The material is based on the
following books
Marketing Strategy
Walker Boyd Mullins Larreche
Marketing Strategy
O.C.Ferrel and M.D.Hartline
Strategic Brand Management
Kevin Lane Keller
An Integrated Approach to strategic Management
Hills and Jones
Bbrand 1
What is a brand?
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.
American Marketing Association (AMA)
These different components of a brand that identify
and differentiate it are
1.4 brand elements.
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Brand origins
Marking (burning) animals
to prove ownership
In early Greek and Roman
Civilization high illiteracy rates
led shopkeepers to hang
pictures or signs
over their store to identify
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Traditional view
A brand is a name, term, sign, symbol,
or design which is intended to
identify
the goods or services of one seller & to
differentiate
them from those of the competitors
AMA
AMA definition View
Branding is the ability to choose
name, logo, symbol, package,
design, or other characteristics to
identify and distinguish them
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What is a brand?
We can make a distinction between
the AMA definition of a
brand with a small b
and
the industrys concept of a
Brand with a capital b.
What is a brand?
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.
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What is a Brand?
A brand is a complex symbol, it is the
intangible sum of a products attributes, its
name, packaging, and price, its history,
reputation, and the way it is advertised. A
brand is also defined by consumers
impression of the people who use it, as well
as their own experience.
Advertising guru David Ogilvy
Source: Competing for choice: developing winning brand strategies
by Lars Finskud
More recent views
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Modern concept
A brand is something that has
actually created a certain amount
of awareness, reputation,
prominence and so on in the
market place.
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A brand is not
A logo
An identity
A product
A brand is
the sum total of all the
experiences
of a customer
with a product or company
over Time
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A brand is
A Persons
Gut feeling
A Brand Is More than a Product
Brands are perceptions
Integrated bundle of
information and experiences
Identifies product and maker
Has associations and image
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A Brand Is More than a Product
Brands transform products
Consumers use tangible attributes to decide
whether two products are different
Consumers use intangible attributes to decide
how two products are different
Quality and value
Brand image
Perceptions of brand users
Intangible attributes
Difficult for competitors to copy
More likely to involve consumers emotionally
A Brand Is More than a Product
Brand promise
Brand is a virtual contract between a
company and a customer
Failure to deliver on a promise
dissatisfaction
Customer expectations must be managed
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A Brand Is More than a Product
Brand equity
Intangible value of a company beyond its
physical assets
Premium pricing method
Royalty method
Elements
Brand-name awareness
Brand associations
Perceived quality
Proprietary assets (patents, trademarks, etc.)
Brand loyalty
Stakeholder Overlap
Customers
Media Community
Suppliers Employees
Shareholders
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A promise
a sellers promise to deliver
consistently a specific set of
features, benefits and services to
buyers.
Brand promise
Brand is a virtual contract between a
company and a customer
Failure to deliver on a promise leads
to dissatisfaction
Customer expectations must be
managed
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An experience
Brand is what is
experienced and valued
by customers in everyday social
life.
stories
taken for- granted
stories
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An Emotional File
Brand is the
mental and emotional file
we have for a product or service or
entity.
A Relation
A brand defines the
relationship customers have
with an organisation
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a living entity
Has a personality
Communicates with customers
Establishes relations with
customers
A brand is a living entity
it is enriched or undermined
cumulatively over time
the product of a thousand small
gestures.
Michael Eisner, CEO Disney
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Brand is a Perceptual entity
Lessons from Corporate America
One of our store partners made an
amazing discovery this week.
He said we are not, in the
coffee business serving people.
He said we are in the
people business serving coffee.
Howard Schultz, CEO Starbuck
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Our brand is a promise to customers.
The customer experience
we provide should reflect that promise.
So we need to make it real, every day, in the
marketplace.
It is also a promise we make to ourselves.
Because what we project to the outside world must
reflect who we are, and how we behave,
as a company. In other words,
our brand must reflect our culture.
Carly Fiorina
A Culture
Brand is culture of the
product, images and
associations
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an intangible
an intangible asset that resides in
peoples minds
which is defined by the expectations
people have about the benefits they
will receive.
A Brand is therefore
More than a product,
because it can have dimensions
that differentiate it in some way
from other products designed to
satisfy the same need
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Brand
is the most valuable asset
are Created not manufactured
are Image and trust driven
is consumer perception
customer property
A Brand therefore is
Liking different association or
attributes
to the product
to create
perceived differentiation
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And
These associations may be
Rational and Tangible
(related to the product performance)
or
Symbolic, Emotional or Intangible
(related to what the brand represents)
Brand
A brand is a mixture of attributes,
tangible and intangible,
symbolized in a trademark,
which,
if managed properly,
creates value and influence.
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Branding
The purpose of Branding is to
transform a product.
It must add value that customers
covet.
Transforming a commodity like
product into customer satisfying value
added propositions is the essence of
branding.
Marketing Summit 2006
Perception is Reality!!!
Branding is ultimately nothing more
and nothing less than heart.
Its about passionwhat's inside you,
whats inside our organization.
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Brand Experience
Dont just create what the market
needs or wants.
Create what it would love.
Marketing is not a department.
Its your business.
(More than of Japanese Companies
have no marketing dept.)
What do all these big brands have in
common?
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What do all these big brands
have in common?
They have a high recognition & a strong
image word wide
They are in great demand word wide
They possess a great competitive
advantage
They possess a strong trade leverage
None of them compete over price
They are economically successful
How Brands Work
4. Level: Transformation,
the brand actually invokes
change in the consumer
3. Level: Added value
individual laddered benefits
2. Level: Security
You get what you expect
1. Level: Brand name and
logo ensure the product can
be recognized and
distinguished from the
competition
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The Role of Brands
Signify quality
Create barriers to entry
Serve as a competitive
advantage
Secure price
premium
The Role of Brands
Identify the maker
Simplify product handling
Organize accounting
Offer legal protection
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Few Examples
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Pedigree Pet foods in UK
1. Dog as an animal
2. Dog as a companion
3. As a family member
4. Substitute child ?
Pedigree Pet foods in UK
Dog as an animal Economy Chappie 6.3
Dog as a companion Moderate Bounce 6.4
As a family member Premium Chum 8.7
Substitute child ? Super Premium 35.0
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Pedigrees Super Premium Strategy
Target Market? Intense relationships, own smaller
dogs, older and urban females
Benefits? Very best product that can be bought,
reassurance, confidence, leads to an
enhanced relationship
Name? Mr. Dog (later Caesar)
Product? Very high quality ingredients, wide
variety of flavors, special packaging
Price? 17.7 to 30.7 pence per 100 grams
Advertising? Dog bringing newspaper, slippers,
Results: Fours years later, it had a 10% share of the total
dog food market. The total super premium segment of the
market was about 15% -- about 10% coming from dog food
brands and about 5% coming from fresh foods. In addition,
Pedigree's premium brand retained its market share.
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7 UP
7 up used as a mixer with hard drinks.
Had steady sales but nothing as
compared to a soft drink.
Hence, wanted to position itself as a
soft drink like coke and Pepsi.
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UN COLA
I
Larger
Seg
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By the time the Marlboro Man went
national in 1955, sales were at $5
billion, a 3,241% jump over 1954 and
light years ahead of pre-cowboy
sales, when the brand's U.S. share
stood at less than 1%.
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The Campaign of the Century
Cognitive Benefit
Filter
Aromatic blend
New pack
Emotional Benefit
Manly self image
Perceived Image
Virile, masculine
Source: Brand Positioning Subrato Sen Gupta
Soup is a dinner item in a
Restaurant only
Why not at home also?
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Park Avenue
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Titan Branding
Functional use Gifting Fashion Item
Functional Utility Item Fashion Accessory
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1. Deciding to call it Apple they wanted to emphasize
the unconventional nature of the brand.
2. With this choice the brand demonstrated its value:
in refusing to idolise computer science.
3. Apple was in fact preparing to completely overturn
the traditional human machine relationship.
4. The machine had, indeed, to become,
something to enjoy rather than
to revere or fear.
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The Ad of the Century
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The Best ad campaigns
Volkswagen Think Small 1959
Coca-Cola, The pause that refreshes 1929
Marlboro, The Marlboro Man 1955
Nike, Just do it 1988
McDonald's, You deserve a break today 1971
DeBeers, A diamond is forever 1948
Absolut The Absolut Bottle 1981
Miller Lite beer Tastes great, less filling 1974
Clairol, Does she...or doesn't she 1957
Avis, We try harder 1963
Experiential marketing
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Two approaches to Branding
Brand (ID) Brand (EX)
Brands as experience
providers
Brands as identifiers
Names, logos, ads as well as
Names, logos, and events, sponsorships and
ads other customer contacts
Awareness and image Experiences during
before purchase
purchase and
consumption
Traditional Marketing
features
Functional
and benefits (F&B)
Narrow definition of
product categories
Methods are and competition
analytical,
quantitative
and verbal
Customers are
rational decision-makers
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Experiential
Marketing
Customer experience
Focus
on consumption
Methods are
eclectic
Customers arerational
and emotional animals
Moving Over
and
Up The
socio-cultural
context
The Socio-Cultural
Consumption Vector
The
The consumption
product situation
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