BRAND & BRAND MANAGEMENT

sp11g09@soton.ac.uk

We are exposed to 3500 brands per

day

We live in a brand saturated world

What is a Brand?

Brand

Brand

For the American Marketing Association (AMA), a brand is a

“name, term, sign, symbol, or design, or a combination of them, intended

to identify the goods and services of one seller or group of sellers and to differentiate them from those of

competition.”

Many practicing managers refer

to a brand as more than that - as

something that has actually

created a certain amount of

awareness, reputation,

prominence, and so on in the

marketplace

A brand name is nothing more than a word in the mind, a special kind of word. A brand name is a noun, a proper noun, which like all proper nouns is usually spelled with a capital letter

Any and every proper noun is a brand whether or not it’s owned by an individual,

a corporation, or a community

Brand

Brand = Reputation

What kind of brand is…

ZARA

APPLE

Brands vs Products

A product is anything we can offer to a market for attention, acquisition, use, or consumption that might satisfy a need or

want.

A product may be a physical good, a service, a retail outlet, a person, an

organization, a place, or even an idea.

Brands vs Products

Brands vs Products

Companies make products, consumers make the brand

A product is made by the company and can be purchased by a consumer in exchange of money, while brands are built through consumer perceptions, expectations, experiences with all products and services under one brand umbrella

Products can be copied and replaced, but brands are unique

A product can be copied by a competitor at any time, for example when Kindle got introduced by Amazon as an e-reader device, it didn’t take much time for competitors to come out with their own versions, However the brand associated with each e-reader device offers unique value based on perceptions, expectations, and emotions that consumers develop for those brands through previous experience with them

Brands vs Products

Products can become obsolete, but brands can be timeless

The Elvis Presley brand is timeless but nobody buys tapes and listens to his music on tapes or

cassettes any more.

Brands vs Products

Brands vs Products

Products are instantly meaningful, but brands become meaningful over time

When you launch a new product, it’s easy to make that product instantly meaningful and useful to consumers

because it serves a specific function for them. However, a brand is meaningless until consumers have a chance to

experience it, build trust with it, and believe in it. It takes time and effort to convince consumers to believe in your

brand

Google

Some brands create competitive advantages with product performance;

other brands create competitive advantages through non-product-related

means

Brands vs Products

Selling ideas and lifestyle instead of products

Selling youth lifestyle

Idea of family

COCA COLA –

MAC Donald’s

Why do brands matter?

People connect emotionally with brands that stands for things that are important to them

Customers use brands to express themselves

Customers remain loyal to brands and they become advocates for those brands

Identity for the product and businessProtect the product/businessLeads to more sales and profitKey for growthCompetitive advantageConsumer trustMarket confidence

What functions do brands perform that

make them so valuable to marketers?

Identification to simplify handling or tracing

Legally protecting unique features

Signal of quality level

Endowing products with unique associations

Source of competitive advantage

Source of financial returns

Importance of Brands to Firms

Can everything be branded?

Ultimately a brand is something that resides in the minds of consumers

The key to branding is that consumers perceive differences among brands in a

product category

Example of branding a commodity

Diamonds – A diamond is forever – De Beers

What is branded?

Physical goods

Services

Retailers and distributors

Online products and services

People and organizations

Sports, arts, and entertainment

Geographic locations

Ideas and causes

Source of Brands Strength Vision

Business Process

Product /service control

Product/service value

Market

Marketing (product, price, place, promotion)

(Segmentation targeting and positioning)

Identity

Performance

Importance of Brand Management

The bottom line is that any brand—no matter how strong at one point in time—is

vulnerable, to poor brand management

What are the strongest

brands?

Which are the Top 15

global brands of 2013 ?

Top 15 global brands 2013

1) 8)

2) 9)

3) 10)

4) 11)

5) 12)

6) 13)

7) 14)

15)

Leading fashion brands 2013

Branding Challenges and Opportunities

Customer information

Brand Awareness-identity

Media Communication

Increased competition

Increased costs

Greater accountability

The Brand Equity Concept

Brand equity is defined in terms of the marketing effects uniquely attributable to the brand

Brand equity relates to the fact that different outcomes result in the marketing of a product or

service because of its brand name, as compared to if the same product or service did

not have that name.

Brand equityCompanies can create brand equity for their products by making them memorable, easily

recognisable, and superior in quality and reliability. Mass marketing can also create brand equity.

If consumers are willing to pay more for a generic product than for a branded one, however the brand

is said to have negative brand equity.

Brand equity

The additional money that the consumers are willing to spend to buy coca cola rather than the store brand

of soda is an example of brand equity.

One situation when brand equity is important is when the brand wants to expand its product line. If

the brands equity is positive, the company can increase the likelihood of customers will buy its new

product by associating the new product with an existing successful brand.

Ex – Kellogg’s introducing new range of soups under Kellogg's name

Strategic Brand Management

It involves the design and implementation of marketing programs and activities to build,

measure, and manage brand equity

Strategic Brand Management

The Process is defined as involving four main steps:

1) Identifying and establishing brand positioning and values

2) Planning and implementing brand marketing programs

3) Measuring and interpreting brand performance

4) Growing and sustaining brand equity

Strategic Brand Management

1) Identifying and establishing brand positioning and values

Competitors Analysis

Points-of-difference

Core brand values

Strategic Brand Management

2) Planning and implementing brand marketing programs

Mixing and matching of brand elements

Integrating brand marketing activities

Strategic Brand Management

3) Measuring and interpreting brand performance

Brand value

Brand audits

Brand equity management

Strategic Brand Management

4) Growing and sustaining brand equity

Brand portfolios

Brand expansion strategies

Conclusion

Brand is a valuable asset for business.

Brand is the result of Marketing efforts.

Brand is the reflection of business processes.

Key Job for Marketers is to develop and protect brand.