BRANDING AND

MARKETING PROMOTION
STRATEGIES (Part I)

Vikram
BRANDS AND BRAND
MANAGEMENT

Ref: Chapter 1 of Core Text

 What is a Brand?

Definition: “A brand is a product that

adds other dimensions that differentiates
it in some way from other products
designed to satisfy the same need.”
 Why Do Brands Matter?

 CONSUMERS:
 Search cost Reducer
 Identification of
Source of Product  Promise, Bond, or
Pact with Maker of
 Assignment of
Product
Responsibility to
Product Maker  Symbolic Device
 Risk Reducer  Signal of Quality

Ref: Chapter 1 of Core Text

 Why Do Brands Matter? (2)

 MANUFACTURERS:
 Means of Identification
to Simplify Handling or  Means of Endowing
Tracing Products with Unique
 Means of Legally Associations
Protecting Unique  Source of Competitive
Features Advantage
 Signal of Quality Level  Source of Financial
to Satisfied Customers Returns

Ref: Chapter 1 of Core Text

 Can Anything Be Branded?

 Physical Goods  People and

 Services Organizations
 Retailersand  Sports, Art and
Distributors Entertainment
 Online Products  Geographic
and Services Locations
 Ideas and Causes
Ref: Chapter 1 of Core Text
 Branding Challenges And
Opportunities
 Savvy Customers
 Brand Proliferation
 Media Fragmentation
 Increased Competition
 Increased Costs
 Greater Accountability

Ref: Chapter 1 of Core Text

 The Brand Equity Concept
 Basic Principles of Branding and Brand Equity:
 Differences in outcomes arise from the “added value”
endowed to a product as a result of past marketing activity
for the brand.
 This value for a brand can be created in many different
ways.
 Brand equity provides a common denominator for
interpreting marketing strategies and assessing the value
of a brand.
 There are many different ways in which the value of a
brand can be manifested or exploited to benefit the firm.

Ref: Chapter 1 of Core Text

 Strategic Brand Management
Process
 Identifyingand Establishing Brand
Positioning and Values
 Planning and Implementing Brand
Marketing Programs
 Measuring and Interpreting Brand
Performance
 Growing and Sustaining Brand Equity

Ref: Chapter 1 of Core Text

 CHAPTER 2

CUSTOMER-BASED BRAND
EQUITY

Ref: Chapter 2 of Core Text

 Sources Of Brand Equity

 Brand Awareness  Brand Image

 Consequences of  Strength of Brand
Brand Awareness Associations
 Learning advantages  Favorability of
 Consideration Brand Associations
advantages  Uniqueness of Brand
 Choice Advantages
Associations
 Establishing Brand
Awareness
Ref: Chapter 2 of Core Text
 Building A Strong Brand

 The Four Steps of Brand Building:

 1. Identity (Who are you?)

 2. Meaning (What are you?)
 3. Response (What about you?)
 4. Relationship (What about you & me?)
Ref: Chapter 2 of Core Text
Customer-based Brand Equity
Pyramid

Relationship

Resonance
Response
Judgments Feelings
Meaning
Performance Imagery
Identity
Salience

Ref: Chapter 2 of Core Text

Customer-based Brand Equity Pyramid (2)

 Brand Salience: This  Brand Judgments: The

relates to aspects of customers’ personal
awareness of the brand opinions and evaluations
with regard to the brand
 Brand Performance: This
 Brand Feelings: The
relates to ways in which
customers’ emotional
product/ service meets responses and reactions
customers’ needs with respect to the brand
 Brand Imagery: It’s how  Brand Resonance: The
customers visualize a ultimate relationship &
brand abstractly, with no level of identification that
relevance to what the the customer has with the
brand actually does brand

Ref: Chapter 2 of Core Text

 CHAPTER 3

BRAND POSITIONING AND

VALUES

Ref: Chapter 3 of Core Text

Identifying and Establishing
Brand Positioning
 Basic Concepts
 Target Market
 Nature of Competition
 Points of Parity and Points of Difference

Ref: Chapter 3 of Core Text

Identifying and Establishing
Brand Positioning (2)
 Basic Concepts: According to the CBBE
model, it is necessary to decide:-
 1. Who the target consumer is
 2. Who the main competitors are
 3. How the brand is similar to these
competitors, and
 4. How the brand is different from these
competitors

Ref: Chapter 3 of Core Text

Identifying and Establishing
Brand Positioning (3)
 Target Market:
 Segmentation Bases:
a) Behavioral b) Demographic
c) Psychographic d) Geographic
 Segmentation Criteria:
a) Identifiability b) Size
c) Accessibility d) Responsiveness
Ref: Chapter 3 of Core Text
Identifying and Establishing
Brand Positioning (4)
 Nature of Competition:
 Channels of Distribution
 Competitors’ Resources
 Competitors’ Capabilities
 Competitors’ Likely Intentions
 Other Competitive Factors (Porter’s 5-
Force Model refers)
Ref to Chapter 3 of Core Text
Identifying and Establishing
Brand Positioning
 Points of Parity and Points of Difference:
 1. Points of Difference Associations
 2. Points of Parity Associations
 3. Points of Parity versus Points of
Difference

Ref: Chapter 3 of Core Text

 Positioning Guidelines
 1. Defining and Communicating the
Competitive Frame of Reference
 2. Choosing Points of Parity and Points of
Difference
 3. Establishing Points of Parity and
Points of Difference
 4. Updating Positioning Over Time

Ref: Chapter 3 of Core Text

 Positioning Guidelines (1)
 Defining
and Communicating the
Competitive Frame of Reference:
A starting point in defining a competitive frame
of reference for brand positioning is to determine
Category Membership. Membership indicates the
products or set of products with which a brand
competes. Communicating category membership
informs the consumer about the goals that they
might achieve by using a product or service.

Ref: Chapter 3 of Core Text

 Positioning Guidelines (2)
 Choosing Points of Parity and Points of Difference:
 Points of Parity: These are driven by the needs of
category membership and the necessity of negating
competitors’ PODs.
 Points of Difference: These are based on the
following criteria:
1. Desirability: In terms of a) Relevance
b) Distinctiveness, and c) Believablity
2. Deliverability: In terms of a) Feasibility
b) Communicability, and c) Sustainability

Ref: Chapter 3 of Core Text

 Positioning Guidelines (3)
 Establishing Points of Parity and Points of
Difference:
 1. Separate the attributes: Launch two marketing
campaigns, each one devoted to a different brand
attribute or benefit.
 2. Leverage Equity of another Entity: Link the
brand with a well-liked celebrity, cause or event.
 3. Redefine the Relationship: Use attitude change
strategies to convert negative perspectives about
the brand to positive ones.

Ref: Chapter 3 of Core Text

 Positioning Guidelines (4)
 Updating Positioning Over Time:
 1. Laddering: This strategy is to deepen
the meaning of the brand to tap into core
brand values or other more abstract
considerations.
 2. Reacting: This could imply no reaction
to moderate or significant reactions
depending on level of competitive threat.

Ref: Chapter 3 of Core Text

 CHAPTER 4

CHOOSING BRAND
ELEMENTS TO BUILD
BRAND EQUITY

Ref: Chapter 4 of Core Text

Criteria for Choosing Brand
Elements
 1. Memorability
 2. Meaningfulness
 3. Likability
 4. Transferability
 5. Adaptability
 6. Protectability

Ref: Chapter 4 of Core Text

 Options and Tactics for
Brand Elements
 1. Brand Names
 2. URLs (Uniform Resource Locators)
 3. Logos and Symbols
 4. Characters
 5. Slogans
 6. Jingles
 7. Packaging

Ref: Chapter 4 of Core Text

 CHAPTER 5

DESIGNING MARKETING
PROGRAMS TO BUILD
BRAND EQUITY

Ref: Chapter 5 of Core Text

 New Perspectives on
Marketing
 Five Major Drivers of the New Economy:
Philip Kotler identifies them as under:
 1. Digitalization and connectivity
 2. Disintermediation and Reintermediation
 3. Customization and Customerization
 4. Industry Convergence
 5. New Customer and Company Capabilities
(Remaining topic is for Self-study)
Ref: Chapter 5 of Core Text
 Product Strategy
 Perceived Quality and Value:
 1. Brand Intangibles
 2. TQM and Return on Quality
 3. Value Chain
 Relationship Marketing:
 1. Mass Customization
 2. Aftermarketing
 3. Loyalty Programs

Ref: Chapter 5 of Core Text

 Pricing Strategy
 Consumer Price Perceptions:
 Price Band strategies
 Value-based Pricing Strategies
 Setting Prices to Build Brand Equity:
 Value Pricing based on: a) Product design and
delivery b) Product costs, and c) Product prices
 Everyday Low Pricing (EDLP): A strategy based
on low pricing as well as discounts and
promotions to consumers at regular intervals.

Ref: Chapter 5 of Core Text

 Channel Strategy
 Channel Design: Broadly, channel types can be
classified into Direct and Indirect channels.
 Direct Channels: a) Company-owned stores b)
Leased/Rented shopping-space in larger
department stores.
 Indirect Channels: a) Distributors and Dealers
b) Retailers c) other middlemen
 Web Strategies: Today, these are extremely
powerful channels if supported by efficient
physical “brick & mortar” channels.

Ref: Chapter 5 of Core Text

 CHAPTER 7

LEVERAGING SECONDARY
BRAND KNOWLEDGE TO
BUILD BRAND EQUITY

Ref: Chapter 7 of Core Text

 Conceptualizing the
Leveraging Process
 Creation of New Brand Associations:
By making a connection between the brand and another
entity, consumers may form a mental association from the
brand to this entity and, consequently, to any or all
associations, judgments, feelings and the like linked to that
entity
 Effects on Existing Brand Knowledge: Three factors are
important in predicting the extent of leverage resulting
from linking the brand to another entity:
i) Awareness and knowledge of the entity
ii) Meaningfulness of the knowledge of the entity, and
iii) Transferability of the knowledge of the entity

Ref: Chapter 7 of Core Text

 Company
 The branding strategies adopted by a company
that makes a product or offers a service are an
important determinant of the strength of
association from the brand to the company and
any other existing brands. Three main
branding options exist for a new brand:
 1. Create a new brand
 2. Adapt or modify an existing brand
 3. Combine an existing and new brand

Ref: Chapter 7 of Core Text

 Country of Origin
Besides the company that makes the product,
the country or geographic location from which
it is seen as originating may also become linked
to the brand and generate secondary
associations. Thus, a customer may choose to
wear Italian suits, exercise in American sports
shoes, drive a German car, and drink English
beer.

Ref: Chapter 7 of Core Text

 Channels of Distribution
Channels of distribution can directly
affect the equity of the brands they sell
by the supporting actions that they take.
Retail stores can indirectly affect the
brand equity of the products they sell by
influencing the nature of associations
that are inferred about these products on
the basis of the associations linked to the
retail stores in the minds of consumers.

Ref: Chapter 7 of Core Text

 Co-Branding
 Co-branding: Also called brand bundling or
brand alliances-occurs when two or more
existing brands are combined into a joint
product or are marketed together in some
fashion.
 Ingredient branding: This is a special case of co-
branding that involves creating brand equity
for materials, components, or parts that are
necessarily contained within other branded
products.

Ref: Chapter 7 of Core Text

 Licensing
Licensing involves contractual
arrangements whereby firms can use the
names, logos, characters, and so forth of
other brands to market their own brands
for some fixed fee. Because it can be a
shortcut means of building brand equity,
licensing has gained popularity in recent
years.

Ref: Chapter 7 of Core Text

 Celebrity Endorsement (1)
 Using well-known and admired people to
promote products is a widespread phenomenon
with a long marketing history. The rationale
behind these strategies is that a famous person
can:
 1. Draw attention to a brand, and
 2. Shape the perceptions of the brand by virtue
of the inferences that consumers make based on
the knowledge they have about the famous
person.
Ref: Chapter 7 of Core Text
Celebrity Endorsement (2)
 Potential Problems:
 1. Celebrity endorsers can be overused by endorsing
so many products that they lack any specific product
meaning or are just seen as overly opportunistic or
insincere.
 2. There must be a reasonable match between the
celebrity and the product.
 3. Celebrity endorsers can lose popularity thus
diminishing their market value to the brand.
 4. Many consumers feel that celebrities are doing the
endorsement only for money.

Ref: Chapter 7 of Core Text

Sporting, Cultural, or Other Events

 1. A brand may seem more likable or even

trustworthy by becoming linked to an
event.
 2. Sponsored events can contribute to
brand equity by becoming associated to
the brand and improving brand
awareness, adding new associations, or
improving the strength, favorability, and
uniqueness of associations.

Ref: Chapter 7 of Core Text

 CHAPTER 8

DEVELOPING A BRAND
EQUITY MEASUREMENT
AND MANAGEMENT
SYSTEM

Ref: Chapter 8 of Core Text

 The Brand Value Chain
 Value Stages:

 1. Marketing Program Investment

 2. Customer Mindset
 3. Market Performance
 4. Shareholder Value

Ref: Chapter 8 of Core Text

 Value Stages (1)
 Marketing Program Investment: The ability of
a marketing program investment to transfer or
multiply further down the chain will depend on
qualitative aspects of the marketing program
via the program multiplier.
 The Program Multiplier: Four factors are
important:
 1. Clarity 2. Relevance
 3. Distinctiveness, and 4. Consistency

Ref: Chapter 8 of Core Text

 Value Stages (2)
 Customer Mindset: Five dimensions have emerged
from research as important measures of the customer
mindset:
1. Brand Awareness 2. Brand Associations
3. Brand Attitudes 4. Brand Attachment
5. Brand Activity
 Customer Multiplier: Three essential factors are:
1. Competitive Superiority 2. Channel and other
intermediary support 3. Customer size and profile

Ref: Chapter 8 of Core Text

 Value Stages (3)
 Market Performance: Six dimensions need to
be addressed:
1. Price Premiums 2. Price Elasticities
3. Market Share 4. Brand Expansion
5. Cost Structure 6. Brand Profitability
 Market Multiplier: Following factors need to
be considered:
1. Market Dynamics 2. Growth Potential
3. Risk Profile 4. Brand Contributions

Ref: Chapter 8 of Core Text

 Value Stages (4)
 Stakeholder Value: Based on all available and
forecasted information about a brand and many
other considerations, the financial marketplace
then formulates opinions and makes various
assessments that have direct financial
implications for the brand value. Three
important indicators are:
 1. Stock price
 2. Price/earnings multiple, and
 3. Overall market capitalization of the firm

Ref: Chapter 8 of Core Text

 The Brand Value Chain
 Implications:
 1. A necessary condition for value creation is a well-
funded, well-designed, and well-implemented marketing
program.
 2. Value creation involves more than just the initial
marketing investment.
 3. Each of the three multipliers can increase or decrease
market value from stage to stage.
 4. The brand value chain provides a detailed roadmap
for tracking value creation enabling market research
and intelligence efforts.

Ref: Chapter 8 of Core Text

 Designing Brand Tracking
Studies
 What to Track:
 1. Product Brand Tracking
 2. Corporate or Family Brand Tracking
 3. Global Tracking
 How to Conduct Tracking Studies:
 1. Who to track
 2. When and where to track
 How to Interpret Tracking Studies

Ref: Chapter 8 of Core Text

Designing Brand Tracking Studies (1)
 What to Track: Three distinct surveys can be
conducted for:
 1. Product-Brand Tracking: The six-block pyramid for
brand-building can be used as a basis for design of the
questionnaire.
 2. Corporate or Family Brand Tracking: Some
additional questions may be added to establish levels of
corporate credibility and corporate brand associations.
 3. Global Tracking: A broader set of background
measures are needed to put brand development in those
markets in the right perspective .

Ref: Chapter 8 of Core Text

Designing Brand Tracking Studies (2)

 Who to Track:
 1. Current Customers
 2. Potential Customers
 3. Channel Members
 4. Frontline Employees (Services sector)
 When and Where to Track: Options are:
 Continuous Tracking Studies
 Based on Stage of Product Life Cycle
 Based on depth of Brand Equity

Ref: Chapter 8 of Core Text

Designing Brand Tracking Studies (3)
 How to Interpret Tracking Studies: For tracking measures to
facilitate actionable insights and recommendations, they must
be reliable and sensitive as possible. This may require framing
of questions in a comparative or temporal manner. It is also
necessary to decide on appropriate cutoffs. For example:

 What is a sufficiently high level of brand awareness?

 When are brand associations sufficiently strong, favorable,
and unique?
 How positive should brand judgments and feelings be?
 What are reasonable expectations for the amount of brand
resonance?

Ref: Chapter 8 of Core Text

Establishing a Brand Equity
Management System
 Brand Equity Charter

 Brand Equity Report

 Brand Equity Responsibilities:

 1. Overseeing Brand Equity
 2. Organizational Design and Structure
 3. Managing Marketing Partners
Ref: Chapter 8 of Core Text
 Establishing a Brand Equity
Management System (1)
 Brand Equity Charter: A formalized document should
spell out the following:
 The firm’s view of the brand equity concept.
 The scope of the key brands of the firm.
 Specify the actual and desired equity for a brand at all
relevant levels i.e. at individual product level and corporate
level.
 Strategies for managing brand equity.
 Outline specific tactical guidelines for marketing
programs.
 Trademark usage, packaging & communications

Ref: Chapter 8 of Core Text

 Establishing a Brand Equity
Management System (2)
 Brand Equity Report: Important market
information that should be included:
 1. Product shipments and movement
through channels of distribution.
 2. Relevant cost breakdowns
 3. Price and discount schedules
 4. Sales and market share information
 5. Profit assessments

Ref: Chapter 8 of Core Text

 Establishing a Brand Equity
Management System (3)
 Brand Equity Responsibilities:
 1. Overseeing Brand Equity: Aspects that are
important:
a) Review brand sensitive material
b) Review the status of key brand initiatives
c) Review brand sensitive projects
d) Review new product and distribution strategies
with respect to core brand values
e) Resolve brand positioning conflicts

Ref: Chapter 8 of Core Text

 Establishing a Brand Equity
Management System (3-contd)
 Brand Equity Responsibilities:
 2. Organizational Structure & Design: The
current market trends are redefining job
requirements and duties. The traditional
marketing department is disappearing from a
number of companies that are exploring other
ways to conduct their marketing functions
through business groups, multidisciplinary teams
and so on.

Ref: Chapter 8 of Core Text

 Establishing a Brand Equity
Management System (3-contd)

 Brand Equity Responsibilities:

 3. Managing Marketing Partners: The
performance of a brand also depends on the
actions taken by outside suppliers and marketing
partners. Hence, these relationships must be
managed carefully. Many leading global firms
have been consolidating their marketing
partnerships and reducing the number of outside
suppliers. (Ex: Levi Strauss value chain)

Ref: Chapter 8 of Core Text (END OF PART I)