Branding Perspectives

Lecture Outline1. What is a brand?

2. Why is it important?

3. Top 100 Global brands

4. Brand Identity and Competitive Dynamics

5. Evaluating brand image

6. The Importance of brand equity

7. Summary

Indicative ReadingCooper, A., 1999. Everything you wanted to know about brand equity tracking but

were afraid to ask. Journal of Brand Management. 6, (3), 156-160

de Chernatony, L., and McDonald, M., 2005. Creating Powerful Brands, Elsevier

Evans, J., Bridson, K., and Rentschler, R., 2012. Drivers, impediments and manifestations of brand orientation in museums: An exploratory study. European Journal of Marketing, Vol. 46 Iss: 11

Holt, D. and Cameron, D., 2010. Cultural Strategy: Using Innovative Ideologies to Build Breakthrough Brands. Oxford University Press  

Kapferer, J, N., 1997. Strategic Brand Management: Creating and Sustaining Brand Equity Long Term. Kogan Page, Chapters 1, 3,

Motameni, R. and Shahokhi, M., 1998. Brand equity valuation: global perspective. Journal of Product and Brand Management. 7 (4), 275

Nandan, S. 2005. An exploration of the brand identity-image linkage: A

communications perspective. Brand Management, Vol.12, No.4, 264-278

Ponnam, A. and Krishnatray, 2008. Rethinking Branding: The Need for a New Conceptual Framework to Analyze Customer Based brand Equity. Journal of Brand Management, Vol. 5, No. 2, 31-38

www.interbrand.com

1. What is a brand?“The extent to which a product or service can be

augmented to provide added value to increasing levels of sophistication”

de Chernatony and McDonald (2005:26)

“A brand may be a combination of any of the following: name, letters, numbers, a symbol, a

signature, a shape, a slogan, a colour, a particular typeface”.

Interbrand (2004)

Three levels of Product

Source: Kotler (2003)

Core Product

A benefit or service

Actual Product

Augmented ProductThe Experience, warranty, after sales,

delivery, credit

Brand, Quality, Packaging, Features

From Product to Brand

Source: Kotler (2003)

Core Product

A benefit or

service

Actual Product

Augmented ProductThe experience, warranty, after sales,

delivery, credit

Brand, Quality, Packaging, Features

2. Why is a Brand Important?

Reduces risk for the purchaser

Results in quick purchaser acceptance

Enables differentiation between competing alternatives

Reduced price importance for the purchaser

Ability to build loyalty

Potential to create brand extensions

Brands are financially valuable

3. Interband Top 100 Brands 2013

Source: Interbrand (2013)

Source: Interbrand (2013)

4. Evaluating Brand Identity

“Discovering the essence of brand identity, that is, of the

brand’s specific and unique attributes, is

the best way to understand what the brand means overall”

Kapferer (1997:107)

Markets are saturated with communications

Seeks to create differences

What is its permanent nature?

What is the value proposition?

What signs make it recognisable?

Identity proceeds image, its from the sender

Linking Brand Identity to Competitive Dynamics

A bloggers view of future Brand Identity

Brand Identity Prism Physique - physical qualities

and tangible added value

Personality – what kind of person it would be if it were human

Culture – the values linking brand to company, country of origin

Relationship – an exchange between buyer and seller

Reflection - how the customer is seen after using the brand (outward looking)

Self image – how the customer wants to be seen after using the brand

Source: Kapferer (1997: 100)

5. Evaluating Brand Image“Brand image reflects

the consumers’ perceptions of the

brands characteristics and can be gauged by the associations they hold in their

memory”

de Chernatony and Mc Donald (2005:444)

How users ‘perceive’ the brand

Image is the received, decoded, meaning extracted, signs interpreted

Word of mouth communication has an influence on brand image

6. The Importance of brand equity

“Brand equity is the price a consumer is willing to pay over

an unbranded product”Aaker 1996

“Brand equity describes the perceptions consumers have

about a brand and this in turn leads to the value of a brand”De Chernatony and McDonald

(2005:437)

“A personal commitment to and demand for the brand; these differentiating thoughts and feelings make the brand valued

and valuable. Brandchannel.com (2008)

High brand equity means a high probability that consumer chooses your product over a competitor

Purchase intent is high

Brand repurchase is high

Brand loyalty (attitudinally and behaviourally) is high

At organisational level high brand equity infers long term profitability and value

Measuring Brand Equity

Brand Attributes• Awareness• Image• Perceived Quality• Perceived Value• Personality• Organizational Associations

Brand Strength• Leadership• Price Premium• Loyalty • Market share and distribution

Brand Value

Source : de Chernatony and McDonald (2005:443)

7. Summary A brand is a product or service that can be

augmented A brand reduces risk and adds value

Enables differentiations between competing alternatives

Brand identity is the specific and unique attributes

Brand image reflects the consumers’ perceptions of the brands characteristics

Brand equity is the price a consumer is willing to pay over an unbranded product