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Strategic Brand Management Kevin Lane Keller

Chapter 1: Brands & Brand management

What is a Brand?
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 or group of sellers and to differentiate them from those of competition -- American Marketing Association
Brand Elements: Different components of a brand that identify and differentiate it.

Brand v/s Products


A product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a need or want --- Philip Kotler
Eg: Physical good, service, retail store, person, organization, place, idea, etc.

Five Levels of a product


1)
2) 3)

4)
5)

Core benefit Generic product Expected product Augmented product Potential product

A brand is a product, but one that adds other dimensions that differentiate it in some way from other products designed to satisfy the same need.

Why do brands matter?


Roles that Brands play: 1) Consumers:
1) 2) 3) 4) 5) 6) 7) Identification of source of product Assignment of responsibility to product maker Risk reducer Search cost reducer Promise, bond or pact with maker of product Symbolic device Signal of quality

2) Manufacturers:
1) 2) 3) 4) 5) 6) Means of identification to simplify handling and tracing. Means of legally protecting unique features Signal of quality level to satisfied costumers. Means of endowing products with unique features Source of competitive advantage Source of financial returns

Brands Reduce Risk In Product Decisions


Functional Risk:-The product does not perform upto the expectation.
Physical Risk :-Poses a threat to the physical well being or health of the user Financial Risk:- The product is not worth the price paid Social Risk:- The product result in embarrassment from others Psychological Risk:- Affect the mental well-being of the users. Time Risk:- Oppurtunity cost of finding another satisfactory product

Types of goods
1) Physical goods: Pharma industry, B2B products, telecom industry

2) Services

3) Retailers and distributors

4) Online products and services

5) People and organization:

6) Sports, art, and entertainment

7) Geographic locations

Challenges to brand builders


Savvy customers Complex brand families and portfolios Measuring markets More sophisticated and increasing competition Difficulty in differentiating Decreasing brand loyalty in many categories Growth of private labels Increasing trade power

Fragmenting media coverage Eroding traditional media effectiveness Emerging new communication options Increasing promotional expenses Decreasing ad expenses Increasing cost of product intro and support Short-term performance orientation Increasing job turnover Increased costs Greater accountability

1)Savvy customers:

Well-developed media market, consumer guides, and websites Trustmark and love marks (Kevin Roberts of Saatchi & Saatchi - Spurred by the rise in-line and brand extensions

2) Brand proliferation:
- Brand name identified with a no of different products of varying degrees of similarity

3) Media fragmentation:
- Percentage of ad budget has gone down - Marketers spending more on non-traditional, emerging forms of communication such as interactive electronic media, sports and events sponsorship, in-store advertising, mini-billboards in transit vehicles, parking meters, product placement in movies and TV, and other locations

4) Increase competition: New competitors due to


- Brand extensions Deregulation - Globalization - Low-priced competitors

5) Increased cost 6) Greater accountability

The Brand equity Concept

One of the most popular and potentially important concept to arise in the 1980s. Few definitions Branding is about endowing products and services with the power of brand equity; to be defined in terms of marketing effects, uniquely attributable to a brand.

Strategic brand management process

Steps

Key concept
Mental maps, competitive frames of reference, points of parity and points of difference, core brand value, brand mantra Mixing and matching of brand elements, integrating brand marketing activities, leverage of secondary associations Brand value chain, brand audits, brand tracking, brand equity management system

Identify and establish brand positioning and values


Plan and implement Brand marketing programs Measure and interpret Brand performance Grow and sustain Brand equity

Brand-product matrix, brand portfolios and hierarchies, brand expansion strategies, brand reinforcement and revitalization.

Brand building Tools and objectives

Consumer Knowledge and effects

Branding benefits

Choosing Brand elements

Brand awareness

Developing Marketing programs


Brand associations

Possible Outcomes

Leveraging Secondary associations

Measuring customer based brand equity


1) Brand Audit
- Brand inventory - Brand exploratory

2) Brand Value Chain - Brand equity resources


- Brand equity outcomes

3) Brand Equity Management Systems - Brand equity charter


- Brand equity report - Brand equity responsibilities

Managing customer-based brand equity


1)Define brand hierarchy
Principle of simplicity Principle of relevance Principle of differentiation Principle of prominence Principle of commonality

2) Define brand-product mix


Brand extensions, brand portfolio

3) Enhanced brand equity over time


Brand reinforcement & brand revitalization

4) Establish brand equity over market segments


Identify differences in customer segments, adjust branding program