Brand Management: Chapter 1 - Brands and Brand Management

CHAPTER 1: Brands and brand management Learning Objectives Define “brand,” state how brand differs from a product, and explain what brand equity is Summarize why brands are important Explain how branding applies to virtually everything Describe the main branding challenges and oppor...

CHAPTER 1: Brands and brand management Learning Objectives Define “brand,” state how brand differs from a product, and explain what brand equity is Summarize why brands are important Explain how branding applies to virtually everything Describe the main branding challenges and opportunities Identify the steps in the strategic brand management process What is a Brand? Brand Elements Brands versus Products Brand Elements Different components that identifies and differentiates a brand Name, logo, symbol, package design, or other characteristic Can be based on people, places, things, and abstract images Brand versus Product Brand Product Has dimensions that Anything available in the differentiate it in some way market for use or consumption, from other products designed that may satisfy a need or want to satisfy the same need Can be differentiated on the Can be categorized into five basis of: levels namely: Packaging Core benefit level Services provided Generic product level Customer advice Expected product level Financing Augmented product level Delivery arrangements Potential product level Warehousing Other things valued by the customers To Sum Up.... Through branding, organizations: Create perceived differences amongst products Develop loyal customer franchise Create value that can translate to financial profits Why Do Brands Matter? Consumers Firms Consumers Encompass all types of customers, including individuals as well as organizations Functions provided by brands to consumers Identify the source or maker of the product Simplify product decisions Lower the search costs for products internally and externally Helps set reasonable expectations about what consumers may not know about the brand Consumers Signal product characteristics and attributes On the basis of attributes products can be classified as: Search goods Experience goods Credence goods Reduce risks in product decision These risk can be categorised as Functional ,physical, financial, social psychological, and time Firms Brands provide valuable functions Simplify product handling and tracing Help organizing inventory and accounting records Offer the firm legal protection for unique features or aspects of the product Provide predictability and security of demand for the firm and creates barriers of entry for competitors Provide a powerful means to secure competitive advantage Figure 1.3 - Roles that Brands Play Can Anything Be Branded Physical Goods Services Physical Goods Business-to-Business Products High-tech Products Services Role of Branding with Services Professional Services Can Anything Be Branded Retailers and Distributors Online Products and Services People and Organizations Role of Branding Sports , Arts, and Entertainment Geographic Locations Ideas and Causes To Sum up.... Branding is universal and pervasive in different product categories Applicable to both tangible and intangible offerings of an organization Technological developments have impacted the way firms market their offerings Organizations reap financial benefits from positive brand images Strong Brands Brands that have been market leaders in their categories for decades Any brand is vulnerable and susceptible to poor brand management Factors Responsible for Branding Challenges Savvy customers Economic downturns Brand proliferation Media transformation Factors Responsible for Branding Challenges Increased Competition Increased costs Greater accountability Figure 1.9- Challenges to Brand Builders Brand Equity Principles of branding and brand equity Differences in outcomes arise from the “added value” endowed to a product The added value can be created for a brand in many different ways Brand equity provides a common denominator for interpreting marketing strategies and assessing the value of a brand There are many different ways in which the value of a brand can be exploited to benefit the firm Strategic Brand Management Process Identifying and Developing Brand Plans Designing and Implementing Brand Marketing Programs Measuring and Interpreting Brand Performance Growing and Sustaining Brand Equity Identifying and Developing Brand Plans Brand Positioning Model Brand Resonance Model Brand Value Chain Designing and implementing Brand Marketing Program Choosing Brand Elements Integrating the Brand into Marketing Activities and the Supporting Marketing Program Leveraging Secondary Associations Measuring and Interpreting Brand Performance To manage brands profitably, managers must d implement a brand equity measurement system Brand equity measurement system involves: Brand audits Brand tracking studies Brand equity management system Growing and Sustaining Brand Equity Defining Brand Architecture Managing Brand Equity over Time Managing Brand Equity over Geographic Boundaries, Cultures, and Market Segments  Figure 1.12 - Strategic Brand Management Process Powerpoint Presentation referenced from: Strategic Brand Management by: Kevin Lane Keller Pearson Education, Inc.