand which generates it’s emotional

character and associations in consumers’ mind.

Brand personality develops brand equity. It sets the brand attitude. It is a key input into the look and

feel of any communication or marketing activity by the brand. It helps in gaining thorough knowledge of

customers feelings about the brand. Brand personality differentiates among brands specifically when

they are alike in many attributes. For instance - Sony versus Panasonic. Brand personality is used to

make the brand strategy lively, i.e, to implement brand strategy. Brand personality indicates the kind of

relationship a customer has with the brand. It is a means by which a customer communicates his own

identity.

Brand personality and celebrity should supplement each other. Trustworthy celebrity ensures

immediate awareness, acceptability and optimism towards the brand. This will influence consumers’

purchase decision and also create brand loyalty. For instance - Bollywood actress Priyanka Chopra is

brand ambassador for J.Hampstead, international line of premium shirts.

Brand personality not only includes the personality features/characteristics, but also the demographic

features like age, gender or class and psychographic features. Personality traits are what the brand

exists for.

What is Brand Awareness ?

Brand awareness is the probability that consumers are familiar about the life and availability of the

product. It is the degree to which consumers precisely associate the brand with the specific product. It is

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measured as ratio of niche market that has former knowledge of brand. Brand awareness includes both

brand recognition as well as brand recall. Brand recognition is the ability of consumer to recognize prior

knowledge of brand when they are asked questions about that brand or when they are shown that

specific brand, i.e., the consumers can clearly differentiate the brand as having being earlier noticed or

heard. While brand recall is the potential of customer to recover a brand from his memory when given

the product class/category, needs satisfied by that category or buying scenario as a signal. In other

words, it refers that consumers should correctly recover brand from the memory when given a clue or

he can recall the specific brand when the product category is mentioned. It is generally easier to

recognize a brand rather than recall it from the memory.

Brand awareness is improved to the extent to which brand names are selected that is simple and easy to

pronounce or spell; known and expressive; and unique as well as distinct. For instance - Coca Cola has

come to be known as Coke.

There are two types of brand awareness:

Aided awareness- This means that on mentioning the product category, the customers recognize your

brand from the lists of brands shown.

Top of mind awareness (Immediate brand recall)- This means that on mentioning the product category,

the first brand that customer recalls from his mind is your brand.

The relative importance of brand recall and recognition will rely on the degree to which consumers

make product-related decisions with the brand present or not. For instance - In a store, brand

recognition is more crucial as the brand will be physically present. In a scenario where brands are not

physically present, brand recall is more significant (as in case of services and online brands).

Building brand awareness is essential for building brand equity. It includes use of various renowned

channels of promotion such as advertising, word of mouth publicity, social media like blogs,

sponsorships, launching events, etc. To create brand awareness, it is important to create reliable brand

image, slogans and taglines. The brand message to be communicated should also be consistent. Strong

brand awareness leads to high sales and high market share. Brand awareness can be regarded as a

means through which consumers become acquainted and familiar with a brand and recognize that

brand.

Brand Loyalty

Brand Loyalty is a scenario where the consumer fears purchasing and consuming product from another

brand which he does not trust. It is measured through methods like word of mouth publicity, repetitive

buying, price sensitivity, commitment, brand trust, customer satisfaction, etc. Brand loyalty is the extent

to which a consumer constantly buys the same brand within a product category. The consumers remain

loyal to a specific brand as long as it is available. They do not buy from other suppliers within the

product category. Brand loyalty exists when the consumer feels that the brand consists of right product

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characteristics and quality at right price. Even if the other brands are available at cheaper price or

superior quality, the brand loyal consumer will stick to his brand.

Brand loyal consumers are the foundation of an organization. Greater loyalty levels lead to less

marketing expenditure because the brand loyal customers promote the brand positively. Also, it acts as

a means of launching and introducing more products that are targeted at same customers at less

expenditure. It also restrains new competitors in the market. Brand loyalty is a key component of brand

equity.

Brand loyalty can be developed through various measures such as quick service, ensuring quality

products, continuous improvement, wide distribution network, etc. When consumers are brand loyal

they love “you” for being “you”, and they will minutely consider any other alternative brand as a

replacement. Examples of brand loyalty can be seen in US where true Apple customers have the brand's

logo tattooed onto their bodies. Similarly in Finland, Nokia customers remained loyal to Nokia because

they admired the design of the handsets or because of user- friendly menu system used by Nokia

phones.

Brand loyalty can be defined as relative possibility of customer shifting to another brand in case there is

a change in product’s features, price or quality. As brand loyalty increases, customers will respond less

to competitive moves and actions. Brand loyal customers remain committed to the brand, are willing to

pay higher price for that brand, and will promote their brand always. A company having brand loyal

customers will have greater sales, less marketing and advertising costs, and best pricing. This is because

the brand loyal customers are less reluctant to shift to other brands, respond less to price changes and

self- promote the brand as they perceive that their brand have unique value which is not provided by

other competitive brands.

Brand loyalty is always developed post purchase. To develop brand loyalty, an organization should know

their niche market, target them, support their product, ensure easy access of their product, provide

customer satisfaction, bring constant innovation in their product and offer schemes on their product so

as to ensure that customers repeatedly purchase the product.

Brand Association

Brand Associations are not benefits, but are images and symbols associated with a brand or a brand

benefit. For example- The Nike Swoosh, Nokia sound, Film Stars as with “Lux”, signature tune Ting-ting-

ta-ding with Britannia, Blue colour with Pepsi, etc. Associations are not “reasons-to-buy” but provide

acquaintance and differentiation that’s not replicable. It is relating perceived qualities of a brand to a

known entity. For instance- Hyatt Hotel is associated with luxury and comfort; BMW is associated with

sophistication, fun driving, and superior engineering. Most popular brand associations are with the

owners of brand, such as - Bill Gates and Microsoft, Reliance and Dhirubhai Ambani.

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Brand association is anything which is deep seated in customer’s mind about the brand. Brand should be

associated with something positive so that the customers relate your brand to being positive. Brand

associations are the attributes of brand which come into consumers mind when the brand is talked

about. It is related with the implicit and explicit meanings which a consumer relates/associates with a

specific brand name. Brand association can also be defined as the degree to which a specific

product/service is recognized within it’s

product/service class/category. While choosing a brand name, it is essential that the name chosen

should reinforce an important attribute or benefit association that forms it’s product positioning. For

instance - Power book.

Brand associations are formed on the following basis:

Customers contact with the organization and it’s employees;

Advertisements;

Word of mouth publicity;

Price at which the brand is sold;

Celebrity/big entity association;

Quality of the product;

Products and schemes offered by competitors;

Product class/category to which the brand belongs;

POP ( Point of purchase) displays; etc

Positive brand associations are developed if the product which the brand depicts is durable, marketable

and desirable. The customers must be persuaded that the brand possess the features and attributes

satisfying their needs. This will lead to customers having a positive impression about the product.

Positive brand association helps an organization to gain goodwill, and obstructs the competitor’s entry

into the market.

Brand Promise - Our brand is a promise of what we deliver

Brand evokes the responses. There are many people who love their Apple iPod or love their car etc.

There are certain feelings that come to your mind when you think about your favorite brands. People

expect that these brands should demonstrate brand promises every time whenever they are,

encountered. Inconsistencies in the performance of services can lead to damage in further relations.

This can cause a customer to select some other brand.

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Brand promise is what you say to the customer and what is to be delivered. If you are not able to meet

the expectations of the customer, your business will either flounder or die. If you are not able to deliver

the brand promise you will not be able to meet the expectations that have been created in the

customers mind.

There are three major mistakes that the business leaders make while executing and developing the

brand promise:ü The first mistake is when you refuse to recognize the customer expectations

that are created in customers mind before it comes in contact with that particular brand. The customers

are very easily able to realize your brand promise by the business you are dealing with. For example, if

you have a gourmet restaurant then the customers will have a image in their mind that it will different

from the local restaurant. This is one of the major reason, why one should work for every smallest

detail. For example, the image of a gourmet restaurant does not include plastic menus or paper

placemats.

ü The second major mistake is to implement a system which gives a negative experience to the

customer. Business leaders work on creating efficient results for saving time and money. Human beings

are self-centered creatures with a thought in their mind to save money and time for us. For example, a

customers asks do you accept credit card? Do you accept all credit cards or only master card and visa? If

you don’t accept these cards, does it make any difference in the cost? Its just that you are losing sales.

Then what are the other services you are giving to the customer in place which is the attraction for the

customers. Any small inconvenience which will force the customer to say that “you are not completely

service oriented” and encourages the customer to some other brand.

ü The third major mistake is that when you are not able to hire the best candidate. You easily hire

anyone who applies and don’t even put some efforts to train them gives a really terrible experience to

the customers. Brand promises are delivered by the staff. If your goal is to be a business leader you will

invest time to train the staff. If you select a person who is very polite and does not even know how to

dress up for an interview then you competition should send a thank you card for all the business you will

send his way.

People who want to become the business leader understand they are a great product brands. They are

authentic, dependable and reliable. Their icon is their name. Delivering the best of themselves is their

brand promise. Do you want to become winner at working? Then, deliver the brand promise.

Steps in Building a Brand Name Product or Service

At times, organizations are often inspired by a variety of ideas to create products and services which can

be offered locally or globally. Generally, such products or services require the establishment of a brand

or company name. Often these brands include both logo and lettering and can do a long way in

advertising such products or services. Therefore, one of the most important steps in building a Brand is

decide upon a brand name for the product or service one wishes to sell.

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Branding is a process that allows an individual or a group of individuals the ability to provide a brand

image and lettering to an idea. Upon doing so, one has a better chance of selling such items to a broader

audience whether that be on a local or global level. Therefore, while the old adage “nothing happens

until somebody sells something,” still stands true to some extent, at times almost seems as if the

process of advertising and branding has overtaken the desire to sell.

Although branding generally identifies the company and philosophies behind same, it can also be

representative of those working for such a company. This is a good thing as it generates the right type of

audience to the product or service being sold based on personal relationships with those running the

company. Therefore, benefiting both the organizations selling the branded product or service and the

dealers buying same.

One of the most important steps in selling any product or service is the belief one holds in relation to

the item. Therefore, only those who strongly believe in the products and services offered by the

company are going to be good at selling same. Otherwise, one may want to work from an advertising or

graphic artist perspective in relation to advertising rather than sales when it comes to time to market

same.

Another step is to build a brand that maintains loyalty with its customer base and has a strong customer

service department. For, having such a department in today's world where one is both experienced and

knowledgeable when it comes to helping others can be a rare find. So, companies who represent oneself

has having a strong customer base and even stronger customer service department are often more

successful than those who do not.

A very important step in marketing a brand is to identify the target audience before creating the logo

and lettering in relation to marketing. This is because different age groups react differently to a variety

of logo and lettering especially as so much is misrepresented by a variety of gangs and others using such

material inappropriately. Therefore, if one can define the brand name, logo and lettering and present

same to a marketing research review panel or the like, one may be able to gain a better understanding

of which audience one needs to direct their product or service to in order to create the most sales.

Still, if one can communicate the use of their product or service clearly, establish trust within the

community, be that locally or globally, aim marketing at the right audience, build a base of buyers and

customer loyalty and offer great customer service, then one is on their way to not only creating and

advertising an excellent brand but selling one as well.

Therefore, when looking for steps in building a brand, there are many steps which one can complete to

help make the creation of such brand an easier task. These include, knowing your audience, building

your brand, finding a great logo and lettering to represent same, targeting the appropriate audience and

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placing a number of ads in as many online and offline advertising venues one can find. For, after doing

so, one may just find that they are selling even more products and services than one had ever dreamed

possible.

Brand Equity - Meaning and Measuring Brand Equity

Brand 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.

Brand Equity can be determined by measuring:ü Returns to the Share-Holders.

ü Evaluating the Brand Image for various parameters that are considered significant.

ü Evaluating the Brand’s earning potential in long run.

ü By evaluating the increased volume of sales created by the brand compared to other brands in

the same class.

ü The price premium charged by the brand over non-branded products.

ü From the prices of the shares that an organization commands in the market (specifically if the

brand name is identical to the corporate name or the consumers can easily co-relate the performance of

all the individual brands of the organization with the organizational financial performance.

ü OR, An amalgamation of all the above methods.

Factors contributing to Brand Equity

Brand Awareness

Brand Associations

Brand Loyalty

Perceived Quality: refers to the customer’s perception about the total quality of the brand. While

evaluating quality the customer takes into account the brands performance on factors that are

significant to him and makes a relative analysis about the brand’s quality by evaluating the competitors

brands also. Thus quality is a perceptual factor and the consumer analysis about quality varies. Higher

perceived quality might be used for brand positioning. Perceived quality affect the pricing decisions of

the organizations. Superior quality products can be charged a price premium. Perceived quality gives the

customers a reason to buy the product. It also captures the channel member’s interest. For instance -

American Express.

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Other Proprietary Brand Assets: Patents, Trademarks and Channel Inter-relations are proprietary assets.

These assets prevent competitors attack on the organization. They also help in maintaining customer

loyalty as well as organization’s competitive advantage.

Brand Equity & Customer Equity

Brand Equity is defined as value and strength of the Brand that decides its worth whereas Customer

Equity is defined in terms of lifetime values of all customers.

Brand Equity and Customer Equity have two things in common-ü Both stress on significance of

customer loyalty to the brand

ü Both stress upon the face that value is created by having as many customers as possible paying

as high price as possible.

But conceptually both brand equity and customer equity differ.ü While customer equity puts too

much emphasis on lower line financial value got from the customers, brand equity attempts to put more

emphasis on strategic issues in managing brands.

ü Customer Equity is less narrow alternative. It can overlook a brands optional value and their

capacity effect revenues and cost beyond the present marketing environment.

ü Just as customer equity can persist without brand equity, brand equity may also exist without

customer equity. For instance I may have positive attitude towards brands - McDonald and Burger King,

but I may only purchase from McDonald’s brand consistently.

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To conclude, we can say brands do not exist without consumer and consumer do not exist without

brands. Brands serve as a temptation that utilizes other intermediaries to lure the customers from

whom value is extracted. Customers serve as a profit-medium for brands to encash their brand value.

Both the concepts are highly co-related.

Brand Extension - Meaning, Advantages and Disadvantages

Brand Extension is the use of an established brand name in new product categories. This new category

to which the brand is extended can be related or unrelated to the existing product categories. A

renowned/successful brand helps an organization to launch products in new categories more easily. For

instance, Nike’s brand core product is shoes. But it is now extended to sunglasses, soccer balls,

basketballs, and golf equipments. An existing brand that gives rise to a brand extension is referred to as

parent brand. If the customers of the new business have values and aspirations synchronizing/matching

those of the core business, and if these values and aspirations are embodied in the brand, it is likely to

be accepted by customers in the new business.

Extending a brand outside its core product category can be beneficial in a sense that it helps evaluating

product category opportunities, identifies resource requirements, lowers risk, and measures brand’s

relevance and appeal.

Brand extension may be successful or unsuccessful.

Instances where brand extension has been a success are-

Wipro which was originally into computers has extended into shampoo, powder, and soap.

Mars is no longer a famous bar only, but an ice-cream, chocolate drink and a slab of chocolate.

Instances where brand extension has been a failure are-

In case of new Coke, Coca Cola has forgotten what the core brand was meant to stand for. It thought

that taste was the only factor that consumer cared about. It was wrong. The time and money spent on

research on new Coca Cola could not evaluate the deep emotional attachment to the original Coca-

Cola.

Rasna Ltd. - Is among the famous soft drink companies in India. But when it tried to move away from its

niche, it hasn’t had much success. When it experimented with fizzy fruit drink “Oranjolt”, the brand

bombed even before it could take off. Oranjolt was a fruit drink in which carbonates were used as

preservative. It didn’t work out because it was out of synchronization with retail practices. Oranjolt need

to be refrigerated and it also faced quality problems. It has a shelf life of three-four weeks, while other

soft- drinks assured life of five months. Advantages of Brand Extension

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Brand Extension has following advantages:

It makes acceptance of new product easy.

It increases brand image.

The risk perceived by the customers reduces.

The likelihood of gaining distribution and trial increases. An established brand name increases consumer

interest and willingness to try new product having the established brand name.

The efficiency of promotional expenditure increases. Advertising, selling and promotional costs are

reduced. There are economies of scale as advertising for core brand and its extension reinforces each

other.

Cost of developing new brand is saved.

Consumers can now seek for a variety.

There are packaging and labeling efficiencies.

The expense of introductory and follow up marketing programs is reduced.

There are feedback benefits to the parent brand and the organization.

The image of parent brand is enhanced.

It revives the brand.

It allows subsequent extension.

Brand meaning is clarified.

It increases market coverage as it brings new customers into brand franchise.

Customers associate original/core brand to new product, hence they also have quality associations.

Disadvantages of Brand Extension

Brand extension in unrelated markets may lead to loss of reliability if a brand name is extended too far.

An organization must research the product categories in which the established brand name will work.

There is a risk that the new product may generate implications that damage the image of the

core/original brand.

There are chances of less awareness and trial because the management may not provide enough

investment for the introduction of new product assuming that the spin-off effects from the original

brand name will compensate.

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If the brand extensions have no advantage over competitive brands in the new category, then it will fail.

Co-branding - Meaning, Types and Advantages and Disadvantages

What is Co-branding

Co branding is the utilization of two or more brands to name a new product. The ingredient brands help

each other to achieve their aims. The overall synchronization between the brand pair and the new

product has to be kept in mind. Example of co-branding - Citibank co-branded with MTV to launch a co-

branded debit card. This card is beneficial to customers who can avail benefits at specific outlets called

MTV Citibank club.

Types of Co-branding

Co-branding is of two types: Ingredient co-branding and Composite co-branding.

Ingredient co-branding implies using a renowned brand as an element in the production of another

renowned brand. This deals with creation of brand equity for materials and parts that are contained

within other products. The ingredient/constituent brand is subordinate to the primary brand. For

instance - Dell computers has co-branding strategy with Intel processors. The brands which are

ingredients are usually the company’s biggest buyers or present suppliers. The ingredient brand should

be unique. It should either be a major brand or should be protected by a patent. Ingredient co-branding

leads to better quality products, superior promotions, more access to distribution channel and greater

profits. The seller of ingredient brand enjoys long-term customer relations. The brand manufacture can

benefit by having a competitive advantage and the retailer can benefit by enjoying a promotional help

from ingredient brand.

Composite co-branding refers to use of two renowned brand names in a way that they can collectively

offer a distinct product/ service that could not be possible individually. The success of composite

branding depends upon the favourability of the ingredient brands and also upon the extent on

complementarities between them.

Advantages and Disadvantages of Co-branding

Co-branding has various advantages, such as - risk-sharing, generation of royalty income, more sales

income, greater customer trust on the product, wide scope due to joint advertising, technological

benefits, better product image by association with another renowned brand, and greater access to new

sources of finance. But co-branding is not free from limitations. Co-branding may fail when the two

products have different market and are entirely different. If there is difference in visions and missions of

the two companies, then also composite branding may fail. Co-branding may affect partner brands in

adverse manner. If the customers associate any adverse experience with a constituent brand, then it

may damage the total brand equity.

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Strategic Brand Management

Meaning and its importance

Brand does not carry a definite and absolute definition but it is relative. Some observers would term

products or services characteristics, which differentiate it from competitors as brand, where as some

would consider standing of one’s product or services in market as brand. In all these, value of product or

service for what it stands and attributes which identifies them can be considered as brand.

Branding or Brand is considered important not only for companies but they carry equal importance for

customers or consumers also. From consumer or customer point of view, brand becomes important for

various reason let us explore some of them. Brand for a customer will indicate commitment towards

quality from sellers there by reducing time spent in coming to a purchase decision. Brand for companies

will indicate a sort of benchmark in quality as well as customer expectation, a point of differentiation

from competitors and a steady stream of profit.

Normally we associate branding from point of view common mass; and products or service displayed in

malls and supermarket. However there exists another market where branding is equally important and

that is business to business market. This is referred as corporate branding, which is again a challenge as

decision making process for purchase order is way different compare to individual. Here survival of

organization as well as individual will be at stake. The key lies in developing a brand for corporation

where in which other business can be confident of.

Modern globalized, technology driven world has thrown new challenges to branding.

Customers/consumers have more access to information than ever before. Internet has become a strong

tool through which product information proliferate raising expectation bar for companies. Companies

have responded to this challenge by improvising in the way they run their marketing campaigns, by

exploring new avenues to showcase their products. Like for example; sponsorship of events and teams

or association with social cause.

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In a given market innumerable products and services are offered by different companies. The identity

developed for this product and services over a period of time, through marketing strategies, sturdy

performance etc is referred to as brand. A stage is reached where brand become synonymous with

product e.g. - coffee-Starbucks, donut-Dunkin Donuts, online retail-Ebay etc. This process is called

strategic brand management.

Customer Based Brand Equity Imagine walking in aisle of a typical super market (Shaw’s, Costco etc) to

purchase salt, there are many offerings but choice is “Morton”. It is a simple example but a great

situation to understand brand and brand equity. Companies already know that identity of product

created over period of time through strategic marketing is brand, but now what is “Brand Equity”. From

customer’s point of view, association created which results in favorable and positive action towards a

brand, in context with other product can be referred as brand equity. If that action is in favor of any

brand than is positive brand equity and that action is not favorable than its negative brand equity.

Therefore in the above example, action of consumer in purchasing “Morton” is suggesting positive

brand equity. And since this brand equity is from customer’s perspective, Customer Based Brand Equity.

Brand equity is a good barometer to understand past action and future course of action for marketers,

who are active in formulating strategies for a given brand. If in present, customer has developed

favorable attitude towards the brand then it is a clear indication that past investment (time, money, etc)

have found there mark.

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The present also leads the way how marketers should plan future course, as to achieve desired results.

But one aspect is absolutely clear that brand knowledge is a key factor in establishing brand equity.

To further stress point of brand knowledge, an experiment was conducted by Larry Percy with respect to

brand equity using Beer as product. Aim was to understand consumer response for the same brands

under two different set ups. The first set up was where consumer had no knowledge about the brand

and in the second next set up, brand name was not disclosed. Result showed that consumer were highly

critical of preferred beer when they were not aware of brand. A favorable response was recorded after

brand disclosure, leading to conclusion that brand knowledge contributes a lot in understanding

customer based brand equity.

Brand knowledge which is crucial in evolution of brand equity consists of brand awareness and brand

image. Here brand awareness means the ability created by brand with which consumer can recall and

recognize in any given environment. On the other hand brand image are visuals, logo, style etc with

which brand is associated. Customer based brand equity results in creation of strong brand and this is

achieved when brand awareness and image are at high level. But how to create a strong brand based

brand equity ?

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A thing to understand here is that brand equity resides in the mind of the customer, so conviction has to

be brought in strategy as to permanently occupy consumer mind space. The process is like climbing a

ladder, one step at a time. And at each step an objective is achieved creating leading to a strong brand.

First step is to establish a relation between customer need and product offering, meaning for given

product the brand is the best customer can get. This is done by appropriate brand awareness and image.

Second step is connection, by churning out predictable, reliable and quality performance during each

purchase. This establishes imprint in customer’s mind which further can be cemented by visual, logos,

packaging, quality, customer service, warranty, etc. Next create emotional connection with customer

using brand offering and brand image as to generate response from the customer. The emotional level

response in form of positive reaction or opinion brand creates long term, sustainable and healthy

relationship.

A classic example here would be of “Google” and “Apple”. Both these brands have become synonymous

with search engine and entertainment in mind of customers.

When brand is able to achieve sense of oneness with its consumer then it can be said that strong brand

has been created. Companies tend to benefit a lot, in terms loyalty as consumer will stick to the brand

no matter what price premium they have to shell out. These consumers become sort of brand

ambassador and recommending usage of brand. There by creating consumer based brand equity.

Brand Positioning Strategy

Brand knowledge comprises of brand awareness and brand image contribute to establishing of

customer based brand equity. The process is gradual and requires in-depth understanding of consumer

mind. Connection between brand and consumer leads to long term partnership and loyalty. And,

continued support to marketing efforts of the company. So when a company is trying to build up brand

knowledge, Brand Positioning becomes very much relevant. For example, Apple and Windows both are

well known brand. Consumers are aware that they both are computer brands dealing in entertainment,

but Apple stands for style, cool quotient, iPod etc where as Windows stands for world class operating

system, quality etc. Consumer can easily identify point of similarities and points of difference between

the two brands. This process of creating point of similarities and points of difference in consumer’s mind

is called Brand Positioning.

Brand positioning strategy is about finding a right place for a brand in market place as well consumer

mind. A consumer should easily identify that for a given need or want this is the brand. If brand fails to

do this, it simply becomes

just another product or commodity on supermarket or mall shelf. So for successful brand positioning,

following points are of utmost importance for companies; target consumer, main competitors, point of

similarity with competitors and point of difference with competitors.

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So, to identify target consumer we must narrow down target market. A market comprises of cluster of

individual with similar behavior, referred to as segments. These segments can be defined on basis of

personal consumption profile, which includes marital status, consumption of product, usage rate of

product and expectation from product. Another is demographic which includes age, sex, income level,

race and family. Further segmentation can be done on location, if consumer, that is whether they are

local or global. Other segmentation can be done on basis of emotional profile, which includes personal

belief and values, chosen lifestyle, religious affiliation etc.

Another market which is important is business market. Segmentation of business market is starts with

product class, meaning target industry (chemical, agriculture etc). Another segment is buying decision,

that is, through tender process, bidding process. By end customer (government, not profit organization

etc). Finally segmentation is done on basis of company profile, which includes financial strength and

geographical location.

Knowing your competitor is very essential for survival in market. SWOT analysis is definitely good

starting point. Competition may not be coming from the same product class but maybe from substitute,

such as, tea v/s coffee. The point here is that not to narrow down competition too much as to lose

focus. In recent time apparel industry has facing competition from consumer electronics industry, as

people are willing to spend buck on iPod, HDTV to make style statement and not clothes.

Point of difference could be defining in terms of the way consumer thinks for a given brand. These are

the points which will make the brand stand out from competition. Point of difference is like unique

selling proposition and this difference can be in form of appearance, predictable performance, quality,

better customer service. For example Wal-Mart, faces competition not only from Target but also from

Macy’s and Shaw’s. But point of difference is the product range it can offer at competitive prices

compared to other stores.

Points of similarity are common traits essential to make sure that consumer understand the product. It

helps in enforcing a simple point of identifying product within product class. This becomes important

especially if brand is in extension mode and looking to enter another category. This is more prevalent in

consumer goods industry, such as Old Spice earlier it was focus on shaving product but later moved to

grooming products like deodorants.

Brand positioning is very important step in establishing customer based brand equity. Target market,

Knowing competitors, Point of difference and Point of similarity together add to strategic branding

process.

Choosing Brand Elements to Build Brand Equity

Brand equity is the result of a process which leads to a creation of a unique and distinct brand identity.

These brand identifiers are referred to as brand identifiers. Brand identification can be done through

various ways; for example, Unique Selling Proposition (USP), Logo, Style, Brand Ambassador, Etc. Brand

elements facilitate the process of consumer brain mapping and play a key role in building brand equity.

Consumers over period of time are able to identify the brand through brand elements. The idea is to

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develop brand elements, which can properly communicate about brand and its point of difference from

competing brands.

There are various factors, which add to a good brand element. Brand element should be such that they

can have a great recall power; for example, half eaten apple, it steadily identifies with brand Apple.

These sort of logo stays in memory for long time. So the brand element should be such that it can be

easily recalled. Another factor is significance and application, is brand element conveying either of this

two for consumer? Significance here means that brand element should be suitable for that given

product category. Consumer should not be left guessing

about brand by looking at the element. Another factor for a good brand element is design and

appearance, of course it depends on product category company is operating (industrial product v/s

consumer products). For example, Apple products I-pod and Mac, design and appearance are such;

anyone would be attracted towards them.

Another factor is the application of brand element. For example, Virgin, this brand is applicable to

airlines as much as to financial services, on other hand, Toys r us, this brand can only be valid to sell

toys, games, etc. In this globalize world it is very important to respect diversity and culture. A word or

symbol can have various meanings, for example, Swastika symbol is associated with Nazi's movement

but in India symbol means luck. So the choice of word or symbol should not be without research.

Another factor is flexibility; an openness to change. This flexibility could be in the form of demographic,

society, etc., for example, TV ads during the super bowl show Asian, African American, Hispanic drinking

beer together, even though football is all American game. The reason been American society has a good

mix of people from different race and culture but has a strong passion for the game. Ads15 years never

showed this kind of mix of different race and culture. The last important factor is intellectual property

rights, brand element should have a legal cover from piracy and copiers in which countries they operate.

The most elementary part of brand element to achieve brand equity is the brand name. For example, in

meeting a stranger, a formal introduction starts with name, so that next time you see person again you

greet her by name. Similarly brand name can convey much about brand itself, example, Pepsi-cola or

common name Pepsi. Brand name is easy to remember and recall making pronunciation easy for non-

English speaker. Brand name could also be suggestive into what brand is offering, for example, Kentucky

Fried Chicken. The brand name itself is sufficient in conveying that for fried chicken KFC is the brand.

Another elementary part is the brand slogan because it can again convey the whole existence of brand.

For example, Wal-Mart’s slogan is “Save Money Live Better”; it conveys lot about offering at brand

stores. But again as time change slogan also have to evolve. Earlier Wal-Mart’s slogan was “Always Low

Price”, but in tough economic times the new slogan is more relevant. Packaging also plays important

part as brand element in building brand equity. For example Kellogg’s cereals; it’s packaging as evolved

responding to modern needs (healthy diet) to new technologies.

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It can be easily concluded from above the importance of brand element in creation of brand equity.

Various elements like brand name, packaging, slogan symbol individually and collectively play important

in creating long lasting impression and relation with consumer.

Designing Marketing Programs to Build Brand Equity At core of building brand equity is marketing

programs or strategies. Marketing activities can facilitate in increasing brand awareness as well as in

creating the right brand image. Marketing activities can be weaved around product, pricing and

distribution channel. But the way these marketing activities are carried out has gone under

revolutionary change owing to the modern technological driven world.

Reason why modern world is different can be understood from consumer as well as company’s

perspective. Today’s consumer is well informed about the product or service she is purchasing, reason

been digital connectivity through internet, mobile etc. Product reviews are readily available forums or

social networking sites, where in consumer can read understand experience of other consumers.

Consumer have more access to customized products, there are websites which lets you design your own

t-shirts or hoodies. Many of consumer purchase decision are made online; internet along with

technology has given convenience to consumer. From companies perspective new technology frontiers

has improved the way they understand consumer. Companies maintain large

database storing consumption behavior; analyze this database to create consumer expectation matching

products and services. Marketing tactics can be implemented by emails, forums on social networking

sites etc. Internet retailing has created new supply chain model for companies, which is a challenge as

well convince, because traditional distributes and agents have made way to courier services. For

example products ordered from Dell are design, assembled in company’s warehouse and then sent to

customers.

Traditional marketing activities revolve around product, pricing and channel distribution. However,

efforts are always on to make sure marketing activities truly reflect brand image and develop strong

brand equity. One the marketing concept developed is called experiential marketing. This unique

concept is associated with brands and experience consumer has with it. For example American Express,

has been sponsor of US open for years, they have created marketing plan especially for their card

holders. The card holders are part of daily draws, where winner are eligible to court side seats among

many other freebies. Another marketing technique popular among markets is a form of direct

marketing. Brands like Amway and Avon have followed this technique for some time now. In this form of

marketing focus is on individual consumer and not a large group, their habits are recorded and on that

basis other products are suggested. Flora 2000 is online florist who deliver flowers all around the globe,

time to time they send reminders of important events like mother’s day or valentine day with special

deals to consumer, knowing consumer had previously made purchase around that period. Online

retailer Amazon uses another marketing technique where they suggest a product to consumer after

getting nod from them. Amazon takes permission from consumer before sending recommendation. This

permission marketing enables companies to build unique brand image leading to strong brand equity.

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Product remains first frontier for consumer to create opinion for brand. Marketing strategy around

product is to highlight not only core benefits but also process or easy by which purchase is done there

by creating a long term relationship with consumer where periodical information exchange can occur.

Pricing is crucial for brand image. To establish price, product cost should not be the only consideration.

But consumer perception for potential product value and sensitivity to price is also of equal importance.

Competitor’s price also cannot be ignored because price war will not benefit anyone in the market. An

effort has to be made to educate the consumer about cost of serving them, for them to understand

price of product.

Products are sold either through direct marketing channels or indirect marketing channels. These

channels also play an important role in building brand equity. Again channel choice is dependent on

product. Industrial product preferred way would be direct channel. But there are various factors like

product category, customization, price, complexity which play a role in deciding marketing channel.

Marketers have to develop marketing programs keeping in mind above discuss points to build a strong

consumer based brand equity.

Integrating Marketing Communication to Build Brand Equity

Marketing programs play an important role in building up of brand equity. These marketing programs

are related to product, price and distribution channels. And these programs are necessary to create

brand image and also to build brand awareness. This task is done through medium of marketing

communication, in its most form is advertising. Marketing communication is essential in establishing

point of similarity, as well point of difference with competition, making an impression in consumer’s

mind leading to development of strong consumer based brand equity and also to develop long- lasting

relationship.

Marketing communication needs to be flexible in current technology driven environment where

consumer are internet savvy and have access to information. Traditional communication avenues like TV

ads have to undergo subtle changes. Advent of digital video recorders has seen consumer watching their

favorite program post actual telecast. But a trend observed here is that consumes tend to skip ads in

recorded program. If that is the case than fortune spent of getting spots won’t translate into effective

communication. Today’s youth tend to spend more time playing video games and not on watching

television. So communication developed should follow certain criteria to prove its effectiveness.

For marketing communication to be effective in conveying its message a simple cycle has to be

understood. Marketers need to understand the present state of brand awareness and brand image

within consumer’s mind and then ask question, do they want to be in current state. Now design

communication in whatever form required that will take to desired level, while clearly stating similarity

and difference from competitors. Finally, research consumers to understand whether desire effect or

brand knowledge has been created.

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But what factors need to be considered in designing this marketing communication? The intended

consumers should be able to get a chance to experience the communication. So if consumers watch

cartoon network and ad is not ESPN then end consequences are already written. Next communication

needs to be catchy so consumer would stop and look through it. Once consumer is all attention then

communication should be properly designed to pass the message across. Consumer should not be left

wandering about meaning. The important part is measure, effectiveness of communication that is

whether there is change in direction for consumer as intended. Looking at above steps, it is easy to

conclude that it is challenging and difficult to design and execute marketing communication process.

There are various marketing options available to marketers. Each option has its own strength and

weakness. Advertisement is one the most common form of marketing communication; this can be done

through television, radio, magazines, newspaper, direct approach, etc. Television is good medium to

target large audience and greater geographical area, thereby reducing dollar cost per customer.

However this medium can be expensive and may not create a strong impact. Radio on other hand has

lesser geographical coverage and audience, thereby creating focus on selective audience and reducing

cost. However radio again can only have audio and cannot grab attention the way visuals can.

Magazines and newspaper can provide good coverage with greater information content. However it is

just visual and may not generate desirable consumer response. Other form of marketing communication

are direct marketing which includes door to door, phone calls and mail, then, marketing at point of

purchase through cut outs and display, another way through billboards which can have both visual as

well as audio.

Marketers also extensively use promotional activity for marketing communications. These are of two

types’, consumer promotion and trade promotion. Consumer promotion can be in form of sampling,

evident at malls and super market, another way by providing coupons and various other schemes. Trade

promotion is targeted for channel partner like retailers, distributors and these could be in form cash

incentives etc.

To design a complete marketing communication program, marketers have to ensure that they are able

to establish connection with consumer and able to effectively communicate about brand, there by

creating a strong brand awareness and image. This will ensure in creating a strong consumer based

brand equity.

Leveraging Secondary Brand Association to Build Brand Equity

There are various ways to create brand equity. Brand elements offer many alternatives style, logo

unique selling proposition etc. Then there are marketing strategies aimed at product, price and

distribution network. Here focus is on product and its attributes, correct and convincing price structure,

and finally choice of product reaches consumer. Marketing communication is also strategic with respect

to build brand equity with choice of medium (TV, radio, etc) and sales/consumer promotion. But what

would be course of brand building for brand extension? Here brand has to draw some brand elements

and brand knowledge from already developed brand, which has already created impression in

consumer’s mind, thereby leveraging secondary brand association to create brand equity.

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Marketers have various options available to them to facilitate leveraging process. These options are

association with companies, countries and distribution channel. Next set of options relate to brand

image and they are in form of brand ambassador, event sponsorship and other related activities.

Secondary brand association has its importance when consumers are not aware

of the new or upcoming brand. This leads to indifferent approach from customer towards brand.

However, if consumers do not have knowledge of associating company than there could be no

knowledge transfer and cannot translate into benefit for the brand. Even if the consumers have brand

knowledge how much relevance it holds for the current brand also has to be ascertained.

If a company is to introduce a new brand the first step of association is with corporate brand if it exists.

For example, Nokia, when it introduce mini laptop it was referred as Nokia 3G Booklet there are creating

association, as consumer are already aware Nokia mobile phones. Along with company, country of origin

can also be relevant source for brand association, for example BMW and its association with Germany.

Top class and renowned German engineering process gets linked to brand BMW or other car coming out

of Germany. Another valuable association is through channel distribution; if company already has a

strong retail level penetration then introduction of new brand will have its benefit. But here question is

raised concerning brand positioning, if retail network is catering to high end brand, that distribution

network will not relevant for low end brand.

Above listed of association within current company’s infrastructure, however association can also be

developed with brand from different company. This concept is called co-branding, for example branding

of airlines referred to as Star Alliance consisting of 16 airlines. Benefit with this kind of association is that

there definite decrease in cost of introducing of brand plus positioning becomes easier. However,

companies lose charge or control to the overall brand development process as it is peg with other

brands. Lost in the crowd is another problem leading from brand associations.

Another way of association is through usage of logos, characters from brands, franchise of other product

category. For example, Sony’s PSP coming out with console featuring characters from Star Wars. But

strategy has a drawback, sometimes popularity character may last just for a movie or a season, in that

case, brand has to undergo another round of association. So choice of right character as shown by Sony

is important. Celebrity endorsement is another way of association, for example, Tiger Woods endorsing

product Gatorade. However this also has challenges if that celebrity is involved endorsement many

other brands. This could lead to dilution or recall value of brand. Also if fortunes of celebrity goes turtle

brand are also in for some pounding. Event sponsorship is another way for brand association but again

right choice of event is very essential to make the brand relevant among consumer. Another form of

endorsement is from third party for example dental association certifying toothpaste brand.

Marketers some come up with right mix of above strategies to convey right brand knowledge to

consumers. It has its challenges but overall success of secondary association in building strong brand

equity cannot be ignored.

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Developing a Brand Equity Measurement and Management System

Marketers have various tools at their disposal to build a strong consumer based brand equity. Through

this tool, they have developed many strategically important marketing communication programs. It is

important for survival of brand to understand how effective these programs have been. If these

programs have been able to induce a positive image and increased brand knowledge among consumer

then, it can be concluded that strategy employed is successful. A deliberate effort has to be carried out

to measure success of marketing communication programs. This deliberate effort should be in direction

of effective and efficient measurement system and also ways to manage these systems.

There are two ways forward in designing measurement system. One such measurement system relies on

indirect method, where in emotional level changes in consumer are sorted and recorded. Other system

rather relies on direct measurement method where in consumer response towards brand in terms of

sales etc are measured and analyzed. A system design to effectively measure source and outcome of

branding strategies there by providing a set of information, which can be delivered to concern decision

makers to act on, is called a brand equity measurement system.

Although there is a broad consensus among marketers for need to measure brand equity, not many of

them are aware and among them very few actually know how to make full use of it. In a normal course

measurement is done by return on investment basis. This ROI measure definitely considers a very short

term measure of marketing programs and activities. But marketing programs and activities design to

build as strong brand activity on a long term basis. But this does not mean there should not be short

term analysis to confirm path towards long term goal. Therefore, brand measurement should be able to

project future cash flow associated with brand which can lead overall value of the company. Other part,

which needs to be strongly put forward, is that marketing programs are looking to change consumer

action.

The whole process starting from finalizing of marketing program to end result in form of financial cash

flow is evaluate through the brand value chain. It basically sets out chart of build up to brand equity.

First value step is to set up marketing investment where the current brand equity is analyzed and

program designed. Here particular attention is given to quality of program design by asking relevant

questions. After the execution of the program, consumer mind set in new environment is analyzed to

see whether there has been any expected impact. Another interesting point would be look at the

competitors’ reaction and to understand how market has reacted to program. The immediate action

would be seen in consumer behavior towards brand; positive if marketing program has hit the mark and

vice-versa. If positive then it leads to definite creation of shareholder value in terms of improved profit

and increase in stock price.

It is always good to conduct an audit of whatever process developed to track efficiency and measure

proper utilization of investor money. This tracking can be done with respect to product brand, usually in

form of survey after any purchase. This is tracking for brand awareness, brand image, brand

performance and brand appeal with respect to consumer. Next it tracks overall feeling associated with

brand purchase and specific attributes which has created an impression. Another form of tracking is

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corporate brand tracking a sort of umbrella tracking where you track everyone in the family. This sort of

tracking tries to understand tracking in co-relation between individual brand and consumer perception

of the company. If the company is global in nature then you want to track way the brand is performing

as market could vary from infant stage to a mature market.

These tracking activities are likely to generate great amount of data which has to be converted into

information for decision making process. This information will lead to setting up of brand equity report

and creating responsibility centers to oversee development of efficient marketing department, thereby

creating a perfect brand equity measurement and management system.

Measuring Sources of Brand Equity

For any marketers, it is of supreme importance to understand a consumer mind and also current level of

brand knowledge among consumers because this understanding lays foundation for formulation of

marketing communication strategies. Hypothetically, marketers should be able to construct such mind

print; but as this knowledge resides in consumer mind, task become difficult. Marketers should be able

to measure how much marketing programs have succeeded in changing customer buying habits. The

solution is to develop techniques, which can convert emotional data into qualitative and quantitative

data for analysis. A particular attention is required to design measurement system for source of brand

equity.

One of the primary measurement system is capturing the response of customer in a basic questionnaire

format, where in, they are asked to express feeling with regards to particular feature of brand and

overall experience in using a service. Another qualitative research technique looks to capture consumer

behavior in understanding her purchase decision. Here question are asked, to understand how the

consumer came to purchase decision, what factors they consider, is there a particular time of the year

do they make this purchase, etc.

Marketers’, profile brand association by asking open end questions, like what first comes to your mind

when the brand name is mentioned. Here response from consumer can be a good indicator of individual

emotional connection with the brand. Important points to be considered in deploying this free

association technique is question design, that is they should start from overall brand image and then

moving on to questions with precise reference. Another consequential point to remember here is

related with coding of information, as questions are moving from general to very exact.

A drawback using open ended information gathering process is that there could be instance where a

consumer may not speak their mind and not disclose a true feeling associated with the purchase

decision, for example, they bought brand to get them social status, but they may want to portray as a

casual purchase. Furthermore, unfamiliarity with the person could as well prevent consumer from

speaking her mind. To counter this problem projective technique is employed where in a situation are

shown to consumer, and they are required to fill in details as per their liking. However, this technique is

also not foolproof. Another projective technique tries to compare brands with characters or any un-

related object or a person and once done, marketers would try and analyze the response.

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Quantitative techniques are much prevalent as a research alternative. In quantitative techniques

consumer are usually given option to rank a direct question. Quantitative techniques are used to check

brand awareness part of brand knowledge and try to dig deep in understanding consumer perception of

the brand. Recognition is essential part of brand awareness, meaning consumer should be able to

identify the brand under different circumstances, for example, for a given brand some part of packaging

may be shown to consumer and task is to identify that brand and also provide their confidence rating in

guess the brand. Another part of brand awareness is brand recall, which means to evoke thoughts of

consumer under a possible clue like list brand for portable music players or been specific like what beer

brand you would associate as a foreign brand. Other quantitative techniques are developed to

understand the brand image, brand response in terms of purchase decision, brand relationship with

regards to customer loyalty and long term commitment.

Qualitative and quantitative research techniques are design to understand the source of brand equity

from consumer’s perspective. Qualitative techniques are used to research and analyze brand association

consumer has towards the brand, using techniques like free association, story-telling, etc.; it can bring

out true feelings. On another hand quantitative research techniques are used to understand brand

awareness in respect to recognition and recall and also through scaling precise measurement for source

of brand equity is done.

Measuring Outcomes of Brand Equity

There are two types of method employed to measure brand equity at source. These two methods are

qualitative research methods and quantitative research methods. Qualitative research methods are

ideal for measuring brand association where in consumer perceptions towards brand are captured.

Quantitative research methods are perfect to understand brand awareness within consumer.

Both above mention methods are only able to capture and measure one dimension of brand equity at a

time. But brand equity is multi-dimensional and therefore it is important to measure each as it will help

in taking tactical as well as strategically important decision.

Comparative methods and holistic methods are designed to directly analyze brand equity. Comparative

methods tend to analyze effects of consumer perception towards brand in respect to marketing

programs, in terms of change in brand awareness. Holistic methods are designed to analyze the total

effect of brand equity. These methods will provide necessary tools to measure outcome of brand equity.

Consumer bases brand equity will lead to loyal customer base, point of differentiation against

competitors get better margins, more acceptances of marketing communication, strong standing in

distribution channel and also support any form of brand extension.

Comparative methods are research methods which measure brand equity associated with brand

association and high level of brand awareness. Comparative methods are again of different types

depending on usage of marketing. Brand based comparative methods looks to measure consumer

response against same marketing program for different brands. Marketing based comparative method

looks to measure consumer response for same brand under different marketing program. Conjoint

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comparative method looks to combine both brand based comparative method and marketing based

comparative method. Each method has its application and drawbacks.

Brand based comparative method, as mentioned, tries to examine consumer’s response to identical

marketing response to different brand in the same product category. This could be competitor’s brand,

any non-existing brand or preferred brand in that category. A classic example of such comparative

method is experiment conducted by Larry Percy; in which consumer were ask to map beer taste and

preference. In one first instance brand name were disclosed whereas on second instance brand name

was not disclosed. Consumer showed more loyalty when brand name was disclosed. Brand based

method really isolated true value of brand name and this concept especially holds true when there is a

change in marketing program from past efforts.

Marketing based method tries to understand consumer response under different marketing promotions.

Here focus is to understand how much influence marketing program has on brand performance. One

such experiment would be to understand consumer response at different price levels; this will reveal

level of tolerance before consumer switch to another brand. Marketing based method would also be

effective in understanding consumer response to similar marketing program across various geographical

locations. The main advantage of marketing based method is that it can be applicable to any marketing

program. However drawback of this method is that it is difficult to separate whether consumer

preference is towards the brand or product category in general, meaning the price premium discovered

may applicable to other brand in similar product category also.

Conjoint method allows simultaneously study of brand as well as marketing program. This method also

employs statistical calculation making it possible to study many attributes or association at one time.

Disadvantage of this method is that too much experimentation will may increase consumer expectation

with respect to the brand.

Holistic method is used to determine financial value or definite utility value of the brand. Holistic

method looks to measure consumer brand preference over consumer brand response. Residual holistic

approach measures brand equity after subtracting physical attributes of the brand. Valuation holistic

approach looks to measure brand equity in financial term which is important during valuation of whole

firm in activities of merger/acquisition, fund raising etc.

Comparative method and Holistic method are employed to measure benefit of consumer based brand

equity. Comparative method measures consumer response where as holistic method measure consumer

brand consumer preference. These methods are relevant to calculate return of investment for

marketing activities.

Designing and Implementing Branding Strategies

Customer based brand equity is created when brand knowledge comprising of brand awareness and

brand image are at highest level in customer mind. Brand awareness level is raised in customer by first

understanding consumer taste, preference and present level of awareness. This analysis leads to

designing of marketing programs and outcomes of those programs are also recorded. Designing of

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marketing programs is a complex process as it may have to encompass wide range of product and

brands. Purpose of all marketing program is to maximize brand equity and also to capture or create long

lasting impression in consumer mind.

Branding strategies deal with creating brand names, logos, style etc. for it to be distinguished from

competitors and also whether product brand should be separate from corporate brand or a separate

brand away from other individual brands. Implication of branding strategies is that it creates brand

awareness for consumer to ascertain point of difference and point of similarity with competitors.

Second implication is brand image for association of brand equity from brand to product.

Brand-product matrix looks to explain brand portfolio and brand extension strategies. In the matrix all

products offered under different brands are represented by a row. This helps marketers understand the

current brand line and explore further opportunity in expanding the product line. In the matrix all

current existing brand are represented in form of column referred to as brand portfolio. The brand

portfolio analysis is essential to design and develop new marketing strategies to target a given product

category.

Product line facilitates marketers to devise strategy with regards to future treatment for a given brand.

This strategy focuses on decision, as to whether product line can be extended or new variants of existing

product should be introduced. When taking brand extension decision companies needs to carry SWOT

(Strength, Weakness, Opportunity, Threat) analysis to fully understand market conditions, current

category structure and environmental( economic, social, political, regulatory) dynamics. This analysis

will give companies product line and categories to follow active branding strategy.

Active branding strategy with respect to product line involves creating multiple brands; this provides

depth to the branding process. For example- car maker General Motors, it created multiple brands to

expand the product class category from SUV to sports car. This sort of strategy is also used by consumer

goods giant P & G and Unilever. By creating individual brands companies can create different marketing

strategies. This strategy ensures no market in given industry remains un-tapped.

Brand product matrix helps in showcasing different brand in any given product category. In that respect

Brand Hierarchy is graphical representation of company’s products and its brands. Hierarchical structure

starts with corporate brand and then showcases different product category and below brands. This sort

of presentation helps devise marketing strategy at many levels and forms. There is no fix way to go

about formulating marketing strategy but generally it can fit into 3 categories. First strategy gives more

importance to corporate brand and less prominence to product brand. Second strategy sees importance

been given to two or more product brands and some highlighting to the corporate brand. Third strategy

looks at promoting only the product brand and there is no mention of corporate entity at all.

Another brand building strategy which has gain prominence in recent times is cause marketing or social

responsibility marketing. In cause marketing company contributes some amount of revenue generate

from product sales towards designated cause. For example- American Express started RED campaign

along with U2 singer Bono where in 1 percent of card charges were dedicated to fight AIDS in Africa. This

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sort of marketing improves brand awareness as well as brand image and it can generate sense of pride

not only for consumers but also for employees.

There are various ways through which a successful brand build strategy can be created, maintained and

enhanced. But one things which comes out from exploring different strategies is that companies have to

proactive in designing marketing campaign and react accordingly to challenges of dynamic environment.

Identifying Market Segments and Selecting Target Markets

Market for product is big and diverse making it difficult for companies to be able to satisfy every

customer. Companies need to identify a certain set of customer within a market and work towards

satisfying them. This set of identification is market segment. Companies further need to understand the

intricacy of how this segment behaves and operates. An approach known as target marketing is gaining

prominence where companies identify the market segment on similar needs and wants, select one of

the market segments and then focus in developing products and marketing program.

Earlier business operation was in the form of mass marketing. In mass marketing companies produce a

product in large quantities and serve this product to as many consumers as possible. This made sense as

markets were developing and not much variety was on offering. Now product offerings have under gone

radical change thanks to advertising and communication reach. Therefore, companies look forward to

marketing at segment, niches, local and individual level.

In segment marketing companies identify consumer with similar needs and wants. For example, an

airline is looking forward to providing no frills’ connectivity between metro cities on US east coast

compare. This segment is within airline industry but needs of customer is different. T target audience is

low budget travelers. However, customers within the segment look for different attributes, for example,

lunch or beverages as part of travel. Here companies can offer this by charging the customer.

In niche marketing, companies target limited customer set. A niche market is worth exploring where

customers are willing to pay a premium for product, entry barriers are high and market has growth

potential. In local marketing, customers are local neighborhood, trading stores, etc. For example, many

banks prefer local marketing for better understanding of client and provide them right type of service. In

individual marketing, companies look forward to satisfying needs and wants of individual customer.

Internet is facilitating the process of individual marketing, where in customer log on to the site and

creates products from available options. This process is not feasible for high technology products like

automobiles.

The market segmentation task has to follow a scientific process.

The first task is to group customer according to product and service they want.

The second task is to analyze customer by summarizing demographic, lifestyle and usage pattern, which

helps in the definition of market segment.

The third task is due diligence of the market for growth potential, competition and other factors.

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The fourth task is to profitability of market segment.

The fifth task is to undertake positioning activity for pricing and marketing programs.

The sixth task is to explore different positioning and marketing strategies to explore the market to its full

potential.

There are various factors, which affect segmentation in a consumer market. Geographic is one such

factor, where a country is segmented on basis region, city, urban, rural and climate. Demographically

market is segmented on the basis of age, family size, gender, household income, life stage, occupation,

education, religion, race, generation and social class. Further, segmentation can be done on the basis of

lifestyle and personality traits. On an individual level market can be segmented on the basis of attitude,

belief and perception of products, product awareness and usage pattern.

There are various factors, which affect segmentation in the business market. Demographic is one such

factor, which consists of type of industry, size of company and geographical location of the company.

Operational segmentation is on the technology class, customer consumption and customer

requirements. Purchasing methodology includes segmentation based on purchase policy, purchase

department structure, relation with companies and market positioning of companies. The order

Requirements lets segmentation be based on nature of requirement and size of order. Personality trait

segmentation looks at loyalty and risk profile.

Companies have to finalize target market in which it wants to operate. After which segments have to be

identified based of various factors as discussed. Once segments are identified, in-depth evaluation

analysis has to be done come for a conclusion, whether to target one or several segments.

Introducing and Naming New Products and Brand Extension

For a given company, there can be variety of product and services under different brands. Brand-

product matrix is used to better understand current offering of the company. This matrix helps

companies understand product line (product category) and brand portfolio (brands for different

products). Similarly, brand hierarchy concept helps companies understand association among offered

brands. Brand product matrix and brand hierarchy are essential tools for companies when they are

looking for brand extension or launching new products. But they are factors which affect brand

extension and naming of product.

Typically, any given company would fall in any of the following four categories in terms future expansion

strategies; with current products and current market companies deal with market penetration strategy;

with new products and current market companies deal with product development strategies; with

current products and new market companies deal with market development strategy; and with new

products and new market companies deal with diversification strategy. Clearly companies have to tackle

tactical and strategically brand extension and naming of new products almost at any stage of growth.

For a given brand extension, it can be in form, where companies decide to expand product category

under current parent brand family. This sort of extension may be through adding new flavor, different

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size packing. Another form of brand extension is category extension, here companies introduce new

product category this may or may not be under the parent brand. Companies while introducing new

brand has option either to create a new brand altogether or extend the current parent brand or

combination of parent brand as well as new brand.

Although there is high rate of failure for introduction of new brands, companies do try to expand

product category or introduce new product category at some point. Success of this has many

advantages for the company.

It enhances how consumer look at brand, if brand has strong consumer brand equity then new product

would have high rate acceptance to further strengthen brand image.

If a corporate brand or product brand, known for quality and robustness introduces a new product then

this product has more recognition in consumer as they are aware of credibility thereby reducing risk

associated with new product.

If brand extension is due to great demand for the brand among consumers, then even distribution

channel is more welcoming for the new product.

Cost associated with marketing communication and sales promotion for new product as brand extension

is reduced as consumers are already aware of the parent brand.

Brand extension again helps eliminating cost associated with research and development of altogether

new product and packaging of the new product.

Brand extensions also facilitates in different ways process of firming position of parent brand in mind of

consumer. It helps parent brand state its true positioning in the market. It helps cater to new customers

there by creating exposure for parent brand in consumer mind. It helps rejuvenate the parent brand,

meaning it increases brand awareness and brand image and lead way to further brand extension

programs.

Brand extension also has share of disadvantages. First with increase in available product it can create

uncertainty in consumer mind as to which product is right for her. Second, distribution channel maybe

overwhelmed with product offering from different brands that they may not encourage introduction of

another brand extension. Third, if brand extension is too much success then it may jump on current

sales of parent brand, if brand extension fails position of parent brand would also suffer in the market.

From the above it is clear that brand extension have advantages as well as disadvantages. But for any

brand extension strategy to succeed companies need to comprehend current brand knowledge and also

undertake market research to clearly understand consumer expectation before coming to brand

extension decision.

Managing Brands Over Time

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The markets in which companies operate are highly dynamic in nature. There is constant evolution in

products, introduction of new technology, government rules, regulatory framework, consumer taste and

preference. Between all these companies have to devise marketing communication and branding

programs, which look forward to maintaining consumer based brand equity. For example, consumer

promotion activity like providing 20% extra for the said product will not create the same response but

may raise expectations of 20% during the normal purchase also. Companies have to balance brand

management that they are able to understand the future preference of consumer. This calls for

companies to be pro-active and thinking standing on their feet.

One way of brand management over time is to strengthen brand equity by developing marketing

programs, which express brand knowledge consistently as not to confuse the consumer. For example,

Apple, their programs are developed to reinforce their commitment to offer world class full

entertainment and communication devices, so introduction Iphone had ready acceptance from

consumers. Market leader like coca-cola has constantly run marketing program

even after been market leaders. However, this does not imply that same campaign is running

repeatedly, rather coming up innovative strategies to reinforce brand knowledge.

Brand knowledge comes from brand attributes and brand association; if companies try to fiddle with

these sources of brand equity consequences can be disastrous. In early 90s Intel microprocessor had a

technical flaw but the company was not swift enough to rectify the problem, thereby damaging brand

equity source of power and safety. Intel realized the importance source of brand equity and was quick in

solving the problem by offering replacement. Another dilemma for companies is of choosing the right

way to use the developed brand equity, normal course is to generate maximum price premium, but that

should not be at cost of brand equity.

Innovation is one of the keys in managing brand and ensuring that brand remains ahead of the

competition curve. If companies operating in entertainment category or matter of fact insurance do not

innovate then value of their brand is lost as these categories are product driven. For example, Apple,

without its innovation in the form of ipod mp3 player, apple would have found it difficult facing

completion from Sony. If the company’s category is not a product driven marketing campaigns

associated with brand image play an important role in sustaining the brand. For example, Pepsi, it is

operating in highly competitive carbonated drinks' category, over the years their marketing campaign is

focused on their highlighting their brand position as a drink for young generation.

Every brand faces challenges as it moves in the product life cycle and at some point faces saturation. At

this point, it is important to focus on expanding brand awareness that is looking for ways to generate

more consumption by highlighting instance of consumption. For example, toothpaste revitalized

consumption by highlighting advantages of twice daily usage. Another way to increase consumption is

by highlighting diverse ways and occasion where brand can be consumed. This is more prevalent in food

and beverages industry.

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Along with brand awareness brand image also plays a pivotal role in revitalizing brand performance. This

can be done by highlighting pointing of difference, which may have been lost in all other marketing

campaigns. Another way to enhance the brand image is by adopting new brand elements like brand

symbol, logos, etc., For example, Federal Express modify to FedEx as a move generating more interest in

face of competition from UPS.

For companies to sustain a brand over long period of time, it is absolute essential that marketing

program look at strategies around effective brand management. Effective brand management strategies

constantly assess the consumer perceptions towards the brand and strive to attract her attention.

Strategies have to be flexible as to maintain the pace with the dynamic environment. Only then it is

possible have a successful brand

Managing Brands over Geographic Boundaries and Market Segments

In current times every company is wanting to be a global player, some companies this out of

compulsion, for some its natural extension, whatever the case companies need to have marketing

programs, which can create and sustain brand equity across geographical boundaries and market

segments. However, before studying the global view for marketing strategies, it is important to

understand regional market segments, profile, etc.

An interesting phenomenon has raised its head in recent time where companies are focusing on regional

markets in an effort to counter globalization. In this regionalization, companies focus on geographic

locations treating them as market segments. For example, Pepsi has created four regions within USA to

focus on individual market segment and designing a marketing program. The reason why companies are

employing a regional approach is that mass markets have to cease to exist, as diversity in form of

culture; demographics, etc. are in the forefront. A typical large US city has Asian, Hispanic and African

American population, there are by creating a need for marketing programs, which can make products

and services reachable to this audience.

The world is becoming flat just no in terms of communication power but also in terms of migration and

movement of labor across the globe. Globalization is here to stay and every company is in the fray to

take advantage of this phenomenon. There could many reasons for which companies may decide to be a

global player. Bigger markets like China and India provide unending opportunities not only as a market

but also as production hubs there by reducing overall cost for to be global players. Furthermore, by

catering to different markets, companies can reduce the risk as a result of diversification.

It is clear there are many reasons for becoming global player, but there are outright advantages also for

global marketing programs. Looking at the production side, as production increases per unit cost of the

product will decrease, thereby reducing cost of the marketing program. As standardization increases in

packaging, distribution and other marketing activities cost associated with them would decrease. For

example, Sony its marketing campaign has universal appeal thereby assigning equal cost to products and

geographies. Another advantage is that with global presence and acceptance confidence with consumer

reaches altogether a different level. It creates a sense of pride and ownership looking at the universal

demand for the product. With the uniform marketing program across geographical boundaries,

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companies can have consistent brand knowledge, this is especially important for mobile consumers.

Furthermore, another advantage for companies is the ability to sell a good product universally at one go,

thereby gaining a complete first mover advantage.

But with advantages in operating on a global there are also challenges and disadvantages. With

standardization companies are unable to satisfy needs of consumer, which comes with different culture,

demographics, etc., For example, consumption of carbonated drinks and beer is much more in USA,

Australia in comparison to that of India and China. As perception and needs vary from culture to culture,

consumer response to a standard marketing program may not equally have felt as per company

acceptation. Every product undergoes a life cycle which begins from the day it is launch in the market,

so every geographical location may be having different product life cycle stage, so marketing programs

also accordingly have to vary. Other challenge companies face is that of environmental like social,

political and regulatory.

Therefore, a brand to succeed across geographical boundaries companies need to device marketing

programs, which can create global consumer based brand equity. And for that marketing programs have

to highlight point of differences and point of similarities across boundaries. Furthermore, companies

should understand brand building is tedious and time consuming. Brand name, logos, symbol has to be

designed in a way that it properly communicates brand knowledge and not creates confusion in

consumer’s mind. And at the same time construct and execute a global brand equity measurement

system so that focus always remains of develop a strong consumer based brand equity.

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