MODULE 6

MBA I SEM, ITM-Bangalore

IMPORTANCE
OF
BRANDING
AGENDA

 Brand- Definition, Scope, Importance

of Branding and Emotional Branding
 Brand Personality

 Brand Equity- Building and Managing

Brand Equity
 Branding Strategy- Brand portfolio

 Customer Equity
BRAND- DEFINITION

 AMA defines Brand as name, term, sign, symbol

or design or combination of them, intended to
identify and differentiate the goods or services
of one seller to that of another.
 Branding is about creating differences between
products. For Brand strategies to be successful
and Brand value to be created, consumers must
be convinced about meaningful differences
among brands.
 Marketers can apply branding to physical
product, store, services, people etc..
BRANDING, CONTD..
 According to Al Ries and Laura Ries, “Branding”
presells the product or service to the user.
 Scott Bedbury admitted that ‘consumers don’t truly
believe there’s a huge difference between products,’
which means brands have to establish ‘emotional
ties’ with their customers.
EMOTIONAL BRANDING

 It’s a new paradigm for connecting brands

with people.
 In this hypercompetitive market, emotional
aspect of products and their distribution
systems will be the key differentiator.
 How a brand engages consumers on the level
of the senses and emotions and how a
brand comes to life for people and forges a
deeper lasting connection.
Activity time

Hitesh switched on _____________ aircon and the tv

which he bought from _____________ retail store,
used his DTH ____________ to do so. Soon he started
reading his favorite book while lounging on cushions he
bought last week from ____________. He just checked
time on his _____________ watch, surfed internet
with______________ , made calls with
________________ and quickly grabbed something to
eat. He sprinkled ___________salt on his grub while
sipping ____________ ,took out his _____________
car and drove to _________________ for the
weekend on a bridge constructed with _____________.
BRAND PERSONALITY

 As per Jennifer L. Aaker (1997) brand

personality can be defined as “the set of human
characteristics associated with a brand.”
 In simpler words, brand personality is about giving a
symbolic meaning and “Life” to the brand as if it
were a person with a distinct personality.
 Every brand has a personality. If it doesn’t, it is more
likely to be trodden on by those who have distinct
brand personality in the minds of the customers.
BRAND EQUITY

 Customer based brand equity emphasizes that

power of the brand lies in what customers have
learned, thought and felt about the brand over
time.
 David Aaker distinguished 5 levels of customer
attitude toward the brand-
 Customer will change brands, esp because of

price reasons.
 Customer is satisfied and has no reason to

change the brand.

BRAND EQUITY, CONTD..

 Customer is satisfied and would incur costs by

changing brand.
 Customer values the brand and sees it as
friend.
 Customer is devoted to the brand.

 Another very popular Brand equity Model is

Brand Resonance Pyramid which also shows
various stages of Brand Development.
BRAND RESONANCE PYRAMID

Res Relationships
ona
nce
Judgments Response
Feelings
Performance Meaning
Imagery

Salience Identity
BUILDING BRAND EQUITY

 From marketing management perspective, building

brand equity is a three step process-
1) The initial choices for the brand identities: logo,
symbol, slogans etc. While Choosing these brand
elements, marketers should try to make them easy,
memorable, meaningful, likeable, protectable etc.
2) Marketing activities and supporting Marketing
Programs: Word of mouth, interactions with company
personnel, telephone experiences and payment
interactions, all these touch points build brands.
Personalization, Integration and Internalization are
some of the brand building marketing programs.
BRAND BUILDING, CONTD..

3) Other associations indirectly transferred to

the brand.
Extensions,
sub-brands

BRAN
Endorsers Channels
D

Events,
Cause
Related
MANAGING BRAND EQUITY

 Brand Reinforcement: To reinforce brand

equity, marketers should consistently convey the
meaning of their brands in terms of their core
benefit and their superiority along with their
unique brand associations.
 Brand Revitalization: Brand revitalization
becomes necessary with changing consumer
tastes and preferences, changing technology and
with changing marketing environment. It also
considers decision regarding repositioning.
MANAGING BRAND EQUITY..

 Brand Promise: It is the marketer’s vision of

what the brand must do for consumers.
 Brand Identity: Brand Identity is what we
transmit to the market place- it is what is under
our control provided we understand the essence
and expression of our brand.
 Brand Image: The image of the brand is what
exists in the minds of consumers. It is the total
of all the information they have received about
the brand.
Brand Dimensions

• Functions • Personality

What is it? Do they like it?

What is it for? feel about it?
What does it How do people
do?

different? What does the

How is it company stand
better? for?
How is it What are its
aims?
• Differences • Source
BRAND LOYALTY

 The stronger the relationship between the brand

and the consumer, the more brand will benefit:-
 Consumers will buy the brand more frequently

to the exclusion of others.

 Consumers will be more inclined to try brand

variants and extensions.

 In most cases, consumers will also be willing to

pay price higher than the category average for

the brand.
BRAND LOYALTY, CONTD..

 Consumers might tell others about the brand

which will benefit from positive word of mouth
publicity.
 Since it is less expensive to retain existing
customers than acquiring new ones, marketing
costs are reduced.
BRANDING STRATEGY

 Brand Extension: It refers to the use of

successful brand name to introduce a new product.
It can be line extension or category extension.
 Branding Decisions: Marketers need to decide on
four general strategies :-
a) Individual names
b) Blanket family names
c) Co brands
d) Corporate name combined with individual product
names.
BRANDING STRATEGY

 Brand Portfolio: It is the set of all the brands a

particular firm offers in a particular category. In
optimal brand portfolio, each brand maximizes
its equity in combination with all other brands.
Specific roles of brands are:
a) Flankers

b) Cash Cows

c) Low-end Entry Level

d) High-end Prestige
MEASURING BRAND EQUITY
 Since power of the brand resides in
consumers’ minds, marketers can
understand this through assessing the
actual impact of Brand Knowledge on
consumer responses to different aspects of
marketing.
 Brand Valuation is about total financial value
of the brand. Brand Value can be defines as
Net Present value of future brand earnings.
CUSTOMER EQUITY

 Customer equity can be defined as the sum of

lifetime values of all customers.
 Rust, Zeithaml, and Lemon distinguish 3 drivers
of Customer equity-Value Equity, Brand Equity
and Relationship equity.
 The aim of CRM is to produce higher customer
equity.
No-Brand Brand
 A visit to a Muji store in Japan is an eye opener.
One of the first things you notice is that the
clothes are all bland, mostly white or beige and
never bright. Beige works. There is no logo on
shirtfronts; in fact, there are no labels at all,
even on the inside. Why would you want a label?
The furniture, cookware and office equipment
are plain but functional. The designs are simple.
They just provide what is needed to deliver
function. The prices are low not by using cheap
materials or design, but by cutting frills and
using design with the right objectives.
Brand Extensions- A Good Strategy

 Brand extensions are the use of an existing brand

name on a new product in a new category to benefit
from the existing brand name’s awareness and
associations—leverage the investments a company
makes in its existing brand names and hedge against
the risk of new product failures. The popularity of
this strategy is due to the belief that it leads to
higher consumer trial than the use of a new brand
name because of the awareness levels and association
equities of the brand name being leveraged. However,
not all brand extensions succeed, and there is a risk
that failure will backfire on the image of the parent
brand. Relying on single brand strategy can also
constrain flexibility.
THANK YOU