CH 5 Branding.pdf

8/17/2019 CH 5 Branding.pdf

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Chapter 5

Brands and Brand Management



What is a Brand

• Think about the following statement and see

what extent you agree or disagree with them:



What is a Brand

• Is it the personification of an organization, product orservice?

• Is it a source of a promise to the customer?

• is it a trust mark?• Is it a set of associations that enhance product or service?

• Is it the main source of emotional connection withcustomers?

•

Is it something that should drives the design of the “totalcustomer service”?

• Is it the single ideal or concept that is imbedded in themind of the customer?



What is a Brand

• According to American Marketing Association

(AMA): A brand is a name, 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 competitors.



Brands VS Products

• What is a Product: a product is anything that can beoffered to a market for attention, acquisition, use orconsumption that might satisfy a need or want.

Levels of product:

1. The core benefit level

2. The generic product level

3. The expected product level

4. The augmented product level

5. The potential product level



Example (levels of products)

Air Conditioner1. Core Benefit: Cooling and Comfort.

2. Generic Product: Sufficient cooling capacity, an acceptable energyefficient rating etc.

3. Expected Product: Consumer report states that for a typical largeair conditioner it should have removable filters, power chord atleast 60 inches long and warranty etc.

4. Augmented Product: Optional features might include electric

touch pad, display for outdoor and indoor temperatures etc.

5. Potential product: This is up to the marketer and the technologyinnovation.



Why do brands matter

•

What functions do brand perform that makethem so valuable to consumers and

marketers?



Importance of Brands to Consumers

• Identification of the source of the product

• Assignment of responsibility to product maker

•

Risk reducer• Search cost reducer

• Promise, bond, or pact with product maker

• Symbolic device• Signal of quality



Importance of Brands to Firms

• Identification to simplify handling or tracing

• Legally protecting unique features

•

Signal of quality level• Endowing products with unique associations

• Source of competitive advantage

• Source of financial returns



Can Anything Be Branded

• To brand a product consumers need to know “who” theproduct is (by giving it a name and other brand elements)as well as what product does.

•

Need to provide label to the product (here’s how you canidentify the product)

• Provide meaning for the brand to consumers (here’s whatthis particular product can do for you and why it is different

and special from other brand name products)

• Ultimately a brand is something that resides in the minds of consumers.



Can Anything Be Branded

• The key to branding is that consumers

perceive differences among brands in a

product category.



What is branded?

• Physical goods

• Services

•

Retailers and distributors• Online products and services

• People and organizations

• Sports, arts, and entertainment• Geographic locations



Top 10 Brands for 2011



Customer Based Brand Equity

•

CBBE is formally defined as the “differentialeffect that the brand knowledge has on

consumer responses to the marketing of that

brand”.



Four Questions Customers ask of

Brands

1. Who are you? (brand identity)

2. What are you? (brand meaning)

3. What about you? What do I think or feel about you?(brand responses)

4. What about you and me? What kind of associationand how much of a connection would I like to havewith you? (brand relationships)



Customer-Based Brand Equity Pyramid

RESONANCE

SALIENCE

JUDGMENTS FEELINGS

PERFORMANCE IMAGERY

4. RELATIONSHIPS =

What about you and me?

3. RESPONSE =

What about you?

2. MEANING =

What are you?

1. IDENTITY =

Who are you?



Brand Salience

• Brand Salience relates to aspects of theawareness of the brand, for example, howoften and easily the brand is evoked under

various situations.

• To what extent brand has top of the mind

recall?

• How pervasive is the brand awareness?



Breadth and Depth of Awareness

• The depth of brand awareness concerns the

likelihood that the brand will come to mind

and the ease with which it does so.

• The breadth of brand awareness concerns the

range of purchase and usage situation in

which the brand comes to mind.



Product Category Structure



Brand Performance

• Brand performance relates to the ways inwhich product or service attempts to meetcustomer’s more functional needs.

• Brand Performance Dimensions can serve as ameans by which the brand is differentiated.

• Five important dimensions or attributes thatunderlie brand performance are:



Brand Performance Dimensions

• Primary ingredients/characteristics andsupplementary features

• Product reliability, durability, andserviceability

• Service effectiveness, efficiency and empathy

• Style and design

• Price



Brand Imagery

• Brand imagery deals with the extrinsicproperties of the product or service.

• Brand imagery is how people think about thebrand abstractly, rather then what the brandactually does.

• Imagery is related to more intangible aspectsof the brand.



Imagery Dimensions/Categories

• User profiles – Demographic and psychographic characteristics

– Actual or aspirational

•

Purchase and usage situations – Type of channel, specific stores, ease of purchase

– Time (day, week, month, year, etc.), location, and context of usage

• Personality and values – Sincerity, excitement, competence, sophistication, and ruggedness

• History, heritage, and experiences – Nostalgia

– Memories



Brand Judgment

•

Brand judgment focus customer personalopinions and evaluations with regard to the

brand.



Brand Judgment Dimension

Brand Quality

• Value

• Satisfaction

Brand Credibility

• Expertise (Competent, innovative and market leader)

• Trustworthiness (dependable and keeping customerinterest in mind)

• Likeability (Fun, interesting and worth spending timewith)




Brand Consideration

• Brand consideration is more then mereawareness.

• Brand consideration depends on how appropriateand meaningful customer find the brand.

• Brand consideration largely depends on howbrand association is created.




Brand Superiority

•

Superiority relates to the extent to whichcustomer view the brand as unique and better

then others. (Differentiation)



Feelings Dimensions

• Warmth : Consumer may feel sentimental,warmhearted or affectionate about the brand.

• Fun: Brand makes consumer feel amused, lighthearted,

playful and cheerful etc.

• Excitement: Brand make consumer feel energized orfeeling of something special.

• Security: Brand produces the feeling of safety, controland self-assurance.



Feelings Dimensions

• Social Approval: Brand results in having

positive response from others.

• Self-respect: Brand makes consumer feel

better about themselves.



Brand Resonance

• Brand resonance is the ultimate relationship

and level of identification the consumer has

with the brand.

• Resonance is the depth of psychological bond

the consumer has with the brand.



Brand Resonance

Dimensions/CategoriesBehavioral Loyalty

• The first dimension of brand resonance is behavioral loyaltyin terms of repeat purchases

Attitudinal Attachment• Consumer should go beyond having positive attitude to

viewing the brand as something special.

• Example: Consumer may state that they “love” their brand,describe it as their “favorite possessions” view the brand as“little pleasures” that they look forward to.



Brand Resonance

Dimensions/Categories

Sense of Community

• Brand community describes consumers as a partof certain community.

• Identification with a brand community mayreflect an important social phenomena.

• Consumer feel kinship or affiliation with otherpeople associated with the brand.



Brand Resonance

Dimensions/Categories

Active Engagement

• Strongest affiliation of brand loyalty is when

consumer are willing to invest time, energy,

money and other resources.



Product Systems and Mixes



Product and Service Decisions

Product line is a group of products that are closely

related because they function in a similar manner,

are sold to the same customer groups, aremarketed through the same types of outlets, or fall

within given price ranges

Product Line Decisions




Product line length is the number of items in the

product line

• Line stretching (Stretching the line upward ordownward)

• Line filling (adding more items to the line)

Product Line Decisions

http://kotler_pom13e_ppt_08_video_swiss_army.wmv/




Product mix consists of all the products and items that aparticular seller offers for sale.

• Width (Number of different product line/categories

that company carries)• Length (Total number of items company carries in

the product line)

• Depth (Total number of versions offer of each

product in the line)

• Consistency (How closely related the product various

product line are)

Product Mix Decisions

http://kotler_pom13e_ppt_08_video_swiss_army.wmv/

Documents

CH 5 Branding.pdf