Brands and Brand
Management
Introduction and Discussion
The Issue of Branding
 Branding simplifies the complexity of
the offering via brand elements such as:
– Brand names
– Logos
– Symbols
– Package designs
Branding helps in the thought processes of
consumers when they are considering
purchasing or purchasing an offering.
A brand name must be:
 Unique
 Distinctive
 Easy to remember
 Easy to pronounce
 Relevant to the offering
 Positive about the offering
The Issue of Branding contd.
 Branding helps in reducing risk
associated with an offering.
 Used as a differentiating criteria between
offerings.
 The genesis/basis of brand management
is consumer perceptions – the need to
satisfy consumers’ perceived differences
between offerings.
Let us define a brand…..
 Class exercise…
So, what exactly is a brand?
 In its simplest definition,
it is a name, term,
symbol, feature or any
combination of these. It
is used/employed to
identify the
distinctiveness (special)
of an offering (i.e.,
product, service, brand)
from those of
competitors.
 The legal term for brand
is Trademark.
The top ten global Brands
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1. Coca-Cola
2. Microsoft
3. IBM
4. GE
5. Intel
6. Nokia
7. Disney
8. McDonalds
9. Marlboro
10. Mercedes
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USA
USA
USA
USA
USA
Finland
USA
USA
USA
Germany
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Source: Business Week Special Report,
August 4th, 2003
Discussion of Cases – Coca-Cola
 The formation and maintenance of brand-
product relationships provide the basis for
certain cultural roles/transformation.
 Brands can command higher financial value
than the net book value of tangible products.
– The purchase of Kraft by Philip Morris
– The Split-up of Saachi & Saachi Advertising Agency
between the original owners (Saachi brothers) and
shareholders & senior managers
Brands
 Because product differences are generally non-
existent, brands have been successful in
creating a seeming tangible image of the
product.
 “Products are made in the factory”
 “Brands are what consumers buy”
– The two statements are linked by the concept of
“added value”
– Brands help to create an image and establish a
positioning for the firm/offering
– Hence, brand management and positioning are
intertwined.
Brands
 Firms (e.g., retailers) can introduce their
own brands – to further enhance their
positioning/competitive advantage.
 Retailers’ own brands, “store brands” or
“private label brands”:
• Sears
Kenmore electricals, Craftman tools,
DieHard batteries
• M&S
St. Michaels
• ASDA (now Wallmart)
George
Brands
 Brands extend beyond offerings into (a) people, (b) organizations,
© places, (d) countries
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Amazon.com brand
Martha Stewart
Bill Gates
Cindy Crawford
Michael Jordan
Tiger Woods
Bill Clinton
Las Vegas
Mecca
Amsterdam
Jamaica
London
Egypt
Morocco
Brands
 Virtually anything can be and has been
branded—
 Similarly, anything can be positioned vis a vis
the competition
 The issue of strong brands and weak brands --
why are some brands stronger than others?
– Any brand – no matter how strong at any one point
in time is vulnerable and is susceptible to poor
brand management.
Five Factors Leading to Brand
Leadership
1.
2.
3.
4.
5.
Vision of the mass market
Managerial persistence
Financial commitment
Relentless innovation
Asset leverage
The underlying issue about the above is the
concept of “added value”
What is added value?
 “…this is the case/situation whereby the
finished offering can command a higher price
than the cost of its component parts or the raw
material used in producing it…”
…in other words...
 The finished offering is more valuable to the
consumer than the pile of raw material from
which it was made.
Branding and added value
 One key issue about a brand is that when a
consumer is unable to make a rational choice
based on performance,
– They rely on added values (and the image they have
in their minds of the brand) to be able to distinguish
the firm’s offering from their competitors.
– Consumers make these (rational) decisions because
of (a) numerous competing offerings, (b) perhaps,
the consumer lacks the technical or expert
knowledge to judge the differences between
competing offerings.
Added values are called brand values
 They ensure that:
 An offering will be
reliable,
 The offering is the
best,
 An offering is good
value for money.
 Added values are based on:
 Perceptions (the position of
the offering/firm in the
market place) of the firm and
the offering,
 Believes about the firm’s
authority and its reputation in
the market
– This may be based on market
share, history, consistency in
marketing, experts’ (or
family and friends)
recommendation.
Brand values are emotional values – often
difficult to “tangibilize/verbalize”
 Brand/added values are added to the offerings
through the application of marketing
strategies and tactics including the marketing
mix – 4 P’s/7 P’s:
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Product/service/packaging,
Promotion/marketing communications,
Distribution – logistics,
Pricing
Service quality and delivery
Physical evidence of the premises/store/shop,
People who actually interact/deliver the service
STP marketing
Brand/added values contd.
 Brand values help create a uniqueness about
the offering where none may exist functionally.
 They are the means by which offerings are
positioned in the market place.
 Brand values create a total image and
personality for the “brand”/offering.
 To the consumer the brand provides a
guarantee of quality, value for money, the best
choice.
Brand Equity
 “…fundamentally, branding is about endowing products
and services with the power of brand equity..” (Keller,
2002, pp.42).
 Brand equity refers to brand/added value that has been
associated with the offering over time.
 Brand equity = the value of the brand.
 Several ways in which the value of a brand can be
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manifested or exploited to benefit the firm:
(a) greater profits,
(b) market share,
© lower production costs
(d) clear and long-lasting position in the market place.
How to achieve brand equity
 Skillful design and implementation of
marketing programs
 The capitalization on a well thought-out
positioning
 Strong brand leadership position in the
market place
What is strategic brand
management?
 The design and implementation of
marketing programs and activities to
build, measure, and manage brand equity.
Strategic brand management
process
• Identifying and establishing brand
positioning and value.
• Planning and implementing brand
marketing programs
• Measuring and interpreting brand
performance.
• Growing and sustaining brand equity.
What is brand mantra?
 The most important and pivotal aspect of the
brand to the consumer and the firm
– It is the essence of the brand.
 Thus, core brand/added values and a brand
mantra are an articulation of the heart and
soul of the brand.
 “…once the brand positioning strategy has been
determined, the actual marketing program to
create, strengthen, or maintain brand
associations can be put into place…” (Keller,
2002, pp.45).
Identifying and establishing brand
positioning and values
 Determine the full meaning (mantra) of
the brand vis a vis competitors,
 Assess perceptions of the target audience
and
 Assess the firm’s own capabilities via
marketing audit.
– The goal is to place the brand image in the
mind of the customer so as to maximize the
firm’s benefits.
Challenges facing brand
management
 Managing brand equity over time.
 Managing brand equity over geographic
boundaries, cultures, and market
segments.
 Changing PESTLE of the market place.
 Stochastic consumer perceptions
Product brands vs corporate brands
 Product branding builds
separate brand identities
for different productsthe imagery varies from
one brand to another:
– Sprite and Mr. Pibb under
Coca-Cola
– Lux and Dove from
Unilever
– Toyota and Lexus from
Toyota
– Honda and Acura from
Honda.
 Corporate branding
refers to the strategy in
which the brand and
corporate name are the
same
– IBM & Nike = USA
– RBS & Virgin = UK
– Sony & Mitsubishi =
Japan
Question?
– What do the following mean?
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Added value
Brand value
Brand equity
Brand mantra
Brand personality
Product brand
Corporate brand
Positioning.
Corporate branding
 The issue of company branding
Corporate branding contd.
 Companies with a more positive
reputation appear to project their core
mission and identity in a more systematic
and consistent fashion than those with
lower reputation rankings.
 High reputation companies try to impart
more information about their offerings,
their operations, identity and history.
Corporate Branding contd.
 According to Bickerton (2000), the concept of
corporate image/reputation started from a
customer market perspective.
 Further appreciation of the environment gave
the impetus to the development of brand
marketing.
 To this end, there are two perspectives to
academic thinking about corporate branding:
(a) marketing perspective and (b)
multidisciplinary perspective.
Relationship of the academic thinking (two
schools of thought)
 Marketing Perspective – Customer focus.
 Brand image
 Brand positioning
 Brand identity
 Corporate associations
 Corporate branding
 Multidisciplinary Perspective – Organization focus.
 Corporate image
 Corporate personality
 Corporate associations
 Corporate branding
The pivotal role of marketing
communications
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Importance of marketing communications in the branding process (corporate and
offerings) is supported both conceptually and empirically.
Communications revolve around (a) management, (b) marketing and (c)
organizational and
(d) brand stakeholder audiences.
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Brand stakeholders that have an economic interest include
Employees
Shareholders
Suppliers
Partners (other owners of the business).
Brands have an economic impact (affects) on:
 Customers
 Opinion formers (politicians)
 Regulators and Legislators.
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Based on Bickerton D. (2000), Corporate reputation versus corporate branding: the realist debate,
Corporate Communications: An International Journal, Vol.5, No.1, pp.42-48.
Questions?