BM Unit 3
BM Unit 3
BRAND MANAGEMENT
Unit III
BRAND COMMUNICATION
Topics Covered – Brand image Building – Brand Loyalty Programmes – Brand Promotion
Methods – Role of Brand ambassadors, celebrities – On line Brand Promotion.
Table of Contents
3.1 Brand Image ......................................................................................................................2
3.1.1 Types of Brand Image .................................................................................................3
3.1.2 Factors affecting Brand Image .....................................................................................4
3.1.3 Brand Image and Celebrity ..................................................................................... 5
3.2 Brand Loyalty ....................................................................................................................6
3.2.1 Building the Brand Loyalty .........................................................................................7
3.2.2 Brand Loyalty Programmes .........................................................................................8
3.2.3 Measuring Brand Loyalty .......................................................................................... 10
3.2.4 Importance of Brand Loyalty ..................................................................................... 11
3.3 Brand Promotion.............................................................................................................. 12
3.3.1 Criteria for Effective sales promotion ........................................................................ 13
3.3.2 Brand Promotion Methods ......................................................................................... 15
3.3.3 Importance of Brand Promotion................................................................................. 18
3.3.4 Techniques of Brand Promotion ................................................................................ 18
3.4 Brand Ambassadors ......................................................................................................... 19
3.4.1 Brand Ambassador Responsibilities and duties .......................................................... 20
3.4.2 Importance of Brand Ambassador .............................................................................. 20
3.5 Celebrities ....................................................................................................................... 21
3.3.1 Advantages of Celebrity Endorsement ................................................................. 23
3.6 Online Brand Promotion .................................................................................................. 24
3.6.1 Components of online brands ............................................................................... 24
3.6.2 Role of Online Brand Promotion ......................................................................... 26
3.6.3 Benefits of Online Brand Promotion .......................................................................... 27
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Obviously, a strong brand image can pave the way for a new product in the
introduction ofthe lifecycle, provided that the new product fits in with the brand's
image,
Consequently, if the image on general characteristics such as reliability,
innovativeness, and high quality, successful brand will be easier to achieve than
when image is based on specific characteristics.
A particularly development to the increasing share of own nation.
In so doing, they re-evaluate their overall perception of the brand, and are thus more
tempted to its other hitherto ignored or undervalued products, and the brand's
flagship best-seller.
Innovation reframes the brand's linage and. feeds it with the new tangible and
intangible brought by this innovation.
A firm introduces anew product, it has to decide whether the product it is introducing
will enter the under the business brand or as its own brand, with or without a visible
link to the business.
If the decides to .introduce the new product as a new brand, it needs to follow every
single step in the process.
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When consumers become committed to your brand and make repeat purchases over time.
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Don’t start selling to your customers, listen to their needs and focus on what your customers
want.
Your customers are looking for the next experience, so offer them additional value or
incentives (i.e. loyalty cards or programs), as these customers are typically more profitable
and will most likely reciprocate by staying loyal to your brand.
4) Deliver on promise –
Make it a habit to deliver happiness every step of the way.
Show your customers that you truly care by surpassing their expectations.
Offer something new or exciting and stay true to your brand mission and promise.
5) Be consistent –
Consistently delivering the same message and performance through all lines of business is
reassuring and helps keep your brand top-of-mind.
Being consistent helps re-affirm your customers’ trust and credibility in your brand, and
helps provide clarity of distinction from competitors.
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American Airlines introduced the airline industry's first frequent fly programme 25
years ago, and the quick proliferation of the idea demonstrated its popularity with
consumers carriers.
Meanwhile, credit card companies picked up the trend of offering rewards cards -
some affiliate width a particular airline, some not affiliated - that could accumulate
points redeemable for airline travel.
a. Savings Programmes:
Savings programmes for which it must be said straight away that these are not
true brand loyalty programmes.
The focus here is on encouraging the customer to make transactions by
rewarding him or her for certain behavior - purchasing.
Within this group, a distinction may be made , between short- and long-term
savings programmes:
i) Short-Term Savings Programmes:
The short-term savings programmes primarily aim to stimulate
behavior.
Within a relatively short period of time, the consumer for an
additional charge or free of charge, may be eligible to receive a
gift.
In the event that they are successful; it becomes apparent how
difficult it is to cancel this type of programme.
For example, Shell several years ago found it difficult to stop the
green stamp programme.
ii) Long-Term Savings Programmes:
The long-term savings programmes are the more well-known- the air
miles points programme being perhaps the most well-known.
These days, one can often see combinations of long-and short-term
savings programmes.
In order to prevent consumers from having to wait too long for
their rewards, arid the chance that the desired customer behavior
will decrease, customers receive promotional stamps in addition
to air miles.
b. Club Programmes:
People are offered the opportunity to become members of a club either free or
fora very small fee.
Upon registration, customers receive a card with which they may identify
themselves as participates.
There is a great variety to be found in these cards - from private label
cards offering credit facility to co-branded credit cards.
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1) Customer satisfaction
First, asking about overall customer satisfaction helps you understand how, in general, your
products and services are meeting or (better yet) exceeding customer expectations.
You might ask questions like:
o How convenient is our company to use?
o Compared to our competitors, is our product quality better, worse, or about the
same?
o How well do our customer service representatives answer your questions?
o How likely are you to recommend us to others?
Loyalty builds when customers become committed to your brand and make repeat
purchases over time.
You want to understand what is inspiring that commitment on their part.
2) Trust
All brands must earn and retain the trust of their customers to ensure loyalty, but trust is
especially important for brands that handle sensitive information, such as banks, online
retailers, or healthcare providers.
If your brand handles sensitive information, assess the level of trust your customers feel
for your brand. Ask questions like:
o Do you trust our brand?
o How did we earn your trust?
o How do we keep your trust?
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Use responses to questions about trust to inform the products you offer–and target your
brand messaging accordingly.
3) Esteem
Brand esteem or goodwill is customers’ respect for and attraction to a particular brand.
It’s not to be confused with brand awareness or familiarity, which is the level of recognition
of a brand.
While a brand might be well known (a good thing), it may not in fact be well regarded (not
a good thing). Brand esteem is about the favorable sentiment toward a brand.
You can use a series of questions to distinguish brand awareness from brand esteem:
o Have you heard of our brand before? (familiarity)
o How well do you know our brand? (familiarity)
o How positively do you regard our brand? (esteem)
o Do you prefer our brand over our competitor? (esteem)
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Other times, the necessary expenditures for advertising products might be prohibitive for
some companies.
Well-managed plans and operations can be more successful than blanketing an entire
market with advertising.
Brand means a mark (symbol or sign) or design or some combination of these used to
identify the products of one seller and to differentiate them from competitive products.
A registered brand is known as trade mark.
Brand promotion is that element of marketing mix which is designed to inform, remind,
persuade and influence the customers so that they purchase the brands of the advertiser
company.
Brand promotion is applied and persuasive communication used for informing and
reminding the customers of the company's brands.
It is primarily the responsibility of the manufacturer though wholesalers and retailers may
also undertake it.
Objectives of Brand promotion
The main objectives of brand promotion are :
a) To Promote Information:
o The firm provides the relevant information about its various brands offered in the
market. Information relates to features, prices, special schemes, etc. of the brands.
c) To Increase Demand:
o Brand promotion efforts aim at stimulating demand for a product.
o They persuade customers to buy more and more of the product so as to increase its
sales and market share.
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o The utility of the brand is emphasized. Status oriented advertisements highlight the
value of the brand and pride in its ownership.
o For example, utility of owning a Mercedes Benz car or LG air conditioner.
o The brand value of a product justifies its higher price in the market.
e) To Stabilize Sales:
o Seasonal, cyclical and other fluctuations in demand affect sales.
o Brand promotion efforts seek to stabilize sales by minimizing the impact of such
fluctuations.
o For example, Nescafe promoted its new brand of 'iced coffee' to increase sales
during summer.
g) To Build Image:
o Brand promotion is also aimed at creating a positive image of the company offering
its brands in the market.
o A company can build its prestige and goodwill by offering quality brands at
reasonable prices and through satisfactory after-sale service.
3.3.1 Criteria for Effective sales promotion
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If you offer a time-limited incentive, is it likely that the customers you've targeted will
respond? If so, continue to the next step.
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2) Network.
Meeting professionals from other, related businesses is an effective form of business
promotion, as it provides you with opportunities to learn about your competitors, ask
for referrals, form mutually beneficial partnerships in complementary industries and
spread awareness about your business throughout a group of like-minded people.
o Attend networking group meetings. You can find networking groups and clubs
on the Internet, in newspapers and in trade publications.
o Introduce yourself to people at the meetings. Explain what it is your business
does, what you offer that makes you stand out from your competition and what
you are looking for in business relationships.
o Ask relevant questions during group discussions. In addition to promoting your
business, you can learn a lot at networking meetings. Additionally, asking open-
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3) Advertise.
Consider these methods for advertising your business:
a) Signs.
You may opt for storefront signs, billboards, marquee boards or street-side yard signs.
b) Print.
Place print ads in magazines, newspapers, coupon books, trade journals and industry
magazines.
Choose print mediums that are suited to your business.
For example, if you run a technology parts recycling warehouse, then you may consider
placing ads in computer classifieds and technology magazines.
c) Commercials.
Television and radio commercials are effective ways to promote your business to a
broad audience, but they are relatively costly forms of advertising.
d) Advertisements.
You may opt to pass out promotional materials at trade shows, at store fronts, in parking
lots or in any other highly-populated areas.
Some businesses, like nightclubs and entertainment venues, hire street crews to hand
out advertisements and attract new customers.
e) Direct mail.
You may purchase mailing lists targeted to your segment of the consumer market, then
mail out letters, brochures, catalogs or postcards.
This method is effective when you want to provide potential customers with paper
coupons, vouchers, business cards or promotional merchandising.
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g) Internet
Promoting a business online involves setting up a business website, participating in
industry/trade forum discussions, running a blog , setting up accounts on social
networking sites, using pay-per-click and banner ads, listing your business information
in business directories and employing search engine optimization (SEO) techniques.
Every business, regardless of its size or scope, could benefit from Internet marketing,
and many Internet marketing mediums are free to use.
6) Offer freebies.
Pass out merchandise with your company's name and/or logo on it to everyone you
meet at networking events, trade shows, client meetings and even personal social
gatherings.
Things like pens, magnets and calendars are good merchandising ideas, as these tend
to stay in use, and within view, for extensive periods of time.
If your customers are fully satisfied then you should ask them to refer you or your
product to their family or friends.
It is important to realize that your customers may not do so automatically and sometime
a little poke requesting them to refer your business may work wonders.
Go ahead, be bold and ask for more work.
3.3.3 Importance of Brand Promotion
Brand promotion is beneficial to business houses, consumers and the society.
Benefits to Business Houses:
o Brand promotion is useful to both large and small firms.
o It enables a business firm to face competition in the market. It reminds the faithful
customers I that the brand has served them well over the years and they have no
better choice in the market.
o Brand promotion helps business firms to maintain their existing sales and to
increase their market share.
Benefits to Consumers:
o Brand promotion provides information regarding quality, uses, price and
availability of the branded product.
o Such information helps consumers in making a choice from a wide range of
competing brands.
o They have greater freedom of choice and dishonest traders cannot exploit them.
o Brand promotion saves valuable time and energy of consumers as they are well
informed before making purchases.
o With the help of brand promotion consumers can maintain their standards of living
and good life styles.
Benefits to Society:
o Brand promotion activities facilitate mass production which leads to economies of
scale and lower costs.
o As a result, more and more people can use branded products.
o Brand promotion also creates employment opportunities for a large number of
persons.
3.3.4 Techniques of Brand Promotion
Brand promotion comprises all tools of marketing communication.
Five tools or methods are available through which marketers can communicate with the
buyers. These tools of brand promotion are given below.
1. Advertising:
Advertising is a convenient and economical method of brand promotion though it
lacks personal touch.
2. Personal Selling:
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3. Sales Promotion:
It consists of short-term incentives used to attract customers and make immediate
sale of the brand.
It is a type of non-personal selling that supports advertising. In addition to making
immediate sales, it helps to clear overdue stocks and attract new buyers.
But it yields short-term results and cannot create brand loyalty.
4. Publicity:
Publicity refers to the non-personal stimulation of demand for a brand by placing
commercially significant news about it or its owner in a published medium or
obtaining a favorable presentation of it upon radio, television or stage that is not
directly paid by the sponsor.
Reliance World Cup Cricket Tournament, ITC Sangeet Sammelan are examples of
publicity.
These events were covered by mass media and the public images of these
enterprises were enhanced.
News releases, feature articles, press conference, letters to the editor, radio and TV
presentations are various forms of publicity.
High credibility, mass appeal, more details inexpensive and timeliness are the main
merits of publicity. However, the marketer has little control over publicity.
5. Packaging:
A properly designed package enhances the value of the product and gives it a
distinct identity.
It also helps to build the image of the firm.
These days, firms are using innovative packaging to establish a competitive edge
for their brands.
Customers are willing to pay higher for the convenience, appearance, dependability
and prestige of packages.
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An individual who can speak positively about a product to bolster sales and create brand
awareness is very important for any organization, and this is why more and more are using
this method to personify their brand.
3.4.1 Brand Ambassador Responsibilities and duties
Gather information on all customer requirements and maintain knowledge on new product
line and facilitate customers with account opening.
Monitor all queries for products and services from customers and provide
recommendations for brand improvement.
Administer all client new products and assist customers to provide required feedback and
facilitate participation on all events and encourage customer to buy client products.
Provide feedback to client to improve sale of all brand products and handle all telephone
calls and emails.
Monitor all customer inquiries and provide subject matter expertise on same and assist to
provide an efficient ambassador for brand.
Manage all emails and calls for brand associate information and transfer same to
appropriate department and maintain confidentiality of al personal information.
Develop strategies to increase brand awareness and maintain effective relationships with
all accounts and key media agencies.
3.4.2 Importance of Brand Ambassador
From the first signs of interest through closing the sale, a customer need only reach
out to the ambassador.
It's a personal touch that strengthens customer relationships.
5) You'll be an innovator.
Successful entrepreneurs take risks and react to the current business climate.
Replacing a traditional sales force with ambassadors may be just the thing that sets
you apart from the competition and increases your bottom line.
3.5 Celebrities
Celebrities are people who enjoy public recognition by a large .share of a certain group
of people.
Whereas like attractiveness, extraordinary lifestyle or special skills are just examples
and specific common cannot be observed, it can be said that within a corresponding
social group, celebrities generally from the social norm and enjoy a high degree of
public awareness.
Role of Celebrities
The increase of celebrity endorsements be justified by the followingroles that are bestowed on the
overall brand:
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1) Establishment of Credibility:
Approval of a brand by a star fosters a sense of trust for that brand among the
target audience this is especially true in case of new products, the role of
celebrities are advertising campaign is, without doubt, linked to the
reputation of the celebrity.
2) Ensured Attention:
Celebrities ensure attention of the target group by breaking the clutter
advertisements and making the ad and the brand more noticeable.
For example, Shahrukh khan in Hrithik Roshan in Sony Erricson.
3 ) PR Coverage:
Managers perceive celebrities as topical, create high PR coverage.
A good example of integrated celebrity campaigns is one of the World's pop
groups, the Spice Girls, who have not only appeared in advertisements for Pepsi,
but also in launching 'and PR events.
Indeed, celebrity-company marriages are covered by most media from the
newspapers.
5) ) Associative Benefit:
A celebrity's preference for a brand gives out a persuasive message because
celebrity is benefiting from the brand, the consumer will also benefit.
For example, Shah Rukhkhan Sona Chandi Chwyanprash.
.
6) Mitigating a Tarnished Image:
Cadbury India wanted to restore the consumer's confidence in chocolate
brands following the high-pitch worm's controversy so the company appointed
Bachchan for the job.
Last year, when the even more controversial pesticide issue shook up Coca-Cola
PepsiCo and resulted in much negative press, both soft drink majors put out high
profile damage control films featuring their best and most expensive celebrities.
7) Psychographic Connect:
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Celebrities are loved and adored by their fans and advertisers use stars capitalize
on these feelings to sway the fans towards their brand.
For example, Dhoni in 7up.
8) Demographic Connect:
Different stars appeal differently to various demographic segments (age, class,
geography etc.).
For example, Amitabh Bachchan with child in Dabur Honey, Sunny Deolin cozi
ad.
9) Mass Appeal:
Some stars have a universal appeal and therefore prove to be a good bet to
generate' among the masses.
For example, Shahrukh khan and Amitabh Bachchan in Polio Promotion.
2. Build Awareness:
Celebrities in advertising build brand awareness and they build it much more quickly
than traditional types of advertising.
The use of a local celebrity can do much to enhance consumers' awareness and
understanding of what a small business offers.
3. Position a Brand:
Some small companies use celebrities in advertising to position their brands.
Product positioning is placing a company's products in the best possible light in the
minds 'of a target group, according to Inc.com.
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For example, a small investment firm may use a well-respected and retired local disc
jockey to market a retirement plan for people ages 50 and over.
The fact that the disc jockey falls in the consumers' age group and has a good
reputation in the community makes the company's product and message more
believable.
.
4. Attract New Users:
One challenge small company’s face is finding new users for their products.
Local celebrities in advertising appeal to customers as well as those who have never
tried the brand.
1. Convenience:
It goes beyond the ability to conduct transactions around the clock.
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3. Customization:
It involves tailoring the presentation of a w e b s i t e to individuals, based
on profile information demographic, or prior transactions.
Online sites can track a customer's purchase history and modify its service
accordingly.
Often, sites allow 'surfers' to customize their experience by choosing what type
of information they view through personalized sites (e.g., My Yahoo!, My
eBay).
Some companies have taken this a step further and customize the product
or service on offer (Dell offers 'made-to-order' computer through Dell.
Online).
Customization creates the feeling and sense of a one-to-one relationship, which
enhances the user’s brand experience.
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4. Community:
Online communities are emerging as n e w gathering places for consumers
with similar interests (e.g., iVillage and Geocities).
These sites allow members to interact with one another, share information and
access a wide range of services.
An important contribution of these communities is that they provide members
with a medium to communicate with each other.
Members can interact in chat rooms, se bulletin boards, and organize live events.
5. Connectivity:
It is concerned with connecting the website to other relevant sites.
Companies can provide a selection of related links that complement the site's
purpose and value proposition, as well as attracting traffic from other sites.
Connectivity is enhanced b y linking to search engines/portals and popular sites
where target customer are likely to be browsing.
This is similar to placing offline stores in high traffic areas.
6. Customer Care:
Online customers often require assistance and reassurance.
Customers share security and privacy concerns, and a survey by Market
Watch revealed that 62% of surfers feel that giving out personal
information on the internet is unsafe.
Therefore, customer support at all stages of the interaction and the
purchase process is important, and can be provided through e-mail, online
chat, toll-free telephone numbers, and FAQ pages (Frequently Asked
Questions) to solve problems. In addition, customer care activities can
involve providing a variety of payment, delivery, and return options, as well
as features such as gift-wrapping.
7. Communication(Two-way):
The internet provides the opportunity to establish dialogue with customers
through mail, live chat, and online surveys.
Communication can be tailored to specific user interests and should allow for
two-way interaction.
IT is important in building relationships, as well as informing and
remembering customer special offers, news updates activities, events, and
subjects of interest to the customer.
3.6.2 Role of Online Brand Promotion
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Here are some intangible benefits they can expect to enjoy by properly implementing
a brand strategy online:
3. Promotes Credibility:
o Acting in a consistently professional manner projects an image of one
responsible and trustworthy.
o On the internet this helps to boost the credibility which also breeds a reliability
amongst others and this is definitely something they want to project online.
o Most persons prefer the hassle-free transactions that internet shopping can offer.
o As a result internet has become the most powerful selling tool.
o Internet promotion offers cost effective ways for business to enhance their
product or service distribution networks.
o For example, the use of portals can help to create new marketing channels and
logistics, or provide better or faster product access for customers.
o In compare to other forms of marketing, internet promotion presents the advantage
of reduced budget and storage cost, when compared with printing brochures,
producing television or radio advertisements or managing in call center.
o It presents a fast and cost-effective option for penetrating new markets.
2. Market Penetration:
o With millions of person using the internet to search for products and services,
businesses can penetrate other markets at a fraction of the cost of traditional
marketing methods.
o Websites act as virtual storefronts, allowing businesses to stay open 24/7.
o Internet promotion gives a business visibility, thereby creating more opportunities
for increasing its customers at relatively low cost. before has it been easier for
an upstart business to be able to reach out to literally millions of customers and
to position themselves for success, without the need for costly
.infrastructure over whelming marketing costs.
o Thanks to the internet,' new businesses can become popular overnight.
4. Content is Timeless:
o Internet promotion also provides the advantage of being enduring.
o Participation at a trade fair or conference loses sales impact, once it is over,
and an advertisement newspaper or business magazine may quickly lose its sales
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generating value within a day or two or as the next issue is released internet
promotion is often timeless.
o Apart from the· dates and prices, much of a website content remains valid years
after.
5. Real-Time Statistics for Measuring Success of Promotion Campaign:
o One of the most advantages of internet promotion is that its success is measurable.
o Marketers can use tools that provide time statistics, on unique visitors, repeat
visitors, on advertisements, thereby allowing them to evaluate effectiveness of a
promotion campaign.
2. E-Mail:
E-mail marketing is still one of the most effective ways of communicating with
the potentialcustomersonline if the company has them in its database.
A best practice is to divide the database segments, e.g., - not likely to make a
purchase, likely to purchase, recently purchased, purchased in the past. .
4. Social Media:
This marketing is one of the most effective and cost effective ways to promote
both businesses and corporations; and, enhance the visibility of a brand.
Social media marketing visibility, brand loyalty, recognition, and can also grow
sales.
In addition, social media marketing small businesses and established ones to
compete with an advantage.
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