Brands and Brand Management: Mateeullah Khan Buitems

Chapter 1: Brands and Brand Management
Mateeullah Khan
BUITEMS
Strategic Brand Management – Building, Measuring, and Managing Brand

Equity 3rd Edition – Kevin Lane Keller
Objective Outline
• What is a Brand?
• Why Do Brands Matter?
• What are the Strongest Brands?
• Branding Challenges and Opportunities
• The Brand Equity Concept
• Strategic Brand Management Process

Branding?
Branding – Differentiate !
 Ever more firms and other organizations have come to the
realization that one of their most valuable assests is the
Brand Names associated with their products or services.
 In our increasingly complex world, all of us, as individuals,
and as business managers, face more choices with less
time to make them. Thus a strong Brand’s ability to
simplify consumer decision-making, reduce risk, and set
expectations is invaluable.
What is a Brand?
• American Marketing Association (AMA) definition, a Brand is a
“name, term, sign, symbol, or design, or a combination of them,
intended to identify the goods and services of one seller or group
of sellers and to differentiate them from those of competition.”
• These different components of a brand that identify and

differentiate it are Brand Elements.
• Many practicing managers refer to a brand as more than that—

as something that has actually created a certain amount of
Awareness, Reputation, Prominence, and so on in the
Marketplace.
Example of Computer Brands .
Brands Vs Products
• A Product is anything we can offer to a market for
attention, acquisition, use, or consumption that might
satisfy a need or want.
• A Product may be a physical good, a service, a retail

outlet, a person, an organization, a place, or even an
idea.
Brands Vs Products
Five Levels of Meaning of a Product:
1. The Core Benefit Level is the fundamental need or want that consumers
satisfy by consuming the product or service.
2. The Generic Product Level is a basic version of the product containing

only those attributes or characteristics absolutely necessary for its
functioning but with no distinguishing features. This is basically a
stripped-down, no-frills version of the product that adequately performs
the product function.
3. The Expected Product Level is a set of attributes or characteristics that

buyers normally expect and agree to when they purchase a product.
Brands Vs Products
Five Levels of Meaning of a Product:
4. The Augmented Product Level includes additional product attributes,

benefits, or related services that distinguish the product from
competitors.
5. The Potential Product Level includes all the augmentations and

transformations that a product might ultimately undergo in the future.
Figure 1-1: Examples of Different Product Levels
Brands versus Products
• A Brand is therefore more than a product, as it can have
dimensions that differentiate it in some way from other products
designed to satisfy the same need.
– These differences may be rational and tangible – related to product
performance of the brand – or more symbolic, emotional, and intangible –
related to what the brand represents.
• Some Brands create competitive advantages with product

performance; E.g. brands like Gillette, Hummer, etc; by continual
innovation.
• Other Brands create competitive advantages through non-product-

related means, E.g. Coca-Cola; by understanding consumer
motivations and desires and creating relevant and appealing
images surrounding their products.
Why Do Brands Matter?
• An obvious Question is, Why are brands important?
• What functions do they perform that make them so valuable to marketers?
• Figure 1-3 below provides an overview of the different roles that brands play
to both Consumers and Firms.
Importance of Brands to Consumers
Consumers may perceive many different types of risks in buying and consuming
a product:
•Functional risk—The product does not perform up to expectations.
•Physical risk—The product poses a threat to the physical well-being or health of

the user or others.
•Financial risk—The product is not worth the price paid.
•Social risk—The product results in embarrassment from others.
•Psychological risk—The product affects the mental well-being of the user.
•Time risk—The failure of the product results in an opportunity cost of finding

another satisfactory product.
Importance of Brands to Firms
• Fundamentally, they serve as an identification purpose, to simplify product
handling or tracing.
• To Firms, Brands represent enormously valuable pieces of legal property,

capable of influencing consumer behavior, being bought and sold, and
providing the security of sustained future revenues.
Can Everything Be Branded?
• A Brand is something that resides in the minds of consumers.
• The key to branding is that consumers perceive differences

among brands in a product category.
• Even commodities can be branded:

– Coffee (Maxwell House), bath soap (Ivory), flour (Gold
Medal), beer (Budweiser), salt (Morton), oatmeal (Quaker),
pickles (Vlasic), bananas (Chiquita), chickens (Perdue),
pineapples (Dole), and even water (Perrier)
Can Everything Be Branded?
What is Branded?
•Physical Goods
•Services
•Retailers and Distributors
•Online Products and Services
•People and Organizations
•Sports, Arts, and Entertainment
•Geographic Locations
•Ideas and Causes

What Are The Strongest Brands?
• Which brands are the strongest, that is, the best-known or most highly
regarded?
• Figure 1-5 reveals Business Week’s ranking of world’s 25 most valuable

brands in 2005.
• According to research by marketing consultant Jack Trout, in 25 popular

categories, 20 of the leading brands in 1923 are still leading brands today –
only five have lost their position (see Figure 1-6 and 1-7)
• Bottom line is that any brand – no matter how strong at one point in time – is
vulnerable and susceptible to poor brand management.
• Figure 1-9 displays an analysis of fast growing brands by leading marketing

consultant Vivaldi Partners.
Figure 1-5: Business Week’s 25 Most Valuable
Brands
Figure 1-6: Brand Leaders: Then and Now
Figure 1-7: Brand Leaders: Then and Now
Branding Challenges and Opportunities
• Although brands may be as important as ever to consumers, in reality brand
management may be more difficult than ever.
• Let’s look at some recent developments that have significantly complicated

marketing practices and pose challenges for Brand Managers (see Figure 1-
10)
Figure 1-10: Challenges to Brand Builders
The Brand Equity Concept
• Brand Equity has elevated the importance of the brand in marketing strategy
and provided focus for managerial interest and research activity.
– Confusingly, the concept has been defined a number of different ways for
a number of different purposes.
• No common viewpoint has emerged about how to conceptualized and

measure Brand Equity.
• It stresses the importance of Brand role in Marketing Strategies.

• Fundamentally, Branding is all about endowing products and services with
the power of Brand Equity.
• Most observers agree that Brand Equity consists of the marketing effects
uniquely attributable to the brand.
• That is, Brand equity explains why different outcomes result from the
marketing of a branded product or service than if it were not branded.
• This is the view we take it in this course.

• Most Marketing observers also agree with the following basic principles of
branding and brand equity;
– Differences in outcome arise from the “added value” endowed to a product as a

result of past marketing activity for the brand.
– This value can be created for a brand in many different ways.
– Brand Equity provides a common denominator for interpreting marketing

strategies and assessing the value of a brand.
– The are many different ways in which the value of the brand can be manifested or
exploited to benefit the firm (in terms of greater proceeds or lowest costs or both)
Strategic Brand Management Process
• Strategic Brand Management involves the design and implementation of
marketing programs and activities to build, measure, and manage Brand
Equity.
• Strategic Brand Management has Four main steps (see figure 1-11);
1. Identifying and establishing Brand Positioning
2. Planning and implementing Brand Marketing programs
3. Measuring and interpreting Brand performance
4. Growing and sustaining brand equity

Strategic Brand Management Process
Strategic Brand Management Process:
Identifying and Establishing Brand Positioning
• Positioning convinces consumers of the advantages or Points of Difference a
brand has over competitors, while at the same time alleviating concerns about
any possible disadvantages (establishing Points of Parity)
• A Mental-Map is a visual depiction of the different types of associations

linked to the brand in the minds of consumers.
• Core brand associations are that subset of associations (attributes and

benefits) that best characterize a brand.
• Brand Mantra also knows as brand essence or core brand promise. It is a

short three-to-five words expression of the most important aspects of a brand
or its core brand associations, the enduring “brand DNA” and most
important aspects of brand to the consumer and company.
• Core brand associations, points of parity, points of difference, and a brand

mantra are thus an articulation of the heart and soul of the brand.
Planning &Implementing Brand Marketing Programs
In general, this knowledge-building process will depend on Three
factors;
1.The initial choice of brand elements or identifies making up by the brand and
how they are mixed and matched.
 Common brand elements are brand names, URLs, logos, symbols,

characters, packaging, and slogans.
2.The marketing activities and supporting programs and the way brand is
integrated into them.
 Marketing programs can create strong, favorable, and unique brand

associations in a variety of ways.
Planning &Implementing Brand Marketing Programs
3. Other associations indirectly transferred or leveraged by the brand as a
result of linking it to some other entity (such as the company, country of
origin, channel of distribution, or another brand)
 Brand associations may themselves be linked to other entities that have

their own associations, creating these secondary associations.
 Because these brands become identified with other entity, even though
this entity may not directly related to product or service performance,
consumers may infer that the brand shares associations with that entity,
thus providing indirect or secondary associations for the brand.
Measuring & Interpreting Brand Performance
• The task of determining or evaluating a Brand’s position often benefits from
a Brand Audit.
• Brand Audit is a comprehensive examination of brand to assess its health,

uncover its sources of equity, and suggest ways to improve and leverage that
equity.
• A brand audit requires understanding sources of brand equity from the

perspective of both the firm and consumer.
• To understand the effects of brand marketing programs, marketers should

measure and interpret brand performance through marketing research.
• The useful tool for the task is the Brand Value Chain.
– Brand Value chain is means to trace the value creation process of brands,
to better understand the financial impact of brand marketing
expenditures and investments.
Measuring & Interpreting Brand Performance
• A Brand Equity Measurement System is a set of research procedures designed
to provide timely, accurate and actionable information for marketers so that
they can make the best possible tactical decisions in the short run and the best
strategic decision in the long run.
Growing & Sustaining Brand Equity
• Managing brand equity can mean managing brands within the context of
other brands, as well as over multiple categories, over time and across
multiple market segments.
• Defining the Brand Strategy: The firm’s branding strategy provides the
general guidelines about which brand elements to apply across its products.
– Two main tools are in defining corporate branding strategy are;
1. The Brand-Product matrix – it is a graphical representation of all the brands and

products sold by the firm
2. The Brand-Hierarchy displays the number and nature of common and distinctive
brand components across the firms’ product.
• By capturing the potential branding relationships among the different
products sold by the firm, it graphically portrays the firm’s branding strategy.
– The Brand Portfolio is the set of all the brands and brand lines that a particular
firm offers for sale to buyers in a particular product category.
• Managing Brand Equity Over Time: Effective brand management also
requires taking a long-term view of marketing decisions.
– Because consumers’ responses to marketing activity depend on what they

know and remember about a brand, short-term marketing mix actions,
by changing brand knowledge, necessarily increase or decrease the
success of future marketing actions.
– A long term perspective of brand management recognizes that any

changes in the supporting marketing program for a brand may, by
changing consumer knowledge, affect the success of marketing programs.
– A long-term view also produces proactive strategies designed to maintain

and enhance customer based brand-equity over time in the face external
changes in the marketing environment and internal changes in a firm’s
marketing goals and programs.
• Managing Brand Equity Over Geographic Boundaries, Cultures, and Market
Segments:
– Another important consideration in managing brand equity is recognizing
and accounting for different types of consumers in developing branding
and marketing programs.
– International factors and global branding strategies are particularly

important in these decisions.
– In expanding a brand overseas, managers need to build equity by relying

on specific knowledge about the experiences and behaviors of those
market segments.
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Chapter 1: Brands and Brand Management

Strategic Brand Management – Building, Measuring, and Managing Brand

• Why Do Brands Matter?

• What are the Strongest Brands?

• Branding Challenges and Opportunities

• The Brand Equity Concept

• Strategic Brand Management Process

• These different components of a brand that identify and

• Many practicing managers refer to a brand as more than that—

• A Product may be a physical good, a service, a retail

2. The Generic Product Level is a basic version of the product containing

3. The Expected Product Level is a set of attributes or characteristics that

4. The Augmented Product Level includes additional product attributes,

5. The Potential Product Level includes all the augmentations and

• Some Brands create competitive advantages with product

• Other Brands create competitive advantages through non-product-

• What functions do they perform that make them so valuable to marketers?

•Functional risk—The product does not perform up to expectations.

•Physical risk—The product poses a threat to the physical well-being or health of

•Financial risk—The product is not worth the price paid.

•Social risk—The product results in embarrassment from others.

•Psychological risk—The product affects the mental well-being of the user.

•Time risk—The failure of the product results in an opportunity cost of finding

• To Firms, Brands represent enormously valuable pieces of legal property,

• The key to branding is that consumers perceive differences

• Even commodities can be branded:

•Retailers and Distributors

•Online Products and Services

•People and Organizations

•Sports, Arts, and Entertainment

•Ideas and Causes

• Figure 1-5 reveals Business Week’s ranking of world’s 25 most valuable

• According to research by marketing consultant Jack Trout, in 25 popular

• Figure 1-9 displays an analysis of fast growing brands by leading marketing

• Let’s look at some recent developments that have significantly complicated

• No common viewpoint has emerged about how to conceptualized and

• It stresses the importance of Brand role in Marketing Strategies.

• This is the view we take it in this course.

– Differences in outcome arise from the “added value” endowed to a product as a

– This value can be created for a brand in many different ways.

– Brand Equity provides a common denominator for interpreting marketing

1. Identifying and establishing Brand Positioning

2. Planning and implementing Brand Marketing programs

3. Measuring and interpreting Brand performance

4. Growing and sustaining brand equity

• A Mental-Map is a visual depiction of the different types of associations

• Core brand associations are that subset of associations (attributes and

• Brand Mantra also knows as brand essence or core brand promise. It is a

• Core brand associations, points of parity, points of difference, and a brand

 Common brand elements are brand names, URLs, logos, symbols,

 Marketing programs can create strong, favorable, and unique brand

 Brand associations may themselves be linked to other entities that have

• Brand Audit is a comprehensive examination of brand to assess its health,

• A brand audit requires understanding sources of brand equity from the

• To understand the effects of brand marketing programs, marketers should

– Two main tools are in defining corporate branding strategy are;

1. The Brand-Product matrix – it is a graphical representation of all the brands and

– Because consumers’ responses to marketing activity depend on what they