BRANDS & BRAND

MANAGEMENT
Module 1

1.1

and Y

1.2

What is a brand?
For 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.
These different components of a brand that identify
and differentiate it are brand elements.

1.3

What is a brand?
Many practicing managers refer to a brand as more

than that as something that has actually created a

certain amount of awareness, reputation, prominence,
and so on in the marketplace.
We can make a distinction between the AMA definition
of a brand with a small b and the industrys concept
of a Brand with a capital b.

1.4

Brands vs. Products

A product is anything we can offer to a market

for attention, acquisition, use, or consumption

that might satisfy a need or want.
A product may be a physical good, a service, a
retail outlet, a person, an organization, a place,
or even an idea.

1.5

Five Levels of Meaning for a

Product
The core benefit level is the fundamental need or

want that consumers satisfy by consuming the

product or service.
The generic product level is a basic version of the
product containing only those attributes or
characteristics absolutely necessary for its functioning
but with no distinguishing features. This is basically a
stripped-down, no-frills version of the product that
adequately performs the product function.
The expected product level is a set of attributes or
characteristics that buyers normally expect and agree
to when they purchase a product.
The augmented product level includes additional
product attributes, benefits, or related services that
distinguish the product from competitors.
The potential product level includes all the
augmentations and transformations that a product
might ultimately undergo in the future.
1.6

Air Conditioners
Cooling & Comfort
Sufficient cooling capacity, acceptable

energy efficiency, adequate air intakes and

exhausts
Cooling speeds , removable air filters, power
cord with say at least 60 inches length
Electric touch pad controls
Silently running, completely balanced
throughout the room and energy sell
sufficient.
1.7

Product Mix
Product
Product Mix:
Mix:

The
Thetotal
totalassortment
assortmentof
of

products
productsand
andservices
services
marketed
marketedby
byaafirm.
firm.

Product
Product Line:
Line:

AAgroup
groupof
ofindividual
individualproducts
products

that
thatare
areclosely
closelyrelated
relatedin
insome
some
way.
way.

Individual
Individual Product:
Product:

Any
Anybrand
brandor
orvariant
variantof
ofaabrand
brand

in
inaaproduct
productline.
line.

Product Mix
Characteristics/Dimensions
Product Mix Width:
The number of product lines in the product

mix.
Product Line Length:
The number of products in a product line.
Product Mix Depth :
Number of version offered of each product in

the line.

Product Mix Consistency:

The relatedness of the different product

lines in a product mix.

Unilever products

Consistency
Product Line
-1
Product Mix
Width
PERSONAL CARE

Product Line
-2
FOOD &
DRINKS

Product Mix Length

Soap

Produ
ct Mix
Depth

Cream

Toothpas
te

Lux

Shampoo

Clear

Ponds

Close up

Dove

Dove

Dove

Pepsode
nt

Lifebuoy

Lifebuoy

Fair
& Lovely

Product Line Length

Ice
cream

Cornett
o
Magnu
m

Tea

Lipton
Suprem
e

Product Line
Length

Product and Service Strategies

Individual Product Strategies

Product
Product Life
Life Cycle
Cycle (PLC):
(PLC):
Describes
Describes the
the advancement
advancement of
of products
products

through
through identifiable
identifiable stages
stages of
of their
their
existence.
existence.

The Product Life Cycle

The
The Product
Product Life
Life Cycle
Cycle Concept
Concept
is
is Based
Based on
on Four
Four Premises
Premises
Products have a
limited life.

Profits from a product

vary at different stages
in the life cycle.

Product sales pass through

distinct stages, each with
different marketing
implications.

Products require different

strategies at different
life cycle stages.

The Diffusion Process

Innovators
(2.5%)
Early Adopters
(13.5%)
Early Majority
(34%)
Late Majority
(34%)
Laggards
(16%)

The Diffusion Process

PLC Stages and Characteristics

PLC Length and Shape

Style
Sales

Sales

Time

Fashio
n

Time

Fad
Sales

Time

PLC Marketing Strategies

Stage
Stage

Objective
Objective

Marketing
Marketing Strategy
Strategy

Introduction
Introduction

Awareness
Awareness&&trial
trial

Communicate
Communicatebenefits
benefits

Growth
Growth

Usage
Usageof
offirms
firmsbrand
brand

Specific
Specificbrand
brandcommunication,
communication,
lower
lowerprices,
prices,expand
expanddistribution
distribution

Maturity
Maturity

Maintain
Maintainmarket
marketshare
share
Extend
Extendlife
lifecycle
cycle

Sales
Salespromotion,
promotion,drop
dropprice,
price,
expand
expanddistribution,
distribution,new
newuses
uses
&&new
newversions
versionsof
ofproduct
product

Decline
Decline

Decide
Decidewhat
whatto
todo
do
with
withproduct
product

Maintain,
Maintain,harvest,
harvest,or
ordivest
divest

Limitations of the PLC

1.
1. The
The life
life cycle
cycle concept
concept applies
applies best
best to
to

product
product forms
forms rather
rather than
than to
to classes
classes of
of
products
products or
or specific
specific brands.
brands.

2.
2. The
The life
life cycle
cycle concept
concept may
may lead
lead marketers
marketers

to
to think
think that
that aa product
product has
has aa
predetermined
predetermined life,
life, which
which may
may produce
produce
problems
problems in
in interpreting
interpreting sales
sales and
and profits.
profits.

3.
3. It
It is
is only
only aa descriptive
descriptive way
way of
of looking
looking at
at the
the

behavior
behavior of
of aa product
product and
and the
the life
life cycle
cycle can
can
not
not predict
predict the
the behavior
behavior of
of aa product.
product.

Product-Line Strategies

Strategic
Strategic Alternatives:
Alternatives:
1.
1. To
To increase
increase the
the length
length of
of aa
product
product line.
line.
2.
2. To
To decrease
decrease the
the length
length of
of

aa product
product line.
line.

Increasing the Product Line

Downward-stretch Strategy
Upward-stretch Strategy
Two-way-stretch Strategy
Line-filling Strategy

Cannibalization occurs when a new

Product takes sales away from
existing products.

Decreasing the Product Line

Product Line Contraction:
Firms must consider deleting

products when:
They are not successful.
They reach the decline stage of PLC.
Long product line marketing costs

are too high.

Product-Mix Strategies

The Product Mix consists of all

product lines and individual products
marketed by the firm.

Strategic Alternatives
Add New
Product Lines?

Delete Existing
Product Lines?

Branding Strategies
Individual
IndividualBrand
Brand
Name
NameStrategy
Strategy

Product
ProductMix
Mix
Branding
BrandingStrategies
Strategies

Family
Family&&Individual
Individual
Brand
BrandName
Name

Family
FamilyBrands
Brandsor
or
Product
ProductTypes
Types

Family
FamilyBrand
Brand
Name
NameStrategy
Strategy

Company
Company
Name
Name

A brand is therefore more than a product,

as it can have dimensions that differentiate

it in some way from other products
designed to satisfy the same need.

1.28

Some brands create competitive

advantages with product performance;

other brands create competitive
advantages through non-product-related
means.

1.29

Why do brands matter?

What functions do brands perform that

make them so valuable to marketers?

1.30

Importance of Brands to
Consumers

1.31

Reducing the Risks in Product

Decisions

1.32

Importance of Brands to
Firms

To firms, brands represent enormously

valuable pieces of legal property, capable

of influencing consumer behavior, being
bought and sold, and providing the security
of sustained future revenues.

1.33

Importance of Brands to Firms

1.34

Can everything be branded?

Ultimately a brand is something that

resides in the minds of consumers.

The key to branding is that consumers
perceive differences among brands in a
product category.
Even commodities can be branded:
Coffee (Nestle ), bath soap (Lux), flour

(Pillsbury), beer (Budweiser), salt (Tata),

oatmeal (Quaker), pickles (Mothers Recipie),
chicken (Sugna), and even water (Aquafine)

1.35

An Example of Branding a
Commodity
De Beers Group added the phrase A

Diamond Is Forever

1.36

What is branded?
Physical goods
Services
Retailers and distributors
Online products and services
People and organizations
Sports, arts, and entertainment
Geographic locations
Ideas and causes

1.37

Source of Brands Strength

The real causes of enduring market

leadership are vision and will. Enduring

market leaders have a revolutionary and
inspiring vision of the mass market, and they
exhibit an indomitable will to realize that
vision. They persist under adversity, innovate
relentlessly, commit financial resources, and
leverage assets to realize their vision.
Gerald J. Tellis and Peter N. Golder, First to Market,
First to Fail? Real Causes of Enduring Market
Leadership, MIT Sloan Management Review, 1
January 1996

1.38

Importance of Brand
Management

The bottom line is that any brandno

matter how strong at one point in timeis

vulnerable, and susceptible to poor brand
management.

1.39

What are the strongest

brands?

Best Global Brands

http://www.bestglobalbrands.com/2014/ranking/

1.41

Branding Challenges and

Opportunities
Savvy customers
Brand proliferation
Media fragmentation
Increased competition
Increased costs
Greater accountability

1.42

The Brand Equity Concept

No common viewpoint on how it should be

conceptualized and measured

It stresses the importance of brand role in
marketing strategies.
Brand equity 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.

1.43

Strategic Brand Management

1.44

Strategic Brand Management

Process
Steps
Identify and establish
brand positioning and values

Plan and implement

brand marketing programs

Measure and interpret

brand performance

1.45

Grow and sustain

brand equity

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