Marketing II Brand Management

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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.” (AMA)

•Something that has actually
created a certain amount of
awareness, reputation,
prominence , and so on
in the marketplace

•Customer based brand equity : the differential effect that
brand knowledge has on consumer response to the
marketing of that brand

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Customer based brand equity occurs when the consumer has
a high level of awareness and familiarity with the brand and
holds some strong, favorable, and unique brand associations
in memory.

•Frame of reference : understand consumer behavior and the
consideration sets (incl. competitors) that consumers adopt in making
brand choices.

•Points of difference : associations that are unique to the brand,
strongly held, and favorably evaluated. Brand associations should be
desirable, deliverable, and differentiating.

•Brand mantra is an articulation of the “heart and soul” of the brand, a
three to five word phrase that captures the irrefutable essence or
spirit of the brand positioning and brand values. Important for internal
and external marketing.

•Brand elements, sometimes called brand identities, are those
trademarkable devices that serve to identify and differentiate
the brand .

•The main ones are brand names, URLs, logos, symbols,
characters, spokespeople, slogans, jingles, and packages.

•Product (quality, aftersales marketing)

•Price (price setting)

•Distribution (channel design, online strategies)

•Communication (advertising, promotion, online marketing
communications, mobile marketing, brand amplifiers such as WOM, publicity)

•Companies (through branding strategies)
•Countries/geographic areas (through identification of product origin)
•Channels of distribution (through channel strategy)
•Other brands (through co branding)
•Characters through licensing
•Spokespersons through endorsements
•Events ( through sponsorship
•Other third party sources (through awards or reviews)

•The firm’s brand architecture strategy helps marketers
determine which products and services to introduce, and
which brand names, logos, symbols, and so forth to apply to
new and existing products.
•Which different products or services should share the same
brand name? How many variations of that brand name should
we employ?
•Clarifies brand awareness, improves brand image

•Define brand potential (brand vision, brand boundaries, brand
positioning)

•Identify brand extension opportunities (brand extension: new
product introduced under an existing brand name)

•Brand new products and services (branded house (Siemens,
Oracle) or house of brands (Procter & Gamble, Unilever))

•A brand portfolio includes all brands sold by a company in a
product category

Reasons for introducing multiple brands:

•to increase shelf presence and retailer dependence in the store
•to attract consumers seeking variety who may otherwise switch to another
brand
•to increase internal competition within the firm
•to yield economies of scale in advertising, sales, merchandising, and physical
distribution

Individual brand :
•also house of brands , restricted to one product category

Corporate or company brand:
•also branded house , e.g., Hewlett Packard, Siemens

Family brand / range brand / umbrella brand :
•used in more than one product category , but not the name of the
company , e.g., Oreo , Cadbury  all Kraft

•For the brand portfolio, do all brands have defined roles? Do brands
collectively maximize coverage and minimize overlap

•For the brand hierarchy, does the brand have extension potential? Within
the category? Outside the category? Is the brand overextended?

•What positive and negative brand equity implications will transfer from the
parent brand to individual products? What feedback exists from the
individual products to the parent brands in turn?

•What profit streams result from different branding arrangements? How
much revenue does each brand generate? At what cost? What other
cross selling opportunities exist between brands

•A brand extension occurs when a firm uses an established
brand name to introduce a new product.

•When a new brand is combined with an existing brand, the
brand extension can also be a sub brand . An existing brand
that gives birth to a brand extension is the parent brand .

•If the parent brand is already associated with multiple
products through brand extensions, then it may also be called a family brand

•Line extension : Marketers apply the parent brand to a new product
that targets a new market segment within a product category the
parent brand currently serves. A line extension often adds a
different flavor or ingredient variety, a different form or size, or a different application for the brand (e.g., Head & Shoulders Dry
Scalp shampoo).

•Category extension : Marketers apply the parent brand to enter a
different product category from the one it currently serves (e.g.,
Swiss Army watches).

Facilitate New Product Acceptance

• Improve Brand Image
• Reduce risk perceived by customers
• avoid cost of developing a new brand

Provide Feedback Benefit to the Parent Brand and Company

• Calarify brand meaning
• Enhance the parent brand image
• Revitalize the brand

•Can confuse or frustrate consumers
•Can encounter retail resistence
•Can fail and hurt parent brand image
•Can succeed but cannibalize sales of parent brand
•Can succeed but diminish identification with any one
category
•Can succeed but hurt the image of the parent brand
•Can dilute brand meaning
•Can cause the company to forgo the chance to develop a
new brand

•Reinforcing brands
•Revitalizing brands
•Adjustments to brand portfolio:
•brand transitions
•new customers
•retiring brands