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Marketing

Brand Management
MGT515
LECTURE 01
Instructor: Laeeq Hassan
Jaswal

Brand Management

Prerequisite:
MGT 411

Course objectives
If strong brands are among the company's
most valuable assets, managing and
developing them becomes of crucial
importance for the long term profitability
of a firm.
Brands are special, they are managed by
companies, but their positions will often
reside in consumers' minds. This implies
that a brand strategist has to combine
skills: deep customer insight, and clear
strategic vision. This course gives an
introduction to both of these areas of skills

Course Outline
1) To increase understanding of the important issues in

planning and evaluating brand strategies;

2) To provide the appropriate theories, models, and other

tools to make better branding decisions; and

3) To provide a forum for students to apply these


principles.
It is not enough to simply tell marketplace war stories or
just read cases for examples of how to do something.
This is because every situation is different. Therefore, in
order to learn how to create and manage brands, you
need to analyze and deconstruct examples and cases.
From these exercises you will begin to get insights into
WHY things happen or dont happen. In other words, you
will begin creating your own theories of how branding is
done and learn to compete in local and global market.

Major Segments To Be
Covered
1. Introduction to brand management. History of
branding, future challenges. Consumers and their
brands.
2. The Customer Based Brand Equity framework.
Brand knowledge and associations
3. Brand elements
4. Brand Identity planning and positioning strategies
5. Tying the knot: The relationships between brands
and their buyers
6. Secondary brand associations: how can they help
to leverage and fortify the brand position
7. Leveraging the brand: gaining competitive
advantage through brand and line extensions

7. Leveraging the brand: gaining competitive


advantage through brand and line extensions
8. Establishing a brand portfolio strategy:
from house of brands, endorsed brands, subbrands, to a branded house
9. Corporate branding issues
10. Brands and the role of the www: critical
isses when integrating the off- and online
world
11. Brand revitalization and repositioning

Text Book
Kevin Lane Keller, M.G.
Parameswaran, Isaac Jacob. (2011);
Strategic Brand Management:
Building, Measuring, and Managing
Brand Equity, 3rd. Edition; Pearson,
Prentice Hall Low Price Edition

CHAPTER 1:
BRANDS & BRAND MANAGEMENT

1.8

What is a brand?
For the American Marketing Association (AMA), 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.
These different components of a brand that identify
and differentiate it are brand elements.

1.9

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.
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.

1.10

Brands vs. Products


A product is anything we can offer to a market
for attention, acquisition, use, or consumption
that might satisfy a need or want.
A product may be a physical good, a service, a
retail outlet, a person, an organization, a place,
or even an idea.

1.11

Five Levels of Meaning for a


Product
The core benefit level is the fundamental need or want
that consumers satisfy by consuming the product or
service.
The generic product level is a basic version of the
product containing only those attributes or
characteristics absolutely necessary for its functioning
but with no distinguishing features. This is basically a
stripped-down, no-frills version of the product that
adequately performs the product function.
The expected product level is a set of attributes or
characteristics that buyers normally expect and agree to
when they purchase a product.
The augmented product level includes additional product
attributes, benefits, or related services that distinguish
the product from competitors.
The potential product level includes all the
augmentations and transformations that a product might
ultimately undergo in the future.
1.12

A brand is therefore more than a


product, as it can have dimensions
that differentiate it in some way from
other products designed to satisfy
the same need.

1.13

Some brands create competitive


advantages with product
performance; other brands create
competitive advantages through nonproduct-related means.

1.14

Why do brands matter?


What functions do brands perform
that make them so valuable to
marketers?

1.15

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
1.16

Reducing the Risks in Product


Decisions
Consumers may perceive many different types of risks
in buying and consuming a product:
Functional riskThe product does not perform up to
expectations.
Physical riskThe product poses a threat to the
physical well-being or health of the user or others.
Financial riskThe product is not worth the price paid.
Social riskThe product results in embarrassment
from others.
Psychological riskThe product affects the mental
well-being of the user.
Time riskThe failure of the product results in an
opportunity cost of finding another satisfactory
product.
1.17

Importance of Brands to
Firms
To firms, brands represent
enormously valuable pieces of legal
property, capable of influencing
consumer behavior, being bought
and sold, and providing the security
of sustained future revenues.

1.18

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
1.19

Can everything be branded?


Ultimately a brand is something that
resides in the minds of consumers.
The key to branding is that consumers
perceive differences among brands in a
product category.
Even commodities can be branded:
Coffee (Maxwell House), bath soap (Ivory),
flour (Gold Medal), beer (Budweiser), salt
(Morton), oatmeal (Quaker), pickles (Vlasic),
bananas (Chiquita), chickens (Perdue),
pineapples (Dole), and even water (Perrier)
1.20

An Example of Branding a
Commodity
De Beers Group added the phrase A
Diamond Is Forever

1.21

What is branded?

Physical goods
Services
Retailers and distributors
Online products and services
People and organizations
Sports, arts, and entertainment
Geographic locations
Ideas and causes
1.22

Source of Brands Strength


The real causes of enduring market
leadership are vision and will. Enduring
market leaders have a revolutionary and
inspiring vision of the mass market, and they
exhibit an indomitable will to realize that
vision. They persist under adversity, innovate
relentlessly, commit financial resources, and
leverage assets to realize their vision.
Gerald J. Tellis and Peter N. Golder, First to Market, First to Fail?
Real Causes of Enduring Market Leadership, MIT Sloan
Management Review, 1 January 1996

1.23

Importance of Brand
Management
The bottom line is that any brand
no matter how strong at one point in
timeis vulnerable, and susceptible
to poor brand management.

1.24

What are the strongest


brands?

Top Ten Global Brands


Brand
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Coca-Cola
Microsoft
IBM
GE
Intel
Nokia
Toyota
Disney
McDonalds
MercedesBenz

2006
($Billion)

2005 ($
Billion)

67.00
56.93
56.20
48.91
32.32
30.13
27.94
27.85
27.50
21.80

67.53
59.94
53.38
47.00
35.59
26.45
24.84
26.44
26.01
20.00
1.26

Branding Challenges and


Opportunities

Savvy customers
Brand proliferation
Media fragmentation
Increased competition
Increased costs
Greater accountability

1.27

The Brand Equity Concept


No common viewpoint on how it should
be conceptualized and measured
It stresses the importance of brand role in
marketing strategies.
Brand equity is defined in terms of the
marketing effects uniquely attributable to
the brand.
Brand equity relates to the fact that different
outcomes result in the marketing of a product or
service because of its brand name, as compared to if
the same product or service did not have that name.

1.28

Strategic Brand Management


It involves the design and implementation of
marketing programs and activities to build, measure,
and manage brand equity.
The Strategic Brand Management Process is defined as
involving four main steps:
1. Identifying and establishing brand positioning and values
2. Planning and implementing brand marketing programs
3. Measuring and interpreting brand performance
4. Growing and sustaining brand equity

1.29

Strategic Brand Management


Process
Steps
Identify and establish
brand positioning and values

Plan and implement


brand marketing programs

Measure and interpret


brand performance

Grow and sustain


brand equity

Key Concepts
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 audits
Brand tracking
Brand equity management system
Brand-product matrix
Brand portfolios and hierarchies
Brand expansion strategies
Brand reinforcement and revitalization

1.30