Branding

MBA-ITB
Marketing Management
 The Worlds 10 Most Valuable Brands
Rank Brand Value (US$
Billions)
Rank Brand Value (US$
Billions)
1 Apple 98.32
2 Google 93.29
3 Coca Cola 79.21
4 IBM 78.81
5 Microsoft 59.55
6 GE 46.95

7 McDonald 41.99
8 Samsung 39.61
9 Intel 37.26
10 Toyota 35.35
Interbrand Corp 2013
WHAT IS A BRAND?
name?
logo?

association?
A brand is more than a name
or a logo it is a promise and a
contract with every customer with
whom you are dealing. And if people
feel that the offering does not live up to
what they expect from the brand, they
will decide to stop buying.

Richard Branson ,
founder of Virgin
 A brand for a
company is like a
reputation for a
person. You earn
reputation by
trying to do hard
things well.

Jeff Bezos, founder of

Amazon.com
Barack Obama is three things you
want in a brand. New, different, and
attractive. That's as good as it gets.
Keith Reinhard, chairman emeritus of DDB Worldwide, quoted
in The Brand Called Obama, Fast Company, Jan. 18, 2009
A brand is an
emotional
attachment

7
 Brand and Brand Equity
Brand
A name, term, sign, symbol or design or a
combination of these intended to identify the
goods or services of one seller or group of sellers
and to differentiate them from those of
competitors.
Brand Equity
The positive differential effect that knowing the
brand name has on customer response to the
product or service
 Identity --- Who are you
Meaning --- What are you
Response --- What about you
Relationship --- What about you and
me
Brands
Consistency Reputation Quality & Value

Attributes Advantages Identification & Connotation

of
Brand Names

Defense Against Brand

Competition Equity Loyalty

Credibility Awareness
 Strong Brand Means:
Improved perceptions
Greater loyalty
Larger margin
More inelastic to price increase
More elastic to price decrease
Greater trade cooperation and support
Increase marketing communications
effectiveness
 Brand Awareness
Starting point to developing strong brand
Two levels of awareness
General knowledge brand exists
Extensive knowledge about the brand
Create through multiple marketing venues

5-12
Copyright 2010 SAGE Publications, Inc.
 Brand Loyalty
Strong attachment to a brand
Repeat purchases
Word-of-mouth endorsements
Brand advocates
Customer service often key ingredient

5-13
Copyright 2010 SAGE Publications, Inc.
 Components of Brand Equity

Brand Brand
Awareness Associations

Brand Equity

Perceived Brand
Quality Loyalty
 Brand Equity

Devoted
to Brand

Values the Brand

(brand as friend)

Satisfied & Switching Cost

Satisfied Customer
(no reason to change)
No Brand Loyalty
(customer will change)
Branding Model
#1

The Branded House

16
A healthy brand
connects

17
A healthy brand
provides a
competitive
advantage

18
Healthy brands
guarantee focus
19
REPUTATION
REPUTATION
CONNOTATION
REPUTATION
CONNOTATION
CONSISTENCY
RE
PU What people generally think
about a product, a service,
TA a company.

TI
ON
 Audi produces high-performing cars.
CON
NO The message you or your
business is actively trying
TA to present to others.

TI
ON
Volvo
Volvo = SAFETY
Apple
Apple =
CONSISTENCY

If you say youre trend-setting

one moment and traditional the next,
what will your customers think?
DIFFERENTIATION

Marketing today is all about creating tribes

FOCUS, FOCUS, FOCUS
who are
you? what do
you do?

why does it
matter?
Global Brand:
The worldwide use of a name., term, sign, symbol,
design or combination thereof intended to identify goods
or services of one seller and to differentiate them from
those of competitors.
The Advantages for Companies using Global Brands
Demand Spillover
Global Customers
Scale Economies
National Brands
Country of Origin Effect and Global Brands
 Brand Strategies

Product Category
Existing New
Brand Name

Existing Line Extension Brand Extension

Pepsodent Complete Care Pepsodent Delicio

New Brands
New
Multibrands
IBM Think Pad
Seiko Lasalle & Pulsar (by acquisition)
 Brand Strategies
Product Category
Existing New
Brand Name

Existing Line Brand

Extension Extension

New Multibrands New

Brands

Cobranding
Brand Strategy

Line Extension
Existing brand names extended to new forms, sizes, and
flavors of an existing product category.
Brand Extension
Existing brand names extended to new product categories.
Multibrands
New brand names introduced in the same product category.
New Brands
New brand names in new product categories.
 The Evoked Set as a Subset of All
Brands in a Product Class
All
Brands

Unknow
Known
n
Brands
Brands
(1)
Evoked Set Inept Set Inert Set
Acceptabl Unacceptabl Indifferent Overlooked
e Brands e Brands Brands Brands
(2) (3) (4)

Not
Purchase
Purchased
d Brands
Brands
(5)
 Good Brand Names:

Lack Poor
Foreign
Distinctive
Language
Meanings

Easy to:
Suggest Suggest
Pronounce
Product Product
Recognize
Qualities Benefits
Remember
Six Levels of Meaning

User

Culture Personality

Attributes Benefits Values

Good Brand Names Should
Suggest something about product benefits
Good Brand Names Should
Suggest product qualities such as action or color
Good Brand Names Should
Be easy to pronounce, recognize, and remember
 Good Brand Names Should

Be distinctive

Not carry negative images in other languages

(Chevy Nuvo, Honda Fit)
Brands can become generic in
several ways
Company develops a unique product and does not also
develop a generic description for competitors to use in
identifying their version of the product.
(EX: iPod, personal stereos)

If consumers use the brand name when referring to the

product type.
(EX: Aspirin instead of acetylsalicylic acid)

When a brand achieves such a high market share that the

brand becomes the category.
(EX: trampoline, Aqua )