Unit 7: Brand Management

Unit 7: Brand Management

• Brand Definition (Seth Godin): A brand is a collection of expectations, memories, stories, and relationships driving consumer choice.

1. Role of the Brand in Marketing Strategy

• Legal Perspective (EU Trademark Definition): A trademark can be a sign (name, colour, design, sound) capable of distinguishing products/services and being registered for legal protection.

• Marketing Perspective (AMA Definition): A brand is a combination of name, term, symbol, or design identifying products and differentiating them from competitors.

Benefits of a Brand in Strategy

• Differentiation: Distinguishing a brand from competitors.
• Positioning: Establishing a brand's place in the market.
• Customer Loyalty: Building customer loyalty to the brand.
• Recognition: Making the brand easily recognizable.
• Perceived Value: Enhancing the value perceived by consumers.
• Brand Extension: Expanding the brand into new products or services.
• Emotional Identity: Creating an emotional connection with the brand.
• Credibility and Trust: Building trust and credibility with the brand.

Trademark Utilization and Rights

• Registration and Protection: Exclusive rights for legal defense against infringement.
• Commercial Use: Trademarks can be mortgaged, sold, or licensed.
• Franchising: Allows brand usage with specific business models and expertise.
• Cobranding: Two brands collaborate for combined values and audience reach.

2. Brand Positioning

• Core Positioning Strategy: Guides product offerings, pricing, communication and distribution plans.
• Adjustments to Align with Target Customers: Defining target audience and adapting brand elements like name, pricing, packaging, and communication.
• Examples:
  • Intel vs. AMD, low-price processors to maintain market share
  • Loctite expanded positioning through adjustments.
• Insights on Data Usage: Data enhances credibility but balance is crucial to avoid overwhelming certain segments.

3. Identity and Brand Differentiation

• Importance of Differentiation: Strong brands project consistent identity, positive evaluations, and create awareness. Differentiation involves enhancing desired benefits while simplifying offerings, avoiding confusion.
• Example: Coca-Cola omitting its logo on Powerade to differentiate and appeal to simplicity-loving customers.

4. Brand Management

• Ownership Models:
  • With a Brand: Creates identity and loyalty.
  • Without a Brand: May reduce costs but lacks differentiation.
• Ownership Decisions (Manufacturer vs Intermediary): Impacts pricing, customer loyalty and market control.
• Brand Architecture:
  • Branded House: Single brand for all products/services.
  • House of Brands: Independent brands for different categories.
  • Endorsed Brand: Combining corporate and individual brands.
  • Mixed Architecture: Flexible strategies based on product lines or acquisitions.
• Brand Extensions and Second Brands:
  • Extensions: Leveraging a core brand for new categories.
  • Second Brands: Offering simpler, affordable alternative brands.

5. Brand Equity

• Definition: Brand equity is the value a brand adds to a product beyond its functional benefits.
• Key Brand Assets: Awareness, emotional connection, loyalty, and price premiums.
• Key Brand Liabilities: Examples of brands facing liabilities include Volkswagen's Dieselgate, Primark's Rana Plaza Collapse, and H&M Greenwashing.

6. Conclusion

• Key Takeaways: Strong brand strategies build loyalty and trust, differentiation and equity enhance competitive advantage, brand positioning balances perceived value with costs.
• Final Thought (Howard Schultz): If people believe they share values with a company, they will stay loyal to the brand.