Chapt 1 Keller BMgt Ppt

Download as pdf or txt
Download as pdf or txt
You are on page 1of 33

MGT515

LECTURE 01

Instructor: IMRAN KHAN


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
• To increase understanding of the important issues in planning
1)
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 don’t 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, sub-brands,
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.


(2012); Strategic Brand Management: Building, Measuring,
and Managing Brand Equity, 3rd. Edition; Pearson,
Prentice Hall Low Price Edition

• 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.

•A product may be a physical good, a


service, a retail outlet, a person, an
organization, a place, or even an idea.

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?

• What functions do brands perform that


make them so valuable to marketers?

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

• “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

1.2
5
Importance of Brand Management

• The bottom line is that any brand—no matter how strong


at one point in time—is vulnerable, and susceptible to
poor brand management.

1.2
6
What are the strongest brands?
1.2
8
1.2
9
Branding Challenges and Opportunities

• Savvy customers (Increasingly, consumers and businesses have become


more experienced with marketing, more knowledgeable about how it works,
and more demanding. A well-developed media market pays increased
attention to companies’ marketing actions and motivation)
• Brand proliferation is the rise in line and brand extensions. As a result, a brand
name may now be identified with a number of different products with varying
degrees of similarity. Marketers of brands such as Coke, Nivea, Dove, and
Virgin have added a host of new products under their brand umbrellas in
recent year
• Media fragmentation
• Increased competition
• Increased costs
• Greater accountability
1.3
0
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.

1.3
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

Steps Key Concepts


Mental maps
Identify and establish Competitive frame of reference
brand positioning and values Points-of-parity and points-of-difference
Core brand values
Brand mantra

Plan and implement Mixing and matching of brand elements


brand marketing programs 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
1.3
brand equity Brand expansion strategies
3
Brand reinforcement and revitalization

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy