MODULE-IV:

BRAND, BRANDING AND BRAND MANAGEMENT

Brand
Brand is the “name, term, design, symbol, or any other feature that identifies one seller's
product distinct from those of other sellers.” Brands are used in business, marketing, and advertising.
Initially, livestock branding was adopted to differentiate one person’s cattle from another’s by means
of a distinctive symbol burned into the animal’s skin with a hot branding. A modern example of a
brand is Coca-Cola which belongs to the Coca-Cola Company.
In accounting, a brand defined as an intangible asset is often the most valuable asset on a
corporation’s balance sheet. Brand owners manage their brands carefully to create shareholder value,
and brand valuation is an important management technique that ascribes a money value to a brand,
and allows marketing investment to be managed (e.g.: prioritized across a portfolio of brands) to
maximize shareholder value. Although only acquired brands appear on a company’s balance sheet,
the notion of putting a value on a brand forces marketing leaders to be focused on long term
stewardship of the brand and managing for value.
The word “brand” is often used as a metonym referring to the company that is strongly
identified with a brand.
Marque or make are often used to denote a brand of motor vehicle, which may be distinguished
from a car model. A concept brand is a brand that is associated with an abstract concept, like breast
cancer awareness or environmentalism, rather than a specific product, service, or business. A
commodity brand is a brand associated with a commodity. A logo often represents a specific brand.

Concepts
Effective branding can result in higher sales of not only one product, but of other products
associated with that brand. For example, if a customer loves Pillsbury biscuits and trusts the brand, he
or she is more likely to try other products offered by the company - such as chocolate-chip cookies, for
example. Brand is the personality that identifies a product, service or company (name, term, sign,
symbol, or design, or combination of them) and how it relates to key constituencies: customers, staff,
partners, investors etc.
Some people distinguish the psychological aspect (brand associations like thoughts, feelings,
perceptions, images, experiences, beliefs, attitudes, and so on that become linked to the brand) of a
brand from the experiential aspect. The experiential aspect consists of the sum of all points of
contact with the brand and is known as the brand experience. The brand experience is a brand’s
action perceived by a person. The psychological aspect, sometimes referred to as the brand image, is
a symbolic construct created within the minds of people, consisting of all the information and
expectations associated with a product, service or the company(ies) providing them.
People engaged in branding seek to develop or align the expectations behind the brand
experience, creating the impression that a brand associated with a product or service has certain
qualities or characteristics that make it special or unique. A brand can therefore become one of the
most valuable elements in an advertising theme, as it demonstrates what the brand owner is able to
offer in the marketplace. The art of creating and maintaining a brand is called brand management.
Orientation of an entire organization towards its brand is called brand orientation. Brand orientation
develops in response to market intelligence.
Careful brand management seeks to make the product or services relevant to the target
audience. Brands should be seen as more than the difference between the actual cost of a product
and its selling price – they represent the sum of all valuable qualities of a product to the consumer.
A widely known brand is said to have “brand recognition”. When brand recognition builds up to
a point where a brand enjoys a critical mass of positive sentiment in the marketplace, it is said to have
achieved brand franchise. Brand recognition is most successful when people can state a brand
without being explicitly exposed to the company’s name, but rather through visual signifiers like logos,
slogans, and colors. For example, Disney successfully branded its particular script font (originally
created for Walt Disney’s “signature” logo), which it used in the logo for go.com.
Consumers may look on branding as an aspect of products or services, as it often serves to
denote a certain attractive quality or characteristic which is called as brand promise. Brand promise is
a statement by the organization to its customers stating what customers can expect from their
products and services. This is in terms of benefits and experience-tangible and intangible, i.e., value
proposition. It is the most important aspect of a brand. From the perspective of brand owners,
branded products or services can command higher prices. Where two products resemble each other,
but one of the products has no associated branding (such as a generic, store-branded product),
people may often select the more expensive branded product on the basis of the perceived quality of
the brand or on the basis of the reputation of the brand owner.

The Types of Brands

Different types of brands work for different marketing approaches that your business might take.
Basically, there are a few general types of brands that your business could fall into:

Product brands: Products (commodities) become branded products when you win awareness in
the marketplace that your product has compelling characteristics that make it different and
better than others in the product category. Branding is a powerful tool that differentiates your
offering in ways that create consumer preference and allow you to command premium pricing.

Service brands: Services are products that people buy sight-unseen. People buy services purely
based on their trust that the person or business they‘re buying from will deliver as promised. If
you sell a service or run a service business, you absolutely, positively need to develop and
manage a strong, positive brand image.

Business brands: You can brand your business, itself, in addition to or instead of branding your
products or services. If you can only build one brand — and that‘s the best advice to any
business that‘s short on marketing expertise or dollars — make it a business brand because
this brand can attract job applicants, investors, and (maybe most importantly) customers.

Personal brands: Whether you know it or not, you have a personal brand. If people know your
name or recognize your face, they hold your brand image in their minds.

Personality brands: Personality brands are personal brands gone big-time. They‘re individual
brands that are so large and strong that they not only deliver wide-reaching personal celebrity
but also create significant value when associated with products or services. Think Martha
Stewart, Emeril Lagasse, or Oprah, and you're on the right track. Sure, these are all just people,
but their names are associated with a superior quality and subject expertise that speaks to
their personality branding.

Strategic Brand Management Process

The process of strategic brand management basically involves 4 steps:
1. Identifying and establishing brand positioning.

Brand Positioning is defined as the act of designing the company’s offer and image so that it
occupies a distinct and valued place in the target consumer’s mind.
Key Concepts:

Points of difference: convinces consumers about the advantages and differences over the
competitors

Mental Map: visual depiction of the various associations linked to the brand in the minds of the
Consumers

Core Brand Associations: subset of associations i.e. both benefits and attributes which best
Characterize the brand.

Brand Mantra: that is the brand essence or the core brand promise also known as the Brand
DNA.

Note: This includes Brand Positioning Model, Brand Resonance Model and Brand Value Chain .
2. Planning and Implementation of Brand Marketing Programs

Key Concepts:

Choosing Brand Elements: Different brand elements here are logos, images, packaging, symbols,
slogans, etc. Since different elements have different advantages, marketers prefer to use
different subsets and combinations of these elements.

Integrating the Brand into Marketing Activities and the Support Marketing Program: Marketing
programs and activities make the biggest contributions and can create strong, favorable, and
unique brand associations in a variety of ways.

Leveraging Secondary Associations: Brands may be linked to certain source factors such as
countries, characters, sporting or cultural events, etc. In essence, the marketer is borrowing or
leveraging some other associations for the brand to create some associations of the brand's
own and them to improve its brand equity.
3. Measuring and Interpreting Brand Performance

Key Concepts:

Brand Audit: Is assessment of the source of equity of the brand and to suggest ways to improve
and leverage it.

Brand Value chain: Helps to better understand the financial impacts of the brand marketing
investments and expenditures.

Brand Equity Measurement System: Is a set of tools and procedures using which marketers can
take tactical decision in the short and long run.

4. Growing and Sustaining Brand Equity:

Key Concepts:

Defining the brand strategy: Captures the branding relationship between the various products
/services offered by the firm using the tools of brand-product matrix, brand hierarchy and brand
portfolio

Managing Brand Equity over time: Requires taking a long -term view as well as a short term view
of marketing decisions as they will affect the success of future marketing programs.

Managing Brand Equity over Geographic boundaries, Market segments and Cultures: Marketers
need to take into account international factors, different types of Consumers and the specific
knowledge about the experience and behaviors of the new Geographies or market segments
when expanding the brand overseas or into new market Segments.

Keller's Brand Equity Model / Brand Resonance Model /4 Steps of Brand

Building/CBBE Model
This model helps in Building a Powerful Brand. Use Keller's Brand Equity Model pyramid to
strengthen your customers’ perception of your brand. Do you know what makes a brand strong? And if
you had to make yours stronger, would you know how to do it? Many factors influence the strength of
a particular product or brand. If you understand these factors, you can think about how to launch a
new product effectively, or work out how to turn a struggling brand into a successful one. Keller's
Brand Equity model helps understanding the same. This tool highlights four steps that you can follow
to build and manage a brand that customers will support.

Keller's Brand Equity Model is also known as the Customer-Based Brand Equity (CBBE) Model.
Kevin Lane Keller, a marketing professor at the Tuck School of Business at Dartmouth College,
developed the model and published it in his widely used textbook, “Strategic Brand Management.” The
concept behind the Brand Equity Model is simple: in order to build a strong brand, you must shape
how customers think and feel about your product. You have to build the right type of experiences
around your brand, so that customers have specific, positive thoughts, feelings, beliefs, opinions, and
perceptions about it. When you have strong brand equity, your customers will buy more from you,
they'll recommend you to other people, they're more loyal, and you're less likely to lose them to
competitors. The model, shown in Figure below, illustrates the four steps that you need to follow to
build strong brand equity.
 The four steps of the pyramid represent four fundamental questions that your customers will
ask – often subconsciously – about your brand. The four steps contain six building blocks that must
be in place for you to reach the top of the pyramid, and to develop a successful brand. Applying the
Model Let's look at each step and building block in detail, and discuss how you can apply the
framework and strengthen your brand.

Step 1: Brand Identity – Who Are You?

In this first step, your goal is to create “brand salience,” or awareness – in other words, you
need to make sure that your brand stands out and that customers recognize it and are aware of it.
You’re not just creating brand identity and awareness here; you're also trying to ensure that brand
perceptions are "correct" at key stages of the buying process.

Application:
To begin, you first need to know who your customers are. Research your market to gain a
thorough understanding of how your customers see your brand, and explore whether there are
different market segments with different needs and different relationships with your brand.

Next, identify how your customers narrow down their choices and decide between your brand
and your competitors' brands. What decision-making processes do your customers go through when
they choose your product? How are they classifying your product or brand? And, when you follow their
decision making process, how well does your brand stand out at key stages of this process?

You are able to sell your product because it satisfies a particular set of your customers' needs;
this is your Unique Selling Proposition, or USP. You should already be familiar with these needs, but
it's important to communicate to your customers how your brand fulfills these. Do your clients
understand these USPs when they're making their buying decisions? By the end of this step, you
should understand whether your clients perceive your brand as you want them to, or whether there are
specific perceptual problems that you need to address – either by adjusting your product or service, or
by adjusting the way that you communicate your message. Identify the actions that you need to take
as a result.
Step 2: Brand Meaning – What Are You?

Your goal in step two is to identify and communicate what your brand means, and what it
stands for. The two building blocks in this step are: "performance" and "imagery." "Performance"
defines how well your product meets your customers' needs. According to the model, performance
consists of five categories: primary characteristics and features; product reliability, durability, and
serviceability; service effectiveness, efficiency, and empathy; style and design; and price. "Imagery"
refers to how well your brand meets your customers' needs on a social and psychological level. Your
brand can meet these needs directly, from a customer's own experiences with a product; or indirectly,
with targeted marketing, or with word of mouth. A good example of brand meaning is Patagonia®.
Patagonia makes high quality outdoor clothing and equipment, much of which is made from recycled
materials. Patagonia‘s brand performance demonstrates its reliability and durability; people know that
their products are well designed and stylish, and that they won't let them down. Patagonia‘s brand
imagery is enhanced by its commitment to several environmental programs and social causes; and its
strong ―reduce, reuse, recycle‖ values make customers feel good about purchasing products from an
organization with an environmental conscience. Application:
 The experiences that your customers have with your brand come as a direct result of your
product's performance. Your product must meet, and, ideally, exceed their expectations if you want to
build loyalty. Use the Critical to Quality Tree and Kano Model Analysis models to identify your
customers' needs, and then explore how you can translate these needs into a high quality product.
Next, think carefully about the type of experience that you want your customers to have with your
product. Take both performance and imagery into account, and create a "brand personality." Again,
identify any gaps between where you are now and where you want to be, and look at how you can
bridge these.
Step 3: Brand Response – What Do I Think, or Feel, About You?

Your customers' responses to your brand fall into two categories: "judgments" and "feelings."
These are the two building blocks in this step. Your customers constantly make judgments about your
brand and these fall into four key categories: Quality: Customers judge a product or brand based on its
actual and perceived quality. Credibility: Customers judge credibility using three dimensions –
expertise (which includes innovation), trustworthiness, and likability. Consideration: Customers judge
how relevant your product is to their unique needs. Superiority: Customers assess how superior your
brand is, compared with your competitors' brands. Customers also respond to your brand according to
how it makes them feel. Your brand can evoke feelings directly, but they also respond emotionally to
how a brand makes them feel about themselves. According to the model, there are six positive brand
feelings: warmth, fun, excitement, security, social approval, and self-respect.

Application:

First, examine the four categories of judgments listed above. Consider the following questions
carefully in relation to these: What can you do to improve the actual and perceived quality of your
product or brand? How can you enhance your brand's credibility? How well does your marketing
strategy communicate your brand's relevancy to people's needs? How does your product or brand
compare with those of your competitors? Next, think carefully about the six brand feelings listed
above. Which, if any, of these feelings does your current marketing strategy focus on? What can you
do to enhance these feelings for your customers? Identify actions that you need to take as a result of
asking these questions.
Step 4: Brand Resonance – How Much of a Connection Would I Like to Have With You?

Brand "resonance" sits at the top of the brand equity pyramid because it's the most difficult –
and the most desirable – level to reach. You have achieved brand resonance when your customers
feel a deep, psychological bond with your brand. Keller breaks resonance down into four categories:
Behavioral loyalty: This includes regular, repeat purchases. Attitudinal attachment: Your customers
love your brand or your product, and they see it as a special purchase. Sense of community: Your
customers feel a sense of community with people associated with the brand, including other
consumers and company representatives. Active engagement: This is the strongest example of brand
loyalty. Customers are actively engaged with your brand, even when they are not purchasing it or
consuming it. This could include joining a club related to the brand; participating in online chats,
marketing rallies, or events; following your brand on social media; or taking part in other, outside
activities.
Application

Your goal in the last stage of the pyramid is to strengthen each resonance category. For
example, what can you do to encourage behavioral loyalty? Consider gifts with purchase, or customer
loyalty programs. Ask yourself what you can do to reward customers who are champions of your
brand. What events could you plan and host to increase customer involvement with your brand or
product? List the actions that you could take.

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Example

Julie has recently been put in charge of a project to turn around an under-performing product. The
product is a high quality, fair trade, organic tea, but it's never achieved the sales and customer loyalty
that the organization expected. Julie decides to use the brand equity pyramid to think about the
turnaround effort.

Step 1: Brand Identity

Julie's target customers are mid to high income, socially conscious women. After careful
analysis, she knows that she is marketing in the correct category, but she realizes that her marketing
efforts aren't fully addressing customer needs. She decides to change the message from "healthy,
delicious tea," to "delicious tea, with a conscience," which is more relevant and meaningful to her
target market.
Step 2: Brand Meaning
Next, Julie examines the product's meaning, and looks at how the company communicates that
meaning to its customers. The performance of the tea is already moderately high; it's a single-source,
fair trade tea of a higher quality than the competition's product. After assessing the organization's
service effectiveness, Julie is disappointed to find that many of her representatives lack empathy with
customers who complain. So, she puts everyone through a comprehensive customer service class to
improve responses to customer complaints and feedback. Last, Julie decides to post to the
company's website personal stories from the fair trade farmers who grow and pick the tea. By doing
this, she aims to educate customers on how beneficial this practice is for people around the world.
Step 3: Brand Response

After going over the four brand response judgments, Julie realizes that perceived quality might
be an issue. The tea itself is high quality, but the pack size is smaller than the ones her competitors
use. Julie doesn't want to lower the price, as this might affect how customers assess quality, so she
decides to offer more tea in each box in order to surpass customer expectations.

She also decides to enhance the tea's credibility by becoming fair trade certified through an
independent third-party organization.
Step 4: Brand Resonance
Julie knows that her target customers care deeply about fair trade. She decides to promote the
organization's efforts by participating in a number of fair trade events around the country. She also
sets up a social networking framework to involve customers in the organization's fair trade efforts,
and she creates a forum on the company website where customers can discuss issues surrounding
fair trade. She also commits to championing the efforts of other fair trade organizations.

#Identifying and Establishing (Communicating) Brand Positioning and

Values
Brand Positioning - Definition and Concept
Brand positioning refers to ―target consumer‘s‖ reason to buy your brand in preference to
others. It is ensures that all brand activity has a common aim; is guided, directed and delivered by the
brand‘s benefits/reasons to buy; and it focuses at all points of contact with the consumer. Brand
positioning must make sure that:

Is it unique/ distinctive vs. competitors?

Is it significant and encouraging to the niche market?

Is it appropriate to all major geographic markets and businesses?

Is the proposition validated with unique, appropriate and original products?

Is it sustainable - can it be delivered constantly across all points of contact with the consumer?
 Is it helpful for organization to achieve its financial goals?

Is it able to support and boost up the organization?

In order to create a distinctive place in the market, a niche market has to be carefully chosen
and a differential advantage must be created in their mind. Brand positioning is a medium through
which an organization can portray its customers what it wants to achieve for them and what it wants
to mean to them. Brand positioning forms customer‘s views and opinions. Brand Positioning can be
defined as an activity of creating a brand offer in such a manner that it occupies a distinctive place
and value in the target customer‘s mind. For instance-Kotak Mahindra positions itself in the
customer‘s mind as one entity- “Kotak”- which can provide customized and one-stop solution for all
their financial services needs. It has an unaided top of mind recall. It intends to stay with the
proposition of ―”Think Investments, Think Kotak”. The positioning you choose for your brand will be
influenced by the competitive stance you want to adopt.
Brand Positioning involves identifying and determining points of similarity and difference to
ascertain the right brand identity and to create a proper brand image. Brand Positioning is the key of
marketing strategy. A strong brand positioning directs marketing strategy by explaining the brand
details, the uniqueness of brand and it‘s similarity with the competitive brands, as well as the reasons
for buying and using that specific brand. Positioning is the base for developing and increasing the
required knowledge and perceptions of the customers. It is the single feature that sets your service
apart from your competitors. For instance- Kingfisher stands for youth and excitement. It represents
brand in full flight. There are various positioning errors, such as-

1. Under positioning- This is a scenario in which the customer‘s have a blurred and unclear
idea of the brand.
2. Over positioning- This is a scenario in which the customers have too limited a awareness of
the brand.
3. Confused positioning- This is a scenario in which the customers have a confused opinion of
the brand.
4. Double Positioning- This is a scenario in which customers do not accept the claims of a
brand.
5. Brand positioning describes how a brand is different from its competitors and where, or how,
it sits in a particular market. These differences might be real ones, but not have any motivating
qualities about them. They would still, however, give a brand a 'positioning' in a market. For example, a
beer might have the positioning of being an 'Alaskan beer', but this might not be very motivating to the
consumer.
6. If the positioning of being an 'Alaskan beer' is motivating to consumers then this value
begins to accrue propositional values as well as positional ones. It begins to literally 'proposition' the
consumer. Much of marketing research is in fact involved in the task of evaluating whether the
positional characteristics of a brand (or a product) can be transformed into propositional ones. This is,
in many ways, what marketing is.
7. The two terms - positioning and propositions - are often confused together because, of
course, many values and terms have BOTH some positioning and some propositional aspects. The
terms 'economy' and 'premium' are good examples of this. They can be used to describe a brand's
positioning in a market, but they also deliver meaning and motivational qualities to consumers as well.
Despite these degrees of overlap, the concepts of positioning and proposition are, however, still
working along quite distinct dimensions. A positioning describes how a brand is different in a market.
A proposition encapsulates what it might mean to a consumer.

Brand Equity & Brand Positioning Concepts

Brand equity is the value your company name has in the marketplace beyond what your
accounting records show. Positioning is the use of marketing to project differentiation in your
company, products or services to targeted customers. Building and maintain a strong brand is a
primary communication objective for successful companies.

Product Differentiation
Differentiation means to develop and communicate something bigger, better or distinct about
your offering. If you don't present something distinct to the marketplace, you rely solely on arbitrary
decision-making on the part of consumers. Developing a distinct and desired benefit mix and clearly
telling your market segments about it helps drive customers to your business or products. Organic
food makers or resellers pin their differentiation on the natural, healthy advantages their products
provide.

Market Segmentation
Along with differentiation, the other key component of brand positioning is the target market to
whom you position. You may offer an excellent, distinct benefit, but if you don't present it to the right
market segment, it won't matter. Offering the lowest price to a highly affluent market segment doesn't
make much sense, for instance, because customers with money typically look for superior product
benefits or excellent service. Identifying customers based on shared demographic, geographic,
behavioral or lifestyle qualities and focusing your efforts on them improves your potential for brand
equity.

Determining a Competitive Frame of Reference

The competitive frame of reference defines which other brands a brand competes with and therefore
which brands should be the focus of competitive analysis. Decisions about the competitive frame of
reference are closely linked to target market decisions. Deciding to target a certain type of consumer
can define the nature of competition, because certain firms have decided to target that segment in the
past (or plan to do so in the future), or because consumers in that segment may already look to
certain products or brands in their purchase decisions.

Nature of Competition
At least implicitly, deciding to target a certain type of consumer often defines the nature of
competition, because other firms have also decided to target that segment in the past or plan to do so
in the future, or because consumers in that segment already may look to other brands in their
purchase decisions. Competition takes place on other bases, of course, such as channels of
distribution. Competitive analysis considers a whole host of factors—including the resources,
capabilities, and likely intentions of various other firms—in order for marketers to choose markets
where consumers can be profitably served.
Indirect Competition:
One lesson stressed by many marketing strategists is not to define competition too narrowly.
Research on non-comparable alternatives suggests that even if a brand does not face direct
competition in its product category, and thus does not share performance related attributes with other
brands, it can still share more abstract associations and face indirect competition in a more broadly
defined product category.

Competition often occurs at the benefit level and not at the attribute level. Thus, a luxury good with a
strong hedonic benefit like stereo equipment may compete as much with a vacation as with other
durable goods like furniture. A maker of educational software products may be implicitly competing
with all other forms of education and entertainment, such as books, videos, television, and magazines.
For these reasons, branding principles are now being used to market a number of different categories
as a whole-for example, banks, furniture, carpets, bowling, and trains, to name just a few.

Unfortunately, many firms narrowly define competition and fail to recognize the most compelling
threats and opportunities. For example: sales in the apparel industry often have been stagnant in
recent years as consumers have decided to spend on home furnishings, electronics, and other
products that better suit their lifestyle. Leading clothing makers may be better off considering the
points-of-differences of their offerings not so much against other clothing labels as against other
discretionary purchases.
Products are often organized in consumers’ minds in a hierarchical fashion, meaning that
marketers can define competition at a number of different levels. Example: Fresca, a grapefruit-
flavored soft drink, as an example: At the product type level, it competes with non-cola-flavored soft
drinks; at the product category level, it competes with all soft drinks; and at the product class level, it
competes with all beverages.

Multiple Frames of Reference

It is not uncommon for a brand to identify more than one frame of reference. This may be the
result of broader category competition or the intended future growth of a brand, or it can occur when
the same function can be performed by different types of products. For example: Canon EOS Rebel
digital cameras compete with digital cameras from Nikon, Kodak, and others, but also with photo-
taking cell phones. Their advantages against cell phones—such as easy photo sharing on social
networks like Facebook or the ability to shoot high-definition video for sharing—would not necessarily
be an advantage at all against other digital camera brands.
As another example, Starbucks can define very distinct sets of competitors, which would suggest very
different POPs and PODs as a result:
1. Quick-serve restaurants and convenience shops (McDonald’s and Dunkin’ Donuts). Intended PODs
might be quality, image, experience, and variety; intended POPs might be convenience and value.

2. Supermarket brands for home consumption (Nescafé and Folger’s). Intended PODs might be quality,
image, experience, variety, and freshness; intended POPs might be convenience and value.
3. Local cafés. Intended PODs might be convenience and service quality; intended POPs might be
quality, variety, price, and community.

Note that some POPs and PODs are shared across competitors; others are unique to a particular
competitor. Under such circumstances, marketers have to decide what to do. There are two main
options. Ideally, a robust positioning could be developed that would be effective across the multiple
frames somehow. If not, then it is necessary to prioritize and choose the most relevant set of
competitors to serve as the competitive frame. One thing that is crucial though is to be careful to not
try to be all things to all people—that typically leads to ineffective “lowest common denominator”
positioning.
Finally, note that if there are many competitors in different categories or subcategories, it may be
useful to either develop the positioning at the categorical level for all relevant categories (“quick-serve
restaurants” or “supermarket take-home coffee” for Starbucks) or with an exemplar from each
category (McDonald’s or Nescafé for Starbucks).

Points-of-Parity (POPs) and Points-of-Difference (PODs)

Once marketers have fixed the appropriate competitive frame of reference for positioning by defining
the customer target market and the nature of competition, they can define the basis of the
positioning itself. Arriving at the proper positioning requires establishing the correct points-of-
difference and points-of-parity associations.

Points-of-Difference Associations:
Points-of-difference (PODs) are formally defined as attributes or benefits that consumers strongly
associate with a brand, positively evaluate, and believe that they could not find to the same extent
with a competitive brand. Although myriad different types of brand associations are possible, we can
classify candidates as either functional, performance-related considerations or as abstract, imagery-
related considerations. Consumers’ actual brand choices often depend on the perceived uniqueness
of brand associations. Swedish retailer Ikea took a luxury product—home furnishings and furniture—
and made it a reasonably priced alternative for the mass market. Ikea supports its low prices by
having customers serve themselves and deliver and assemble their own purchases. Ikea also gains a
point-of-difference through its product offerings. As one commentator noted, “Ikea built their
reputation on the notion that Sweden produces good, safe, well-built things for the masses. They have
some of the most innovative designs at the lowest cost out there.”
Points-of-difference may rely on performance attributes (Hyundai provides six front and back
seat “side curtain” airbags as standard equipment on all its models for increased safety) or
performance benefits (Magnavox’s electronic products have “consumer-friendly” technological
features, such as television sets with “Smart Sound” to keep volume levels constant while flipping
through channels and commercial breaks, and “Smart Picture” to automatically adjust picture settings
to optimal levels). In other cases, PODs come from imagery associations (the luxury and status
imagery of Louis Vuitton or the fact that British Airways is advertised as the “world’s favourite airline”).
Many top brands attempt to create a point-of-difference on “overall superior quality,” whereas other
firms become the “low-cost provider” of a product or service.
Thus, a host of different types of PODs are possible. PODs are generally defined in terms of consumer
benefits. These benefits often have important underlying “proof points” or reasons to believe (RTBs).
These proof points can come in many forms: functional design concerns (a unique shaving system
technology, leading to the benefit of a “closer electric shave”); key attributes (a unique tread design,
leading to the benefit of “safer tires”); key ingredients (contains fluoride, leading to the benefit of
“prevents dental cavities”); or key endorsements (recommended by more audio engineers, leading to
the benefit of “superior music fidelity”). Having compelling proof points and RTBs are often critical to
the deliverability aspect of a POD.

Points-of-Parity Associations:
Points-of-parity (POPs) associations on the other hand, are not necessarily unique to the brand but
may in fact be shared with other brands. There are three types: category, competitive, and
correlational:
Category points-of-parity represent necessary-but not necessarily sufficient—conditions for brand
choice. They exist minimally at the generic product level and are most likely at the expected product
level. Thus, consumers might not consider a bank truly a “bank” unless it offered a range of checking
and savings plans; provided safety deposit boxes, traveler’s checks, and other such services; and had
convenient hours and automated teller machines. Category POPs may change over time because of
technological advances, legal developments, and consumer trends, but these attributes and benefits
are like “greens fees” to play the marketing game.
Competitive points-of-parity are those associations designed to negate competitors’ points-of-
difference. In other words, if a brand can “break even” in those areas where its competitors are trying
to find an advantage and can achieve its own advantages in some other areas, the brand should be in
a strong-and perhaps unbeatable-competitive position.
Correlational points-of-parity are those potentially negative associations that arise from the existence
of other, more positive associations for the brand. One challenge for marketers is that many of the
attributes or benefits that make up their POPs or PODs are inversely related. For Example: if your
brand is good at one thing, it can’t be seen as also good on something else. For example, consumers
might find it hard to believe a brand is “inexpensive” and at the same time “of the highest quality.”

Moreover, individual attributes and benefits often have both positive and negative aspects. A
long heritage could be seen as a positive attribute because it can suggest experience, wisdom, and
expertise. On the other hand, it could be a negative attribute because it might imply being old-
fashioned and not contemporary and up-to-date. Below, we consider strategies to address these trade-
offs.

Points-of-Parity versus Points-of-Difference:

POPs are important because they can undermine/weaken/erode PODs. For the brand to achieve a
point-of-parity on a particular attribute or benefit, a sufficient number of consumers must believe
that the brand is “good enough” on that dimension.
There is a “zone” or “range of tolerance or acceptance” with POPs. The brand does not have to be
seen as literally equal to competitors, but consumers must feel that it does sufficiently well on that
particular attribute or benefit so that they do not consider it to be a negative or a problem.

Assuming consumers feel that way, they may then be willing to base their evaluations and decisions
on other factors potentially more favorable to the brand.
Points-of-parity are thus easier to achieve than points-of-difference, where the brand must
demonstrate clear superiority. Often, the key to positioning is not so much achieving a POD as
achieving necessary, competitive and corelational POPs.

Establishing Category Membership/Communicating Category Membership

Target consumers are aware that Lakme is a leading brand of cosmetics, Raymond is a leading
brand of men’s formal wear, and Tata Consultancy Services (TCS) is a leading consulting firm. Often,
however, marketers must inform consumers of a brand’s category membership. Perhaps the most
obvious situation is the introduction of new products, especially when the category membership is not
apparent. This uncertainty can be a special problem for high-tech products. There are also situations
where consumers know a brand’s category membership, but may not be convinced that the brand is a
valid member of the category. For example, consumers may be aware that Hewlett-Packard produces
digital cameras, but they may not be certain whether Hewlett-Packard cameras are in the same class
as Sony, Olympus, Kodak, and Nikon. In this instance, HP might find it useful to reinforce category
membership. Brands are sometimes affiliated with categories in which they do not hold membership.
This approach is one way to highlight a brand's point-of-difference, providing that consumers know the
brand's actual membership. With this approach, however, it is important that consumers understand
what the brand stands for, and not just what it is not. It is important to not be trapped between
categories. The Konica e-mini M digital camera and MP3 player was marketed as the “four-in-one
entertainment solution,” but suffered from functional deficiencies in each of its product applications
and languished in the marketplace. The preferred approach to positioning is to inform consumers of
a brand’s membership before stating its point-of-difference. Presumably, consumers need to know
what a product is and what function it serves before deciding whether it dominates the brands against
which it competes. For new products, initial advertising often concentrates on creating brand
awareness and subsequent advertising attempts to craft the brand image. Occasionally, a company
will try to straddle two frames of reference:
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BMW
When BMW first made a strong competitive push into the U.S. market in the early 1980s, it positioned
the brand as being the only automobile that offered both luxury and performance. At that time,
American luxury cars were seen by many as lacking performance, and American performance cars
were seen as lacking luxury. By relying on the design of its cars, its German heritage, and other
aspects of a well-conceived marketing program, BMW was able to simultaneously achieve: (1) a point-
of-difference on luxury and a point-of-parity on performance with respect to performance cars and (2)
a point-of-difference on performance and a point-of-parity on luxury with respect to luxury cars. The
clever slogan “The Ultimate Driving Machine” effectively captured the newly created umbrella category
—luxury performance cars.

While a straddle positioning (Stradle- to sit or stand with your legs on each side of something)
often is attractive as a means of reconciling potentially conflicting consumer goals, it also carries an
extra burden. If the points-of-parity and points-of-difference with respect to both categories are not
credible, the brand may not be viewed as a legitimate player in either category. Many early PDAs that
unsuccessfully tried to straddle categories ranging from pagers to laptop computers provide a vivid
illustration of this risk.
There are three main ways to convey a brand’s category membership:

1. Announcing category benefits. To reassure consumers that a brand will deliver on the fundamental
reason for using a category, marketers frequently use benefits to announce category membership.
Thus, industrial tools might claim to have durability, and antacids might announce their efficacy. A
brownie mix might attain membership in the baked desserts category by claiming the benefit of great
taste and support this claim by including high-quality ingredients (performance) or by showing users
delighting in its consumption (imagery).
2. Comparing to exemplars. Well-known, noteworthy brands in a category can also help a brand
specify its category membership. When Tommy Hilfiger was an unknown, advertising announced his
membership as a great U.S. designer by associating him with Geoffrey Beene, Stanley Blacker, Calvin
Klein, and Perry Ellis, who were recognized members of that category.
3. Relying on the product descriptor. The product descriptor that follows the brand name is often a
concise means of conveying category origin. Ford Motor Co. invested more than $1 billion on a radical
new 2004 model called the X-Trainer, which combined the attributes of an SUV, a minivan, and a
station wagon. To communicate its unique position—and to avoid association with its

Explorer and Country Squire models—the vehicle, eventually called Freestyle, was designated a “sports
wagon.”

Communicating POPs and PODs

One common difficulty in creating a strong, competitive brand positioning is that many of the
attributes or benefits that make up the points-of-parity and points-of-difference are negatively
correlated. For example, it might be difficult to position a brand as “inexpensive” and at the same time
assert that it is “of the highest quality.” ConAgra must convince consumers that Healthy Choice frozen
foods both taste good and are good for you. Consider these examples of negatively correlated
attributes and benefits:
Low price vs. High quality; Powerful vs. Safe; Taste vs. Low calories; Strong vs. Refined; Nutritious vs.
Good tasting; Ubiquitous vs. Exclusive; Efficacious vs. Mild Varied vs. Simple
Moreover, individual attributes and benefits often have positive and negative aspects. For
example, consider a long-lived brand such as La-Z-Boy recliners, Burberry outerwear, or the New York
Times. The brand’s heritage could suggest experience, wisdom, and expertise. On the other hand, it
could also imply being old-fashioned and not up-to-date.

Unfortunately, consumers typically want to maximize both of the negatively correlated

attributes or benefits. Much of the art and science of marketing is dealing with trade-offs, and
positioning is no different. The best approach clearly is to develop a product or service that performs
well on both dimensions. GORE-TEX was able to overcome the seemingly conflicting product images
of “breathable” and “waterproof” through technological advances. When in-depth and quantitative
interviews and focus groups suggested that consumers wanted the benefits of technology without the
hassles, Royal Philips launched its “Sense and Simplicity” advertising campaign for its Philips brand of
electronics, using print, online, and television advertising.
Some marketers have adopted other approaches to address attribute or benefit trade-offs: launching
two different marketing campaigns, each one devoted to a different brand attribute or benefit; linking
themselves to any kind of entity (person, place, or thing) that possesses the right kind of equity as a
means to establish an attribute or benefit as a POP or POD; and even attempting to convince
consumers that the negative relationship between attributes and benefits, if they consider it
differently, is in fact positive.

Choosing POPs and PODs

POPs are driven by needs of category (to create category POPs) and the necessity of negating
competitor’s PODs (to create competitive POPs). A brand must offer a compelling and credible reason
for choosing it over the other options. In determining whether an attribute or benefit for a brand can
serve as point-of-difference, there are three key considerations. The brand association must be seen
as desirable, deliverable, and differentiating.
These three considerations for developing an optimal positioning align with the three perspectives on
which any brand must be evaluated, namely the consumer, the company, and the competition.
Desirability is determined from the consumer’s point of view, deliverability is based on a company’s
inherent capabilities, and differentiation is determined relative to the competitors.
To function as a POD, consumers ideally would see the attribute or benefit as highly important,
feel confident that the firm has the capabilities to deliver it, and be convinced that no other brand
could offer it to the same extent. If these three criteria are satisfied, the brand association should have
sufficient strength, favorability, and uniqueness to be an effective POD. Each of these three criteria has
a number of considerations, which we look at next.

Desirability Criteria: Target consumers must find the POD personally relevant and important.
Brands that tap into growing trends with consumers often find compelling PODs. For example, Apple &
Eve’s pure, natural fruit juices have ridden the wave of the natural foods movement to find success in
an increasingly health-minded beverage market.
Just being different is not enough—the differences must matter to consumers. For example, at
one time a number of brands in different product categories (colas, dishwashing soaps, beer,
deodorants, gasoline) introduced clear versions of their products to better differentiate themselves.
The “clear” association has not seemed to be of enduring value or to be sustainable as a point-of-
difference. In most cases, these brands experienced declining market share or disappeared
altogether.

Deliverability Criteria: The deliverability of an attribute or benefit brand association depends

on both a company’s actual ability to make the product or service (feasibility) as well as their
effectiveness in convincing consumers of their ability to do so (communicability), as follows:

Feasibility: Can the firm actually supply the benefit underlying the POD? The product and
marketing must be designed in a way to support the desired association. It is obviously easier
to convince consumers of some fact about the brand that they were unaware of or may have
overlooked than to make changes in the product and convince consumers of the value of these
changes. As noted above, perhaps the simplest and most effective approach is to point to a
unique attribute of the product as a proof point or reason-to-believe. Thus, Mountain Dew may
argue that it is more energizing than other soft drinks and support this claim by noting that it
has a higher level of caffeine. On the other hand, when the point-of-difference is abstract or
image based, support for the claim may reside in more general associations to the company
that have been developed over time. Thus, Chanel No. 5 perfume may claim to be the
quintessential elegant, French perfume and support this claim by noting the long association
between Chanel and haute couture.

Communicability: The key issue in communicability is consumers’ perceptions of the brand and
the resulting brand associations. It is very difficult to create an association that is not
consistent with existing consumer knowledge, or that consumers, for whatever reason, have
trouble believing in. What factual, verifiable evidence or “proof points” can marketers
communicate as support, so that consumers will actually believe in the brand and its desired
associations? These “reasons-to-believe” are critical for consumer acceptance of a potential
POD. Any claims must pass legal scrutiny too. The makers of category leader POM Wonderful
100% Pomegranate Juice have battled with the Federal Trade Commission over what the FTC
deems as “false and unsubstantiated claims” about treating or preventing heart disease,
prostate cancer, and erectile dysfunction.

Differentiation Criteria: Finally, target consumers must find the POD distinctive and superior.
When marketers are entering a category in which there are established brands, the challenge is to find
a viable, long-term basis for differentiation. Is the positioning preemptive, defensible, and difficult to
attack? Can the brand association be reinforced and strengthened over time? If these are the case, the
positioning is likely to last for years.
Sustainability depends on internal commitment and use of resources as well as external
market forces. Before encountering tough economic times, Applebee’s strategy for leadership in the
casual dining restaurant business, in part, was to enter smaller markets where a second major
competitor might be unlikely to enter—hello Hays, Kansas! Although there are downsides to such a
strategy—potentially smaller volume and lethal word-of-mouth from any service snafus—competitive
threats are minimal.

Establishing/Creating POPs and PODs

The key to branding success is to establish both points-of-parity and points-of-difference. In
creating both POPs and PODs, one of the challenges in positioning is the inverse relationships that
may exist in the minds of many consumers. Unfortunately, as noted above, consumers typically want
to maximize both the negatively correlated attributes and benefits. To make things worse,
competitors often are trying to achieve their point-of-difference on an attribute that is negatively
correlated with the point-of-difference of the target brand.
Much of the art and science of marketing is knowing how to deal with trade-offs, and
positioning is no different. The best approach clearly is to develop a product or service that performs
well on both dimensions. Gore-Tex, for example, was able to overcome the seemingly conflicting
product image of “breathable” and “waterproof” through technological advances.
Several additional ways exist to address the problem of negatively correlated POPs and PODs.
The following three approaches are listed in increasing order of effectiveness—but also increasing
order of difficulty.

Separate the Attributes: An expensive but sometimes effective approach is to launch two
different marketing campaigns, each devoted to a different brand attribute or benefit. These
campaigns may run concurrently or sequentially. For example, Head & Shoulders met success
in Europe with a dual campaign in which one ad emphasized its dandruff removal efficacy while
another ad emphasized the appearance and beauty of hair after its use. The hope is that
consumers will be less critical when judging the POP and POD benefits in isolation, because the
negative correlation might be less apparent. The downside is that two strong campaigns have
to be developed—not just one. Moreover, if the marketer does not address the negative
correlation head-on, consumers may not develop as positive an association as desired.

Leverage Equity of another Entity: Brands can link themselves to any kind of entity that possesses
the right kind of equity—a person, other brand, event, and so forth—as a means to establish an
attribute or benefit as a POP or POD. Self-branded ingredients may also lend some credibility to
a questionable attribute in consumers’ minds. SK-II (Cosmetic range), by Proctor & Gamble, is
an excellent example of a brand “borrowing” or leveraging the equity of well-known and
respected celebrities to lend credibility to its differentiation: an ability to clarify skin.

Redefine the Relationship. Finally, another potentially powerful but often difficult way to address
the negative relationship between attributes and benefits in the minds of consumers is to
convince them that in fact the relationship is positive. Marketers can achieve this by providing
consumers with a different perspective and suggesting that they may be overlooking or
ignoring certain factors or other considerations. Apple offers another classic example.

Straddle Positions
Occasionally, a company will be able to straddle two frames of reference with one set of
points-of- difference and points-of-parity. In these cases, the points-of-difference in one category
become points-of-parity in the other and vice-versa for points-of-parity. For example, Accenture
defines itself as the company that combines (1) strategic insight, vision, and thought leadership and
(2) information technology expertise in developing client solutions. This strategy permits points-of-
parity with its two main competitors, McKinsey and IBM, while simultaneously achieving points-of-
difference. Specifically,

Accenture has a point-of-difference on technology and execution with respect to McKinsey and a
point-of-parity on strategy and vision. The reverse is true with respect to IBM: technology and
execution are points-of-parity, but strategy and vision are points-of-difference. Another brand that has
successfully employed a straddle positioning is BMW.
While a straddle positioning often is attractive as a means of reconciling potentially conflicting
consumer goals and creating a “best-of-both-worlds” solution, it also carries an extra burden. If the
points-of-parity and points-of-difference with respect to both categories are not credible, consumers
may not view the brand as a legitimate player in either category. Many early PDAs that unsuccessfully
tried to straddle categories ranging from pagers to laptop computers provide a vivid illustration of this
risk.

Updating Positioning over Time

The previous section described some positioning guidelines that are especially useful for
launching a new brand. With an established brand, an important question is how often to update it’s
positioning. As a general rule, positioning should be fundamentally changed very infrequently, and only
when circumstances significantly reduce the effectiveness of existing POPs and PODs.
Positioning, however, will evolve over time to better reflect market opportunities or challenges.
A point-of-difference or point-of-parity may be refined, added, or dropped as situations dictate. One
common market opportunity that often arises is the need to deepen the meaning of the brand to
permit further expansion—laddering. One common market challenge is how to respond to competitive
actions that threaten an existing positioning—reacting. We consider the positioning implications of
each in turn.

Laddering. Although identifying PODs to dominate competition on benefits that are important to
consumers provides a sound way to build an initial position, once the target market attains a
basic understanding of how the brand relates to alternatives in the same category, it may be
necessary to deepen the meanings associated with the brand positioning. It is often useful to
explore underlying consumer motivations in a product category to uncover the relevant
associations. For example, Maslow’s hierarchy maintains that consumers have different
priorities and levels of needs. From lowest to highest priority, they are as follows:

1. Physiological needs (food, water, air, shelter, sex)

2. Safety and security needs (protection, order, stability)

3. Social needs (affection, friendship, belonging)

4. Ego needs (prestige, status, self-respect)

5. Self-actualization (self-fulfilment)

According to Maslow, higher-level needs become relevant once lower-level needs have been
satisfied.
Marketers have also recognized the importance of higher-level needs. For example, means-end chains
(Attribute-Benefit-Value) have been devised as a way of understanding higher-level meanings of brand
characteristics.
A means-end chain takes the following structure: attributes (descriptive features that
characterize a product) lead to benefits (the personal value and meaning attached to product
attributes), which, in turn, lead to values (stable and enduring personal goals or motivations).
 In other words, a consumer chooses a product that delivers an attribute (A) that provides
benefits or has certain consequences (B/C) that satisfy values (V). For example, in a study of salty
snacks, one respondent noted that a flavored chip (A) with a strong taste (A) would mean that she
would eat less (B/C), not get fat (B/C), and have a better figure (B/C), all of which would enhance her
self-esteem (V). Laddering thus progresses from attributes to benefits to more abstract values or
motivations.
In effect, laddering repeatedly asks what the implication of an attribute or benefit is for the
consumer. Failure to move up the ladder may reduce the strategic alternatives available to a brand. For
example, P&G introduced low-sudsing (lather/foam) Dash detergent to attract consumers who used
frontloading washing machines. Many years of advertising Dash in this manner made this position
impenetrable by other brands. Dash was so associated with front-loaders, however, that when this
type of machine went out of fashion, so did Dash, despite the fact that it was among P&G’s most
effective detergents, and despite significant efforts to reposition the brand.
Some attributes and benefits may lend themselves to laddering more easily than others. For
example, the Betty Crocker brand appears on a number of different baking products and is
characterized by the physical warmth associated with baking. Such an association makes it relatively
easy to talk about emotional warmth and the joy of baking or the good feelings that might arise from
baking for others across a wide range of baking-related products.

Thus, some of the strongest brands deepen their points-of-difference to create benefit and
value associations, for example, Volvo and Michelin (safety and peace of mind), Intel (performance
and compatibility), Marlboro (western imagery), Coke (Americana and refreshment), Disney (fun,
magic, family entertainment), Nike (innovative products and peak athletic performance), and BMW
(styling and driving performance).
As a brand becomes associated with more and more products and moves up the product
hierarchy, the brand’s meaning will become more abstract. At the same time, it is important that the
proper category membership and POPs and PODs exist in the minds of consumers for any particular
products sold under the brand name.

Reacting. Competitive actions are often directed at eliminating points-of-difference to make them
points-of-parity or to strengthen or establish new points-of-difference. Often competitive
advantages exist for only a short period of time before competitors attempt to match them. For
example, when Goodyear introduced RunOnFlat tires (which allowed tires to keep going for up
to 50 miles at a speed of 55 mph after a tire puncture or blowout), Michelin quickly responded
with the Zero Pressure tire, which offered the same consumer benefit.

When a competitor challenges an existing POD or attempts to overcome a POP, there are
essentially three main options for the target brand—from no reaction to moderate to significant
reactions.

Do nothing. If the competitive actions seem unlikely to recapture a POD or create a new POD,
then the best reaction is probably to just stay the course and continue brand-building efforts.

Go on the defensive. If the competitive actions appear to have the potential to disrupt the market
some, then it may be necessary to take a defensive stance. One way to defend the positioning
is to add some reassurance in the product or advertising to strengthen POPs and PODs.

Go on the offensive. If the competitive actions seem potentially quite damaging, then it might be
necessary to take a more aggressive stance and reposition the brand to address the threat. One
approach might be to launch a product extension or ad campaign that fundamentally changes
the meaning of the brand. A brand audit can help marketers assess the severity of the
competitive threat and the appropriate competitive stance.
Developing a Good Positioning
A few final comments are useful to help guide positioning efforts. First, a good positioning has
a “foot in the present” and a “foot in the future.” It needs to be somewhat aspirational so that the
brand has room to grow and improve. Positioning on the basis of the current state of the market is not
forward-looking enough; but, at the same time, the positioning cannot be so removed from the current
reality that it is essentially unobtainable. The real trick in positioning is to strike just the right balance
between what the brand is and what it could be.
Second, a good positioning is careful to identify all relevant points-of-parity. Too often
marketers overlook or ignore crucial areas where the brand is potentially disadvantaged to
concentrate on areas of strength. Both are obviously necessary as points-of-difference will not matter
without the requisite points-of-parity. One good way to uncover key competitive points-of-parity is to
role play competitor’s positioning and infer their intended points-of-difference. Competitor’s PODs will,
in turn, become the brand’s POPs. Consumer research into the trade-offs in decision-making that exist
in the minds of consumers can also be informative.
Third, a good positioning should reflect a consumer point of view in terms of the benefits that
consumers derive from the brand. It is not enough to advertise that you are the “biggest selling
gasoline in the world”—as Shell Oil did once. An effective POD should make clear why that it so
desirable to consumers. In other words, what benefits would a consumer get from that unique
attribute?

Does that mean Shell Oil is more convenient due to more locations, or perhaps able to charge
lower prices due to economies of scale? Those benefits, if evident, should become the basis for the
positioning, with the proof point or RTB being the attribute of “biggest selling gasoline.”
Finally, as we will develop in greater detail with the brand resonance model in the next chapter,
it is important that a duality exists in the positioning of a brand such that there are rational and
emotional components. In other words, a good positioning contains points-of-difference and points-
of-parity that appeal both to the “head” and the “heart.”

Managing Brands
# Brand Personality
Brand personality is the way a brand speaks and behaves. It means assigning human
personality traits/characteristics to a brand so as to achieve differentiation. These characteristics
signify brand behavior through both individuals representing the brand (i.e. it‘s employees) as well as
through advertising, packaging, etc. When brand image or brand identity is expressed in terms of
human traits, it is called brand personality. For instance - Allen Solly brand speaks the personality and
makes the individual who wears it stand apart from the crowd. Infosys represents uniqueness, value,
and intellectualism. Brand personality is nothing but personification of brand. A brand is expressed
either as a personality who embodies these personality traits (For instance - Shahrukh Khan and Airtel,
John Abraham and Castrol) or distinct personality traits (For instance -Dove as honest, feminist and
optimist; Hewlett Packard brand represents accomplishment, competency and influence). Brand
personality is the result of all the consumer‘s experiences with the brand. It is unique and long
lasting. Brand personality must be differentiated from brand image, in sense that, while brand image
denote the tangible (physical and functional) benefits and attributes of a brand, brand personality
indicates emotional associations of the brand. If brand image is comprehensive brand according to
consumers’ opinion, brand personality is that aspect of comprehensive brand which generates it’s
emotional character and associations in consumers’ mind. Brand personality develops brand equity.
It sets the brand attitude. It is a key input into the look and feel of any communication or marketing
activity by the brand. It helps in gaining thorough knowledge of customers feelings about the brand.
Brand personality differentiates among brands specifically when they are alike in many attributes. For
instance - Sony versus Panasonic. Brand personality is used to make the brand strategy lively, i.e., to
implement brand strategy. Brand personality indicates the kind of relationship a customer has with the
brand. It is a means by which a customer communicates his own identity.
Brand personality and celebrity should supplement each other. Trustworthy celebrity ensures
immediate awareness, acceptability and optimism towards the brand. This will influence consumers’
purchase decision and also create brand loyalty. For instance - Bollywood actress Priyanka Chopra is
brand ambassador for J.Hampstead, international line of premium shirts.

Brand personality not only includes the personality features/characteristics, but also the
demographic features like age, gender or class and psychographic features. Personality traits are
what the brand exists for.
The Five Dimensions of Brand Personality (Elements)
Marketers have used sophisticated techniques to segment their consumer universes into
psychographic sets, the progenitors of today‘s online communities. These techniques have been able
to reveal hidden truths underlying group actions as in the case of Helicopter Parents (Parent who pays
extremely close attention to child’s experiences and problems particularly in educational institutions)
or Metrosexuals (a meticulous about his grooming and appearance). As a result, they have allowed
marketers to dig deeper than simple demographics to target messages much closer to the heart of
action than general measures like age or sex. In fact, a case can be made that these older groupings
have had far deeper roots than today‘s like- and tweet- based communities. At the core of
psychographic segmentation lies the recognition that all human behavior derives from a small set of
fundamentals, the so-called Big Five Personality Traits. All the broad variation in human action, at
heart, comes down to different mixes of these elemental traits. By isolating these human behavioral
fundamentals using analytical techniques, marketers can build up full profiles of what is driving the
behavior of their targets customers and prospects. The Big Five was originally propounded way back
in 1961, but only came into broader use in the 1980s (Robert McCrae & Paul Costs). Since then, it has
become a hallmark of marketing and psychology. Everyone who ever took a ―personality test at work
has experienced an expression of the Big Five. The Big Five attributes are:

Openness to experience: (inventive/curious vs. consistent/cautious). Appreciation for art,

emotion, adventure, unusual ideas, curiosity, and variety of experience. Openness reflects the
degree of intellectual curiosity, creativity and a preference for novelty and variety. Some
disagreement remains about how to interpret the openness factor, which is sometimes called
―intellect rather than openness to experience.

Conscientiousness: (efficient/organized vs. easy-going/careless). A tendency to show self-

discipline, act dutifully, and aim for achievement; planned rather than spontaneous behavior;
organized, and dependable.
 Extraversion: (outgoing/energetic vs. solitary/reserved). Energy, positive emotions, surgency,
assertiveness, sociability and the tendency to seek stimulation in the company of others, and
talkativeness.

Agreeableness: (friendly/compassionate vs. cold/unkind). A tendency to be compassionate and

cooperative rather than suspicious and antagonistic towards others.

Neuroticism: (sensitive/nervous vs. secure/confident). The tendency to experience unpleasant

emotions easily, such as anger, anxiety, depression, or vulnerability. Neuroticism also refers to
the degree of emotional stability and impulse control, and is sometimes referred by its low
pole-“emotional stability”.

Do brand personalities all derive from The Big Five, as if brands were themselves people? Or,
does each brand create its own unique universe, with its own unique set of core behavior elements
driving the brand’s personality? What researchers have found falls in the middle ground? Brands
personality, in fact, is not derived directly from The Big Five, but neither does it stem from random,
unique brand universes. Rather, there appears to be a separate set of universal markers that delineate
brand personalities. People don‘t react to brands as people, but do, if appears, react to brands in a
consistent, measurable way, call it the Brand Five. The personalities of brands devolve from this
separate Brand Five as noted in this chart:

The emergence of these two sets of fundamental markers for human behavior has made it
possible for statisticians, and the marketers who rely on them, to craft rich and measurable analytical
images of brands and their customers. These actionable ―”brand personalities’ and the
psychographic sets they define have transformed the way marketers can approach target audiences.
They have lead to the creation of techniques that drive the development of today‘s vibrant, social-
network driven brand communities.

#Brand Knowledge
 Brand knowledge refers to the thoughts, feelings, and experiences, become associated of a
customer with a business’s brand or a company. Brand knowledge is developed due to interactions in
the form of advertisements, communication etc which the company develops, its logo and has an
ambassador for representation but is truly identified by its consumers only. The consumer will develop
their own interpretation of the company’s brand based on their thoughts that they go through and
what they experience in dealing with the company along with their feelings about the company’s
products.
Brand knowledge is the brand image; brand association etc which a customer creates after the
company has created brand awareness through campaigns. A consumer may develop a poor brand
image if they have a poor experience with the company let’s say in terms of poor servicing or poor
product exposure. Brand knowledge eventually helps in creating brand equity through brand
recognition.

Importance of Brand Knowledge

A successful brand is one that creates brand knowledge in the most positive way in their
consumer’s minds. Brand knowledge is a unique combination of brand awareness and brand image.
Brand awareness is how much a customer recalls a brand when it comes across and advertisement of
it. Brand image a pool of mental imageries that influence a buyer’s purchase decision. Although
different brands may mean differently to people, brand knowledge is universally a function of
awareness and image.
Brand knowledge is a very delicate balance between brand awareness and brand image.
Example- Tiger Woods is a classic example of high awareness and bad brand image leading to a
disaster of a brand. Brand awareness consists of brand image and brand recall and is a subset of ad
awareness. Brand image is a lot more challenging, because it is the influences in the consumers’ mind
of both real and imaginary thoughts and feelings and shortcomings that influence the customer’s
purchase decision.
Starbucks has built a strong, favourable and unique brand. Due to the unique brand experience
as much as the coffee. Therefore, creating brand image means selecting the right brand elements that
become an asset to the brand. They should identify and differentiate a brand and are:
1. Memorable
2. Meaningful
3. Transferable
4. Adaptable.

5. Protectable
Creating a strong brand identity is one of the best competitive advantages a company can have.
Difference between Brand Knowledge and Brand Equity
 Brand awareness refers how well is your brand recalled by your customers because of ad
awareness. In contrast, brand equity is the value addition that happens to a brand due to consequent
marketing activities that have happened in the past or present.
Brand knowledge if a delicate balance between brand awareness and brand equity, hence brand
equity is a subset of brand knowledge. Overall, brand knowledge has a vast impact on the consumers
mind and is far more important to have a positive impact and note left on their minds.
Examples of Brand Knowledge

1. Nike products are made with cutting edge innovation and technology. Their advertisements
although are kept simple thereby keeping it not so high on the brand awareness aspect from
the ad awareness area. Whereas the Nike swoosh logo is one of the most identified logos
across the world, giving them points (high) on brand image. Their slogan “Just Do It” is one of
the most well associated slogans across brands giving them an edge over others. The moment
customers start remembering these minute details about your brand is when the realization
happens that they have started associating themselves with the brand on a personal level.
Nike’s association with Michael Jordan, the basketball legend led to it’s user positive branding
and hence greater brand knowledge. Nike’s innovative way of collaborations with celebrities led
to greater brand identity and hence a better hold on brand knowledge by its customers.

2. For example, we take two very popular aerated drink brands which are very well known, namely
Coca Cola and Pepsi. Both have the same level of of brand awareness as is shown when a
consumer is asked what they remember in terms of soft drinks, the first few names if not top
two would be these two brands. But if Coca Cola is being advertised by a very popular celebrity,
let’s say Celebrity X and Pepsi is advertised by Celebrity Y who seems not to be as popular as
his counterpart, customers tend to remember Coca cola more than Pepsi. Hence, even is Pepsi
tastes better or has better sugar content, consumers prefer to have Coca Cola because of the
celebrity associated with it. Taste in an attribute that comes after purchase. It is the marketing
and advertising really that influences purchase in this case more. Consumers believe and are
concerned that Coca Cola is a fun and trendy brand. This becomes an added advantage over its
competitors. This showcases how the brand equity of both brands are different. Hence two
brands may, share the same level of brand awareness, however, their level of brand equity can
be very different.

#Brand Awareness
Brand awareness is the extent to which a brand is recognized by potential customers, and is
correctly associated with a particular product. Expressed usually as a percentage of the target market,
brand awareness is the primary goal of advertising in the early months or years of a product’s
introduction. Brand awareness is related to the functions of brand identities in consumers’ memory
and can be reflected by how well the consumers can identify the brand under various conditions.
Brand awareness includes brand recognition and brand recall performance. Brand recognition
refers to the ability of the consumers to correctly differentiate the brand they previously have been
exposed to. This does not necessarily require that the consumers identify the brand name. Instead, it
often means that consumers can respond to a certain brand after viewing its visual packaging
images. Brand recall refers to the ability of the consumers to correctly generate and retrieve the brand
in their memory. A brand name that is well known to the great majority of households is also called a
household name.
Importance
“Awareness, attitudes, and usage (AAU) metrics relate closely to what has been called the
Hierarchy of Effects, an assumption that customers progress through sequential stages from lack of
awareness, through initial purchase of a product, to brand loyalty.” In total, these AAU metrics allow
companies to track trends in customer knowledge and attitudes.

Although the hierarchy of effects is considered as a one-way linear relationship, these three
stages are not -“clear-cut”. The causal link might be reversed. The usage could cause the awareness
while the attitudes can also influence the awareness. For example, one owned a Dell wireless mouse
and had excellent using experience. Such experience might determine the one‘s favorite brand attitude
toward Dell.
Brand awareness plays a major role in a consumer‘s buying decision-making process. During
this process, the category need is stimulated first. For example, you need to do food shopping. You
will only write down the food categories, like chocolate, instead of brand names on your list. You will
scan the packages of chocolate on the shelf and recognize different brands. Such recognition might
be based on the knowledge of an acquaintance or friend having used the product in the past or
constant advertisement. In this situation, brand awareness does not require brand recall because
brand awareness may occur along with brand recognition. However, in other situations, brand recall is
required. For instance, you are in a hurry and want to grab a bite at a fast-food restaurant. It is not
possible for you to drive around and make a decision. You need to retrieve different fast-food brands
in your memory, choose one and go there directly. In this situation, constant advertisement is
important in consumers‘memory retrieval because the consumers are willing to go to the first brand
that can be recalled.
The eventual goal of most businesses is to make profits and increase sales. Businesses intend
to increase their consumer pool and encourage repeat purchases. Apple is a brilliant example of how
there is a very high recognition of the brand logo and high anticipation of a new product being
released by the company. An iPod is the first thing that pops into our minds when we think of
purchasing an mp3 player. iPod is used as a replaceable noun to describe an mp3 player. Finally, high
brand awareness about a product suggests that the brand is easily recognizable and accepted by the
market in a way that the brand is differentiated from similar products and other competitors. Brand
building also helps in improving brand loyalty.
Measures of Brand Awareness
Aided Awareness

This type of awareness is generated in a consumer when asked about a product category, if the
consumer is aided with a list of company names and he recognizes the company from the given set it
is categorized as aided awareness.

Spontaneous awareness

When asked about a product category, the consumers are asked to list brands they know
without any cues.

Top of the mind Awareness

When the name of the company is automatically recollected because the consumer very
promptly associates the brand with the product category, it is called a top of the mind awareness of
the product.[5] It‘s the first brand name listed by the consumers when asked to name brands they
know without any cues.
Channels of Brand Awareness
There are many ways to generate brand awareness in the consumers. Listed below are four
such channels

Advertising is the activity or profession of producing information for promoting the sale of
commercial products or services. Advertising is used through various media to generate brand
 awareness within consumers. They can be aired as radio ads, television commercials, internet
etc.

Guerrilla Marketing creative campaigns allow every small firm to compete with bigger firms by
carving out narrow but profitable niches. Nowadays, big firms also use guerrilla marketing to
catch consumers’ attention at low cost. These tactics include (1) extreme specialization, (2)
aiming every effort at favourably impressing the customers, (3) providing service that goes
beyond the customers' expectations, (4) fast response time, (5) quick turnaround of jobs, and
(6) working hours that match the customer's requirements. The term ‘Guerrilla Marketing’
(1984) is a registered trademark of author Jay Levinson who popularized it through his several
‘Guerrilla’ books. Utilisation of personal contacts is the most popular way of guerrilla marketing.
Low-cost channels can be utilised to generate a high level of interest in the product and create
brand awareness.

Product Placement is an advertising technique used by companies to subtly promote their

products through a non-traditional advertising technique, usually through appearances in film,
television, or other media. A formal agreement between the product manufacturer and a media
company can be generated through which the media company also receives an economic
benefit, usually in the form of a fee. The media company in return will showcase the product
through any of the various means they have available to make the brand stand out. Some
people, however, consider product placement to be deceptive and unethical. For example,
Coca-Cola could pay a given fee to have the title character drinking a Coke, instead of a Pepsi
beverage, or Toyota might pay to have one of the characters drive their newest automobile.
Through product placement, companies hope that moviegoers will take note of the products
used by the characters, and therefore think more strongly about using the products themselves.

Social Media is the most contemporary and cost-effective way of creating a brand awareness
with an online audience. Many companies use social media like Facebook, YouTube, blogs etc.

Challenges
Maintaining Brand Awareness is a very important aspect in marketing a company. It is
imperative and very helpful to analyze the response your audience has towards the change in
packaging, advertising, products and messages sent across through various means. Working towards
creating an image in the minds of the consumers is not the last thing a company should aim to do.
Inviting consumer feedback and maintaining a constant presence in the market is equally essential.
Availability of the product to the consumer is one such way of doing this. The consumer should not
have to come looking for you when he is in need of making a second purchase of the product,
dealerships and outlets at convenient places should make the consumer think of the brand as the
most convenient and best solution to their needs of fulfillments. While brand awareness scores tend
to be quite stable at aggregate level, individual consumers show considerable propensity to change
their responses to aided recall based brand awareness measures. For unaided recall based brand
awareness measures, consumers‘brand awareness remains relatively stable. For top of mind recall
measures, consumers give the same answer in two interviews typically only 50% the time. Similar low
levels of consistency in response have been recorded for other cues to elicit brand name responses.

#Brand loyalty
Brand loyalty occurs when a customer chooses to repeatedly purchase a product produced by
the same company instead of a substitute product produced by a competitor. For example, some
people will always buy Coke at the grocery store, while other people will always purchase Pepsi.
Conceptual Framework
Brand loyalty is often based upon perception. A consumer will consistently purchase the same
product because she perceives it as being the superior product among the choices available. You
should note that brand loyalty usually relates to a product, not a company. For example, while you may
be loyal to your Honda Accord, when it comes to motorcycles, you might believe that a Harley
Davidson leaves a Honda motorcycle in the dust. Brand loyalty is important for several reasons. First,
it reduces the cost of production because the sales volume is higher. Second, companies with brand-
loyal customers don't have to spend as much money on marketing the product, which will permit the
company to either retain more earnings or to invest resources elsewhere. Third, companies may use
premium pricing that will increase profit margins. Finally, loyal customers tend to recommend
products that they like. Businesses do have to exert significant effort to facilitate brand loyalty. You
need to convince potential customers that your product has a significant advantage over other
products to justify consistent purchases of your product. Businesses also will attempt to leverage
brand loyalty developed for a product to other products offered by the company. The hope is to create
brand loyalty for as many products as possible.
Examples of brand loyalty abound:

Mac users v. PC users

Pepsi drinkers v. Coke drinkers

McDonalds v. Burger King devotees

iPhone v. Android smart phones

# Brand Identity
Brand identity stems from an organization, i.e., an organization are responsible for creating a
distinguished product with unique characteristics. It is how an organization seeks to identify itself. It
represents how an organization wants to be perceived in the market. An organization communicates
its identity to the consumers through its branding and marketing strategies. A brand is unique due to
its identity.

Brand identity includes following elements - Brand vision, brand culture, positioning,
personality, relationships, and presentations. Brand identity is a bundle of mental and functional
associations with the brand. Associations are not ―reasons-to-buy but provide familiarity and
differentiation that‘s not replicable getting it. These associations can include signature tune (for
example – Britannia- “ting-ting-ta-ding”), trademark colours (for example - Blue colour with Pepsi),
logo (for example - Nike), tagline (for example - Apple‘s tagline is ―”Think different”),etc.
Brand identity is the total proposal/promise that an organization makes to consumers. The
brand can be perceived as a product, a personality, a set of values, and a position it occupies in
consumer‘s minds. Brand identity is all that an organization wants the brand to be considered as. It is
a feature linked with a specific company, product, service or individual. It is a way of externally
expressing a brand to the world.
Brand identity is the noticeable elements of a brand (for instance – Trademark, colour, logo,
name, symbol) that identify and differentiates a brand in target audience mind. It is a crucial means to
grow your company‘s brand. Brand identity is the aggregation of what all you (i.e. an organization) do.
It is an organization’s mission, personality, promise to the consumers and competitive advantages. It
includes the thinking, feelings and expectations of the target market/consumers. It is a means of
identifying and distinguishing an organization from another. An organization having unique brand
identity have improved brand awareness, motivated team of employees who feel proud working in a
well branded organization, active buyers, and corporate style.

Brand identity leads to brand loyalty, brand preference, high credibility, good prices and good
financial returns. It helps the organization to express to the customers and the target market the kind
of organization it is. It assures the customers again that you are who you say you are. It establishes an
immediate connection between the organization and consumers.
Brand identity should be sustainable. It is crucial so that the consumers instantly correlate with
your product/service. Brand identity should be futuristic, i.e., it should reveal the associations aspired
for the brand. It should reflect the durable qualities of a brand. Brand identity is a basic means of
consumer recognition and represents the brand‘s distinction from it‘s competitors.
Brand Identity Prism (Kapferer)
The conception of brand identity was mentioned for the first time in Europe by Jean Noel
Kapferer (Marketing Professor, France), 1986. The importance of the conception and its
understanding quickly disseminated in the entire world. The literature on brand management, which
has been widely examined, uses the terms -“equity” (Aaker, 1996). According to J. Kapferer, brand
identity could be defined by answering the following questions:

What is the aim and individual vision of a brand?

What makes a brand distinguished?

How satisfaction could be achieved?

What is brand’s equity?

What are brand competence, validity and legitimacy?

What are the features of its recognition?

It could be claimed that the conception of brand identity includes the uniqueness, meaning,
aim, values, and personality and provides a possibility to position the brand better, and, thus, achieve
the competitive advantage. Sources of Brand Identity:
Goods, Name, Personage (emblem), Visual Symbols and Logotypes, Brand developer,
Communication together with its content and form.

In 1996, Jean-Noël Kapferer  aimed to conceptualize what he considers the six elements of a

brand’s identity. The Brand Identity Prism works as a diagram to help us understand these elements
and how they relate to one another. Together, Kapferer argues, the elements help businesses build
strong brands, which in turn helps them  communicate clearly and transparently and be easily
remembered and recognized.

The key elements of Kapferer’s model are as follows:

1. Physique

2. Personality

3. Culture

4. Relationship

5. Self-image

6. Reflection

According to Kapferer: “Strong brands are capable of weaving all aspects [of the prism] into an
effective whole in order to create a concise, clear, and appealing brand identity.”

The Kapferer Brand Identity Prism places these six elements in relation to each other by taking
into consideration their position between the business (Sender) and client (Recipient), and vice versa.
The areas defined between these points range from internal (Personality, Culture, Self-image) to
external (Physique, Relationship, Reflection), and many paths can be drawn to join each area.
   

Physique

The first element refers to the physical characteristics of a brand. Namely, how we define the
brand and how it will manifest, including its visual features—visual cues that help consumers identify
the brand.

A good example of a brand with distinctive physical characteristics is iPhone. Some ideas that come
to mind when we think of iPhone include modern, sleek, and minimalistic. Apple has succeeded in
reflecting these attributes, which are its core values, throughout its products. Other common elements
of physique include colors, logos, and packaging.

Personality

The second element is the brand’s personality or character—the traits of the brand in the eyes
of the consumer. One way of understanding this concept would be to imagine your favorite brand as a
living thing. What kind of living thing is it? How does it behave?

To convey brand personality, brands may use a specific style of writing, tone, attitude, or colors.
For example, Coca-Cola uses its iconic typeface and the color red to communicate happiness and the
moments of joy the brand personifies.

Culture

According to Kapferer, culture is the set of values that feed into or set a foundation for the
brand. In some cases, this will include the culture and values of the brand’s country of origin (e.g.,
Ferrari is associated with luxury and the Italian tradition of sports cars). In other cases, Culture may
have little to do with the brand’s country of origin.

Toyota used culture to establish a set of guiding principles known as “The Toyota Way.” These
principles incorporate Japanese cultural concepts, such as “heijunka,” which means “work like the
tortoise, not like the hare” and refers to leveling out the workload to minimize waste.

Self-Image

Self-image relates to the way in which customers see themselves in a particular brand. Brands
can use self-image to their advantage by incorporating it into their identities. Self-image is like a
mirror the target group holds up to itself—by associating themselves with certain brands, they see
themselves differently.

For example, BMW India launched a campaign for people who see themselves driving a BMW,
now or in the future. The campaign was “Don’t Postpone Joy.”

# Brand Image
Brand image is the current view of the customers about a brand. It can be defined as a unique
bundle of associations within the minds of target customers. It signifies what the brand presently
stands for. It is a set of beliefs held about a specific brand. In short, it is nothing but the consumers’
perception about the product. It is the manner in which a specific brand is positioned in the market.
Brand image conveys emotional value and not just a mental image. Brand image is nothing but an
organization‘s character. It is an accumulation of contact and observation by people external to an
organization. It should highlight an organization‘s mission and vision to all. The main elements of
positive brand image are- unique logo reflecting organization‘s image, slogan describing organization‘s
business in brief and brand identifier supporting the key values.
Brand image is the overall impression in consumer’s mind that is formed from all sources.
Consumers develop various associations with the brand. Based on these associations, they form
brand image. An image is formed about the brand on the basis of subjective perceptions of
associations bundle that the consumers have about the brand. Volvo is associated with safety. Toyota
is associated with reliability.
The idea behind brand image is that the consumer is not purchasing just the product/service
but also the image associated with that product/service. Brand images should be positive, unique and
instant. Brand images can be strengthened using brand communications like advertising, packaging,
word of mouth publicity, other promotional tools, etc.
Brand image develops and conveys the product‘s character in a unique manner different from
its competitor‘s image. The brand image consists of various associations in consumer’s mind -
attributes, benefits and attributes. Brand attributes are the functional and mental connections with the
brand that the customers have. They can be specific or conceptual. Benefits are the rationale for the
purchase decision. There are three types of benefits: Functional benefits - what do you do better (than
others), emotional benefits - how do you make me feel better (than others), and rational
benefits/support - why do I believe you (more than others). Brand attributes are consumers overall
assessment of a brand. Brand image has not to be created, but is automatically formed. The brand
image includes products' appeal, ease of use, functionality, fame, and overall value.
Brand image is actually brand content. When the consumers purchase the product, they are
also purchasing it‘s image. Brand image is the objective and mental feedback of the consumers when
they purchase a product. Positive brand image is exceeding the customers’ expectations. Positive
brand image enhances the goodwill and brand value of an organization.

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