BRAND MANAGEMENT ASSIGNMENT

BRAND AND BRAND MANAGEMENT REVIEW

Compiled by:
Dwiky Rahardian
C1K012030

MINISTRY OF EDUCATION DEPARTMENT

JENDERAL SOEDIRMAN UNIVERSITY
ECONOMICS AND BUSINESS FACULTY
MAJORING IN INTERNATIONAL MANAGEMENT PROGRAM
2015

BRAND AND BRAND MANAGEMENT

1.

Definition of Brand
According to the American Marketing Association (AMA), a brand is a
name, term, sign, symbol, or design, or a combination of them, intended to identify
the goods and services of one seller or group of sellers and to differentiate them from
those of competition. Technically speaking, then, whenever a marketer creates a new
name, logo, or symbol for a new product, he or she has created a brand.
Brand Elements
There are kind of brand elements: name, logo, symbol, package design. These
4 elements will identifies a product and distinguishes it from others. Brand names
themselves come in many different forms. There are brand names based on peoples names,
like Este Lauder cosmetics, Porsche automobiles, and Orville Redenbacher popcorn; names
based on places, like Sante Fe cologne, and names based on animals or birds, like Mustang
automobiles, Dove soap, and Greyhound buses. In the category of other, we find Apple
computers, Shell gasoline, and Carnation evaporated milk. Some brand names use words with
inherent product meaning, like Lean Cuisine, Ocean Spray 100% Juice Blends, and Ticketron,
or suggesting important attributes or benefits, like DieHard auto batteries, Mop & Glo floor
cleaner, and Beautyrest mattresses. Other names are made up and include prefixes and
suffixes that sound scientific, natural, or prestigious, like Lexus automobiles, Pentium
microprocessors, and Visteon auto supplies. Not just names but other brand elements like
logos and symbols also can be based on people, places, things, and abstract images. In
creating a brand, marketers have many choices about the number and nature of the brand
elements they use to identify their products.

Differentiation between Brand and Product

There are several fundamental differences between a brand and a product (or a
service):

1. Companies Make Products and Consumers Make Brands

A product is made by a company and can be purchased by a consumer
in exchange for money while brands are built through consumer
perceptions, expectations, and experiences with all products or services
under a brand umbrella. For example, Toyotas product is cars. Its
umbrella brand is Toyota and each product has its own more specific brand
name to distinguish the various Toyota-manufactured product lines from
one another. Without a product, there is no need for a brand.

2. Products Can Be Copied and Replaced but Brands Are Unique

A product can be copied by competitors at anytime. When Amazon
launched the Kindle e-reader device, it didnt take long for competitors to

come out with their own branded versions of an e-reader product.

However, the brand associated with each e-reader device offers unique
value based on the perceptions, expectations, and emotions that consumers
develop for those brands through previous experiences with them.
Similarly, a product can be replaced with a competitors product if
consumers believe the two products offer the same features and benefits.
Products with low emotional involvement are typically easily replaced.
3. Products Can Become Obsolete but Brands Can Be Timeless
Remember VHS players? With the introduction of DVD players and
more recently DVR devices and streaming video services, VHS players
have become obsolete. The same thing happened to 8-track tapes, vinyl
records, cassettes, and CDs. Today, most people buy their music in digital
format and listen to it on their iPods. The Elvis Presley brand is timeless,
but no one buys Elvis music on cassettes anymore.
4. Products Are Instantly Meaningful but Brands Become Meaningful over
Time
When you launch a new product, its easy to make that product
instantly meaningful and useful to consumers because it serves a specific
function for them. However, a brand is meaningless until consumers have
a chance to experience it, build trust with it, and believe in it. Thats why
the 3 steps to brand building include consistency, persistence, and restraint.
It takes time and effort to convince consumers to believe in your brand.
Consider Google as an example. When Google first hit the Internet
scene it offered a simple product a search engine. That product was
instantly meaningful to consumers because it helped them find information
online quickly. However, the Google brand didnt become meaningful to
consumers until people had a chance to use the Google search engine
product and see for themselves that it really was a better search engine.
Through those experiences, consumers began to trust that the Google
brand could deliver faster and better information online. Today, when
Google launches a new product (like Google+ recently), people are quick
to try those products because they trust the Google brand.
2. The Brand Equity Concept
One of the most popular and potentially important marketing concepts to arise in the
1980s was brand equity. Its emergence, however, has meant both good news and bad
news to marketers. The good news is that brand equity has elevated the importance of
the brand in marketing strategy and provided focus for managerial interest and
research activity. The bad news is that, confusingly, the concept has been defined a
number of different ways for a number of different purposes. No common viewpoint
has emerged about how to conceptualize and measure brand equity.
Fundamentally, branding is all about endowing products and services with the
power of brand equity. Despite the many different views, most observers agree that
brand equity consists of the marketing effects uniquely attributable to a brand. That
is, brand equity explains why different outcomes result from the marketing of a

branded product or service than if it were not branded. That is the view we take in this
book. As a stark example of the transformational power of branding, consider the
auctions sales in Figure 1-11. Without such celebrity associations, it is doubtful that
any of these items would cost more than a few hundred dollars at a flea market.
Branding is all about creating differences. Most marketing observers also
agree with the following basic principles of branding and brand equity:
Differences in outcomes arise from the added value endowed to a product
as a result of past marketing activity for the brand.
This 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
manifested or exploited to benefit the firm (in terms of greater proceeds or
lower costs or both).

3. Strategic Brand Management Process

It's very important to understand the various aspects in the process of
strategic brand management. The process of strategic brand management
basically involves 4 steps:
1. Building Brand
As a first step, marketers should define what they want their brand to
represent(brand identity). A brand identity can be pictured in the form of a
map with concentric circles, with the core defining elements of the brand
in the center and secondary elements of the brand in an outer circle. Once
marketer have a clear idea of the brands identity, they can use marketing
tool to build the brand. Using a 4 Ps framework (product, price, place,
promotion), marketer can create a promotional strategy that utilizes both
promotional advertising and inventive approaches.
2. Leveraging Brands
Marketers want to achieve a return on their investment, and one vital
decision is how to best utilize their brand assets. Marketers may choose to
leverage some of the brands established equity to create line extension,
brand extension, or co-brand products.

a. Line Extension : Adding a new form of a product or service is

generally regarded as the easiest extension, but is likely to generate
low incremental revenue.
b. Brand Extension : This type of extension differs from a line
extension in that it consist of extending the products or services
brand into a new category. A brand extension has the benefits of real
growth opportunity, but the drawback is the potential for costly
mistakes.

c. Co-Branded Products : This method of leveraging brands consist

of an alliance of complimentary brands. This can often take the form
of ingredient branding. A good marketing strategy will consider
whether co-branding is appropriate for particular situations.
3. Identifying and Measuring Brands
The questions of identifying brands considers: What does the brand
mean to customers? What product associations do customers have and
their attitudes toward the brand? A marketer should also consider the nonproduct associations that accompany the brand. For ex. What colors are
associated with the brand? What is the brands personality and what are
the perceptions of the brands country of origin? Monitoring customers
impression of all these important elements of the brand plays an important
role in brand management.
4.

Protecting the Brand

The area of strategic brand management has historically been shortchanged, being forgotten as the brand building bandwagon took off.
However, it is not taking its rightful place as a key element of strategic
brand management. Traditionally, protection come from legal teams
whose work with trademark remains an element of protecting the brand
but is, by no means, the entire protection needed.