Chapter 2 - Brand Management

Integrated Advertising, Promotion,
and Marketing Communications

Ninth Edition
Chapter 2
Brand Management
Copyright © 2022, 2018, 2016 Pearson Education, Inc. All Rights Reserved
Chapter Objectives
2.1 How does a brand’s image affect consumers, other businesses, and the
company itself?
2.2 What types of brands and brand names do companies use?
2.3 What characteristics do effective logos exhibit?
2.4 How do marketers identify, create, rejuvenate, or change a brand’s image?
2.5 How can a company develop, build, and sustain a brand in order to
enhance brand equity and fend off perceptions of brand parity?
2.6 What current trends affect private brands?
2.7 How can packaging and labels support an I M C program domestically and
in foreign settings?
2.8 How do firms manage brands in international markets?
Chapter Overview
• Managing a brand image and logo
• Developing and promoting brands
• Brand equity versus brand parity
• Importance of packaging and labels
Michelin
1. What do you think of when you hear Michelin?
2. Compare your image of Michelin to other tire companies.
3. Does the Michelin Man reinforce the company’s primary themes? Why or
why not?
Michelin
• Created brand association
with the Michelin Tire Man
• Durability, reliability, safety
key concepts for consumers
• Michelin is also devoted to safe
driving and tire care
• Result: A stable company with
consistent brand image
Corporate and Brand Image
• A corporate or brand image expresses what the company
and its products stand for as well as how it is to be known in
the marketplace.
• Consumer beliefs about a firm are more important than how
company officials perceive the image.
A Brand Image Ad for Rev Select
Elements of Brand Image
Tangible Elements Intangible Elements

• Goods or services sold • Corporate personnel
• Retail outlets where the – Ideals
product is sold – Beliefs
– Conduct
• Advertising
• Environmental policies
• Marketing communications
• Corporate culture
• Name and logo
• Country location
• Packaging and labels
• Media reports
• Employees
Brand Image Benefits to Consumers
• Provides confidence regarding purchase decisions

• Gives assurance about the purchase when the buyer has
little or no previous experience
• Reduces search time in a purchase decision
• Provides psychological reinforcement and social
acceptance of the purchase
Interstate Batteries: A Strong Brand Image
Brand Image Benefits to Companies
• Extension of positive customer feelings to new products
• Ability to charge a higher price or fee
• Consumer loyalty leading to more frequent purchases
• Positive word-of-mouth endorsements
• Higher level of channel power
• Ability to attract quality employees
• More favorable ratings by financial observers and
analysts
Categories of Brand Names
• Overt names
– American Airlines
• Implied names
– FedEx, Home Depot
• Conceptual names
– Google, Krispy Kreme
• Iconoclastic names
– Ikea
Questions to Consider (1 of 3)
• Can you think of corporate brand names that fall into
each of the categories?
• Which ones are your favorites and why?
• Why would you choose these brands over competitors?
Origins of Some Unique Brand Names
• Google–name started as a joke about the way search engines search for
information. Word googol is one followed by 100 zeros.
• Lego–combination of Danish phrase “leg godt,” which means “play well” and
Latin word lego which means “I put together.”
• Reebok–alternative spelling of “rhebok,” which is an African antelope
• Skype–original name was “sky-peer-to-peer,” which was changed to “skyper,”
then to “skype.”
• Verizon–combination of Lain word “veritas” which means “truth” and “horizon.”
• Volkswagen–created by Adolf Hitler as a car for the masses that could
transport 2 adults and 3 children at speeds up to 62 mph. Name means
“people’s car.”
• Yahoo–word from Jonathan Swift’s book Gulliver’s Travels, which represented
a repulsive, filthy creature that resembled a Neanderthal man. Yahoo! founders,
Jerry Yang and David Filo considered themselves to be yahoos.
Figure 2.6: Types of Brands
• Family brands
• Brand extension
• Flanker brand
• Co-branding
• Ingredient branding
• Cooperative branding
• Complementary branding
• Private brands
Campbell’s: Family Brands
Figure 2.7: Forms of Co-Branding
Figure 2.8: Four Tests of Quality
Brand Logos and Names
• Recognizable
• Familiar
• Elicits a consensual meaning among those in the firm’s
target market
• Evokes positive feelings
Figure 2.9: Some of the Oldest Logos
Year Company
Company/Brand Founded Year Logo First Used
John Deere 1837 1876
Coca-Cola 1886 1886
Johnson & Johnson 1886 1886
Union Pacific Railroad 1862 1888
Prudential Life Insurance 1875 1896
Campbell’s Soup 1869 1898
General Electric 1892 1900
Goodyear 1898 1901
Sherwin-Williams 1866 1905
DuPont 1802 1907
Brand Logos
• Aid in recall of specific brands
• Aid in recall of advertisements
• Reduce shopping effort
• Reduce search time and evaluation of alternatives
Figure 2.10: Tips on Creating or
Changing Logos
• The logo is a reflection of the brand
• Creating logos requires knowledge and expertise
• Use professional designers
• Make the logo simple
• Make the logo media transferrable
Identifying the Desired Brand Image
• Evaluate current
image
– Ask customers
– Ask non-customers
• Can be a strategic
advantage
Creating the Right Image
• Sends a clear
message
• Portrays what the firm
sells
• Business-to-business
may be challenging
Rejuvenating a Brand’s Image
• Sells new products
• Attracts new customers
• Retains current customers
• Key – remain consistent with old and new
• Takes time and effort
Figure 2.11: Keys to Successful
Image Rejuvenation
• Help former customers rediscover the brand
• Offer timeless consumer value
• Stay true to original, but contemporize
• Build a community
Changing a Brand’s Image
• Extremely difficult
• Necessary when target
market declines or brand
image no longer matches
industry trends
• Requires more than
advertising
• Begins internally, then
moves outward
• Can you think of companies that have rejuvenated their
brands by following the principles in Figure 2.11?
• What was the result?
• How about instances in which companies tried to
completely change the brand’s image?
• Was it successful? What do you think would be most
difficult about this process?
Developing and Building Powerful
Brands
• Understand why consumers buy and rebuy a brand
• Where does your brand stand now?
• What are your objectives?
• What are you doing to build your brand and business?
• What are your brand’s strengths? Weaknesses?
• Which opportunities should be pursued first?
• Where are the pitfalls?
Figure 2.12: Building Powerful Brands
(1 of 2)
• Invest in the brand

• Create awareness
• Offer authenticity uniqueness
• Build trust
• Deliver an experience
• Offer value
• Utilize social media
• Utilize mobile
• Act responsibly
Figure 2.12: Building Powerful Brands
(2 of 2)
Skyjacker has built a powerful

brand by providing customers
with a good experience and
delivering value.
Brand Loyalty
• The ultimate objective
• The only brand that customers purchase
• Drivers of brand loyalty:
– Emotion
– Value
• It’s all about the consumer experience
Brand Equity
• Brand parity can be a problem
• Brand equity
– A set of characteristics making the brand unique
– Helps fight the brand parity problem
– Brand name is perceived as better
Private Brands
• Popularity has fluctuated
• Connotation of low price, inferior quality
• Historically catered to price-sensitive consumers
• Retailers invest in private brands
• Many consumers see few differences
Figure 2.13: Changes in Private
Brands
• Improved quality
• Perceived as a value purchase
• Higher loyalty toward retail outlets and lower loyalty
toward specific brands
• Used to differentiate retail outlets
• Increased advertising of private brands
• Increased quality of in-store displays and packaging of
private brands
Advantages to Retailers
• Private Labels
• Higher gross margins
• Lower prices
• Greater loyalty to stores and brands within a store
• Differentiates stores from national brands
• Many consumers are unaware of the difference
Figure 2.14: Tactics Used by
Manufacturers to Combat Retail
Private Brands
• Focus on core brands
• Increase advertising
• Introduce new products
• Focus on in-store selling, packaging
• Use alternative methods of marketing
Packaging
• Final opportunity to make impression
• Two-thirds of purchase decisions made in-store
• Have three seconds to catch attention
• Package must stand out
• Must tell customers what is inside
Figure 2.15: Primary Purposes of
Packaging
• Protect product
• Provide for ease of shipping and handling
• Provide for easy placement on shelves
• Prevent or reduce theft
• Prevent tampering (drugs and food)
• Meet consumer needs for speed, convenience, and
portability
• Communicate marketing message
Labels
• Must meet legal
requirements
• Provide another
marketing opportunity
• Typically contain logo
and brand name
• QR codes can link to
social media sites
Ethical Issues in Brand Management
• Brand infringement
• Brand name can become a generic term
• Cybersquatting
International Implications
• Adaptation v s
ersu
standardization
• Standardization reduces
costs
• Shrinking world leads to
standardization
• Think globally, but act
locally
Think about the GIMC strategy to “Think globally, but act
locally.”
• How does this approach apply to branding?
• Why is it important to consider each local market’s unique
features?
• How can it help to support and develop local brands?
Your Career: A Personal Brand
• You have unique characteristics, personality, image
• What is your personal brand image?
• Personal appearance conveys a lot to an employer
• Consider mannerisms: speaking, gestures, eye contact,
posture
• Social media is key to your personal brand
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Integrated Advertising, Promotion,

and Marketing Communications

2.2 What types of brands and brand names do companies use?

2.3 What characteristics do effective logos exhibit?

2.4 How do marketers identify, create, rejuvenate, or change a brand’s image?

2.6 What current trends affect private brands?

2.8 How do firms manage brands in international markets?

2. Compare your image of Michelin to other tire companies.

Tangible Elements Intangible Elements

• Provides confidence regarding purchase decisions

• Invest in the brand

Skyjacker has built a powerful

This work is protected by United States copyright laws and is

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