brand management lecure 5

8/7/2019 brand management lecure 5

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What is a brand ?

What a brand means to commonperson ?

In 'blind' taste tests, people preferthe taste of Pepsi over the taste ofCoke. However, if the test is not

'blind' and the tasters know whichbeverage is which, they prefer thetaste of Coke over Pepsi! That is theemotional power of a brand. TheCoca-Cola brand has the power toactually change an individual's

taste!

Coca-cola is the no.1 brand in theworld.The first shape that was registered isthe coca cola bottle.


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CompanyProduct A

Product B

Product PackagingWebsites

Advertisements

A brand is a promise. A promise to achieve certain results, deliver acertain experience, or act in a certain way. A promise that is conveyedby everything people see, hear, touch, taste or smell about yourbusiness.

logo

Integrity of Brand


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Brand

A name becomes a brand when consumers associateit with a set of tangible and intangible benefits thatthey obtain from the product or service

It is the sellers promise to deliver the same bundleof benefits/services consistently to buyers


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Brand Equity

When a commodity becomes a brand, it is said tohave equity.

The premium a brand can command in the market

The difference between the perceived value and theintrinsic value


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Levels of meaning

Attributes

Benefits

Values

CulturePersonality

Users


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Brand Power

Customer will change brands for price reasonsCustomer is satisfied. No reason to change.Customer is satisfied and would take pains to get the

brandCustomer values the brand and sees it as a friendCustomer is devoted to the brand


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Brand Equity Competitive Advantages

Reduced marketing cost

Can charge a higher price

Can easily launch brand extensions

Can take some price competition


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Managing Brand Equity

Brand Equity needs to be nourished andreplenished. We must not flog the brand for equityto be diluted or dissipated

Store brands


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Advantages of branding

Easy for the seller to track down problems andprocess orders

Provide legal protection of unique product features

Branding gives an opportunity to attract loyal andprofitable set of customersIt helps to give a product category at different

segments, having separate bundle of benefits

It helps build corporate imageIt minimises harm to company reputation if thebrand fails


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Brand parity

Consumers buy from a set of acceptable/ preferredbrands


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Umbrella Brand

Products from different categories under one brandDangerous to the brand if the principal brand failsSometimes the company name is prefixed to the

brand. In such cases the company name gives itlegitimacy. The product name individualisesit.


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Umbrella branding


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Naming the Brand

Product benefits

Product qualities

Easy to pronounce

Should be distinctiveShould not have poor meanings in other languages

and countries


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Brand strategy

Line extension existing brand name extended tonew sizes in the existing product category

Brand extension brand name extended to newproduct categories

Multibrands new brands in the same productcategory

New brands new product in a different productcategory

Cobrands brands bearing two or more wellknown brand names


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Co-branding


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LineExtension

Multibrands

BrandExtension

NewBrands

Brand

Name

Existing New

Product Category

Existing

New

Four Brand Strategies


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BRAND ELEMENTS


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MKTG 461 Brand Management

Brand Elements

Brand elements (or brand identities) aretrademarkable devices that serve to identify anddifferentiate the brand Keller (1998)

Various elements exist: Brand names

Brand logos

Packaging Symbols

Characters

Slogans and Jingles

Names, Logos, & Packages Slide 1


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Brand Elements

Choosing Brand Elements1. Memorable

Easily Recognized and Recalled

2. Meaningful

Descriptive, Persuasive, Fun & Engaging, Rich Imagery3. Transferable Within and Across Categories, Across Different Markets

4.Adaptable Flexible, Able to be Updated

5. Protectable Legally & Protectable



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Brand Names

Good brand names are important

Brand meaning can be captured in a very compact and economicalfashion

Brand name is often at the center of brand associations

Research is often used to select (Coast - $1 million)

Good names are tough to find Most are registered

140,000 words in English vocabulary (20,000 recognized; 7,000found on television)



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Brand Names Guidelines

Easy and simple to pronounce/spell

Easy names are repeated builds cognitive structures

Consumers avoid saying difficult names Wyborowa Vodka (Vee-ba-rova)

Consumers may get different perceptions based on differentpronunciations (Nike or Porsche)

Close attention to linguistics of name are importantAcura versus Accura (AK-yur-a)



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Documents

brand management lecure 5