Chapt 1 Keller BMgt Ppt
Chapt 1 Keller BMgt Ppt
Chapt 1 Keller BMgt Ppt
LECTURE 01
•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.
• 2)
To provide the appropriate theories, models, and other tools to
make better branding decisions; and
• libgen
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 industry’s concept of a “Brand” with
a capital B.
1.1
0
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.
1.1
1
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
1.1
undergo in the future. 2
1.1
3
• 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.
• Some brands create competitive advantages
with product performance; other brands create
competitive advantages through non-product-
related means.
1.1
4
Why do brands matter?
1.1
5
1.1
6
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
1.1
7
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.
• 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.1.1
8
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.
1.1
9
1.2
0
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
1.2
1
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.
• These differences can be related to attributes or benefits of
the product or service itself, or they may be related to more
intangible image considerations.
• 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) 1.2
2
An Example of Branding a Commodity
• De Beers Group added the phrase
“A Diamond Is Forever”
To brand a product it is necessary to teach consumers
“who” the product is—by giving it a name and using other
brand elements to help identify it—as well as what the
product does and why consumers should care. In other
words, marketers must give consumers a label for the
product (“here’s how you can identify the product”) and
provide meaning for the brand (“here’s what this particular
product can do for you, and why it’s special and different
from other brand name products”)
1.2
3
What is branded?
• Physical goods (TV,
• Services (Professional Services,Lawyer,Hotels)
• Retailers and distributors (Tesco, Morrison, Metro)
• Online products and services (Facebook, Twitter,Amazon)
• People and organizations (
• Sports, arts, and entertainment (Harry Potter, FIFA WorldCup)
• Geographic locations (Cities, states, regions, and countries are
now actively promoted through advertising, direct mail, and
other communication tools. )
• Ideas and causes (Freedom of Speech, Feminism,
1.2
4
Source of Brands Strength
1.2
5
Importance of Brand Management
1.2
6
What are the strongest brands?
1.2
8
1.2
9
Branding Challenges and Opportunities
1.3
1
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
1.3
2
Strategic Brand Management Process
Brand-product matrix
Grow and sustain Brand portfolios and hierarchies
1.3
brand equity Brand expansion strategies
3
Brand reinforcement and revitalization