Brand Management
Topic 1
The past:
- Undifferentiable by seller/manufacturer
- Often sold loose
- Quality highly variable
- Many manufacturers/sellers
Question: how do I get a buyer to prefer and buy my commodity? Come up with
something were they can identify with: kind of material/ expertise
Answer: differentiate it from competition and make it more attractive
How: by branding your commodity
- Marks on Chinese porcelain, bakers to mark their bread..
- Brand = a name, term, sign, symbol, or design, or a combination of them,
intended to identify the goods and services of one seller row of sellers and to
differentiate from those of competition.
o People attach value to a brand -> way to identify yourself
- In practice, a brand creates a certain amount of meaning, reputation, preference,
and so on.. in the eyes of the customer
The present:
- From identification to identity:
o It ’s no longer what 100% what the companies tell you about the brand,
more what consumers say about it -> you don’t want bad reviews
- Changing perspectives:
o From the organizations point of view: physical product
o To the customers point of view: psycological product
o 4 levels (levitt):
Core product (gas)
Tangible product (Esso, Shell)
Augmented product (warranty)
Total product (brand image, brand attitude)
o Inside-out vs outside-in perspective: brand shows what they want vs
people show what they want
- Brand = a product, but one that adds other dimensions that differentiate it in
some way from other products designed to satisfy (the same) needs.
These valued differences can be: rational and tangible, but are often intangible,
emotional and symbolic
,- Brands are more and more intangibles that have become the key source of
corporate value
Consumers value brands not just for their functional attributes but also for the
sensory pleasure and potential self-expression they may experience when buying
and using these so called brand values may include concepts like brand quality,
credibility, sustainability.. -> functional and psychosocial benefits the consumer may
be looking for in a brand.
Means -> end chain
- Focus on attitude (average total in values isn’t very useful) -> which values are
most important?
- Certain logos or brand names project different values. -> mediator model (vs
moderator)
- Product = anything that can be offered to a market for attention, acquisition, use
or consumption
- Branded product = a product that has been given a name for identification
purposes (no meaning to the customer)
- Brand = a product, but one that adds other dimensions that differentiate it in
some way from other products designed to satisfy (the same) needs
- Product -> branded product (physical product perspective)
o Tangible (can be touched by customer, can be copied and outdated,
involves transactions
o Differentiation, attributes, promise, static, mass, awareness
- Branded product -> brand (psychological product perspective)
o Intangible (lives in customer’s mind), unique, potentially timeless, forms
basis of connections
o Relevance (you have to stay relevant for your target group), personality,
relationship, dynamic, individual, meaningfulness
From identification to identity
Why are brands important for…?
- Consumers
o Identification of product and source
o Assignment of responsibility to product maker
o Risk reducer (different kinds of risk)
, o Search cost reducer (if you are familiar with a brand, it’s easy to buy
again)
o Bond/pact with maker of product
o Symbolic device (e.g. porsche)
o Signal of quality
- Producers
o Means of legally protecting unique features
o Signal of quality levels
o Means of endowing products with unique associations
o Source of competitive advantage (barriers of entry)
o Source of financial returns
CBBE = differential effect that brand knowledge has on consumer response to the
marketing of that brand
o A brand has positive customer-based brand equity when customers react
more favorably to a product and the way it is marketed when the brand is
identified than when it is not.
Differences in outcomes arise from ‘added value’ as a result of past
marketing activities for the brand
Brand equity provides a common denominator for interpreting marketing
strategies and assessing the value of a brand (comparing brands)
Value can be manifested in different ways e.g. greater proceeds (gains)
a/o lower costs (pains)
This value an be created in many different ways
Brand management goals:
- Consumer-based brand equity
o Build, sustain and leverage positive, strong, active, unique meanings of
the brand..
- Financial-based brand equity (FBBE)
o ..To enable the brand to earn more in the short and long run.
The key to branding is that consumers perceive relevant differences among brands in
a product category/the brand resides in the minds of consumers, so give it a label
(how to identify) and provide meaning (what it does for you).
- Physical goods
o Fast moving packaged consumer goods: almost 100% of all products are
‘branded’
o Business-to-business products: Creating a positive image and reputation
for a company as a whole (e.g., Boeing)
o High-tech products: Financial success no longer driven by product
innovation or latest product specifications and features alone (e.g., Intel)
- Services
, o Address potential intangibility and variability problems
o Brand symbols to make abstract nature more concrete
- Retailers and distributors
o Generate consumer interest, patronage and loyalty in a store and
o Learn consumers to expect certain brands and products from a store
o ✓ Private label brands (e.g., Albert Heijn, Tesco)
- Online Products and Services
o Improving customer associations because unique product attributes of the
brand (convenience, price, etc.) are not enough (e.g., Google vs Googol)
- People (elon musk) and organizations
- Sports, arts and entertainment (experience goods); walt Disney, pixar
- Geographic locations (Turkey)
- Ideas and causes (BOB)
The future:
Why do some brands fail? Some marketers failed to take into account the changing
market conditions and continued to operate with a ‘business as usual’ attitude or
were inappropriate in their response.
Challenges and opportunities:
- Savvy customers -> it’s difficult to persuade the more experienced consumers
with traditional communications…and to be ‘respected’ is not enough
- Brand proliferation -> more complex brand families and portfolios, few ‘mono’
products brands
- Media fragmentation (what are causes?) -> Firms spend more on nontraditional
and new forms of communication, e.g., interactive, social media. Increase
expenditures on promotion, decrease expenditures on advertising
- Increased costs -> NP-intro (co-opetition), existing product support
- Increased competition (more difficult to differentiate) ->
o Supply-side; brand extensions/deregulation/globalization/low-priced
competitors (growth of private labels & increasing trade power).
o Demand-side; mature markets.
- Greater accountability -> increasing job turnover, short-term performance
orientation
Topic 1
The past:
- Undifferentiable by seller/manufacturer
- Often sold loose
- Quality highly variable
- Many manufacturers/sellers
Question: how do I get a buyer to prefer and buy my commodity? Come up with
something were they can identify with: kind of material/ expertise
Answer: differentiate it from competition and make it more attractive
How: by branding your commodity
- Marks on Chinese porcelain, bakers to mark their bread..
- Brand = a name, term, sign, symbol, or design, or a combination of them,
intended to identify the goods and services of one seller row of sellers and to
differentiate from those of competition.
o People attach value to a brand -> way to identify yourself
- In practice, a brand creates a certain amount of meaning, reputation, preference,
and so on.. in the eyes of the customer
The present:
- From identification to identity:
o It ’s no longer what 100% what the companies tell you about the brand,
more what consumers say about it -> you don’t want bad reviews
- Changing perspectives:
o From the organizations point of view: physical product
o To the customers point of view: psycological product
o 4 levels (levitt):
Core product (gas)
Tangible product (Esso, Shell)
Augmented product (warranty)
Total product (brand image, brand attitude)
o Inside-out vs outside-in perspective: brand shows what they want vs
people show what they want
- Brand = a product, but one that adds other dimensions that differentiate it in
some way from other products designed to satisfy (the same) needs.
These valued differences can be: rational and tangible, but are often intangible,
emotional and symbolic
,- Brands are more and more intangibles that have become the key source of
corporate value
Consumers value brands not just for their functional attributes but also for the
sensory pleasure and potential self-expression they may experience when buying
and using these so called brand values may include concepts like brand quality,
credibility, sustainability.. -> functional and psychosocial benefits the consumer may
be looking for in a brand.
Means -> end chain
- Focus on attitude (average total in values isn’t very useful) -> which values are
most important?
- Certain logos or brand names project different values. -> mediator model (vs
moderator)
- Product = anything that can be offered to a market for attention, acquisition, use
or consumption
- Branded product = a product that has been given a name for identification
purposes (no meaning to the customer)
- Brand = a product, but one that adds other dimensions that differentiate it in
some way from other products designed to satisfy (the same) needs
- Product -> branded product (physical product perspective)
o Tangible (can be touched by customer, can be copied and outdated,
involves transactions
o Differentiation, attributes, promise, static, mass, awareness
- Branded product -> brand (psychological product perspective)
o Intangible (lives in customer’s mind), unique, potentially timeless, forms
basis of connections
o Relevance (you have to stay relevant for your target group), personality,
relationship, dynamic, individual, meaningfulness
From identification to identity
Why are brands important for…?
- Consumers
o Identification of product and source
o Assignment of responsibility to product maker
o Risk reducer (different kinds of risk)
, o Search cost reducer (if you are familiar with a brand, it’s easy to buy
again)
o Bond/pact with maker of product
o Symbolic device (e.g. porsche)
o Signal of quality
- Producers
o Means of legally protecting unique features
o Signal of quality levels
o Means of endowing products with unique associations
o Source of competitive advantage (barriers of entry)
o Source of financial returns
CBBE = differential effect that brand knowledge has on consumer response to the
marketing of that brand
o A brand has positive customer-based brand equity when customers react
more favorably to a product and the way it is marketed when the brand is
identified than when it is not.
Differences in outcomes arise from ‘added value’ as a result of past
marketing activities for the brand
Brand equity provides a common denominator for interpreting marketing
strategies and assessing the value of a brand (comparing brands)
Value can be manifested in different ways e.g. greater proceeds (gains)
a/o lower costs (pains)
This value an be created in many different ways
Brand management goals:
- Consumer-based brand equity
o Build, sustain and leverage positive, strong, active, unique meanings of
the brand..
- Financial-based brand equity (FBBE)
o ..To enable the brand to earn more in the short and long run.
The key to branding is that consumers perceive relevant differences among brands in
a product category/the brand resides in the minds of consumers, so give it a label
(how to identify) and provide meaning (what it does for you).
- Physical goods
o Fast moving packaged consumer goods: almost 100% of all products are
‘branded’
o Business-to-business products: Creating a positive image and reputation
for a company as a whole (e.g., Boeing)
o High-tech products: Financial success no longer driven by product
innovation or latest product specifications and features alone (e.g., Intel)
- Services
, o Address potential intangibility and variability problems
o Brand symbols to make abstract nature more concrete
- Retailers and distributors
o Generate consumer interest, patronage and loyalty in a store and
o Learn consumers to expect certain brands and products from a store
o ✓ Private label brands (e.g., Albert Heijn, Tesco)
- Online Products and Services
o Improving customer associations because unique product attributes of the
brand (convenience, price, etc.) are not enough (e.g., Google vs Googol)
- People (elon musk) and organizations
- Sports, arts and entertainment (experience goods); walt Disney, pixar
- Geographic locations (Turkey)
- Ideas and causes (BOB)
The future:
Why do some brands fail? Some marketers failed to take into account the changing
market conditions and continued to operate with a ‘business as usual’ attitude or
were inappropriate in their response.
Challenges and opportunities:
- Savvy customers -> it’s difficult to persuade the more experienced consumers
with traditional communications…and to be ‘respected’ is not enough
- Brand proliferation -> more complex brand families and portfolios, few ‘mono’
products brands
- Media fragmentation (what are causes?) -> Firms spend more on nontraditional
and new forms of communication, e.g., interactive, social media. Increase
expenditures on promotion, decrease expenditures on advertising
- Increased costs -> NP-intro (co-opetition), existing product support
- Increased competition (more difficult to differentiate) ->
o Supply-side; brand extensions/deregulation/globalization/low-priced
competitors (growth of private labels & increasing trade power).
o Demand-side; mature markets.
- Greater accountability -> increasing job turnover, short-term performance
orientation
