Marketing Practice
BRAND MANAGEMENT
Brand Management
A brand “consists of any name, design, style, words,
or symbols, singly or in combination, that
distinguish one product from another in the eyes
of the customer.” (Brassington & Pettitt, 2006, P.301)
Needs to be something that can’t easily be copied by
competitors
Brassington & Pettitt (2006)
Brand Management
This serves as a sensory stimuli, a cue for the
audience to attach to their experiences of
products
There are a number of different mechanisms which
are used to do this
Brand Management Terms
Brand Name
Word or illustration that separates one sellers goods from
another
Can be in words, initials numbers or a combination of any or
all of them
E.g., Sprite, RAC, 118 118, Special K, Radio 1.
Trade Name
Legal name or the organisation
May or may not relate to branding of products sold
E.g., Royal Mail, Ford
Brassington & Pettitt (2006)
Brand Management Terms
Trade Mark
A brand name symbol or logo protected by law for the owners
sole use
Trade Marks Act 1994 allows registration of smells, sounds,
product shapes and packaging
Includes Coca-Cola bottle, Toblerone Directline insurance Advert
Brand Mark
The elements of visual identity made up of design and
symbols, not words
Also protectable by law
E.g., Lloyds TSB black horse, Apple’s apple
Brassington & Pettitt (2006)
Branding Strategy
“Devising a branding strategy involve deciding the
nature of new and existing brand elements to be
applied to new and existing products” (Kotler &
Keller, 2006, P. 296)
This combination of new and existing brand and
products gives a variety of options
Branding Strategy
Brand extension
Using an established brand to introduce a new product
E.g., Mars ice cream, easyHotel
Sub-brand
A type of brand extension linking a new brand with an existing
brand
E.g., Diet Coke
Parent brand
A brand that produces a brand extension
Family brand
A parent brand with a number of extensions
Kotler & Keller, (2006)
Branding Strategy
Brand extensions can be divided into two broad types;
(Product) line extension
Use parent brand to brand a new product aimed at a new
market segment within the product category already served
by parent brand, such as through different flavours, etc..,
(Product) category extension
Parent brand is used to enter a different product category than
the one already served
Honda Impossible Dream
Kotler & Keller (2006)
Brand Elements
“Those trademarkable devices that serve to identify
and differentiate the brand” (Kotler & Keller, 2006, P.281)
Most brands use more than one
E.g., McDonalds
Brand Element Choice Criteria
There are a lot of elements that will be relevant to
specific organizations/industries or countries,
but there are 6 general issues to be considered
First three are brand building
Final three are more concerned with defending the
brand
Kotler & Keller (2006)
Brand Building Choice Criteria
Memorable
Can the element be easily recalled/recognized?
Short simple names can help
E.g., Mars, Ford
Meaningful
Credible and suggestive of product category
Suggests ingredient, e.g, Nurofen
Or person who might use brand
Kotler & Keller (2006)
Brand Building Choice Criteria
Likeability
How aesthetically appealing do consumers find the brand
element?
Is it likeable in terms of visual, verbal or other elements?
E.g., Andrex puppy
Kotler & Keller (2006)
Defensive Choice Criteria
Transferable
Can the brand element be used to introduce new products in
the same or different categories?
To what extent does the brand element add to brand equity
across geographic boundaries? E.g., Orange
Adaptable
How adaptable and updatable is the brand element?
Remember Little Chef?
Kotler & Keller (2006)
Defensive Choice Criteria
Protectible
Can the brand element be legally protected?
E.g., Direct Line Phone on Wheels
Can it be easily copied?
Need to be careful with brand names that become generic
E.g., Hoover, Tarmac, (iPod?)
Kotler & Keller (2006)
Brand Equity
“Brand Equity is the added value endowed to products
and services. This value may be reflected in how
consumers think, feel and act with respect to the
brand as well as the prices, market share and
profitability that the brand commands for the firm.
Brand equity is an important intangible asset that
has psychological and financial value to the firm.”
(Kotler & Keller, 2006, P.276)
Customer Based Brand Equity
“Customer based brand equity is “the differential effect
that brand knowledge has on consumer response to
the marketing of that brand” (Kotler & Keller, 2006, P. 277)
This is positive if consumers react more favourably
to a product when the brand is revealed
E.g., in blind taste tests Pepsi beats Coca Cola in majority of
cases, however when taster knows brand, Coca Cola wins
“It seems that the Coca-Cola brand is so attractive that it overrides what our taste buds are telling us.” (Neuromarketing…,
2004)
Brand Equity
It arises from differences in the way brands are
perceived
No differences, then products are commodities and
competition would be on price
Differences are a result of “Brand knowledge”
“All the thoughts, feelings, image, experiences, beliefs, and so
on that become associated with the brand” (Kotler & Keller
2006, P.277)
Differences are reflected in perceptions, preferences
and consumer behaviour
NB these are all measurable
Kotler & Keller (2006)
Measuring Brand Equity
Two approaches to measuring brand equity
Indirect
Looks at potential sources of brand equity by analysing
consumer brand knowledge
Direct
Looks at the effect of brand knowledge on consumer response
to the brand’s marketing
These approaches are complementary
Kotler & Keller (2006)
Measuring Brand Equity
Brand Audit
Conducted to understand the health of the brand
Looks at sources of brand equity
Brand Tracking
Longitudinal study, collecting data routinely over time
Mainly quantitative
Useful for ongoing information to monitor performance of
marketing programmes and reactions to outside events
Kotler & Keller (2006)
Measuring Brand Equity
Brand Valuation
Different from brand equity in that it looks at the financial
value of the brand
Remember Interbrand measure?
Source: http://www.ourfishbowl.com/images/surveys/Interbrand_BGB_2007.pdf
Kotler & Keller (2006)
Brand Equity Models
There are a number of different brand equity models
to establish how well the brand is doing. For
example…
Brand Asset Valuator
Aaker Model
Brandz
Brand Resonance
Will briefly look at each
Kotler & Keller (2006)
Brand Asset Valuator
Looks at brands current and future status
Source: http://www.burson-marsteller.com/Practices_And_Specialties/AssetFile/BrandAsset3.gif
Kotler & Keller (2006)
Aaker Model
Looks at five aspects of brand equity
Brand loyalty
Brand awareness
Perceived quality
Brand associations
Proprietary assets, e.g., patents, trademarks
Kotler & Keller (2006)
Brandz
Based on premise that brand building consists of a
series of steps
Presence. Do I know about it?
Relevance. Does it offer me something?
Performance. Can it deliver?
Advantage. Does it offer something better than competition?
Bonding. Nothing else beats it.
Kotler & Keller (2006)
Brand Resonance
Goes from bottom to top
Brand becomes more important to consumer the
higher up the pyramid consumer goes
Kotler & Keller (2006)
References
Brassington, F. and Petit, S., (2006), Principles of Marketing, 4th ed,
Harlow, FT Prentice Hall
Kotler, P and Keller, K.L., (2006) Marketing Management 12th Ed,
Upper Saddle River, Pearson
Neuromarketing: beyond branding (2004) The Lancet, Retreived, April
15 2008, from
http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6X3F
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