Chapter 1Brands and Brand Management

Difference between Marketing and Sales

MarketingSalesApproachdetermine future needs and has a strategy in place to meet those needs for the long term relationship.makes customer demand match the products the company currently offers.ProcessOne to manyUsually one to oneFocusfulfill customer's wants and needs thru products and/or services the company can offer.fulfill sales volume objectivesHorizonLonger termShort termScopeIdentifying customer needs (research), creating products to meet those needs, promotions to advertise said products.Once a product has been created for a customer need, persuade the customer to purchase the product to fulfill her needsStrategypullpushConceptMarketing is a wider conceptSales is a narrower conceptPriorityMarketing shows how to reach to the Customers and build long lasting relationshipSelling is the ultimate result of marketing.

Who is common

The status dilemma Neha is a working woman, and she needs a lunch box to carry to office. She remembers her father leaving for work every morning clutching his colourless stainless steel lunch box. But Neha shudders to even visualize the look on her colleagues faces if she walks into office with such a lunch box. Neha has a number of options available in the market to choose from, but she needs bright trendy containers, which can keep the food fresh for longer periods of time.

What is a brand?A brand is a name, term, sign, symbol, design or a combination of the above to identify the goods or service of a seller and differentiate it from the rest of the competitors by American Marketing Association (AMA)

Practicing managers refer to a brand as more than that- Brand is something that has created a certain amount of awareness, reputation, prominence, and so on in the marketplace.

Brand Elements: name, logo, package, design, etc

Brands vs. ProductsA 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.

Attribute

Product uses

Quality/valueFunctional benefitsPRODUCTScopeBRANDSelf-expressive benefitsSymbolsEmotional benefitsUser imageryBrand personalityOrganizational associationsBrand customer relationshipCountry of origin

Difference between a Product and a Brand

Concept of brandingFor the consumers, a brand is a product.

But for the maker or the seller, a brand is an identifier of its goods and services and a promise of consistently delivering the features/benefits that the consumers desire from the brand.

Five Levels of Meaning for a ProductThe core benefit level is the fundamental need or want that consumers satisfy by consuming the product or service. (e.g.: Air-conditioner - cooling and comfort)

The generic product level is a basic version of the product containing only those attributes or characteristics absolutely necessary for its functioning but with no distinguishing features. This is basically a stripped-down, no-frills version of the product that adequately performs the product function. (sufficient cooling capacity, energy efficient)

The expected product level is a set of attributes or characteristics that buyers normally expect and agree to when they purchase a product. (cooling speed, adjustable louvers, warranty)

Five LevelsThe augmented product level includes additional product attributes, benefits, or related services that distinguish the product from competitors. (display to show indoor and outdoor temperature, automatic mode to adjust fan speed, toll free number, customer service, etc.)

The potential product level includes all the augmentations and transformations that a product might ultimately undergo in the future. (silently running, energy self-sufficient)

A brand is therefore more than a product, as it can have dimensions that differentiate it in some way from other products designed to satisfy the same need.

Types of BrandsGeneric product: item characterized by plain label, with no advertising and no brand name (Atta Wheat Flour)

Manufacturers brand (national brand): brand name owned by a manufacturer or other producer (Pilsbury Atta General Mills)

Private brands (store brand): brand name placed on products marketed by wholesalers and retailers (Big Bazaar Atta)

Family brand: brand name that identifies several related products (AMUL Butter, Lite, Kool Milk, Kool, Kool Caf, Masti, )

Individual brand: unique brand name that identifies a specific offering within a firms product line and that is not grouped under a family brand (HUL Active Wheel, Cif, Rin, Surf Excel, Vim, Domex)

Brand Names Based OnPeoples name: Bajaj, Ben & Jerry's Ben Cohen and Jerry Greenfield, Philips (Gerard Philips) Place: British airways Animals or birds: Dove soap, Beetle (Volkswagen) Others: Apple, Shell, etcInherent product meaning: EasyPro (camera), LifeLong (luggage), PowerStroke (Tennis Racquets)Use of Prefix or Suffix that sounds scientific, natural or prestigious

Product IdentificationBrand name: part of a brand consisting of words or letters that form a name that identifies and distinguishes a firms offering from those of its competitorsBrand mark: symbol or pictorial design that identifies a productGeneric name: branded name that has become a generically descriptive term for a class of products (e.g., Colgate, Xerox & Band-Aid)

Product IdentificationTrademark: legal protection which confers the exclusive right to user brand name, trade mark, and any slogan or product name abbreviation

Trade Dress: visual cues used in branding to create an overall look

When Product Identification is not possible the product is a commodity

Why do brands matter?What functions do brands perform that make them so valuable to marketers?

Importance of Brands to ConsumersIdentification of the source of the productAssignment of responsibility to product makerRisk reducerSearch cost reducerPromise, bond, or pact with product makerSymbolic deviceSignal of quality

Reducing the Risks in Product DecisionsConsumers may perceive many different types of risks in buying and consuming a product:Functional risk: The product does not perform up to expectations.Physical risk: The product poses a threat to the physical well-being or health of the user or others. Financial risk: The product is not worth the price paid.Social risk: The product results in embarrassment from others.Psychological risk: The product affects the mental well-being of the user.Time risk: The failure of the product results in an opportunity cost of finding another satisfactory product.

Importance of Brands to FirmsTo firms, brands represent enormously valuable pieces of legal property, capable of influencing consumer behavior, being bought and sold, and providing the security of sustained future revenues.

Identification to simplify handling or tracingLegally protecting unique featuresSignal of quality levelEndowing products with unique associationsSource of competitive advantageSource of financial returns

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. Even commodities can be branded:De Beers Group added the phrase A Diamond Is Forever RicePetrol

What is branded?Physical goodsServicesRetailers and distributorsOnline products and servicesPeople and organizationsSports, arts, and entertainmentGeographic locationsIdeas and causes

Best Global Brands 2013rankings

RankPrevious RankBrandBrand Value ($m)1298,3162493,2913179,2134378,8085559,546

Best Global Brands 2013rankings

RankPrevious RankBrandBrand Value ($m)6646,9477741,9928939,6109837,257101035,346

Importance of Brand ManagementThe bottom line is that any brandno matter how strong at one point in timeis vulnerable, and susceptible to poor brand management.

Branding Challenges and Opportunities (Fig 1.10)Savvy customers

Brand proliferation (new brands & products)

Media fragmentation (erosion of traditional advertising media - Cost, Clutter, Fragmentation & Technology and emergence of interactive and nontraditional media, promotion and other communication alternatives)

Increased competition (globalization, Low price competitors, deregulation..)

Increased costs

Greater accountability

The Brand Equity ConceptNo common viewpoint on how it should be conceptualized and measuredIncreased importance of brand in marketing strategyConcept has been defined different ways for different purposesBrand equity is defined in terms of the marketing effects uniquely attributable to the brand.Brand equity relates to the fact that different outcomes result in the marketing of a product or service because of its brand name, as compared to if the same product or service did not have that name.

Strategic Brand ManagementIt involves the design and implementation of marketing programs and activities to build, measure, and manage brand equity. The Strategic Brand Management Process is defined as involving four main steps:1. Identifying and establishing brand positioning and values2. Planning and implementing brand marketing programs3. Measuring and interpreting brand performance4. Growing and sustaining brand equity

Strategic Brand Management ProcessMental mapsCompetitive frame of referencePoints-of-parity and points-of-differenceCore brand valuesBrand mantraMixing and matching of brand elementsIntegrating brand marketing activitiesLeveraging of secondary associationsBrand value chainBrand auditsBrand trackingBrand equity management systemBrand-product matrixBrand portfolios and hierarchiesBrand expansion strategiesBrand reinforcement and revitalizationKey ConceptsSteps

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