UNIT – 1 IBM

Introduction to Brand Management

BRAND:
A brand is like a special name for a product or service that makes it stand out
from others. It's not just the name, though; it's everything people think and feel
about the product. A brand can be known for being high-quality (premium) or for
being affordable (mass-market) based on how it's sold and advertised. Having a
strong brand means people are more likely to choose it over others and might
even pay more for it. Brands usually last longer and are more successful than
products that don't have a distinct identity.
 Tangible Characteristics: These are things you can see and touch, like how
much it costs, what it looks like, and how it's packaged.
 Example: The iconic bottle shape and red logo of Coca-Cola make it
recognizable and distinct from other sodas.
 Intangible Characteristics: These are things you can't touch but are very
important, like how the brand makes you feel or the reputation it has.
 Example: Nike is associated with athleticism and motivation, even
though you can't "touch" these ideas.

Objectives of a Brand:
1. To Establish an Identity:
Brands aim to create a unique identity for a product, making it recognizable
and distinct from competitors.
Example: Apple's sleek design and innovative technology make it stand out
in the electronics market.
2. To Protect Legally:
Brands can be legally protected, ensuring that no one else can use the same
name or logo, keeping its features unique.
Example: The golden arches are a registered trademark of McDonald's, and
no other restaurant can use it.
 3. To Acquire a Place in Consumers' Minds:
A brand aims to be remembered and preferred by customers for its
consistent quality and reliability.
Example: When you think of fast shipping and a wide range of products,
Amazon might come to mind.
4. To Persuade to Buy:
Brands promise to meet needs in a unique way, encouraging people to
purchase their product.
Example: A cosmetic brand might promise clearer skin or natural
ingredients to persuade people to buy their products.
5. To Create a Reliable Business Image:
A strong brand conveys a message of a dependable and trustworthy
business.
Example: Rolex is known for its luxury and reliability, making people trust in
its quality.
BRANDING:
Branding is the process of creating a good and lasting impression of a company or
its products in your mind. It includes things like the logo, the overall design, the
mission statement of the company, and how all of this is shown in advertising and
marketing. Good branding makes a company stand out from others and helps to
attract and keep customers.

BRAND MANAGEMENT:

Brand management is about creating a brand and keeping it appealing and

relevant. It involves making a promise about what the product is all about,
delivering on that promise, and ensuring that the promise stays strong and clear
over time. Brand management covers everything from creating a brand identity,
introducing the brand to customers, and maintaining its position in the market.
It's about managing both what you can see (like the logo and product) and what
you feel (like the brand's reputation) to keep the business's image strong and
positive.
Building Brand Identity: Developing a unique look, feel, and message for the
brand that customers can recognize.
Example: Spotify's distinct green color and simple, intuitive design make it
recognizable and user-friendly.
Launching the Brand: Introducing the brand to the public in a way that attracts
attention and interest.
Example: A new smartphone brand might hold a big launch event with celebrities
to create buzz.
Maintaining Brand Position: Keeping the brand relevant and preferred by
customers through consistent quality and marketing.
Example: Nike continues to innovate with new products and marketing campaigns
to stay relevant and popular in the athletic wear market.
Brand management is crucial because it's not just about making a product; it's
about creating something that people trust, recognize, and prefer over other
options. It's what turns a simple product or service into something special that
people want to be a part of.

Importance/Benefits of Branding
A. To the Firms:
1. Identification of the Market:
A brand helps firms identify and target specific markets, making distribution
tasks like storage, selling, and after-sales service clearer and more focused.
Example: A luxury watch brand focuses on high-income customers,
targeting premium stores and boutiques for its distribution.
2. Legal Protection:
Having a brand name legally protected ensures that the unique features
and aspects of the product are safeguarded from copying through
trademarks, patents, and copyrights.
Example: The unique contour bottle design of Coca-Cola is trademarked,
preventing other companies from copying it.
3. Provides Information:
A brand conveys crucial information about quality, making it easier for
consumers to decide and trust the product.
Example: The Apple logo on an electronic gadget immediately informs the
consumer about the expected quality and innovation.
4. Unique Association:
Brands create specific feelings and images in consumers' minds, helping to
differentiate from competitors.
Example: Disney is associated with family entertainment and happiness,
creating a unique position in consumers' minds.
5. High Market Share:
Positive customer perceptions about a brand lead to increased earnings
and a larger market share. Satisfied customers often recommend the brand
to others.
Example: A car known for its reliability, like Toyota, might be recommended
by happy customers, increasing its sales.
6. Acts as an Entry Barrier to Other Brands:
A strong brand loyalty makes it harder for other brands to enter the
market, as customers are less likely to switch.
Example: The loyalty of coffee lovers to Starbucks makes it challenging for
new coffee shops to compete in the same space.
7. Branding Builds Financial Value:
Brands have financial value and are considered assets. Strong brands can be
bought and sold, reflecting their worth to the company.
Example: When Kraft bought Cadbury, it was paying not just for the
physical assets but significantly for the Cadbury brand itself.
8. Branding Improves Recognition:
A well-designed logo is a critical part of a brand that aids in recognition.
Example: The golden arches of McDonald's are instantly recognized
worldwide, symbolizing fast food.
9. Branding Creates Trust:
A professional appearance and consistent branding build credibility and
 trust with consumers.
Example: A bank with a long-standing reputation and consistent branding,
like HSBC, tends to be trusted more by customers.
10.Branding Supports Advertising:
Advertising is an essential component of a brand, helping to build and
reinforce the brand's message and reach the target demographic.
Example: Nike's "Just Do It" campaign is iconic and reinforces the brand's
message of motivation and performance.
11.Branding Inspires Employees:
A clear brand gives employees something to believe in and strive towards,
increasing their pride and motivation.
Example: Employees at Tesla are motivated by the brand's mission to
accelerate the world's transition to sustainable energy.
B. To the Consumers:
1. Shopping Behavior:
Branding simplifies the shopping process by helping consumers quickly
identify the products they trust and prefer.
Example: In a store full of cleaning products, a consumer might quickly pick
Tide detergent because they recognize and trust the brand.
2. Emotional Attachments:
Brands create emotional connections, adding value beyond the product's
physical features.
Example: Nike connects with customers' aspirations for athleticism and
perseverance, making the brand more than just about shoes and apparel.
3. Habitual Buying:
Once consumers develop habits around a brand, they're less likely to
switch, even with competitors offering discounts or promotions.
Example: Many people stick to their preferred smartphone brand, like
Apple or Samsung, due to familiarity and loyalty.
4. Easy Decision Making:
Brands help consumers make quick and confident decisions based on past
experiences or brand reputation.
 Example: A traveler choosing a Hilton hotel might do so because they
expect a certain level of service and comfort based on the brand's
reputation.
5. Reduces Risk:
A strong brand reduces perceived risk in purchasing decisions, whether it's
financial, social, or psychological.
Example: Buying a car from a reputable brand like Honda might reduce the
risk of frequent repairs and ensure quality.
6. Source of Identification:
Brands help consumers identify and remember the source of their
preferred products or services.
Example: People associate the red and white Coca-Cola logo with their
favorite beverage, making it easy to spot in a store.
C. To the Stakeholders:
1. Shareholders:
Strong brands increase the company's asset value, assuring shareholders of
profitable returns.
Example: Shareholders of luxury brands like Louis Vuitton benefit from the
high value associated with the brand.
2. Employees:
A strong brand attracts and retains employees who are proud to be
associated with it and understand their role in building it.
Example: Working for Google is often seen as prestigious because of the
strong brand it has built.
3. Customers:
Customers value strong brands and are often willing to pay a premium for
them. This loyalty translates into consistent sales and profits.
Example: Fans of Apple products often willingly pay more for the latest
device because of their loyalty to the brand.
4. Suppliers:
Suppliers prefer to be associated with strong brands as it enhances their
own reputation and may lead to more business.
 Example: A computer parts supplier will value a contract with a leading
technology brand like HP or Dell due to their market presence.
5. Intermediaries:
Wholesalers and retailers prefer to deal with strong brands as they tend to
draw more customers and can command better margins.
Example: Bookstores are keen to stock best-selling books from renowned
publishers because they attract more buyers.
6. Opinion Leaders:
Strong brands often shape industry trends and standards, making them
influential among opinion leaders.
Example: Innovative brands like Tesla influence public opinion and industry
standards on electric vehicles.
Branding is crucial for firms, consumers, and stakeholders, offering a range of
benefits from market identification and legal protection to emotional attachment
and risk reduction. It's a comprehensive strategy that builds identity, trust, and
loyalty, and supports the overall success of products and services in the
marketplace.

Brands vs Products

Aspect Brands Products

Generic products have

High expectations for quality, fewer expectations and are
reliability, and prestige. Brands usually cheaper. Consumers
Consumer's are often more expensive due don't expect the same level
Expectations to these expectations. of quality or reliability.

A generic phone might be

Apple products are expected expected to make calls and
to have cutting-edge design browse the internet but not
Example and technology. much else.
Aspect Brands Products

Generic products lack a

Brands create an emotional personalized relationship
connection with consumers, with consumers and don't
often representing certain usually inspire loyalty or
Emotional Appeal values or lifestyles. emotional attachment.

A no-name pair of running

Nike inspires feelings of shoes serves the functional
athleticism and perseverance, purpose but doesn't inspire
connecting emotionally with brand loyalty or emotional
Example active lifestyle consumers. connection.

Generic products might be

Brands have a magnetic effect, good but fail to capture
attracting customers and consumers' attention due to
Attraction for sometimes acting as status lack of branding or
Consumers symbols. anonymity.

A watch from an unknown

maker might tell time just as
Wearing a Rolex watch is often well but doesn't confer
Example seen as a status symbol. status.

People tend to trust well-

known brands due to their Consumers tend to trust
reputation for quality and generic or anonymous
reliability. A strong brand can products less, viewing them
Trustworthiness even overshadow product as potentially less reliable or
and Reliability weaknesses. of lower quality.

A car from a trusted brand like

Toyota is often trusted to be
A car from an unknown
reliable even if a particular
manufacturer might be met
Example model has problems.
with skepticism and
Aspect Brands Products

concerns about quality and

reliability.

Generic products lack

Brands have distinct market market identity, leading to
identities, providing authority, less influence and
Market Identity and reputation in the market. reputation.

A generic soda might taste

similar but lacks the
Coca-Cola is recognized recognized branding and
worldwide and preferred over market presence of Coca-
Example lesser-known sodas. Cola.

This comparison highlights how brands and products differ significantly in terms
of consumer perception, emotional connection, market presence, and overall
value. While brands offer added benefits and assurance, generic products
typically compete on price and basic functionality. Understanding these
differences can help consumers make informed decisions and businesses
strategize effectively.

Scope of Branding
Branding is more than just a name or symbol. It's the entire perception and
emotional relationship consumers have with a product or service. It exists in the
consumer's mind as an entity that signifies more than just the physical attributes
of a product or service. Here's a detailed look into the scope of branding:
To Successfully Brand a Product, Consumers Must Know:
1. Who the Product Is:
This means understanding the brand's personality or identity.
Example: Apple is known as an innovator in technology.
 2. What the Product Does:
This refers to the functionality or the benefits of the product.
Example: Toyota is recognized for producing reliable and durable cars.
3. Why Consumers Should Choose That Particular Brand:
This is about the unique value or experience the brand offers.
Example: People might choose Starbucks for its quality coffee and the
experience of comfort and community in their stores.

Application of Branding:
Branding isn't limited to just one type of product or service. It can be applied
widely:
1. Physical Goods:
Tangible products like Parle-G biscuits, Tata Tea, or cars like Maruti SX4.
Example: Parle-G is recognized for its taste and affordability, symbolizing
nostalgia for many.
2. Services:
Intangible offers like flights from Indigo Airlines or banking services from
ICICI Bank.
Example: Indigo Airlines might be known for timely flights and good service.
3. Stores:
Retail environments like Future Retail, Central, 99 Store, or online
marketplaces like Amazon.
Example: Amazon is known for its vast selection and quick delivery.
4. Person:
Individual personal branding, such as celebrities like Sachin Tendulkar or
Amitabh Bachchan.
Example: Sachin Tendulkar represents excellence and integrity in cricket.
5. Place:
Locations like Gujarat Tourism or the Incredible India campaign.
Example: Incredible India attracts tourists by showcasing the country's
diversity and heritage.
 6. Organization:
Groups like The Rolling Stones represent a certain brand in the music world.
Example: The Rolling Stones symbolize rebellious and enduring rock music.
7. Idea:
Concepts like abortion rights, free trade, or freedom of speech.
Example: Freedom of speech is a principle that's branded as a fundamental
right in many societies.

Scope of Branding:
1. Means of Identification:
Brands help identify a product's quality, price, and status. The branding on
packaging aids in handling and tracing.
Example: A luxury bag might be identifiable by its unique design and brand
logo, indicating its high status and quality.
2. Trademark:
Protects a company's investment in its brand and image. Once a brand is
trademarked, competitors can't legally copy it.
Example: The Nike swoosh is trademarked, protecting its unique brand
identity.
3. Launch of New Products or Product Lines:
A strong brand can leverage its reputation to introduce new offerings.
Example: If a well-known smartphone brand launches a smartwatch, it's
likely to be well received.
4. Customers Influence Demand of Successful Brands:
High demand from customers influences distributors to stock certain
brands, strengthening the company's market presence.
Example: If a cosmetic brand is popular, retailers are more likely to stock it
due to customer demand.
5. Customer Loyalty:
Branding creates loyal customers who return to the same brand for
different needs.
 Example: Someone who enjoys a brand's shampoo might try their other
products like conditioner or body wash.
6. Competitive Advantage:
A successful brand can dominate the market, making it hard for
competitors to take its share.
Example: Coca-Cola and Pepsi have strong brand presences that dominate
the soft drink market.
7. Segmenting the Market:
Brands can target specific segments of the market.
Example: In detergents, some brands might target high-efficiency machines
while others target cost-conscious consumers.
8. Understand Customer's Perspective:
Brands help customers identify quality and source, and some brands
become status symbols.
Example: Driving a Mercedes-Benz might be seen as a status symbol,
reflecting a certain level of success and taste.
The scope of branding is vast and critical in shaping consumer behavior and
business strategies. It encapsulates everything from individual perception to
wide-ranging market influence, highlighting the power and importance of building
and maintaining strong brands.

Challenges and Opportunities in Branding

Common Challenges Faced by Brands:
1. Brand Knowledge:
A strong brand must be well-known and remembered by customers. This
includes the brand name, its advertisements, and how people feel about it.
If people have good thoughts connected to the brand, it becomes stronger.
Example: If people think of "safety" when they see a Volvo car, that's good
brand knowledge.
2. Brand Value:
A brand's value increases when customers respond positively. Brand
managers need to make sure people know and like the brand. If people
 think negatively about a brand, it loses value.
Example: If a food brand has a scandal, it might lose value as people start
associating it with negative things.
3. Enhancing Brand Perception:
Protecting and improving how people see the brand is crucial. Sometimes,
even strong brands can become less popular or outdated.
Example: Brands that don't keep up with technology or trends might lose
their appeal.
4. Brand's Appeal:
Brands need to maintain what makes them special without becoming
irrelevant or failing. Keeping close to the core idea is important.
Example: A fashion brand that drastically changes its style might lose
customers who loved its original designs.
5. To Maintain Brand Consistency:
Brands need to adapt to market changes while keeping their identity and
focus consistent.
Example: A brand known for quality should continually offer high-quality
products, even if it's entering new markets or launching new items.
6. Brand Association:
The things people connect with a brand, like emotions or memories, are
crucial and need to be maintained.
Example: Disney is associated with childhood and magic, and it works hard
to keep that association.
7. To Maintain Brand Image:
Brands often represent something beyond the product, like a lifestyle or
value. Keeping this image consistent is important for brand equity.
Example: Luxury brands like Gucci maintain a high-end, fashionable image
through their marketing and product quality.
8. To Maintain Brand Position:
Improving and reinforcing the product to meet customer satisfaction is
essential.
 Example: Cadbury repositioned Bournvita from just a taste enhancer to a
nutrition provider, focusing on health benefits for children.

Opportunities in Branding:
1. Accessibility to Global Markets:
Brands can reach customers worldwide, offering a competitive advantage.
Brands should think globally but act locally, understanding cultural
differences.
Example: A clothing brand might use global trends in fashion while tailoring
products to fit local tastes and customs.
2. Gain Competitive Advantage:
Leveraging technology can help brands stay ahead. Using new technology
can make developing and manufacturing products faster, cheaper, and
better.
Example: Using online marketing and e-commerce, brands can reach more
customers more efficiently than traditional methods.
3. Strategic Alliance:
Partnering with other brands or companies, even competitors, can offer
new opportunities. This includes co-branding or joint ventures.
Example: A car manufacturer might partner with a technology firm to
create innovative features for vehicles.
4. Understand Market Behaviour:
Understanding how and why customers make decisions can help brands
tailor their products and marketing. More research is needed to understand
these behaviors fully.
Example: Brands might study how different age groups or cultures make
purchasing decisions to tailor their marketing.
5. Systems View:
Developing a holistic view of how the brand interacts with everything from
pricing to distribution. This helps in creating brand equity and influencing
decision-making.
Example: Understanding how pricing strategy affects customer perception
and the overall brand value.
Both the challenges and opportunities in branding require a deep understanding
of consumers, markets, and the internal workings of the brand itself. Managing
these effectively can lead to successful, enduring brands that continue to grow
and evolve with their consumers.

Strategic Brand Management Process

1. Identify and Establish Brand Positioning and Values:
 Mental Map:
A mental map is how consumers view the brand, including everything from
its advertisements to its reputation.
Example: When thinking of "safety," consumers might immediately think of
Volvo, creating a mental association.
 Points of Difference:
These are the unique attributes or benefits of a brand that set it apart from
competitors.
Example: Apple's innovative design and user-friendly interface are points of
difference that set it apart from other technology brands.
 Points of Parity:
These are the attributes or benefits that are largely similar to competitors,
making the brand at least equal in those areas.
Example: Most smartphones have similar basic functions like calling and
internet access, which are points of parity.
 Core Brand Associations:
These are the main thoughts and feelings consumers have about the brand.
Example: Disney might be associated with fun, family, and imagination.
 Brand Mantra:
A short, memorable phrase that captures the essence of the brand.
Example: Nike's "Just Do It" is a powerful, concise mantra representing its
brand ethos.
 Frame of Reference:
This involves identifying the target market and understanding the
competition.
 Example: A luxury car brand might see its competition as other luxury
vehicles and target affluent customers.
2. Plan and Implement Brand Marketing Programs:
 Mixing and Matching of Brand Elements:
Brand elements like logos, symbols, and slogans help form strong,
favorable, and unique brand associations.
Example: The golden arches of McDonald's are a distinctive element that
people worldwide recognize.
 Integrating Brand Marketing Activities:
Combining different marketing activities like pricing, distribution, and
communication to strengthen brand associations.
Example: A beauty brand might combine a celebrity endorsement with an
organic product line to strengthen its association with natural beauty and
glamour.
 Leveraging Secondary Associations:
Connecting the brand with other entities like countries, characters, or
events to borrow their positive attributes.
Example: Sports brands often sponsor athletes to associate with their
performance and popularity.
3. Measure and Interpret Brand Performance:
 Brand Audit:
A thorough examination of a brand to understand its position in the
marketplace and suggest ways to improve and leverage its equity.
Example: A brand might conduct surveys to see how customers perceive
their products compared to competitors.
 Brand Tracking Studies:
Ongoing measurement of a brand's performance to guide marketing
decisions.
Example: Regular customer feedback forms and social media monitoring to
gauge customer sentiment.
  Brand Equity Measurement System:
A set of research procedures designed to provide timely information for
brand decisions.
Example: Regular market research to assess brand awareness and
preference over time.
4. Growing and Sustaining Brand Equity:
 Defining Brand Architecture:
Understanding the relationship between different products or services
offered by a company and how they fit within the brand.
Example: A company might have a range of products from budget to
premium, each with a distinct branding strategy.
 Managing Brand Equity Over Time:
Ensuring the brand remains relevant and strong through consistent
marketing and adaptation to market changes.
Example: Revamping an old brand logo to be more modern while keeping
the core identity intact.
 Managing Brand Equity Across Geographic Boundaries and Cultures:
Adapting and managing brand strategies for different regions and cultural
contexts.
Example: A fast-food chain might offer different menu items in different
countries to cater to local tastes.
Each step in the strategic brand management process involves understanding and
shaping how consumers see the brand, ensuring that it remains strong, relevant,
and distinctive in a competitive market.

Customer Based Brand Equity Model (CBBE)

The CBBE model by Keller is a strategic tool used in brand management. It
emphasizes the importance of understanding customer's needs and perceptions
to build a strong brand. The model is laid out as a pyramid, explaining how to
construct brand equity by understanding customers and implementing strategies
accordingly. It's divided into four levels, with the ultimate goal being to create a
deep connection between the brand and the consumer, leading to positive brand
equity.
Level 1 - Brand Identity or Who You Are:
 Understanding:
This is about defining what the brand represents and distinguishing it from
competitors. It's the basic awareness stage where you introduce the brand
to customers.
Example: A new energy drink might start with an advertising campaign
highlighting its unique taste and energy-boosting properties.
 Strategies:
Firms might spend significantly on advertising and promotions to build a
strong brand identity right from the start, ensuring customers are aware of
the brand and what it stands for.
Level 2 - Brand Meaning or What Are You?
 Brand Performance:
This refers to how well the brand meets customers' needs through its
features, reliability, customer service, style, design, and pricing.
Example: A smartphone brand might focus on its long battery life and user-
friendly interface as key performance areas.
 Brand Imagery:
Imagery deals with the symbolic aspect of a brand - what it represents or
the type of personality it portrays.
Example: A luxury car brand like BMW might create imagery of
sophistication and high status.
Level 3 - Brand Response or What Are the Feelings for the Brand?
 Judgments and Feelings:
This is how customers react to the brand based on their experiences and
interactions. Positive feelings can make a customer a brand advocate, while
negative judgments can turn them away.
Example: If a laptop brand is known for excellent customer service, it might
evoke positive feelings, leading to repeat purchases and recommendations.
  Balancing Judgments and Feelings:
Brands need to manage customers' perceptions carefully to ensure more
positive feelings are associated with the brand than negative judgments.
Level 4 - Brand Resonance or A Strong Relationship:
 Deep Connection:
The highest level of the pyramid, brand resonance is when customers feel a
deep, psychological bond with the brand. This is where loyalty, community,
and active engagement with the brand occur.
Example: Harley Davidson enthusiasts not only love the brand but also form
communities around it, showing the deep connection and resonance the
brand has achieved.
 Achieving Resonance:
Brands strive to reach this level by consistently delivering on their
promises, engaging with customers, and creating a community around the
brand.
The CBBE model is a powerful framework for understanding the depth and
dimensions of brand equity. Each level of the pyramid builds on the previous one,
starting from establishing a firm brand identity, creating meaningful perceptions,
invoking strong responses, and finally leading to intense brand loyalty and
resonance. This model helps brands understand where they are in the pyramid
and what strategies they need to implement to move higher up, ultimately
building strong brand equity.

Sources of Brand Equity

Brand Equity is the value and strength of a brand that determines its worth. It can
be measured in various ways, including price premiums, sales volume, market
share, shareholder returns, brand image, and future earning potential. Building
brand equity involves several key elements:
1. Awareness:
 Definition:
Awareness means how well customers know the brand and can recall it
when thinking about a specific product category.
 Example: When someone thinks of fast food, McDonald’s might be the first
brand that comes to mind – this is top-of-mind recall.
 Building Awareness:
Methods like advertising, sponsorships, events, and word-of-mouth help
increase brand visibility and awareness among the target audience.
2. Brand Associations:
 Definition:
Associations are everything customers think about when they consider a
brand. These could be based on personal experiences, advertisements,
price, quality, or even what others say about the brand.
Example: When people see the Apple logo, they might associate it with
innovation, quality, and modern design.
 Importance:
Positive associations drive brand purchases and word-of-mouth publicity.
They can also create barriers for competitors and provide the company
with a competitive advantage.
3. Perceived Quality:
 Definition:
Perceived quality is the customer’s perception of a brand’s overall quality
compared to its competitors. It is subjective and varies from person to
person.
Example: A car brand like Mercedes-Benz may be perceived as high-quality
due to its performance, luxury features, and customer service.
 Impact:
Quality perceptions influence pricing and positioning strategies. Superior
perceived quality can justify higher prices and strengthen brand
positioning.
4. Brand Loyalty:
 Definition:
Brand loyalty refers to customers consistently choosing a particular brand
over others. It can be based on repetitive purchase behavior or attitudinal
 loyalty (like recommending the brand to others).
Example: Fans of Nike sports apparel who consistently choose Nike over
other sports brands demonstrate brand loyalty.
 Significance:
Loyal customers reduce marketing costs and can act as brand advocates.
They also form a barrier against new competitors and can increase the
company's bargaining power with retailers.
5. Market Behavior:
 Understanding Market Behavior:
Analyzing consumer and business behavior in the market helps in
developing marketing strategies. This involves studying purchasing patterns
and preferences.
Example: A grocery store chain analyzing shopping trends to stock more of
what customers prefer, like organic products or health foods.
In summary, the sources of brand equity are multifaceted, encompassing
awareness, associations, perceived quality, loyalty, and market behavior. These
elements work together to build a brand’s value in the eyes of consumers and the
market. For a brand to be successful, it needs to cultivate these aspects
effectively, ensuring that they resonate with consumers and lead to sustained
brand equity.

Steps of Brand Building Including Brand Building Blocks

Building a strong brand is crucial for businesses to differentiate themselves in the
market and establish a loyal customer base. Here are the steps of brand building,
including the brand building blocks:
1. Identification of Brand (Who are you?):
 Objective:
Establish a clear identity for the brand in customers' minds. This involves
associating the brand with a specific product category, benefit, or customer
need.
  Strategies:
Create a distinctive name, logo, and visual identity that resonates with the
target audience. Use marketing to communicate what the brand stands for
and what it offers that competitors don't.
 Example:
When you think of "safety" in automobiles, Volvo has successfully identified
itself with this attribute.
2. Understand the Meaning of Brand (What are you?):
 Objective:
Firmly establish the totality of brand meaning in the minds of customers.
This includes all the tangible (physical products, price, packaging) and
intangible (customer experiences, brand personality) elements of the
brand.
 Strategies:
Develop and promote brand attributes, benefits, and values. Ensure every
interaction with the brand reinforces its meaning, from advertising to
customer service.
 Example:
Apple is associated with innovation, quality, and design. Every product
launch and advertisement reinforces these associations.
3. Elicit Brand Response (What about you?):
 Objective:
Elicit proper and positive customer responses to the brand. This involves
customers' judgments and feelings towards the brand based on their
experiences and interactions.
 Strategies:
Engage customers with compelling marketing, ensuring the brand meets or
exceeds expectations in terms of quality, service, and overall experience.
 Example:
After using a skincare product that delivers clear results, customers might
feel satisfied and view the brand as effective and trustworthy.
4. Build Brand Relationships (What about You and me?):
 Objective:
Convert positive brand responses into deep, active loyalty relationships
between customers and the brand. This is known as brand resonance,
where customers feel a strong, personal attachment to the brand.
 Strategies:
Encourage repeat purchases, foster community around the brand, and
engage customers through loyalty programs, exclusive offers, or brand
communities.
 Example:
Harley Davidson has cultivated a community around its brand, with loyal
customers often becoming brand advocates and forming clubs or groups.
By following these steps and focusing on each block of brand building, businesses
can develop strong, lasting brands that resonate with customers and stand out in
the market. The process requires consistent effort and alignment across all
aspects of the business, from product development to marketing, ensuring every
touchpoint reinforces the brand's identity and values.

Brand Building Blocks

The six brand building blocks affect the process of brand building. They are
integral parts of establishing a strong brand and creating value. Here's a detailed
breakdown of each:
1. Brand Salience:
This is about the awareness of the brand. A brand with high salience is one that
customers think of first in various purchase situations. It's important for the brand
to be prominent in the customer's mind, which helps it to become a consideration
when the customer is looking to fulfill a need.
Example: When people think of fast food, brands like McDonald's or KFC might be
top of mind due to their high salience.
2. Brand Performance:
This refers to how well a brand meets customers' functional needs. It includes
everything from the product's primary features to its reliability, serviceability, and
overall quality. High brand performance means customers are satisfied with the
product and feel it meets or exceeds their expectations.
Example: Toyota is often praised for its reliable and durable cars, demonstrating
strong brand performance.
3. Brand Imagery:
Brand imagery deals with the extrinsic properties of the product or service and
how people think about the brand abstractly. This includes user profiles, purchase
situations, and the broader psychological or social needs the brand fulfills.
Example: Rolex watches are not just timepieces; they are symbols of luxury and
status, showcasing the brand's imagery.
4. Brand Judgments:
These are customers' personal opinions and evaluations of the brand. Customers
make judgments about a brand's quality, credibility, consideration, and
superiority based on their experiences and perceptions.
Example: A brand like Google is often judged positively for its innovation and
usefulness, leading to high brand equity.
5. Brand Feelings:
Brand feelings are the emotional responses and reactions that a brand evokes.
These can be warmth, fun, excitement, security, social approval, or self-respect.
Strong brand feelings can lead to a deep emotional connection with the brand.
Example: Coca-Cola often evokes feelings of happiness and nostalgia, particularly
with its holiday campaigns.
6. Brand Resonance:
Brand resonance is the ultimate relationship a customer has with a brand. It's
about the psychological bond and the level of identification the customer feels
with the brand. High resonance means customers are highly loyal and actively
engaged with the brand.
Example: Apple enjoys high brand resonance, with customers highly loyal and
passionate about its products.
Understanding these building blocks is crucial for any business looking to
strengthen its brand equity. Each plays a vital role in how customers perceive and
interact with the brand, affecting their purchase decisions and loyalty. By focusing
on enhancing these aspects, a brand can increase its value, differentiate itself in
the market, and build a loyal customer base.

Brand Positioning
Brand positioning is a fundamental strategy in marketing, aiming to place a brand
in a specific position in the minds of the target customers. It defines how a brand
is different from its competitors and what it stands for in the market. Effective
brand positioning conveys the brand's uniqueness, value, and relevance to
consumers, guiding marketing strategies and communication efforts. Here's how
it works:
1. Understanding the Target Consumer:
Brand positioning starts with a clear understanding of who the brand is intended
for. This involves identifying demographic, psychographic, and behavioral
characteristics of the target market.
2. Identifying Main Competitors:
Knowing who the competitors are and how the brand compares to them is
crucial. This helps in understanding the market landscape and how consumers
perceive different options available to them.
3. Determining Similarities with Competitors (Points-of-Parity):
Points-of-parity are attributes or benefits that are largely similar across brands
within a category. They are the necessary conditions for brand choice but are not
necessarily sufficient to ensure choice.
4. Establishing Differences from Competitors (Points-of-Difference):
Points-of-difference are the attributes or benefits that consumers strongly
associate with a brand, positively evaluate, and believe that they could not find to
the same extent with a competitive brand. These are what make a brand
preferred and superior in the minds of the target audience.
Examples of Brand Positioning:
 Kotak Mahindra:
Positioned as a one-stop solution for all financial services needs,
emphasizing customized solutions with the proposition "Think Investments,
Think Kotak."
 Maggi:
Positioned as a quick and easy snack, ideal for evenings or anytime
snacking, especially among youth and busy mothers. It's known for being
"good to eat and fast to cook."
 Maruti Cars:
Known for being value for money cars, Maruti has positioned itself as
offering reliable and affordable vehicles for the masses in India.
 Kellogg's Cereal:
Positioned as a healthy, nutritious breakfast food that starts the day right
for families around the world.
Effective brand positioning involves a deep understanding of the brand's own
capabilities, the needs and wants of the target customers, and the competitive
landscape. It's about carving out a niche in the consumer's mind that the brand
can own, defend and leverage across products and markets. This strategic effort
guides everything from product development to communication strategies,
ensuring that the brand's offerings and messages resonate with the intended
audience.
Basis Of Brand Positioning
1. Product Class: This refers to a group of products seen as alternatives that
satisfy a particular consumer need. For example, Cadbury, Amul, and Nestle
are brands known for their chocolates. They are positioned in the chocolate
product class. Sometimes, a brand can shake up the market by moving into
a new class, like Cadbury did with its "Kuch Meetha Ho Jaye" campaign,
positioning its chocolates as an alternative to traditional Indian sweets
(mithai), especially after meals.
 2. Consumer Segmentation: This involves dividing potential customers into
groups based on their characteristics and what they need or want. Some
brands target a broad range of consumers, while others focus on a specific
group. For instance, Horlicks is marketed to all ages and genders as a
nutritional drink, while Boost is advertised as an energy drink specifically
for children, and Bournvita promotes itself as providing the "power to win"
for kids.
3. Consumer Perception or Perceptual Mapping: This is about understanding
how consumers see different products and brands. Companies use
perceptual maps to visualize where their products stand compared to
others in the market. They can then decide whether to position their
product in a less crowded area (a gap in the market) or directly compete
with similar products. The goal is to find a spot in the market that makes
sense for the brand and appeals to customers.
4. Brand Benefits and Attributes: This is about what the brand offers to the
consumer. For a brand to be successful, it needs to answer the consumer's
question: "What's in it for me?" This means translating what the product
does (its attributes) into benefits that matter to the consumer. For
example, many washing powders can clean clothes, but brands like Robin
Liquid or Ujala emphasize they not only clean but also make clothes
noticeably whiter, providing an extra benefit of enhanced whiteness.
Brand positioning
Brand positioning is crucial in connecting a product to its target audience and
shaping how they think and feel about it. Here's a detailed breakdown of its
importance:
1. Develops Corporate Image: Brand positioning helps a company build a
favorable image or reputation. Like Maruti Suzuki's image of reliability and
trust in India's automotive market, a well-positioned brand tells customers,
"We understand and cater to your specific needs."
2. Creates Demand: Effective positioning makes people want the product. It's
like planting an idea in customers' minds that this product will fulfill a
specific desire or need. For example, Lux has been positioned as the
 "Beauty Soap of Film Stars," making consumers associate it with glamour
and beauty.
3. Helps to Face Competition: With good positioning, a brand can stand out
even in a crowded market. It's about highlighting what's unique about your
product. Hero Honda, for instance, emphasized fuel efficiency in its bikes,
making it a preferred choice for cost-conscious consumers.
4. Facilitates Consumer Choice: Positioning helps consumers decide by
creating a clear image of the product. It's like guiding them in a store full of
options to the one product that meets their needs.
5. Value Creation: Effective positioning highlights the special benefits of a
product, adding value in the customer's mind. It's not just about the
product's features; it's about how those features make life better, easier, or
more enjoyable for the consumer.
6. Helps to Command Premium: When a product is positioned as unique or
superior, the company can charge more for it. Because customers see the
product as better or more fitting to their needs, they're willing to pay extra.
This is common with brands that have built a strong reputation for quality
or luxury, like Apple.
7. Creates Status: Some brands are positioned as status symbols. Owning or
using these brands makes a statement about one's lifestyle or success.
Mercedes, for instance, is not just a car; it's a symbol of status and prestige.
8. Creates Brand Image: Lastly, brand positioning helps to forge a distinct
image or identity in the market. It's how a brand remains top of mind and
preferred among its target audience. For example, Colgate has been
positioned as a toothpaste that offers protection against cavities and gum
problems, building a strong image of a reliable oral care product.
In essence, brand positioning is about carving out a unique space in the market
and in the minds of consumers, defining what a brand stands for, and how it's
different from competitors. It's a strategic effort that guides marketing decisions
and shapes the overall perception of the brand.
Brand imitation
Brand imitation refers to when a product mimics certain qualities of a well-known
brand. This mimicry can involve the product's name, shape, color, logo, or overall
design. Imitations aren't exact copies but are close enough in nature, appearance,
or concept that consumers might associate them with the original, leading brand.
Think of it like someone trying to dress up and act like a celebrity. They aren't the
celebrity, but they adopt enough of the celebrity's style and mannerisms that
people might do a double-take. In the market, these imitations might use a similar
color scheme as a famous brand, a name that sounds alike, or packaging that
reminds you of the original product.
For example, if a small company makes a smartphone with a design, name, and
packaging quite similar to an iPhone, it's engaging in brand imitation. They might
name it something close, use similar fonts, or the design might remind you of an
iPhone. The idea is to evoke the same feelings and recognition that customers
have for the leading brand, hoping that it will lead to increased interest or sales
for the imitating product.
Brand owners view imitation as a threat because it can confuse consumers, dilute
the original brand's value, and potentially take away sales. It's often seen as an
infringement on the original brand's identity and intellectual property, especially
if the imitation is close enough to mislead consumers.
kinds of imitation
1. Counterfeits or Product Pirates:
 Counterfeits are unauthorized replicas that use the same brand
name and trademarks as the genuine product. They are often sold as
the real thing but are usually of lower quality.
 These are illegal because they directly infringe on the original brand's
trademarks and attempt to deceive customers, often resulting in loss
of sales and damage to the original brand's reputation.
Example: A fake Rolex watch sold on the street that looks like the genuine luxury
watch, carrying the Rolex name and logo, but is of significantly lower quality and
price.
 2. Design Copies or Trade Dress:
 These are imitations that replicate the style, design, or fashion of a
popular product. While they might not use the same brand name,
they copy the look and feel to tap into the popularity of the original.
 The focus here is more on mimicking the aesthetic appeal rather than
the brand name itself, often seen in fashion and design-driven
products.
Example: A pair of shoes that mimic the distinctive red-lacquered soles of
Louboutin heels, without branding themselves as Louboutin.
3. Technological Leapfrogging:
 This involves new entrants in a market who, after analyzing the
successes and failures of the original innovator, develop a superior
product by incorporating better technology or design.
 It's called leapfrogging because the imitator jumps ahead of the
original innovator, not by copying, but by using the market
knowledge to create something more advanced or better suited to
consumer needs.
Example: A new smartphone company entering the market after the original
innovator and offering better camera technology or battery life, surpassing the
features of the first phones.
4. Knock-offs or Clones:
 Clones are similar to the original product in function and design but
are sold under a different brand name. They are often legal,
especially when the original product's patents or copyrights have
expired.
 Clones compete directly with the original by offering similar features,
often at a lower price, appealing to consumers who can't afford or
don't wish to pay for the genuine article.
Example: A computer operating system that closely resembles the look and
functionality of Microsoft Windows but is sold under a different name and
perhaps at a cheaper price.
5. Creative Adaptations:
 Creative adaptations, or "creative imitations," involve taking an
existing product and improving it or modifying it for a different
market or use.
 These imitations can sometimes lead to genuine innovation and
differentiation, offering consumers an alternative that might better
meet their specific needs or preferences.
Example: A bicycle that incorporates a special gear system originally developed
for cars, enhancing the performance and efficiency of the bike.
6. Adaptation to another Industry:
 Sometimes, an innovation in one industry is adapted for use in a
completely different industry. This could involve using the same
concept in a new way or significantly modifying it.
 These adaptations can lead to breakthroughs in the new industry,
often bringing in fresh perspectives and solutions.
Example: The use of GPS technology, originally developed for military navigation,
being adapted for civilian use in car navigation systems and smartphones.
Each of these forms of imitation has different implications for businesses, from
the clearly illegal and ethically dubious practice of counterfeiting to more
accepted and sometimes even celebrated forms of innovation and adaptation.
They all represent different strategies that companies and individuals might use
to capitalize on the success or functionality of existing products and brands.
Factors Affecting Brand Imitation
1. Time:
 The quicker an imitator can copy an innovation, the sooner they can
enter the market and compete with the original brand. Conversely, if
 an innovator continues to evolve and improve, it's harder for
imitators to catch up.
 Example: If a popular smartphone gets released, and within months
another company releases a very similar model, the second company
is benefiting from quick imitation.
2. Legislations:
 Laws and regulations like patents protect innovations for a certain
time, preventing others from legally copying them. The strength and
enforcement of these laws significantly affect imitation.
 Example: A unique drug formula is patented, preventing other
pharmaceutical companies from making a generic version until the
patent expires.
3. Customer Demand:
 High demand for a product can attract imitators looking to capitalize
on the market opportunity. If the original product can't meet
demand, imitators may fill the gap.
 Example: If a particular style of sneaker becomes incredibly popular
and the original brand can't meet the demand, other brands might
start producing similar styles.
4. Suppliers:
 Access to necessary materials and technology can affect how quickly
and effectively a product can be imitated.
 Example: If a specific type of processor used in smartphones is
readily available from suppliers, it's easier for other brands to
produce similar smartphones.
5. Production Process:
 If the process to make a product is simple and easily replicated,
imitators can more quickly produce similar items.
  Example: Basic clothing items like plain t-shirts are easily imitated
because the production process is relatively simple and well-known.
6. Spread of Technology:
 The faster and more widespread the access to new technologies and
knowledge, the quicker other companies can adopt these
innovations.
 Example: As 3D printing technology becomes more accessible and
understood, more companies can use it to imitate complex parts or
products.
7. Environmental Uncertainty:
 Factors like economic conditions, political stability, and changing
trends can influence how quickly and effectively imitations are
produced and accepted.
 Example: In a stable market, companies might take longer to respond
with imitations, but in a rapidly changing market, companies might
hurry to release imitations to not miss out.
8. Level of IPR’s Protection:
 Intellectual Property Rights (IPR) protection varies across countries
and industries, impacting the extent and ease of imitation. Stronger
IPR laws make it harder to imitate legally.
 Example: In countries with strict IPR enforcement, there may be
fewer imitations of designer goods, while in countries with lax
enforcement, imitations might be more common.
Understanding these factors helps businesses navigate the complex landscape of
brand imitation, whether they're looking to protect their innovations or
considering the implications of imitating existing products.