Brand Management

MBA (2017-19), 3rd Semester

Presentation by

Surabhi Singh
Assistant Professor
Aravali College of Engineering and Management, Faridabad
Choosing brand elements to build BE – Offensive strategy

• Add brand equity to new products of the brand in the line

• extensions.
Transferability
Memorability ••
To achieve a high level of brand awareness
To
To add brandthe
facilitate
segments. .
equity across geographical
recognition and recall of boundaries and purchase
a brand during market
or consumption.

•• Adaptable
descriptiveand
andflexible brand
suggesting elementsabout
something are the
theeasier it iscategory
product to keep
Adaptability
Meaningfulness
up changing
of the brand. and up to date from time to time to suit the
• consumers liking andmeaning
to have a persuasive views. and suggest something about the
particular benefits and attributes of the brand.

• Brand elements need to be chosen in such a way, that they can

• To
Protectability
Likability
be inherently fun,
be internationally
always
bodies. directly
interesting,
protected
related to the
colorful
legally, legallyand
product.
not necessarily
registered with legal

• Reducing the cost of marketing communications.

Defensive strategy
Designing marketing programs to build BE
4 major drivers of new economy
Personalizing marketing
Concepts of personalizing marketing

Experiential marketing
Permission One to one marketing marketing
Steps of permission marketing

Integrating marketing communication to build brand equity

Role of Marketing communication
Information processing model of marketing communication
IPM – the desirables
Options for marketing communication – promotion mix
Advertising
Today
PR & publicity
Marketing communication options – Integrated marketing communication
Marketing communication - guidelines
 Leveraging secondary
brand associations to build
Figure 2-9
Brand Equity
Building Customer-Based Brand Equity
BRAND BUILDING TOOLS AND OBJECTIVES CONSUMER KNOWLEDGE EFFECTS BRANDING BENEFITS
 Choosing Brand Elements

Brand name Memorability Brand Awareness

Logo Meaningfulness
Symbol Appeal
Character Transferability Depth Recall
Packaging Adaptability
Recognition
Slogan Protectability

Breadth Purchase
Consumption

Developing Marketing Programs

Product Tangible and intangible benefits

Price Value perceptions
Distribution channels Integrate”push” and “pull”
Communications Mix and match options

Brand Associations

Strong Relevance
Leverage of Secondary Associations Consistency

Company Favorable Desirable

Country of origin Deliverable
Channel of distribution
Awareness Unique Point-of-parity
Other brands
Meaningfulness Point-of-difference
Endorsor
Transferability
Event
 Possible Outcomes

Greater loyalty

Less vulnerability to competitive

marketing actions and crises

Larger margins

More elastic response to price

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More inelastic response to price

increases

Greater trade cooperation and support

Increased marketing communication

efficiency and effectiveness

Possible licensing opportunities

More favorable brand extension

evaluations
What Are Secondary Brand Associations?

Marketing strategy of using certain aspects or transferring entities of the

brand to gain brand equity

• Company
• Country
• Co-Branding
• Ingredient Branding
• Celebrity Endorsement
• Sponsorship
Leveraging Secondary Associations

Creation of new brand associations

Effects on existing brand knowledge

Awareness and knowledge of the entity

Meaningfulness of the knowledge of the entity

Transferability of the knowledge of the entity

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Leveraging Secondary Associations

Brand associations may themselves be linked to:

Company (through branding strategies)

Country of origin (through identification of product origin)

Channels of distribution (through channels strategy)

Other brands (through co-branding)

Special case of co-branding is ingredient branding

Characters (through licensing)

Celebrity spokesperson (through endorsement advertising)

Events (through sponsorship)

Other third-party sources (through awards and reviews)

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Leveraging Secondary Associations

These secondary associations may lead to a transfer of:

Response-type associations

Judgments (especially credibility)

Feelings

Meaning-type associations

Product or service performance

Product or service imagery

Co-Branding

Occurs when two or more existing brands are combined into a joint product or
are marketed together in some fashion
Example: Sony Ericsson
Advantages of Co-Branding

Borrow needed expertise

Leverage equity you don’t have

Reduce cost of product introduction

Expand brand meaning into related categories
Broaden meaning

Increase access points

Source of additional revenue

Disadvantages of Co-Branding

Loss of control

Risk of brand equity dilution

Negative feedback effects

 Lack of brand focus and clarity

Organizational distractions
Ingredient Branding
A special case of co-branding that involves creating brand equity for
materials, components, or parts that are necessarily contained within other
branded products
Example: Intel inside
Licensing

Involves contractual arrangements whereby firms can use the

names, logos, characters, and so forth of other brands for some fixed
fee Examples:

Entertainment (Jurassic Park, etc.)

Television and cartoon characters

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 Designer apparel and accessories (Calvin Klein, Pierre Cardin, etc.)

Celebrity Endorsement

Draws attention to the brand

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 Shapes the perceptions of the brand Celebrity should have a high level of
visibility and a rich set of useful associations, judgments, and feelings
Celebrity Endorsement: Potential Problems

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Celebrity endorsers can be overused by endorsing many products that are too
varied.

There must be a reasonable match between the celebrity and the product.

Celebrity endorsers can get in trouble or lose popularity.

Many consumers feel that celebrities are doing the endorsement for money and do
not necessarily believe in the endorsed brand.

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Celebrities may distract attention from the brand.

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Sporting, Cultural, or Other Events
Sponsored events can contribute to brand equity by becoming associated to the brand and
improving brand awareness, adding new associations, or improving the strength, favorability,
and uniqueness of existing associations.

The main means by which an event can transfer associations is credibility.

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Measuring sources
of
Brand Equity
Types of market research techniques
Qualitative Research techniques
Observation
Focus groups Focus Group Procedure – Focus Group Advantages of Focus Group
Advantages of Focus Group Disadvantages of Focus Group Other qualitative techniques
Projective Techniques : Free word association Projective Technique: Sentence completion
Projective Technique : Unfinished Scenario Completion Projective Technique : Cartoon
completion test
DESIGNING AND IMPLEMENTING

BRANDING STRATEGIES
Branding strategy

Branding strategy is critical because it is the means by which the firm can help
consumers understand its products and services and organize them in their minds.
 Two important strategic tools: The brand-product matrix and the brand hierarchy help to
characterize and formulate branding strategies by defining various relationships among
brands and products.
Branding Strategy or Brand Architecture

The branding strategy for a firm reflects the number and nature of common or
distinctive brand elements applied to the different products sold by the firm.

Which brand elements can be applied to which products and the nature of new and existing brand
elements to be applied to new products
The role of Brand Architecture

Clarify: brand awareness

 Improve consumer understanding and communicate similarity and differences

between individual products

Motivate: brand image

Maximize transfer of equity to/from the brand to individual products to improve
trial and repeat purchase

Brand-Product Matrix
Products

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 1 2 3 4
A
Brands B
C

Must define:
Brand-Product relationships (rows)
Line and category extensions
Product-Brand relationships (columns)
Brand portfolio

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Important Definitions

Product line
A group pf products within a product category that are closely related

Product mix (product assortment)

The set of all product lines and items that a particular seller makes available to buyers

Brand mix (brand assortment)

The set of all brand lines that a particular seller makes available to buyers

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Breadth of a Branding Strategy

Breadth of product mix

Aggregate market factors

Category factors

Environmental factors

Depth of product mix

 Examining the percentage of sales and profits contributed by each item
in the product line

Deciding to increase the length of the product line by adding new

variants or items typically expands market coverage and therefore market
share but also increases costs

Depth of a Branding Strategy

The number and nature of different brands marketed in the product class sold
by a firm
 Referred to as brand portfolio

The reason is to pursue different market segments, different channels of

distribution, or different geographic boundaries

Maximize market coverage and minimize brand overlap

Ford Brand Portfolio
 Designing a Brand Portfolio

Basic principles:
Maximize market coverage so that no potential customers are being ignored

Minimize brand overlap so that brands aren’t competing among themselves to gain
the same customer’s approval

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Brand Roles in the Portfolio

Flankers

Cash cows

Low-end entry-level

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 High-end prestige brands
Brand Hierarchy

A means of summarizing the branding strategy by displaying the number

and nature of common and distinctive brand elements across the firm’s
products, revealing the explicit ordering of brand elements

A useful means of graphically portraying a firm’s branding strategy

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 Brand Hierarchy Tree: Toyota

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 Corporate Brand (General Motors)

Family Brand (Buick)

Individual Brand (Park Avenue)

Brand Hierarchy Modifier:

Levels Item
Corporate
or Model (Brand
Ultra ) Equity
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 Occurs when relevant constituents hold strong, favorable, and unique associations
about the corporate brand in memory

Encompasses a much wider range of associations than a product brand

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 Family Brands

Brands applied across a range of product categories

An efficient means to link common associations to multiple but distinct

products

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 Individual Brands

Restricted to essentially one product category

There may be multiple product types offered on the basis of different models,
package sizes, flavors, etc.

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 Modifiers

Signals refinements or differences in the brand related to factors such as

quality levels, attributes, functions, etc.

Plays an important organizing role in communicating how different products

within a category that share the same brand name are

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 Corporate Image Dimensions
Corporate product attributes, benefits or attitudes
Quality
Innovativeness

People and relationships

Customer orientation

Values and programs

Concern with the environment

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 Social responsibility

Corporate credibility
Expertise
Trustworthiness
Likability
Brand Hierarchy Decisions

The number of levels of the hierarchy to use in general

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 How brand elements from different levels of the hierarchy are combined, if at
all, for any one particular product

How any one brand element is linked, if at all, to multiple products

Desired brand awareness and image at each level

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 Number of Hierarchy Levels

Principle of simplicity
Employ as few levels as possible

Principle of clarity

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 Logic and relationship of all brand elements employed must be
obvious and transparent

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Levels of Awareness and Associations

Principle of relevance
Create global associations that are relevant across as many
individual items as possible

Principle of differentiation

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 Differentiate individual items and brands

Linking Brands at Different Levels

Principle of prominence
The relative prominence of brand elements affects perceptions of
product distance and the type of image created for new products

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Linking Brands Across Products

Principle of commonality
The more common elements shared by products, the stronger the linkages

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Brand Architecture Guidelines

Adopt a strong customer focus

Avoid over-branding
Establish rules and conventions and be disciplined
Create broad, robust brand platforms
Selectively employ sub-brands as means of complementing and strengthening brands
Selectively extend brands to establish new brand equity and enhance existing brand equity
Corporate Brand Campaign

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 Different objectives are possible:
Build awareness of the company and the nature of its business

Create favorable attitudes and perceptions of company credibility

Link beliefs that can be leveraged by product-specific marketing

Make a favorable impression on the financial community

Motivate present employees and attract better recruits

Influence public opinion on issues

Using Cause Marketing to Build Brand Equity

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 The process of formulating and implementing marketing activities that are characterized by an
offer from the firm to contribute a specified amount to a designated cause when customers
engage in revenue-providing exchanges that satisfy organizational and individual objectives

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Advantages of Cause Marketing
Building brand awareness
Enhancing brand image
Establishing brand credibility
Evoking brand feelings

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 Creating a sense of brand community
Eliciting brand engagement

Green Marketing
A special case of cause marketing that is particularly concerned with the
environment

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 Explosion of environmentally friendly products and marketing programs

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