2. Brand
• A brand is a name, term, sign, symbol, design or a
combination of the above to identify the goods
or service of a seller and differentiate it from the
rest of the competitors
A name becomes a brand when consumers
associate it with a set of tangible and intangible
benefits that they obtain from the product or
service
• It is the seller’s promise to deliver the same
bundle of benefits/services consistently to buyers
(Brand Promise Brand Equity)
3. Why do Brands Matter?
R
The main reason
consumers flock
to some brands
and ignore others
is that behind the
brand stands an
unspoken
promise of value.
B
Brands have
become
important drivers
of growth for any
organization,
good or service.
N
A brand helps
make a mark and
differentiate a
good or service
from others in
marketplace.
D
A strong
brand makes
people aware
of what the
company
represents
and about the
different
offerings of
the company.
S
Brands help
customers to
connect to
the product
or service on
an emotional
level.
A
A Brand is a
promise that
the product
will perform as
per customer’s
expectations.
4. Role of Brands
• Consumer Benefits
Identify source/maker
Simplifies decision making
Reduces risk
• Marketer Benefits
Simplify product handling
Protect unique features
Create loyalty
Establish barriers to entry
5. Role of brands for consumers
• Source of product: Consumers can easily make a purchase decision
based on brands. Consumers usually find brands which satisfy their
need.
• Lower risk : Brands mean lower purchase risk to consumers as they
are dealing with a product or organization that they trust.
• Less cost of searching for a choice :If the consumers recognize a
particular brand and have knowledge about it, they make quick
purchase decision and save lot of time. Also, they save search costs
for product.
• Symbol of Quality: Consumers see ‘brands’ as a symbol of quality
and remain committed and loyal to a brand as long as they believe
that the brand will continue meeting their expectations and
perform in the desired manner consistently.
• Symbolic device:Brands play a significant role in signifying certain
product features to consumers.
6. Role of brands for sellers
• Means of Competitive Advantage : A brand helps the firms
to provide consistently a unique set of characteristics,
advantages, and services to the buyers/consumers.
• Legal protection of products’ features: Brands help to
protect the unique features/traits of products by legal
copyrights
• Satisfied customer: Brand represents values, ideas and
even personality and hence leads to an assortment of
memories in customers’ mind and hence satisfied
customers.
• Means of Profits: Brands form the basis of purchase
decision among consumers and thus are a means of
financial profits.
7. Why brands matter
Customers use brands as a means to show
“This is what I stand for” and hence, use
brands to express themselves.
The customers remain loyal to brands and
they become advocates for those brands.
Thus, you can see that people connect
emotionally with brands that stand for things
that are important to them.
8. Advantages of Strong Brands
Improved perceptions of product performance
Greater loyalty
Less vulnerability to competitive marketing
actions
Less vulnerability to crises
Larger margins
More inelastic consumer response
Greater trade cooperation
Increased marketing communications
effectiveness
Possible licensing opportunities
11. • Memorable
– Easily recognised
– Easily recalled
• Meaningful
– Descriptive
– Persuasive
• Likable
– Fun and Interesting
– Rich visual and verbal imagery
– Aesthetically pleasing
• Transferable
• Adaptable
• Protectable
Criteria for choosing Brand Elements
12. • Transferable
– Within and Across product categories
– Across geographic boundaries and cultures
• Adaptable
– Flexible
– Updatable
• Protectable
– Legally
– Competitively
Criteria for choosing Brand Elements
13. What makes brands great
• It is important that in order to make a strong
impact, a brand should be strong. There are a
few characteristics that make a ‘strong’ brand,
which are as follows:
A strong brand is a major driver of shareholder value.
A strong brand is like an asset. It can be used as collateral for financial
loans , buying and selling as an asset.
A strong brand has strong attributes, values and personality that the
consumers associate with the brand.
A strong brand is a means of attaining higher customer loyalty.
14. What makes brands great
A strong brand always delivers the benefits that
customers truly desire.
A strong brand makes use of and coordinates full
range of marketing activities to build equity.
A strong brand has the right blend of product quality,
design, features, costs and prices.
A strong brand is properly positioned and occupies a
particular niche in consumers' minds.
A strong brand compels consumers to willingly pay a
substantial and consistent premium price for the
brand versus a competing product and service.
15. Relating Brand to Financial Value
Brand = overall
image of
organization,
product, service,
person, etc.
Image = composite
of such things as
name, trademark
(logo), customer
loyalty, reputation,
etc.
Valuable brands are
said to have “brand
equity,” or added
value due to the
brand
Brand value = how
much a buyer would
pay to acquire the
brand; usually it is
positively influenced
by brand equity
Financial Value of a brand
17. • The term "Brand Value" is considered to be the
net present value of the estimated future cash
flows attributable to the Brand.
• The premium that accrues to a brand from
customers who are willing to pay extra for it
Brand Value is also referred to has Brand Equity.
• Brand value in the case of consumer product
brands can be measured through customer
loyalty, staff retention/recruitment.
• A company's brand value depends on its
reputation
19. Introduction
Brands have financial value because they have created
assets in the minds and hearts of customer, distributors,
prescribers and opinion leaders.
Brand Equity
When a commodity becomes a brand, it is said to have equity.
The premium a brand can command in the market
The difference between the perceived value and the intrinsic
value
20. Customer-Based Brand Equity
It is the differential effect that brand
knowledge has on consumer response to the
marketing of that brand
A positive CBBE means customers might be
more accepting to the marketing activities (ie.
the marketing mix) for a brand
24. • Brand Associations: Uniqueness
USP Unique Selling Proposition
Product-related
Image Related
Points of Difference - How brand is unique
Points of Parity - How brand is similar to others
Brand Equity Framework
27. 27
CUSTOMER-BASED BRAND EQUITY PYRAMID
RESONANCE
SALIENCE
JUDGMENTS FEELINGS
PERFORMANCE IMAGERY
4. RELATIONSHIPS =
What about you & me?
3. RESPONSE =
What about you?
2. MEANING =
What are you?
1. IDENTITY =
Who are you?
29. Customer-Based Brand Equity
Pyramid
• Brand Salience - How brand stands out from the
rest (Prominence)
• Brand Performance - How product meets
customers’ functional needs
• Brand Imagery - Strong, Unique Associations
How brand meets psychological or social needs
• Brand Judgments - Personal opinions & evaluations of
brand
• Brand Feelings - Emotional responses to brand
• Brand Resonance - Intense loyalty, Active involvement
with brand
30. Social Value of Brand
• Defined as the extent to which people share a brand or
information about a brand as part of their everyday social
lives at work or at home
• The more customers of one brand are interconnected, the
more they are willing to pay for the product and the more
loyal they are
• For users : Social brand value is the perceived value that
results from the exchange and interactions among and
between brand users within a community.
• For companies: The share of a brands equity which result
from social interactions among brand users and which is
not directly under the control of the company . Its the
percentage of equity resulting from those interactions
33. Keys of Branding – building successful
brands
• Create the right tagline. Spend a full day with three or four of your top
team members talking about how you want to be perceived in public.
What is the emotional reaction you want your audience to have when
engaging the brand and what do you want them to remember? Develop
your tagline based on this discussion.
• Stand out from the crowd. Think about who your audience is. What are
your top competitors doing in terms of their site look and how they are
expressing themselves? Look for some core commonalities, and
simultaneously prepare to identify where you can innovate and
differentiate.
• Develop your company culture. And then do all your hiring and your
onboarding with this culture in mind. Don’t bring on people who could
destroy client relationships you spent months or years to cultivate. Miller
Felpax CEO, Steve Blue, points out in his book “The Ten Million Dollar
Employee” that it only takes one customer’s bad experience with one bad
employee to sabotage a multimillion-dollar investment.
34. Keys of Branding – building successful
brands
• Be patient with your brand. Take on every new outreach initiative with care. Think of it as your
baby. Just as you wouldn’t start feeding solid food to a 3-month-old, don’t rush any of your
outreach activities, whether they be PR, advertising, or marketing materials.
• Be consistent. Think of your outreach as being interconnected, like a body. The brand is the
brain. Public relations, advertising, marketing, and sales are all extensions of that brain, and they
must be coordinated and aligned. The copy, design and language your team uses is must always be
based off of the brand. If possible, don’t use multiple designers or multiple copywriters. Find
people who capture the essence of your brand and use them consistently.
• Get help. Branding isn’t easy. If it were, there would be a much greater number of stronger brands
in the small business community. The reason the Nike’s, Lexus’s, and Target’s of the world can have
strong brands is because they have the dollars to spend on it. But they weren’t always
conglomerates; if they can achieve brand success, so can you. First, you have to nail down step one:
your brand! A professional can take you through the process so you see things more clearly, get a
different perspective, and go about branding in a way that will allow you to reach your market more
efficiently.
• Put people first. The brand is more than the company. It is the executive team’s and the individual
employees’ personal brands as well. People do business with people. A strong CEO brand, executive
brand, or personal brand helps build a positive reputation overall. Nearly everyone prefers working
with businesses that are people-oriented and actually care about their customers. Be that company
by embodying a people-first attitude in all that you and your employees do.
35. • Create the right tagline. Spend a full day with three or four of your top
team members talking about how you want to be perceived in public.
What is the emotional reaction you want your audience to have when
engaging the brand and what do you want them to remember? Develop
your tagline based on this discussion.
• Stand out from the crowd. Think about who your audience is. What are
your top competitors doing in terms of their site look and how they are
expressing themselves? Look for some core commonalities, and
simultaneously prepare to identify where you can innovate and
differentiate.
• Develop your company culture. And then do all your hiring and your
onboarding with this culture in mind. Don’t bring on people who could
destroy client relationships you spent months or years to cultivate. Miller
Felpax CEO, Steve Blue, points out in his book “The Ten Million Dollar
Employee” that it only takes one customer’s bad experience with one bad
employee to sabotage a multimillion-dollar investment.
36. Five Key Brand Elements:
• Brand Position The Brand Position is the part of the brand that describes what
your organization does and for whom, what your unique value is and how a
customer benefits from working with you or your product/service, and what key
differentiation you have from your competition. Once you've defined your brand
position, make it available in 25, 50, and 100 word versions.
• Brand Promise The Brand Promise is the single most important thing that the
37. Five Key Brand Elements:
• Brand Personality Brand Traits illustrate what the organization wants its brand to
be known for. Think about specific personality traits you want prospects, clients,
employees, and partners to use to describe your organization. You should have 4-6
traits (5 is ideal), each being a single term (usually an adjective).
• Brand Story The Brand Story illustrates the organization's history, along with how
the history adds value and credibility to the brand. It also usually includes a
summary of your products or services.
• Brand Associations Brand Associations are the specific physical artifacts that make
up the brand. This is your name, logo, colors, taglines, fonts, imagery, etc. Your
brand associations must reflect your brand promise, ALL of your brand traits, and
support your brand positioning statement.
38. Brand Halo
• Halo effect – A single trait is used to form an
overall evaluation
• The bias shown by customers towards certain
products because of a favourable experience with
other products made by the same manufacturer or
maker.
• Halo effect simply explains the biasness showed by
customers to certain products or services based on
some favourable or pleasant experience with some
other products or services offered by the same
manufacturer.
• Basically driven by brand equity
39. Brand Halo
• Apple’s success of iPod iTunes, iPad etc
• Apple introduced the iPod some years ago and it was creative in its
functions and design. Apple iPod introduced a gateway to novel
thinking and extremely eye-pleasing experience for iPod users.
• The positive perception about Apple's iPod then had a positive
effect on other Apple products. With the introduction of iPod,
Apple noticed a high demand and increased sales for rest of their
products.
• With the halo effect, a person uses just one dimension in
evaluating a person, product, or service. For instance, a consumer
might consider a clean waiting room as an indication of a good
dentist. For this reason, marketers use the halo effect when
licensing names of products or choosing spokespeople.
40. Line influence on growing brand
• Brand and line extensions have become important means of growth for companies
that have strong brand names. There may be instances where brand managers
have to choose between brand and line extension as the primary form of growth
for the brand. In order to be able to choose the better alternative, brand managers
need guidelines which relate consumers perceptions of the brands, in the form of
brand associations, to decisions on line or brand extension.
• managers perceive extensions as a low-cost, low-risk way to meet the needs of
various customer segments; line extensions can satisfy consumers’ desires by
providing a wide variety of goods under a single brand; and managers often use
extensions as a short-term competitive weapon to increase a brand’s control over
limited shelf space.
• However, the costs of line extensions are dangerously high. The strategic role of
each product, for example, becomes muddled when a line is oversegmented.
