Professional Documents
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What is a Brand?
American Marketing Associations definition
A brand is a name, term, sign, symbol, or design which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.
Attributes that identify the brand are called Brand Elements (based on people, place, objects, animals, etc.) Practicing managers define brands as more than that. This distinction is important since it can lead to confusion.
What is a Brand?
Brand versus Product Product is anything that can be offered to a market for attention, acquisition, use or consumption that may satisfy a need or a want (goods, services, retail store, person, organization, idea)
Core benefit level fundamental need or want that is satisfied Generic product level basic version attributes necessary for functioning (stripped down level) Expected product level what customers normally expect Augmented product level additional attributes, benefits that distinguish it from competition Potential product level all transformation that it might undergo in the future
What is a Brand?
A Brand is therefore a Product that also has dimensions that differentiates it from other products designed to satisfy the same need (competition)
Differences may be
Rational and tangible related to product performance (3M, Sony, Gillette) Symbolic, emotional, intangible related to what the brand represents (Coca Cola, Calvin Kline, Marlboro)
What distinguishes a brand from a commodity gives it equity - the sum total of consumer perceptions and feelings about how it performs (3M, Sony, Gillette)
The name and what it stands for The company associated with the brand
BE relates to the fact that different outcomes result in the marketing of a product or service because of its brand name, as compared to if the same product or service did not have that name.
Customers
Risk reducer Search cost reducer Signal of quality Symbolic device for self expression Promise, bond, pact, with maker of the product Means of identification of source of product for assignment of responsibility to product maker
Manufacturer
Means of identification for handling, tracing Signal of quality level to satisfied customers Competitive advantage Financial return Legal protection of unique features
a bond / pact. trust and loyalty and in return . expect consistent product performance, appropriate price, distribution and other actions
Brands take on a special meaning and change the experience and perception of a product that leads to greater satisfaction Customers with past experience learn more about the brand The advantages
Lowers search cost internally and externally The value may not be only functional in nature They are symbolic devices allowing them to project their self image Extremely important with credence goods to signal quality Brands reduce risk particularly in BtoB settings
B to B products High-tech products Services Retailers and Distributors Online products and services People and Organizations Sports Arts, Entertainment Geographic location Ideas and causes
Taught to identify the brand label, name and other elements Learn the brand meaning - functional, emotional and symbolical Know the brand difference from other similar product brands (performance / image and nonproduct related considerations)
Customer is aware of and familiar with the brand Customer holds some strong, favorable, and unique brand associations in memory
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Differential effect of brand because of Customer brand knowledgewhich generates Customer response to brand marketing
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BE concept stresses - importance of the brand in marketing strategies BE is defined in terms of the marketing effects uniquely attributable to the brand.
Brand equity relates to the fact that different outcomes result in the marketing of a product or service because of its brand name, as compared to if the same product or service did not have that name.
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The initial choices for the brand elements The supporting marketing program and the manner by which the brand is integrated into it Other associations indirectly transferred to the brand by linking it to some other entities
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Consumer must not think that all brands in the category are the same.
PERCEPTION = VALUE
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CBBE represents the added value endowed to a product as a result of past investments in the marketing of a brand. CBBE therfore provides direction and focus to future marketing activities
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Strategic brand management involves design and implementation of marketing programs and activities to build, measure, manage BE Strategic brand management process involves four main steps:
1) 2) 3) 4) Identify and establish brand positioning and values Plan and implement brand marketing programs Measure and interpret brand performance Grow and sustain BE
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KEY CONCEPTS
Mental maps Competitive frame of reference Points-of-parity and points-of-difference Core brand values Brand mantra Mixing and matching of brand elements Integrating brand marketing activities Leveraging of secondary associations Brand Value Chain Brand audits Brand tracking Brand equity management system Brand-product matrix Brand portfolios and hierarchies Brand expansion strategies Brand reinforcement and revitalization
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Consumer need for simplification Consumer need for risk reduction Savvy consumers Increased competition Decreased effectiveness of traditional marketing tools and emergence of new marketing tools Complex brand and product portfolios
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