You are on page 1of 17

Importance of branding

1.
2.
3.
4.

Branding promotes recognition.


Your brand helps set you apart from the competition.
Your brand tells people about your business DNA.
Your brand provides motivation and direction for your staff.

5. A strong brand generates referrals: People love to tell others about the brands they like.
People wear brands, eat brands, listen to brands, and theyre constantly telling others
about the brands they love. On the flip side, you cant tell someone about a brand you
cant remember.
6. A strong brand helps customers know what to expect: A brand that is consistent and clear
puts the customer at ease, because they know exactly what to expect each and every time
they experience the brand.
7. Your brand represents you and your promise to your customer.
8. Your brand helps you create clarity and stay focused.
9. Your brand helps you connect with your customers emotionally.
10. A strong brand provides your business value.
11. Wrapping it up : The best branding is built on a strong idea an idea that you and your
staff can hold on to, can commit to, and can deliver upon.

Types of brand
1. Personal brands: Whether you know it or not, you have a personal brand. If people
know your name or recognize your face, they hold your brand image in their minds.
2. Product brand: Products (commodities) become branded products when you win
awareness in the marketplace that your product has compelling characteristics that make
it different and better than others in the product category.
3. Service brands: Services are products that people buy sight-unseen. People buy services
purely based on their trust that the person or business theyre buying from will deliver as
promised.
4. Corporate brand Otherwise known as the organizational brand. David Aaker puts it
very well: The corporate brand defines the firm that will deliver and stand behind the
offering that the customer will buy and use.
5. NGO (Non Governmental Organization) or Non Profit brand An area of transition,
as the sector shifts gear looking for value models beyond just fundraising to drive social
missions.

6. Investor brand Normally applied to publicly listed brands and to the investor relations
function. Positions the listed entity as an investment and as a performance stock, blending
financials and strategy with aspects such as value proposition, purpose and, increasingly,
wider reputation via CSR.
7. Public brand Otherwise known as government branding. Contentious. Many, including
myself, would argue that you cant brand something that doesnt have consumer choice
and a competitive model attached to it.
8. Place brand , national brand, ethical brand, celebrity brand, private brand,
employer brand
9. Global brand The behemoths. These brands are easily recognized and widely
dispersed. .
10. Luxury brand Prestige brands that deliver social status and endorsement to the
consumer.

Strategic Brand Management Process


1. Identifying and establishing brand positioning.
Brand Positioning is defined as the act of designing the company's offer and image so that it
occupies a distinct and valued place in the target consumer's mind.

Points of difference: convinces consumers about the advantages and differences over the
competitors

Mental Map: visual depiction of the various associations linked to the brand in the minds
of the consumers

Core Brand Associations: subset of associations i.e. both benefits and attributes which
best characterize the brand.

Brand Mantra: that is the brand essence or the core brand promise also known as the
Brand DNA.

2.Planning and Implementation of Brand Marketing Programs

Choosing Brand Elements: Different brand elements here are logos, images, packaging,
symbols, slogans, etc. Since different elements have different advantages, marketers
prefer to use different subsets and combinations of these elements.

Integrating the Brand into Marketing Activities and the Support Marketing
Program: Marketing programs and activities make the biggest contributions and can
create strong, favorable, and unique brand associations in a variety of ways.

Leveraging Secondary Associations: Brands may be linked to certain source factors


such as countries, characters, sporting or cultural events,etc. In essence, the marketer is
borrowing or leveraging some other associations for the brand to create some associations
of the brand's own and them to improve it's brand equity.

3.Measuring and Interpreting Brand Performance

Brand Audit: Is assessment of the source of equity of the brand and to suggest ways to
improve and leverage it.

Brand Value chain: Helps to better understand the financial impacts of the brand
marketing investments and expenditures.

Brand Equity Measurement System: Is a set of tools and procedures using which
marketers can take tactical decision in the short and long run.

4. Growing and Sustaining Brand Equity:


Key Concepts:

Defining the brand strategy: Captures the branding relationship between the various
products /services offered by the firm using the tools of brand-product matrix, brand
hierarchy and brand portfolio

Managing Brand Equity over time: Requires taking a long -term view as well as a short
term view of marketing decisions as they will affect the success of future marketing
programs.

Managing Brand Equity over Geographic boundaries, Market segments


and Cultures: Marketers need to take into account international factors, different types
of consumers and the specific knowledge about the experience and behaviors of the new
geographies or market segments when expanding the brand overseas or into new market
segments.

Brand Identity Prism


Brand Identity Prism enables brand managers to assess the strengths and weaknesses of their
brand using the six aspects of this prism. It also helps to find the ways of creating the brand
loyalty and financial value.
1) Physique Physique is the basis of the brand. It may include product features, symbols and
attributes.

2) Personality Personality defines what personality will the brand assume if it were a person.
Personality includes character and attitude.
3) Culture Culture takes a holistic view of the organization, its origins and the values it stands
for.
4) Relationship The strength of the relationship between the brand and the customer. It may
represent beliefs and associations in the human world.
5) Reflection What does the brand represent in the customers mind or rather the customer
mindset as reflected on the brand
6) Self image How does the customer see himself when compared to the brand. Example A
customer might see himself capable or incapable of buying a BMW car.

Brand Identity Perspectives


Any brand has different facets on which its identity can be built. Typically, brand managers
choose one or more from the following four facets:

Product

Organisation

Personality

Symbol

Product: Product attributes are closely related to customers' choice decisions and experience.
Product related associations therefore invariably find a place in the brand identity.
Organisation: In some cases, the organisation is itself the brand. Here all products are marketed
under the halo of the organisation brand. In such situations, the organisational attributes are used
as basis for brand building.
Personality: Some brand managers attempt to 'humanise' their brands. This, they believe, will
serve to move the brand from a mundane to a richer and more interesting plane. A successful
brand personality will result in the brand becoming a vehicle for customers who want to express
their own personality.
Symbol: In a marketplace proliferating with different brands, it is imperative that a brand stands
out grabbing customer's attention. Symbols and logos are used to achieve this purpose.

Brand Equity
Brand Equity is the value and strength of the Brand that decides its worth. It can also be defined
as the differential impact of brand knowledge on consumers response to the Brand Marketing.
Brand Equity exists as a function of consumer choice in the market place. The concept of
Brand Equity comes into existence when consumer makes a choice of a product or a service. It
occurs when the consumer is familiar with the brand and holds some favourable positive strong
and distinctive brand associations in the memory.
measures of brand equity
Brand equity is the combined measure of brand strength and consists of knowledge preferences
and financial considerations.
Each of the three measures under these three metrics is critical.
Knowledge metrics

It measures a brands awareness and association through top of the mind recall,
recognition aided and unaided.

Functional and emotional associations of a brand are also key drives of brand equity.

Brand should score high on both the awareness and association attribute.
Example 1 : Consumers are aware of the energy drink Boost and they recalls it by
associating with Sachin Tendulkar with the brand and when they watch Sachin they
recall the add and which will end up into buying behavior.

Preference metric

Measure a position of your brand and competitors.

Customers preference towards the brand comes from awareness and familiarity to strong
loyalty and frequent revenues.

Awareness and familiarity make the brand strong which convert in to the customer
loyalty

When customers become loyal to a brand which make them a frequent buyer

Frequent buyer gives you frequent revenue to the organization.

Financial metrics

Measure a brands monetary value via the different parameters of market share, price
premium brand information.

The revenue generation capabilities of a brand, the transaction value, the product quality
should be constant with what the consumers expect of the brand.

The distribution channels should be constant with what is expected of a premium brand.

Also, the promotional campaign should build constant associations.

The expectation of the customer should be fulfilled with the brand product, price and
quality. Customer to company

Brand assets and liabilities


Brand Equity is a set of assets linked to a brands name and symbol that adds to the value
provided by a product or service to a firm and/or that firms customers
Brand Equity is a set of liabilities linked to a brands name and symbol that subtracts from the
value provided by a product or service to a firm and/or that firms customers
Aaker Model of Brand Equity
The Aaker Model, created by David A. Aaker, a marketing professor at the University of
California-Berkeley. it is a marketing model which views brand equity as a combination of brand
awareness, brand loyalty and brand associations, which add up to give the value provided by a
product or service.
There are a set of five categories of brand assets and liabilities which add value to the product.
They are:

Brand loyalty

Brand awareness

Perceived quality

Brand associations

Other proprietary assets

Brand Loyalty - For any business, it is expensive to gain new customers and relatively
inexpensive to retain existing ones, especially when the existing customers are satisfied or happy
with the brand.
Brand Name Awareness - People will often buy a familiar brand because they are comfortable
with the familiarity or they assume that a brand that is familiar is probably reliable and of
reasonable quality. When consumers feel uneasy about a product's name, they will avoid the
product
Perceived Quality - A brand will have associated with it a perception of overall quality, which is
not necessarily based on knowledge of detailed specifications. The quality perception may take
on somewhat different forms for different types of industries. Perceived quality means something
different for Compaq or IBM than for Coca-Cola or Pepsi. Perceived quality will directly
influence purchase decisions and brand loyalty, especially when a buyer is not motivated or able
to conduct a detailed analysis.
Brand Associations The underlying value of a brand name often is based upon specific associations linked to it. The
associations, for example, of the car brand Jaguar may make the experience of owning and
driving one "different". If a brand is well positioned upon a key attribute in the product class
(such as technological superiority), then competitors will find it hard to attack.
Other Proprietary Brand Assets This fifth category represents such other proprietary brand assets as patents, trademarks, and
channel relationships. Brand assets will be most valuable if they inhibit or prevent competitors
from eroding a customer base and loyalty. These assets can take several forms. For example, a
trademark will protect brand equity from competitors who might want to confuse customers by
using a similar name, symbol, or package.

Designing Marketing Programs To Build Brand Equity

The 4 P's

Channel Strategy

Place
Price
Promotion
Product
Involves the design and management of intermediaries such as wholesalers,
distributions, brokers, and retailers.
Value Pricing and Everyday Low Pricing

Pricing Strategy

Affects the consumers perception of the brands position in its product


category and of its overall quality
Sell via a third party intermediaries such as agents or brokers representatives,
Indirect Channels
wholesalers, distributors, and retailers or dealers.
Sell through personal contacts from the company to prospective customers
Direct Channels
via mail, phone, electronic means, in-person visits and so on.
Everyday Low Entails or eliminating discounts and sales promotions in favor of an everyday
Pricing (EDLP) fair price, an approach to determine the discount pricing policy over time.
Set prices based on considerations of product quality, costs and product price
Value Pricing
that satisfies consumer needs as well as the profit goals of the firm

Product Strategy

The product itself is the heart of brand equity because it is the primary
influence on what consumers experience with a brand, what they hear about a
brand from others and what the firm can tell customers about the brand in
their communication.
It fully satisfies consumers needs and wants is a prerequisite for successful
marketing.

Perceived
Quality and
Value

Relationship
Marketing

Customers perceptions of the overall quality or superiority of a product/


service compared to the alternatives and with respect to its intended purpose.
Attributes include (performance, features, conformance quality, reliability,
durability, service, style and design)
Attempts to provide a more holistic, personalized brand experience to create
stronger customer ties.
Based on premise that current consumers are the key to long term brand
success

customer based brand equity

Customer-based brand equity (CBBE) is a way of assessing the value of a brand in customers'
minds. Branding can increase profitability in large and small-scale businesses by filling in gaps
in customers' knowledge and by offering assurances. The CBBE model centers that value in the
minds of customers. It compels businesses to define their brands according to a defined hierarchy
of qualitative, or common-sense, customer impressions. These impressions are often laid out in
pyramid-shaped levels; they consist of salience, performance, imagery, meaning, judgments,
feelings, and resonance.

Step 1: Salience talks about Brand Awareness (depth and breadth)


Depth of brand awareness: how likely the brand will spring to mind (recognition and recall)
much the customer knows your brand when they see/hear about it
Breadth of brand awareness: when the customer thinks about your brand, and the range of
purchase/usage situations in which the brand comes to mind.
Performance Dimensions

Primary characteristics & supplementary features

Product reliability, durability, and serviceability

Service effectiveness, efficiency, and empathy

Style and design

Price

Imagery Dimensions

. user profile

o Demographic & psychographic characteristics


o Actual or aspirational
o Group perceptions -- popularity

Purchase & usage situations


o Type of channel, specific stores, ease of purchase
o Time (day, week, month, year, etc.), location, and context of usage

Personality & values ---Sincerity, excitement, competence, sophistication, & ruggedness

History, heritage, & experiences MEMORIES

Judgment Dimensions

Brand quality--Value AND Satisfaction

Brand credibility ---Expertise, Trustworthiness AND Likability

Brand consideration --Relevance

Brand superiority --Differentiation

Feelings Dimensions

Warmth

Fun

Excitement

Security

Social approval

Self-respect

Resonance Dimensions

Behavioral loyalty --Frequency and amount of repeat purchases

Attitudinal attachment --Love brand (favorite possessions; a little pleasure) AND


Proud of brand

Sense of community --Kinship AND Affiliation

Active engagement
o Seek information
o

Join club

o Visit web site, chat rooms

Brand Loyalty
When consumers become committed to your brand and make repeat purchases over time. Brand
loyalty is a result of consumer behavior and is affected by a person's preferences. Loyal
customers will consistently purchase products from their preferred brands, regardless of
convenience or price.
5 Key Metrics for Measuring Brand Loyalty
1. Customer satisfaction
2. Trust
3. Esteem : Brand esteem or goodwill is customers respect for and attraction to
a particular brand. Its not to be confused with brand awareness or
familiarity,

4. Perceived quality and value

Umbrella branding (also called a family brand) is when a firm uses a brand
name for two or more products. All products use the same means of identification
and have no additional brand names or symbols attached. Umbrella branding does
not mean that the whole product portfolio of a firm will fall under one brand name
as company can go for different approaches of branding for different product lines

BRANDING STRATEGIES

THE PRODUCT BRAND STRATEGY This strategy involves the assignment of a particular
name to one and only one product as well as one exclusive positioning.
2. THE LINE BRAND STRATEGY In this strategy the line responds to the concern of
offering one coherent product under a single name by proposing many complimentary products.
3. The RANGE BRAND STRATEGY Range brands bestow a single brand name and promote
through a single promise a range of products belonging to the same area of performance.
4. UMBRELLA BRAND STRATEGY The same brand supports several products in different
markets. Each of them has its own advertising tools and develops its own communications.
5. SOURCE BRAND STRATEGY This is identical to umbrella branding strategy except for
one key point the products are now named directly. Within the source brand strategy the family
spirit dominates even if the offspring all have their own individual names.

Brand Personality
Brand Personality is a set of human characteristics associated with a brand. Personality is how
the brand behaves
A set of human characteristics that are attributed to a brand name. A brand personality is
something to which the consumer can relate, and an effective brand will increase its brand equity
by having a consistent set of traits.
There are five main types of brand personalities: excitement, sincerity, ruggedness, competence
and sophistication.
A functional brand is that one which is purchased by the consumers to satisfy a functional need
such as to shave, to clean clothes, to relieve a headache. Functional brands have the best chance
to satisfy customers if they are seen as providing superior performance. Functional brands rely
heavily on product or price features.
A symbol-intensive brand is a brand adopted not only for its functional benefits, but above all,
for the strong symbolism and significance that it is able to transmit, allowing a consumer to
express his or her identity, to signal status or manifest a sense of belonging to a group.

brand positioning
Brand positioning describes how a brand is different from its competitors and where, or how, it
sits in a particular market. These differences might be real ones, but not have any motivating
qualities about them. They would still, however, give a brand a 'positioning' in a market. For
example, a beer might have the positioning of being an 'Alaskan beer', but this might not be very
motivating to the consumer..
Brand positioning must make sure that:

Is it unique/distinctive vs. competitors ?

Is it significant and encouraging to the niche market ?

Is it sustainable - can it be delivered constantly across all points of contact with the
consumer ?

Is it helpful for organization to achieve its financial goals ?

there are three types of positioning concepts:


1. Functional positions
o Solve problems
o Provide benefits to customers
o Get favorable perception by investors (stock profile) and lenders
2. Symbolic positions
o Self-image enhancement
o Ego identification
o Belongingness and social meaningfulness
o Affective fulfillment
3. Experiential positions
o Provide sensory stimulation
o Provide cognitive stimulation

3cs of positioning
Effective positioning of B2B software and technology products is written in the key of C.
Actually, three Cs. Because positioning requires a thorough understanding of your Customers,
your Competition and your Channel.
The Channel: a great source of information about all three Cs
The channel is how your product reaches the customer, whether you sell direct or through
partners or VARs. It is one of your best sources of information about the other two Cs.

Know your customer at least as well as you know your own product
You cant successfully position your product unless you know the answer to this basic question:
What is my target customers most pressing problem? Your positioning statement should
address this problem in a benefit way.
Know the competition, intimately
Long before marketers discovered positioning, early baseball great Wee Willie Keeler (lifetime
batting average .345) summed up how to score on the competition: Hit em where they aint,
advised the games greatest place hitter. In positioning your B2B software, that means make a
unique claim that sets you apart from the competition.

Positioning and differentiation are much like genus and species in biology:
Positioning puts your company in a category
Differentiation separates your company from others in that same category
Kotler defines differentiation as the process ofadding meaningful and valued differences
todistinguish the product from the competition. There are a number of differentiation
dimensionsand strategies for their accomplishment.
Differentiation Dimensions A firm can differentiate along 5 dimensions: Product Services
Personnel Channel

Differentiation Strategies
Differentiation strategies are particularly important on the Internet.Internet marketing strategy
revolves around company image and product information available on the Web.

Specific strategies may include:


1.
2.
3.
4.
5.

Being the first to enter the market.


Owning a product attribute or quality in the mind of the consumer.
Utilizing an impressive company history or heritage
Supporting and demonstrating the differentiating idea.
Communicating the difference.

There are 6 differentiation strategies unique to online businesses.


1. Site Environment/Atmospherics--Easy downloads; easy navigation.
2. Making the Intangible Tangible-- Virtual tours, 3-D images, trial downloads.
3. Build Trust-- Strong brand recognition.--Privacy policy.
4. Efficient and Timely Order Processing-- Deliver timeliness as an important benefit.
5. Pricing
In the early days of the Web, companies offered discounts as purchase incentives.
Majority of firms today differentiate themselves in other ways besides pricing.
6. Customer Relationship Management-- Managing long term relationships with
customers.

celebrity endorsement
A form of brand or advertising campaign that involves a well known person using their fame to
help promote a product or service. Manufacturers of perfumes and clothing are some of the most
common business users of classic celebrity endorsement techniques

Market Repositioning Strategies


If a product is not selling as well as might be expected, or if its performance has declined from
previous rates of success, it may well be that the brand positioning strategy needs to be
reconsidered, in order either to promote the product more effectively to its target audience, or to
identify a new customer segment to whom it might be better suited.

Brand extension

Brand extension is marketing strategy in which a marketer launches a new product with welldeveloped brand using the same brand name. Brand use this strategy to increase visibility and
leverage equity.
An existing brand that develops brand extension is known as parent brand. For example, Nike
dealt only with shoes but now it has variety of products like watches, caps, jackets and so on.

The advantages of brand extension:


A.
B.
C.
D.
E.

It increases brand image.


Cost of developing new brand is reduced.
Consumers can now seek for variety
There are packaging and labeling efficiencies.
The expense of introductory and follow up marketing programs is reduced

The disadvantages of brand extension:


A. Brand extension may get loss of reliability, if it is extended too far.
B. There can be chances of damaging the image of the brand by the new product.
C. If the brand extension has no advantage over competing brands then it may lead to
failure.

Managing Brands Over Time


Brand Concept Management

Functional benefits - solve consumer related problems

Symbolic benefits - needs for social approval or personal expression; badge brands

Experiential benefits - sensory pleasure, variety

Brand Consistency
Why consistency is so important:
Own a position in the customers mind
Ownership/link to your brand symbol
Cost efficiencies
Simplicity
Clarity of message
Improving Brand Image

Repositioning with points of difference or points of parity

Changing brand elements (KFC)

Entering new markets (Frosted Flakes)

Targeting new segments (Brylcreen Power Gel)

Expanding the Breadth of Brand Awareness

Finding new uses for the brand with TOM awareness (Cheeze Whiz recipes, Folgers
coffee singles)

Reminding consumers to replace products with short lifespan (Oral-B)

Providing innovative package design (MentaDent)

Brand Reinforcement
Brand Reinforcement is all about maintaining brand equity; in other words, it is about making
sure that the consumers do have the desired knowledge structures so that the brands continues
having its necessary sources of brand equity. This could be done by marketing activities related
to brand awareness and brand image that would carry the identity and meaning of the brand to
the consumers.

Brand Revitalization
A strategy to recapture lost sources of brand equity and identify and establish new sources of
brand equity. This may include product modification or brand repositioning. Brand Revitalization

Recapturing lost sources of equity

Returning to values of original brand

Repositioning

Expanding awareness and image

Seven Avenues for Brand Revitalization. 1. Increasing Usage 2. Finding new uses 3.
Entering new markets Brand Revitalization 4. Repositioning 5. Augmenting the
Product/services 6. Obsoleting Existing Products 7. Extending the Brand

You might also like