MKT3418

Product & Brand Management

Lecture 7
Lecturer: Ms Pauline Ong

1
 What is a brand?

A brand is a name or symbol which identifies a

product.

A successful brand identifies a product or service as

having a sustainable competitive advantage

2
 Brands versus Commodities (1)

Factories do not make profits it is

relationships with customers that do.
Company and brand names secure
relationships
Strong brands are seen as adding value

3
 Brands versus Commodities
(2)
Brands need to be maintained and protected
It is increasingly difficult to find meaningful
differences between brands

4
Brand personality

Total impression consumers have of brands

Physical
Emotional and
Personality characteristics

Personality is the result of a blend of appeals

5
 Womens Magazines

matured, family
wholesome, centred young, sexy but sexy and stylish
family centred simple

6
 Brand appeals

Sensual appeals: how a product or service looks,

feels or sounds

Rational appeals: how it performs, what it contains

Emotional appeals: psychological rewards, moods

conjured up, associations etc.

7
Brand Equity

When brands change hands for considerable and

substantive sums, the differences between balance
sheet valuations and the price paid for companies
or brands is usually attributed to the value of
brands.

8
 Brand Value

McDonald, M. & Wilson, H. (2011). Marketing Plans: How to Prepare them,

How to use them (7th edition).Chichester: John Wiley & Sons. 9
 Sources of Brand Equity
Brand Awareness (1)
Brand awareness:
Brand recognition
Brand recall

Advantages:
Learning advantages
Register the brand in the minds of consumers

Consideration advantages
Likelihood that the brand will be a member of the consideration set

Choice advantages
Affect choices among brands in the consideration set
 Sources of Brand Equity
Brand Awareness (2)
Establishing brand awareness:

Increasing the familiarity of the brand through

repeated exposure (for brand recognition)

Forging strong associations with the appropriate

product category or other relevant purchase or
consumption cues (for brand recall)
 Sources of Brand Equity
Brand Image
Brand image:
Strong, favorable, and unique brand associations

Creation of positive brand image:

Brand Associations

Does not matter which source of brand association

Need to be favorable, strong, and unique

 BRAND POSITIONING
Identifying and Establishing Brand Positioning
Basic concepts
Target Audience
Nature of Competition
Points-of-Parity and Points of Differences

VS.
 Brand Mantras
What is brand mantra?
An articulation of the heart and soul of the brand similar to brand essence
or core brand promise
Short three-to-five-word phrases that capture the irrefutable essence or spirit
of the brand positioning and brand values
Considerations: communicate, simplify and inspire

How to design a brand mantra?

Brand functions: describes the nature of the product or service or the type of
experiences or benefits the brand provides
Descriptive modifier: further clarifies its nature.
Emotional modifier: provides another qualifierhow exactly does the brand
provide benefits, and in what way?
 BRAND MANTRA - NIKE

Core Brand
Mental Map Associations Brand Mantra

Michael Jordan Top Athletes Performance

Real stuff Michael Jordan Good performance
Good performance Tiger Woods Can win
Can win Authenticity Sports apparel
Stylish Real stuff Shoes
Colorful Expensive Many design
Tiger Woods Sports wear is about
Sports equipment Trendy All Sports
Shoes Stylish Golf Performance
Many Design Colorful Basketball Authentic
New design New design Soccer Athlete
Sports Tennis
Personality
Lively
Lively
Popular
Popular
Expensive
Sports wear Strong
Strong
Basketball etc.
PODs POPs
Designing the Brand Mantra - Example
Brand Functions Descriptor Emotional
Modifier Modifier
Describes the nature of Further clarifies its Provides another
the product or service nature. qualifierhow
or the type of exactly does the
experiences or benefits brand provide
the brand provides. benefits, and in
what way?
Performance Athlete Authentic

Entertainment Family Fun

Food Folks Fun

Beauty Elegance Joy

 The Four Steps of Brand Building
1. Ensure identification of the brand with customers
and an association of the brand in customers
minds
2. Establish the totality of brand meaning in the
minds of consumers
3. Elicit the proper customer responses to the brand
identification and brand meaning
4. Convert brand response to create an intense,
active loyalty relationship between customers and
the brand
 Customer Brand Equity
Consumer Brand Equity is the value added to a
product or service by its associations with a brand
name, design, and/or symbol which enhances the
value of a product beyond its functional purpose
and differentiates well-known from less known
brands
 Customer-Based Brand Equity Pyramid
Questions customers ask
RESONANCE
LOYALTY 4. RELATIONSHIPS =
ATTACHMENT
COMMUNITY What about you and me?
ENGAGEMENT

JUDGMENTS FEELINGS
WARMTH
QUALITY 3. RESPONSE =
FUN
CREDIBILITY
EXCITEMENT
CONSIDERATION What about you?
SECURITY
SUPERIORITY
SOCIAL APPROVAL
SELF-RESPECT

PERFORMANCE IMAGERY
PRIMARY CHARACTERISTICS & USER PROFILES 2. MEANING =
SECONDARY FEATURES PURCHASE & USAGE SITUATIONS
PRODUCT RELIABILITY, PERSONALITY & VALUES What are you?
DURABILITY & SERVICEABILITY HISTORY, HERITAGE & EXPERIENCES
SERVICE EFFECTIVENESS,
EFFICIENCY & EMPATHY
STYLE AND DESIGN
PRICE
1. IDENTITY =
SALIENCE
CATEGORY IDENTIFICATION Who are you?
NEEDS SATISFIED
 Customer -Based Brand Equity Pyramid
Salience Dimensions depth and breadth of brand awareness
Performance Dimensions how the product meets the
customers functional needs
Imagery Dimensions extrinsic properties and the ways the
brand attempts to meet customers psychological and
social needs
Judgment Dimensions customers personal opinions about
and evaluation of the brand in terms of quality, credibility,
consideration, superiority
Feelings Dimensions customers emotional response to the
brand: warmth, fun, security, social approval, etc.
Resonance Dimensions the nature of relationship the
customer has with the brand such as loyalty, attachment,
affiliation, engagement
Customer-Based Brand Equity Model

INTENSE, ACTIVE
LOYALTY
Consumer-
Brand
Resonance RATIONAL &
EMOTIONAL
REACTIONS
Consumer Consumer
Judgments Feelings
POINTS-OF-
PARITY &
POINTS-OF-
DIFFERENCE
Brand Brand
Performance Imagery
DEEP, BROAD
BRAND
AWARENESS
Brand Salience
CBBE For Cadbury

22
Qualitative Research Techniques
Free association
What do you like best about the brand? What are its positive
aspects?
What do you dislike? What are its disadvantages?
What do you find unique about the brand? How is it different
from other brands? In what ways is it the same?

Projective techniques
Diagnostic tools to uncover the true opinions and feelings of
consumers when they are unwilling or otherwise unable
to express themselves on these matters
Quantitative Research Techniques
- Awareness
Recognition
Ability of consumers to identify the brand (and its elements) under various
circumstances

Recall
Ability of consumers to retrieve the actual brand elements from memory
Unaided vs. aided recall

Corrections for guessing

Any research measure must consider the issue of consumers making up responses
or guessing.
Quantitative Research Techniques
- Brand Responses
Research in psychology suggests that purchase intentions are
most likely to be predictive of actual purchase when there is
correspondence between the two in the following categories:

Action (buying for own use or to give as a gift)

Target (specific type of product and brand)
Context (in what type of store based on what prices and
other conditions)
Time (within a week, month, or year)
 BRAND VALUATION

Three approaches to value brands:

1. Financial brand valuation methods;

2. Behavioural approach;
3. Customer-based brand equity.
 BRAND VALUATION

Financial brand valuation methods:

Cost-based method:
1. The value of the brand equals the amount of costs that go into
product development, test marketing, and all marketing
communications.
2. The amount of money that will be needed to replace a brand
(replacement cost).

Market-based approach based on the amount that the

customer or the market is willing to pay for the brand.
Its formula is: Brand Value = (Stock Price x Number of Shares) (Tangible assets +
All remaining Intangible Assets)
 BRAND VALUATION
The behavioural approach is customer or market-oriented.
Defined as the value of the brands name, symbols, associations, and
reputation to all target audiences who interact with it (Pickton and
Broderick, 2005).
Brand equity increases the probability of brand choice leading to brand
loyalty, and protects the brand from a measure of competitive threats.
Achieving a high degree of brand strength may be considered an
important objective for managers of brands. The higher the brand
strength the higher the brand value.

Customer-based brand equity. Consumers ultimately decide

which brands provide more added value (Keller, 2003). This
approach concerns with measuring consumer mindset or brand
knowledge.
Young & Rubicams Brand Asset Valuator

There are four key pillars of brand health in BAV each pillar is
derived from various measures that relate to different aspects
of consumers brand perceptions and that together trace the
progression of a brands development.

Differentiation
Relevance
Esteem
Knowledge
 BRAND ASSET VALUATOR
(BAV)
BAV measures the value of a brand along four
dimensions: Differentiation, Relevance, Esteem,
and Knowledge.
o Differentiation quantifies the brand's point of
difference.
o Relevance - how appropriate the brand is to you.
o Esteem - how well regarded the brand is.
o Knowledge - an intimate understanding of the brand.
o Brand Strength (refers to differentiation and
relevance) - describes the brand's growth potential.
o Brand Stature (refers to esteem and knowledge) -
describes the brand's current power. See Figure 2.
 Advantages and applications of brand
valuation
Resource allocation for brands can follow the same rationale as other assets of the
company.
Return on brand investments can be directly compared with other investments.
Brand investments can be assessed for cost and impact.
Making decisions on licensing the brand to subsidiary companies.
Brand performance and brand investments can be assessed on an equally
comparable basis to enhance the overall return from the brand portfolio.
Communicating the economic value creation of the brand to the capital markets in
order to support share prices and obtain funding where appropriate.
Case Study:
Porsche
Questions
1. What is the brand personality of Porsche?
Physical: high performance, fast cars
Emotional: excitement
Personality characteristics: upper class, achiever

1. Are there any differences in the brand appeals for 911, Cayenne and Panamera?

2. Was it a good decision for Porsche to develop the new range of Cayenne &
Panamera? Are the target market similar?
Yes, Diversify the portfolio. The Cayenne and Panamera are able to transport more
passengers and safety features
Needs of consumers are changing, traditional customers have move into their new
life-stages
Increase in rational appeal, did not dilute the appeal

1. As the younger generation is more environmentally conscious, how is Porsche

addressing consumers needs for sustainable consumption?

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 Next Week
Next week
Session 8
Brand Elements & Marketing Mix (I)
-Price and Distribution

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