Brand Management What is a brand A brand
Brand Management
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
When you cannot do this The product is a commodity
A brand comprises of n n Tangible attributes Intangible attributes
Tangibles Eg. n Product n Packaging n Labelling n Attributes n Functional benefits
Intangibles Eg. n Quality n Emotional benefits n Values n Culture n Image
Brand Identity It is the marketer’s promise to give a set of features, benefits and services consistently
Brand Building Involves all the activities that are necessary to nurture a brand into a healthy cash flow stream after launch
What kind of activities? Eg. n Product development n Packaging n Advertising n Promotion n Sales and distribution
Brand Equity When a commodity becomes a brand, it is said to have equity
What is brand equity? n n The premium it can command in the market Difference between the perceived value and the intrinsic value
What happens when equity increases? Commodity Brand Power Brands Presence + Personality
What happens when brands have high equity? n n The company can have more leverage with the trade The company can charge a premium on their product The company can have more brand extensions The company can have some defense against price competition
Brand Loyalty Pyramid 1 1 1 Committed buyer Likes the brand. Considers it a friend Satisfied buyer. Would incur costs to switch Satisfied buyer/no reason to change Switchers/Price sensitive
How does one build brands? n n Distinguishing it from others – value proposition Brand promise must match brand delivery
The value proposition n Broad positioning Specific positioning Value positioning
Creating the brand n n n Choosing a brand name Develop rich associations and promises Managing customer brand contact to meet and exceed expectations
Considerations in choosing a brand name n n n What does the brand name mean? What associations / performance / expectations does it evoke ? What degree of preference does it create?
A brand name should indicate n n n Product benefits Product quality Names easy to remember, recognise, pronounce n n n Product category Distinctiveness Should not indicate poor meanings in other markets or languages
Brand Associations n n ‘owned word’ Slogans Colours Symbols and logos
Brand Status E S T E E M Step up advertising New Product Or Product should be phased out Cash Cow. Need to Sustain brand building activities Troubled brand Product upgradation required FAMILIARITY
Brand ambassadors n Giving a face and personality to the brand that is expected to be rubbed off from the brand ambassador
Brand Vitality n n Differentiation in consumer’s need Differentiation relevant to consumer’s need
Brand Pitfalls n n Brand experience must match brand image Calls for managing every brand contact
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