BRAND MANAGEMNT NOTES Concept of Branding For the consumers, a brand is a product.

. But for the maker or the seller, a brand is an identifier of its goods and services and a promise of consistently delivering the features/benefits that the consumers desire from the brand. Branding continues to be a strong force in the marketing of an organizatio ns products be it a physical product or a services product. A brand is successful when consumers are convinced that there are significant differences among the brands in the same product category. The brand consists of tangible attributes and some intangible benefit. The meaningful differences can therefore take the form of either product attributes or creating images around their product Definition: According to the American Marketing Association, Brand is defined as: a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from competitors Significance of Branding: Branding is one of the key issues and biggest challenges in corporate and marketing strategies. A product that is not branded is a commodity, such as sugar, rice, etc., and while purchasing a commodity, one only considers its physical attributes and benefits. A brand, on the other hand, is a lens through which the consumers view the product and the firm. It is basically a product with added dimensions, which make it different in some way or the other from other products that satisfy the same needs What can we Brand: A servicefor example, Life Insurance Corporation, State Bank of India A productfor example, Nokia mobile, Lux soap, Knorr soup A storefor example, Big Bazaar, Shoppers Stop A place/geographic locationfor example, Taj Mahal, India (the Incredible India! campaign) A personfor example, Aamir Khan, Amitabh Bachchan An ideafor example, World Wildlife Fund An online organizationfor example, Amazon, Make my Trip An organizationfor example, UNICEF Historical Perspective of Branding Studies show that brands and branding are not a recent phenomenon. In fact, branding has existed since ages and can be traced back to the time when human civilizations originated. Early language was developed to convey information about two thingsreligion and business transactions. Business transactions (who is involved, what was transacted, and how much) were recorded using symbols. These symbols were pictorial in nature (also known as brand marks, logotypes, or icons) and were sometimes accompanied by some text and use of colour. These early brands can be called proto-brands and their elements, i.e., the use of a logo, text, and colour are important for brands even today (Moore and Reid 2008). Take for example the logo of Anchor Electricals, which includes a pictorial symbol, text, and red and white colour combination

Benefits of Building Strong BrandsOrganizational Perspective Identifier Shorthand for information Legal protection Differential advantage Unique associations Price premiums Enhancing customer loyalty Higher market share Inelastic response to price increase As a barrier to entry of other brands Can be bought and sold as an asset Benefits of Building Strong Brands Customer Perspective Source of identification Heuristic or proxy for quality Source of evaluation A tool to simplify decision making Risk reducer Financial risk, performance risk, time risk, social risk, psychological risk Tool to express self image Types of brands: Functional brands Image brands Experience brands Branding Challenges: Intelligent and educated customers Growth of private labels Brand proliferation Increasing trade power Media fragmentation and the rise of new media Increasing cost of product introduction and support Increasing job turnover Overcoming Branding Challenges: Brand equity Brand loyalty

Brand switchers Habitual buyers Switching-cost loyal Friends of the brand Committed customers

Key issues in branding Whether to brand or not How to build brand equity How to measure brand equity Understanding customers and how they purchase a brand How to position the brand Which marketing mix strategies to choose How to design branding strategies How to manage brands over time How to manage brands across geographical boundaries

Strategic Fit: Strategic brand building includes a mix of organizational activity and the consumers perception or understanding of the brand. It is therefore important that there be a strategic fit between the two entities i.e. the identity designed by the organization should be understood and readily perceived by the customers.

Designing brand Identity: (Kapferers Identity Prism) Kapferer (2009) has categorized the brand identity into six dimensions that can be represented by the six faces of the hexagonal prism. The six facets are broadly categorized under two perspectives internal and external Left side The left side is the social face of the brand and helps in expressing the brand. They result in externalization of the brand and consists of: Physique of the brand Relationship Reflection

Right side The right side of the prism is the spirit of the brand and is incorporated in the brand itself. It results in internalization of the brand and consists of: Personality Culture Self-image NOTE: REFER TO THE HANDOUT GIVEN IN THE CLASS FOR IDENTITY PRISM Brand Personality Brand personality is a set of human characteristics that can be associated with the brand like gender, age and personality traits like warmth, honesty, integrity, etc. The physical aspects of a product can be copied but it is very difficult to copy the personality of a brand. Thus brand personality helps in building a sustainable competitive advantage For an organization retailing brands across cultural boundaries, the personality of the brand is an important aspect that helps them to market their brand. Celebrity endorsements help in creating a brand personality as they help consumers to understand the brand in context of the celebrity. Measuring Brand Personality: An important aspect that needs to be discussed is how to measure brand personality. This is not discussed in the brand identity prism as in a brand identity the focus is internal. When we talk about measuring brand personality the focus is external, i.e. how does the customer perceive the brand or what is the personality of the brand according to the customers. This can be done with the help of Aakers (1997) Brand Personality Framework

Sincerity Down to earth Honest Wholesome Cheerful Wholeso me Original Cheerful Sentime ntal Friendly Honest Sincere Real

Excitement Daring Downto-earth Familyoriented Small town Spirited Imaginative Up-to-date Up-to-date Independen t Contempor ary Imaginative Unique Spirited Cool Young Daring Trendy Exciting

Competence Reliable Intelligent Successful Successf ul Leader Confiden t Intellige nt Technica l Corpora te Reliable Hard working Secure

Sophistication Upper-class Charming Charming Feminine Smooth Upper class Glamorous Good looking

Ruggedness Outdoorsy Tough Outdoor sy Masculin e Western Tough Rugged

Brand Image The brand image is the set of beliefs held about a particular brand (Kotler and Keller, 2005) by the consumer. This image is formed by an understanding of all the brand associations. The brand image gives an understanding about how consumers choose a particular brand among alternative brands after they have gathered information about the brands.

Brand image is defined as perceptions about a brand as reflected by the brand associations held in consumer memory. Brand associations are anything linked in memory to a brand The association can be with the brands attribute, brands benefit and the brand attitude

Brand image can be built by: Product Price Packaging User imagery Usage imagery Consumer Behaviour and Brand Buying Decisions According to Davis (2000) ... to maximize the customer-brand relationship, a company must understand how customers think, act, perceive, and make purchase decisions. This highlights the necessity of understanding the consumers brand purchase behavior by the brand managers The behaviour that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs (Schiffman and Kanuk 2004). Importance of consumer behaviour understanding The post modern study of consumer behaviour is not to predict and manipulate consumer behaviour but to better understand consumer behaviour. The focus of marketers should not be objective reality but instead consumer perceptions. The net result of the changing role of the consumer is that companies can no longer act independently. They need to understand how the consumer is behaving, how they are gathering information, their major considerations while purchasing the brand, and the factors influencing the purchase behaviour. Learning about how the customer finds and executes the optimum solution in a given market makes it easier for an organization to earn their long-term trust, purchases, and loyalty. It is believed that knowledge of the factors that influence consumer behaviour can, with practice, be used to develop sound marketing strategies. These marketing strategies need to be integrated with the brand development activity for holistic development of the firm in the long term. Consumer behaviour and role of branding The last decade has seen the marketplace flooded with brands both national and international. The customer has a number of options to choose from and their attitude towards a brand is very influential in the purchase decisionmaking process. Some brands are purchased not once but repeatedly, in many cases in predictably regular patterns; hence the truth of the saying that when we build brands we are making customers and not just sales. It has been studied that two-thirds of buyers normally buy (with varying degrees of irregularity) more than one brand. This introduces the extremely important concept of the repertoire of brands. This consistent habit of repeat purchase in most of the markets highlights the need to build strong brands. Brand name serves as shorthand for quality by providing consumers with a bundle of information about the product. A brand promises the consumer quality and value and communicates a distinct advantage to the consumer. Companies recognize the value of having strong brands in their portfolio as it helps them build a loyal customer base Brand Gap Brand image is defined as the customers perception of brand identity. Brand identity portrayed by the organization can be same or different from the brand image formed by customers on the basis of their experience. If the brand image is the same as the brand identity then no brand gap exists. For this to happen companies need to have an understanding of the attitude and purchase process of the consumers

The Indian consumer: Changing demographic trends and lifestyles The young Indian consumer Rising household income Spending habits and brand behaviour Rise of the Indian women as a consumer Changing consumer expectations Changing lifestyle Regional differences Factors affecting Consumer Behaviour Socio-cultural environment Motivation Beliefs Attitude Personality Age and life-cycle stages Occupation and economic circumstances Lifestyle Self-concept and perception Learning and memory Role of the family Brand Loyalty Brand loyalty is defined as the consumers commitment towards a particular brand so much so that they are constantly looking out for marketing activities associated with the brand and are motivated to obtain the brand exclusively on every purchase. Research shows that a 1% increase in customer loyalty equals 10% cost reduction and 5% increase in customer loyalty increases the profitability of the company by 40-95% Also, the cost of attracting a new customer is five times more than the cost of retaining an existing customer

Brand Loyalty Benefits: Lowers vulnerability to competitors marketing strategies Increases marketing communication effectiveness and reduces marketing costs Companies can charge higher margins Increases the probability of success in brand extension and licensing opportunities Brand loyal customers are less price-sensitive. Thus they do not readily shift over with the change in prices by the competitor brands.

When a brand is promoted, non-loyal customers are likely to purchase the promoted brand in small quantities but the brand loyal customers are found to buy more of the promoted brand than they would normally buy Brand loyalty has more influence on purchase decisions than price promotions.

Brand Commitment: The consumers commitment links them to the marketing organization and is the act of maintaining a relationship with a commercial partner. If a customer is committed towards a brand, it can be safely presumed that the customer is brand loyal, frequently purchases the brand, and has a favourable attitude towards the brand. Commitment can be built by building brand communities online or by forming clubs.

Branding and Marketing Communications Need for marketing communication in branding Given the cultural diversity in India, brand managers need to educate the customers about their brands in terms the consumers understand so as to build the bond that enhances the organizations credibility and fosters brand related attitudes and purchase intentions. There is a significant relation between firm-sponsored education activities and positive customer brand attitudes and purchase intentions. Organizations through their marketing communication activities can impact the way consumers consume brands by influencing their beliefs and attitudes. Thus, their marketing communications can be used to educate the consumers about their brands attributes and develop positive associations so that the consumers feel that the brand is the best consumption choice for them given their values and life-styles Marketing communication and promotion and the influence on consumers Promotion is defined as the managerial process of communication an organization has with its target audience to generate attitudinal and behavioral responses and facilitate exchanges for mutual benefit. (Jauhari and Dutta, 2010). In the consumer purchase process, the customer purchases a product or service from the awareness set, i.e., the brands the customer is aware of out of the total number of brands (total set) available in the marketplace. If the service meets the initial buying requirements of the customer, they form the consideration set and as the customer gathers more information the strong contenders form the choice set from which the customer makes the final choice Concerns for Marketing Communication: Building brand awareness Enhancing brand knowledge Favourable brand attitude Communication Options Advertising Personal Selling Sales Promotion Events and campaign marketing

Direct Marketing Publicity Word-of-mouth Internet marketing

A. Advertising: Advertising is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor (Kotler and Keller, 2006). It is advertising that transforms a product that provides functional benefits and no more into a brand that offers the consumer psychological rewards in addition to the functional ones Advertising is the most visible form of brand communication and can be done through any of the media available like television, radio, internet, out-of-home (hoardings, banners, posters etc.) and the print media (newspapers, magazines, leaflets etc.). Purpose of advertising Brand information Brand positioning Brand recall Brand personality and identity Brand repositioning Advertising media and influence on branding: Television Print media Radio Cinema advertising Out-of-home media Online advertising

The consumers exposure to a particular media will decide whether they view the brand advertisement or not. An understanding of the consumers media consumption habits helps in deciding which media option to choose. Brand managers can also use a combination of the various media options to reach their target audience. In such an eventuality a diverse set of consumers and customers can be reached. The overlap (i.e., when the same consumer is exposed to both the medias) will help reinforce the brand awareness and brand recall

B. Personal Selling Personal selling unlike advertising is the interpersonal interaction between the organization representatives and the customers. It is defined as the Face-to-face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions and procuring orders. Personal selling is helpful in building a brand as the manner in which the brand is communicated and sold to the ultimate customer is directly controlled by the brand owners. This helps them to create a brand experience at the time of sales which can be the start of building brand relationships. Ways of personal selling Going to where the customer is: Organizations can approach customers to sell products to them in the convenience of their homes, for example Eureka Forbes At a retail outlet where the customer comes: Organizations can do personal selling by hiring sales executives at the company owned outlets where the customers can come for buying a product.

C. Sales Promotion: Both advertising and personal selling are aided by sales promotions. Sales promotions are a variety of short -term incentives to encourage trial or purchase of a product or service (Kotler and Keller, 2006). It therefore influences and motivates the customer to make the purchase now.

As a brand manager the choice of tool for sales promotion is critical as it should be in line with the long term brand strategy and should strengthen the same.

Tools of sales Promotion: Coupons Samples Price packs Cash refund Premiums Advertising specialties or promotional products Point-of-purchase promotions Contests, sweepstakes and games

D. Events and Campaign Marketing: Brands have long been associated with sponsoring events like the various cricket matches, football tournaments, etc. Companies can also organize their own events Organization of such events/ campaigns increases the brand recall by the customers and association with a big event inculcates trust in the customers and convinces them that the brand is a big brand.

E. Direct Marketing Direct marketing can be defined as use of mail, telephone, fax, e-mail, or internet to communicate directly with, or solicit response or dialogue from specific customers and prospects (Kotler and Keller, 2006). Electronic shopping, telemarketing, television shopping, etc., are various ways in which organizations can do direct marketing Forms of Direct Marketing: Direct mail marketing Catalogue marketing Telephone marketing Mobile phone marketing

F. Publicity and Public Relations A variety of programmes designed to promote or protect a companys image or its individual products (Kotler and Keller, 2006). Organizations can maintain public relations through company magazines, annual reports, donations etc. News releases are a popular means of disseminating information about the brand. However, if the release is not in the favor of the brand, then that can also harm the brand image. Other ways by which publicity can be created is through newsletters, magazines and annual reports and this also helps in disseminating the relevant information about the brand that helps the organization in building higher brand equity. Public service activities indulged in by the organizations also helps in creating goodwill for the brand. Corporate identity material like business cards, logos, stationery, buildings, websites, company cars and trucks etc. all helps in creating brand identity in minds of the customers. G. Word-Of-Mouth This includes the customer-to-prospective customer interaction which is not directly under the control of the organization. In developed countries it is advertising that affects the purchase choice the most but in developing countries like India and Indonesia it is word-of-mouth that affects the purchase decision the most. Indians are a closely knit society and are easily influenced by their peers, relatives etc. Brands can create a positive word of mouth for themselves by consistently delivering during the moments of truth for the customers. Also during initial days of a start-up when organizations cannot invest money in advertising word-of-mouth publicity is the best way to spread word about the brand and create a brand awareness and ultimately footfalls.

H. Internet Marketing: Internet and the related platforms are considered as the new age media. The internet scores over the traditional media (advertising through print, television, radio, etc.) by providing current information to be communicated to the

customers with the minimum of lead time, to the relevant target audience and the impact is more measurable. The customers are also benefited by receiving the relevant advertising. One of the strategies by which marketers can connect with the customers online is through crowdsourcing for advertisements. In crowdsourcing, organizations take the work from an employee and entrust it to a large group of people (crowd) that leads to a community based design. This allows the consumers to have a say in the brand be it the product, promotions, designing, innovations, etc. Marketers are benefited as it allows them to get a feedback from the consumers well in time that can be incorporated in their brand building strategy.

Tools of Internet Marketing: Viral marketing Social networking sites 3-D digital shops Blogs Web TV Mobile phones SMS Podcasts Company websites Online advertising In-store TV In-programme brand placement