Agenda for Day One

1. Welcome and Introduction

2. Review of Questionnaire
3. Discuss course outline
4. Presentation of Learning
Effectiveness Research
5. Introduction to the subject

Most People Learn .

Percentage of material/thing
learnt
10%

Learning activity
Of what they read

20%

Of what they hear

30%

Of what they see

50%

Of what they see and hear

70%

Of what they talk over with others

80%

Of what they use and do in real

life

95%

Of What they teach someone else

Source: Attributed to William Glasser; quoted by Association for Supervision &

Curriculum Development Guide 1998.

Ashesi University
COURSE TITLE : STRATEGIC
BRAND MANAGEMENT
SEMESTER : SECOND, 2009/2010
MODULE 1: Introduction to
Strategic Brand Management
Lecturer: Ebow Spio

Learning Objectives
Define a brand and distinguish it from a
product
Appreciate the importance of brands to
consumers and firms
Answer the question whether
everything can be branded?
Explain the concept of brand equity
Define strategic brand management
and identify the key stages involved in
managing brands successfully over time

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

Brands vs. Products

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.

1.7

Brands vs. Products

A brand is a product or service that has a
unique identity. It may have a unique
name, logo, design and packaging. It is
more than an undifferentiated
commodity , product or service
Examples: Coca Cola, Nokia, Mercedes
Benz, Toyota etc.

Brands vs. Products

A brand is a product or
service or organization,
considered in combination
with its name, its identity
and its reputation Simon
Anholt

Brands vs. Products

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.
Some brands create competitive
advantages with product performance;
other brands create competitive
advantages through non-product-related
means
1.10

Branding
Branding is the process by which companies
distinguish their product offerings from the
competitor.
It is the process of designing, planning and
communicating the name and the identity, in
order to build or manage the reputation of a
brand

Importance of Brands to
Consumers
Identification of the source of the product
Assignment of responsibility to product
maker
Choice
Risk reducer
Search cost reducer or shopping efficiency
Promise, bond, or pact with product maker
Symbolic device or relevance
Signal of quality and satisfaction
1.12

Reducing the Risks in Product

Decisions
Consumers may perceive many different types of risks
in buying and consuming a product:
Functional riskThe product does not perform up to
expectations.
Physical riskThe product poses a threat to the
physical well-being or health of the user or others.
Financial riskThe product is not worth the price paid.
Social riskThe product results in embarrassment from
others.
Psychological riskThe product affects the mental
well-being of the user.
Time riskThe failure of the product results in an
opportunity cost of finding another satisfactory product.
1.13

Importance of Brands to
To firms, brands represent
enormously valuable
Firms

pieces of legal property, capable of influencing

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

Identification to simplify handling or tracing

Legally protecting unique features
Signal of quality level
Endowing products with unique associations
Source of competitive advantage
Attract loyal set of customers
Source of financial returns
Tool for implementing profitable segmentation e.g. P & G,
Unilever

1.14

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 (Maxwell House), bath soap (Ivory),
flour (Gold Medal), beer (Budweiser), salt
(Morton), oatmeal (Quaker), pickles (Vlasic),
bananas (Chiquita), chickens (Perdue),
pineapples (Dole), and even water (Perrier)
1.15

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
1.16

Top Ten Global Brands

Brand
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Coca-Cola
Microsoft
IBM
GE
Intel
Nokia
Toyota
Disney
McDonalds
MercedesBenz

2006
($Billion)

2005 ($
Billion)

67.00
56.93
56.20
48.91
32.32
30.13
27.94
27.85
27.50
21.80

67.53
59.94
53.38
47.00
35.59
26.45
24.84
26.44
26.01
20.00
1.17

Marketing advantages of Strong

Brands
- High level of consumer brand
awareness
-Improved perceptions of product
performance
- Greater loyalty
- Less vulnerable to crisis
- Larger margins
- Inelastic consumer response to price
increases
- Elastic consumer response to price
decreases

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

1.19

Importance of Brand
Management

Keys Enduring Brand Leadership

1. Vision of the Mass Market
2.Managerial Persistence
3.Financial Commitment
4.Relentless Innovation
5.Asset Leverage
The bottom line is that any brandno
matter how strong at one point in timeis
vulnerable, and susceptible to poor brand
management.
1.20

Branding Challenges and

Opportunities

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

1.21

The Brand Equity Concept

The value of a brand based on the extent to which it
has high brand loyalty, name awareness, perceived
quality, strong brand associations, and other assets
such as patents, trademarks and channel
relationships Kevin Keller
The most valuable part of the brand ... The added
value bit ... the bit that protects respectable margins
and fills up the reservoirs of future cashflow ... the
bit that distinguishes a brand from a mere product ...
doesnt belong to it. It belongs to the public.
[Jeremy Bullmore, British Brands Group, 2001]
Brand Equity is a measure of the strength of a brand
in the market place by adding tangible value to a
company through the resulting sales and profits
David Jobber, 2007

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.

1.23

Strategic Brand Management

It involves the design and implementation of
marketing programs and activities to build, measure,
and manage brand equity.
The Strategic Brand Management Process is defined as
involving four main steps:
1. Identifying and establishing brand positioning and values
2. Planning and implementing brand marketing programs
3. Measuring and interpreting brand performance
4. Growing and sustaining brand equity

1.24

Strategic Brand Management

Process
Steps
Identify and establish
brand positioning and values

Plan and implement

brand marketing programs

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

Measure and interpret

brand performance

Brand value chain

Brand audits
Brand tracking
Brand equity management system

Grow and sustain

brand equity

Brand-product matrix
Brand portfolios and hierarchies
Brand expansion strategies
1.25 Brand reinforcement and revitalization

Key Tasks of a Brand

Management Function
Develop and execute brand plans, including brand marketing

plans
Build Brand Awareness
Position the brand for sustainable competitive advantage
Transform the organizations leadership team into brand
champions
Transform all employees into brand champions
Measure and actively manage your brands equity
Actively the brands identity, including enforcement of its
guidelines
and standards
Legally protect the brand
Always keep the brand customer focused
Design and implement plans to create emotional connection
between your brand
and its customers
Develop and execute brand loyalty programmes

Key Points
1. A companys management of a brand is
typically the determining factor in the
ultimate success or failure of the brand.
2. Brands have differentiating features
that distinguish them from competitors
and add value for consumers.
3. Consumers often dont buy products,
they buy the images associated with
products.

Tutorial
Can everything be branded?