LECTURE 1
WHAT IS A BRAND?
A brand is “a name, term, symbol or design, or combination of these, which is intended to
identify goods or services of one seller, or group of sellers and to differentiate them from
those of competitors.
SYMBOLS
A symbol is any object, word or action that stands for something else.
There is a physical way in which brands are symbols: the logos, names, and even color
choices of a brand make it recognizable and distinctive
But there is more: brands engage in many symbols at the same time, which are
interpreted by consumers and which, ultimately, convey meaning
THE MEANING OF MEANING
When a brand works, each element associated with it reminds its audience of the
associated organization but also:
BRANDS & IDENTITY
Stakeholders include corporated brands within their identities. This can mean, for
example:
- Driving an expensive car to (subconsciously?) communicate status
- Looking for a part time job at Marqt rather than Albert Heijn because more
sustainable
- Or… trying to engage with brands as little as possible (is still an attribution of
meaning, and a rejection of whatever that meaning stands for).
PRODUCT VS CORPORATE BRAND
Products ae corporate brands can both convey emotions, ideas and memories and can be
associated with substantial value. They are, however, very different.
,PRODUCT BRAND
- Can have a completely different identity than the organization behind it (Pringles
was owned by Procter & Gample until they sold to Kellogg’s in 2012)
- Only really concerns one product, or a small group of products
- Targets consumers only
- Is only meant to survive as long as the product survives
- Example: Pringles
CORPORATE BRAND
- If endorsed (such as HEMA) it influences all the products of an organization, no
matter what kind
- Originates from the company’s heritage, its valued and beliefs, and what members
of the organization have in common.
- Targets all stakeholders, including employees, managers, suppliers and even
politicians.
- Is meant to be long lasting.
Corporate branding is hard to change (successfully)
A STORY OF TWO AIRLINES
- British Airways had a national identity encompassed in their brand, changing this
is hard
- Southwest did not have this and could change branding fairly easily
VCI ALIGNMENT MODEL
,SO, WHAT DID BRITISCH AIRWAYS DO WRONG?
Culture/vision gap: management
- Did not involve employees in the decision making behind the airplane redesign
- Planned an expensive airplane re-design as well as a plan to cut costs (likely,
resizing personnel)
Vision/image gap: management
- Ignored how UK consumers would react to the airplane redesign
- Discounted the appreciation consumers from the rest of the world had about the
Britishness of British Airlines before
MEASURING THE VALUE OF BRANDS
Intangible assets
Economists measure the value of organization based on their assets (NL: active), that is,
the capital they have generated
Assets typically divide themselves in two categories:
- Tangible assets: buildings, cash, investments, equipment etc.
- Intangible asset: elements of value that do not exist physically, such as patents
and indeed brand equity.
BRAND EQUITY
Brand equity represents the value of a brand in the market place. It is defined by 5
elements:
- Market behavior
- Awareness
- Association and differentiation
- Quality
- Loyalty
Association and differentiation, quality, loyalty:
, - Subjective measures, dependent on consumer perceptions
Market behavior, awareness:
- Rational considerations:
Market behavior = market share, price and distribution
Awareness = extent to which a population claims to know that brand exists
SYMBOLIC VALUES
Consumers (but more broadly stakeholders) of a certain organization attribute a value to
its brand because it defines a degree of belonging based on the creation of a common
ground of understanding
Based on the values conveyed by the brand, stakeholders:
- Buy branded products
- Invest in the company stock
- Work for the company behind the brand
- Promote the brand, as consumers
- Invest trust in the brand
This symbolic value of a brand translates into financial value.
LECTURE 2
UNDERSTANDING BRANDING
The boundaries of branding as a commercial activity
Some of the elements influencing these trends include:
- Historical and cultural events
- Political context
- Economical and financial conditions (e.g. rising vs depression)
THE EARLY DAYS
- Industrial revolution = mass production
- Most products are…just products (e.g., the one toothpaste, the one type of cookies
made by the local bacer)
- Branding becomes a tool to:
Inform the consumer that a product exists
Guarantee a certain degree of quality
THE 20’TH CENTURY
- Two world wars + aftermath: from pverty and lack of resources to a new economic
growth
- Massive technological innovation, but expensive goods
- Monopolies, seller’s market
branding is instrumental = it informs of where a product comes from, or how it is
made. Focus is on the product and its characteristics.
WHAT IS A BRAND?
A brand is “a name, term, symbol or design, or combination of these, which is intended to
identify goods or services of one seller, or group of sellers and to differentiate them from
those of competitors.
SYMBOLS
A symbol is any object, word or action that stands for something else.
There is a physical way in which brands are symbols: the logos, names, and even color
choices of a brand make it recognizable and distinctive
But there is more: brands engage in many symbols at the same time, which are
interpreted by consumers and which, ultimately, convey meaning
THE MEANING OF MEANING
When a brand works, each element associated with it reminds its audience of the
associated organization but also:
BRANDS & IDENTITY
Stakeholders include corporated brands within their identities. This can mean, for
example:
- Driving an expensive car to (subconsciously?) communicate status
- Looking for a part time job at Marqt rather than Albert Heijn because more
sustainable
- Or… trying to engage with brands as little as possible (is still an attribution of
meaning, and a rejection of whatever that meaning stands for).
PRODUCT VS CORPORATE BRAND
Products ae corporate brands can both convey emotions, ideas and memories and can be
associated with substantial value. They are, however, very different.
,PRODUCT BRAND
- Can have a completely different identity than the organization behind it (Pringles
was owned by Procter & Gample until they sold to Kellogg’s in 2012)
- Only really concerns one product, or a small group of products
- Targets consumers only
- Is only meant to survive as long as the product survives
- Example: Pringles
CORPORATE BRAND
- If endorsed (such as HEMA) it influences all the products of an organization, no
matter what kind
- Originates from the company’s heritage, its valued and beliefs, and what members
of the organization have in common.
- Targets all stakeholders, including employees, managers, suppliers and even
politicians.
- Is meant to be long lasting.
Corporate branding is hard to change (successfully)
A STORY OF TWO AIRLINES
- British Airways had a national identity encompassed in their brand, changing this
is hard
- Southwest did not have this and could change branding fairly easily
VCI ALIGNMENT MODEL
,SO, WHAT DID BRITISCH AIRWAYS DO WRONG?
Culture/vision gap: management
- Did not involve employees in the decision making behind the airplane redesign
- Planned an expensive airplane re-design as well as a plan to cut costs (likely,
resizing personnel)
Vision/image gap: management
- Ignored how UK consumers would react to the airplane redesign
- Discounted the appreciation consumers from the rest of the world had about the
Britishness of British Airlines before
MEASURING THE VALUE OF BRANDS
Intangible assets
Economists measure the value of organization based on their assets (NL: active), that is,
the capital they have generated
Assets typically divide themselves in two categories:
- Tangible assets: buildings, cash, investments, equipment etc.
- Intangible asset: elements of value that do not exist physically, such as patents
and indeed brand equity.
BRAND EQUITY
Brand equity represents the value of a brand in the market place. It is defined by 5
elements:
- Market behavior
- Awareness
- Association and differentiation
- Quality
- Loyalty
Association and differentiation, quality, loyalty:
, - Subjective measures, dependent on consumer perceptions
Market behavior, awareness:
- Rational considerations:
Market behavior = market share, price and distribution
Awareness = extent to which a population claims to know that brand exists
SYMBOLIC VALUES
Consumers (but more broadly stakeholders) of a certain organization attribute a value to
its brand because it defines a degree of belonging based on the creation of a common
ground of understanding
Based on the values conveyed by the brand, stakeholders:
- Buy branded products
- Invest in the company stock
- Work for the company behind the brand
- Promote the brand, as consumers
- Invest trust in the brand
This symbolic value of a brand translates into financial value.
LECTURE 2
UNDERSTANDING BRANDING
The boundaries of branding as a commercial activity
Some of the elements influencing these trends include:
- Historical and cultural events
- Political context
- Economical and financial conditions (e.g. rising vs depression)
THE EARLY DAYS
- Industrial revolution = mass production
- Most products are…just products (e.g., the one toothpaste, the one type of cookies
made by the local bacer)
- Branding becomes a tool to:
Inform the consumer that a product exists
Guarantee a certain degree of quality
THE 20’TH CENTURY
- Two world wars + aftermath: from pverty and lack of resources to a new economic
growth
- Massive technological innovation, but expensive goods
- Monopolies, seller’s market
branding is instrumental = it informs of where a product comes from, or how it is
made. Focus is on the product and its characteristics.
