Chapter 1 Strategic Brand Management

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CHAPTER 1: BRANDS & BRAND MANAGEMENT

1.1 Ms. Adiba Anis, Lecturer, School of Business, BangladeshOpen University


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What is a brand?

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For the American Marketing Association (AMA), a brandis a “name, term, sign, symbol, or design, or acombination of them, intended to identify the goods

and services of one seller or group of sellers and todierentiate them from those of competition.” hese di!erent components of a brand that identify

and di!erentiate it are brand elements.

Ms. Adiba Anis, Lecturer, School of Business, BangladeshOpen University


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What is a brand?

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Many practicing managers refer to a brand as morethan that— as something that has actually created acertain amount of awareness, reputation, prominence,

and so on in the marketplace. "e can make a distinction bet#een the AMA de$nition

of a “brand” #ith a small b and the industry%s conceptof a “&rand” #ith a capital b.



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Five Levels of Meaning for a Product

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Augmentedroduct

*+pectedroduct

enericroduct

-ore&ene$ts

otential

roduct



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Five Levels of Meaning for a Product

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he core benet level is the fundamental need or #ant thatconsumers satisfy by consuming the product or service.

he generic product level is a basic version of the productcontaining only those attributes or characteristicsabsolutely necessary for its functioning but #ith nodistinguishing features. his is basically a strippeddo#n,nofrills version of the product that ade'uately performs

the product function. he expected product level is a set of attributes or

characteristics that buyers normally e+pect and agree to#hen they purchase a product.

he augmented product level includes additional productattributes, bene$ts, or related services that distinguish theproduct from competitors.

he potential product level includes all the augmentationsand transformations that a product might ultimatelyundergo in the future.



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A brand is therefore more than a product, as itcan have dimensions that di!erentiate it insome #ay from other products designed tosatisfy the same need.



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/ome brands create competitive advantages#ith product performance0 other brandscreate competitive advantages through nonproductrelated means.



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Why do brands matter?

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"hat functions do brands perform that makethem so valuable to marketers1



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Importance of Brands to Consumers

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2denti$cation of the source of the product Assignment of responsibility to product maker

3isk reducer

/earch cost reducer romise, bond, or pact #ith product maker

/ymbolic device

/ignal of 'uality



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Reducing the Risks in Product Decisions

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Functional 3isk

hysical 3isk

Financial 3isk

/ocial 3isk

sychological 3isk

ime 3isk



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Reducing the Risks in Product Decisions

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-onsumers may perceive many di!erent types of risksin buying and consuming a product4

Functional risk — he product does not perform up toe+pectations.

Physical risk — he product poses a threat to thephysical #ellbeing or health of the user or others.

Financial risk — he product is not #orth the price paid.

Social risk — he product results in embarrassmentfrom others.

Psychological risk — he product a!ects the mental

#ellbeing of the user.Time risk — he failure of the product results in anopportunity cost of $nding another satisfactory product.



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Importance of Brands to Firms

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o $rms, brands represent enormouslyvaluable pieces of legal property, capable ofin5uencing consumer behavior, being boughtand sold, and providing the security of

sustained future revenues.



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Importance of Brands to Firms

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2denti$cation to simplify handling or tracing 6egally protecting uni'ue features

/ignal of 'uality level

*ndo#ing products #ith uni'ue associations /ource of competitive advantage

/ource of $nancial returns



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Can everything be branded?

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7ltimately a brand is something that residesin the minds of consumers. he key to branding is that consumers

perceive di!erences among brands in aproduct category.

*ven commodities can be branded4 -o!ee (Ma+#ell 8ouse), bath soap (2vory), 5our

(old Medal), beer (&ud#eiser), salt (Morton),oatmeal (9uaker), pickles (:lasic), bananas

(-hi'uita), chickens (erdue), pineapples (;ole),and even #ater (errier)



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An Example of Branding a Commodity

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;e &eers roup added the phrase “A ;iamond2s Forever”



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What is branded?

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hysical goods /ervices

3etailers and distributors


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Source of Brands Strength

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“he real causes of enduring marketleadership are vision and will *nduringmarket leaders have a revolutionary andinspiring vision of the mass market, and they

e+hibit an indomitable #ill to realie thatvision. hey persist under adversity, innovaterelentlessly, commit $nancial resources, andleverage assets to realie their vision.”

erald =. ellis and eter >. older, “First to Market, First to

Fail1 3eal -auses of *nduring Market 6eadership,” !"T Sloan!anagement #eview, ? =anuary ?@@



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What are the strongest Brands?


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Top Ten Global Brands

1.21Ms. Adiba Anis, Lecturer, School of Business, BangladeshOpen University


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d hll d


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Branding Challenges andOpportunities

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/avvy customers &rand proliferation

Media fragmentation

2ncreased competition

2ncreased costs

reater accountability



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The Brand Equity Concept

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>o common vie#point on ho# it should beconceptualied and measured 2t stresses the importance of brand role in

marketing strategies. &rand e'uity is de$ned in terms of the

marketing e!ects uni'uely attributable to thebrand.

&rand e'uity relates to the fact that di!erentoutcomes result in the marketing of a product or

service because of its brand name, as comparedto if the same product or service did not havethat name.



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Strategic Brand Management

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2t involves the design and implementation of marketing

programs and activities to build, measure, and managebrand e'uity.

he Strategic $rand !anagement Process is de$ned asinvolving four main steps4

?. 2dentifying and establishing brand positioning and values

B. lanning and implementing brand marketing programs

C. Measuring and interpreting brand performance

D. ro#ing and sustaining brand e'uity



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Strategic Brand ManagementProcess

Mental maps

Competitive frame of reference

Points-of-parity and points-of-difference

Core brand values

Brand mantra

Mixing and matching of brand elements

Integrating brand marketing activities

Leveraging of secondary associations

Brand value chain

Brand auditsBrand tracking

Brand equity management system

Brand-product matrix

Brand portfolios and hierarchies

Brand expansion strategies

Brand reinforcement and revitaliation

!ey Concepts"teps

Grow and sustain

brand equity

Identify and establish

brand positioning and values

Plan and implement

brand marketing programs

Measure and interpret brand performance

Ms. Adiba Anis, Lecturer, School of Business, Bangladesh

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Chapter 1 Strategic Brand Management