Brand Management

By Tariq Raheem
 What is Brand?

Unique design, sign, symbol, words, or a

combination of these, employed in
creating an image that identifies a
product and differentiates it from its
competitors.
 So A Brand is …

A Cereal Brand Condiment Brand

A Cereal Brand
Condiment Brand

A Cereal Brand
Condiment Brand
 Brand Vs Product

 Product : A product is generic that can satisfy a particular need.

 Brand: Brand is an extension of product development by adding a unique
selling proposition that can satisfy want and desires.
 Brand Vs Product:
 Companies Make Products and Consumers Make Brands
 Products Can Be Copied and Replaced but Brands Are Unique
 Products Can Become Obsolete but Brands Can Be Timeless
 Products Are Instantly Meaningful but Brands Become Meaningful over Time.
 Brand Vs Product

 Brand Vs Product:
 Companies Make Products and Consumers Make Brands
 A product is made by a company and can be purchased by a consumer in exchange for money
 while brands are built through consumer perceptions, expectations, and experiences with all
products or services under a brand umbrella.
 Products Can Be Copied and Replaced but Brands Are Unique
 A product can be copied by competitors at anytime.
 Brands cannot be coped because of USP.
 The low involvement categories can easily be replaced Vs the High Involvement
 Products Can Become Obsolete but Brands Can Be Timeless
 Cassettes Vs Digital Music by T-Series
 Products Are Instantly Meaningful but Brands Become Meaningful over Time.
 Launching a new product, it’s easy to make that product instantly meaningful and useful to consumers
because it serves a specific function for them.
 Google as Search Engine=
 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.
 Product Levels for Cell Phones

Core Benefit Level: Communication

Generic Product Level: Basic Key Pad Functions (Dialer, Text Messaging)

Expected Product Level: FM Radio, Camera, Hands Free, Loud Speaker

etc.

Augmented Product Level: Android, Dual Core, Large Memory, Hi

resolution camera etc.

Potential Product Level: All possible future innovations (such as

flexible handsets, “bio-sensitive” sets etc.)

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Product Levels for Cell Phones
 Brand Vs Product

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.
 Brand Vs Product

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.
 Why do brands matter?

What functions do brands perform that make

them so valuable to marketers?

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 Importance of Brands to Consumers

 Identification of the source of the product (Manufacturer/ Inheritance)

 Assignment of responsibility to product maker (Sustaining the quality)
 Risk reducer
 Search cost reducer
 Promise, bond, or pact with product maker
 Symbolic device
 Signal of quality

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Reducing the Risks in Product Decisions

 Consumers may perceive many different types of risks in buying and

consuming a product:
 Functional risk—The product does not perform up to expectations.
 Physical risk—The product poses a threat to the physical well-being or
health of the user or others.
 Financial risk—The product is not worth the price paid.
 Social risk—The product results in embarrassment from others.
(Quality Issue)
 Psychological risk—The product affects the mental well-being of the
user.
 Time risk—The failure of the product results in an opportunity cost of
finding another satisfactory product.
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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.

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 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

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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 (National), chickens (K&N), pineapples
(Dole), and even water (Pure Life)

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An Example of Branding a Commodity

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 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

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Branding Challenges and Opportunities

 Savvy customers - A savvy consumer knows exactly what they are buying
and who they are buying from.
 Brand proliferation - brand proliferation, more items are brought in with
new brand names
 Media fragmentation - Describes a trend to increasing choice and
consumption of a range of media in terms of different channels such as web
and mobile and also within channels, for example more TV channels, radio
stations, magazines, more websites. • Media fragmentation implies
increased difficulty in reaching target audiences.
 Increased competition
 Increased costs
 Greater accountability

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 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.

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 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

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Strategic Brand Management Process

Steps Key Concepts

Identify and establish
brand positioning and values
Plan and implement
brand marketing programs
Mental maps
Competitive frame of reference
Points-of-parity and points-of-difference
Core brand values
Brand mantra – Three to Five Words phrase that
captures the sprit of brand positioning
Mixing and matching of brand elements
Integrating brand marketing activities
Leveraging of secondary associations

Brand value chain

Measure and interpret Brand audits
brand performance Brand tracking
Brand equity management system

Brand-product matrix
Grow and sustain Brand portfolios and hierarchies
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brand equity Brand expansion strategies
Brand reinforcement and revitalization