BRAND

Brand vs. product, Brand elements Brand extension / Brand relationships spectrum Brand identity, Brand Equity,Brand building Strategies

Product vs Brand

Brand

Brand
Brand occupies space in the perception of the consumer, and is what results from the totality of what the consumer takes into consideration before making a purchase decision (Pickton and Broderick 2001). So branding is a strategy, and brand is what has meaning to the consumer. There are some other terms used in branding. Brand Equity is the addition of the brand's attributes including reputation, symbols, associations and names. Then the financial expression of the elements of brand equity is called Brand Value.

Brand
There are a number of interpretations of the term brand (De Chernatony 2003). They are summarized as follows: A brand is simply a logo e.g. McDonald's Golden Arches. A brand is a legal instrument, existing in a similar way to a patent or copyright. A brand is a company e.g. Coca-Cola. A brand is shorthand - not as straightforward. Here a brand that is perceived as having benefits in the mind of the consumer is recognised and acts as a shortcut to circumvent large chunks of information. So when searching for a product or service in less familiar surroundings you will conduct an information search. A recognised brand will help you reach a decision more conveniently. A brand is a risk reducer. The brand reassures you when in unfamiliar territory. A brand is positioning. It is situated in relation to other brands in the mind of the consumer as better, worse, quicker, slower, etc. A brand is a personality, beyond function e.g. Apple's iPod versus just any MP3 player. A brand is a cluster of values e.g. Google is reliable, ethical, invaluable, innovative and so on. A brand is a vision. Here managers aspire to see a brand with a cluster of values. In this context vision is similar to goal or mission. A brand is added value, where the consumer sees value in a brand over and above its competition e.g. Audi over Volkswagen, and Volkswagen over Skoda - despite similarities.

Brand name
The great brand name is one of the most powerful forces in branding, marketing and advertising. It is at once the story about what makes you different from your competitors and the emotional tug that connects you with your audienceall in one or a few words. A brand name that wields that much power can only come through a powerful positioning strategyone that keys in on the kind of appeal that can touch the hearts and minds of your market in a way the world may have never seen. A great brand name can do this and own the talk of an industry. As you can see, theres quite bit in a brand name.

Thinking about a new brand

Short & Simple Easy to Spell & Read Easy to Recognize & Remember Easy to Pronounce Can Pronounce in Only One Way Can Pronounce in All Languages Suggests Product Benefits Meets Packaging/Labeling Needs No Undesirable Imagery Always Timely Adapts to Any Advertising Medium Legally Available for Use

Brand Name
Short and simple Easy to spell and read Easy to recognize and remember Easy to pronounce Can be pronounced in only one way Can be pronounced in all languages (for international markets) Suggestive of product benefits Adaptable to packaging / labeling needs No undesirable imagery Always timely (does not get out-of-date) Adaptable to any advertising medium Legally available for use (not in use by another firm)

Brand elements
Name: The word or words used to identify a company, product, service, or concept. Logo: The visual trademark that identifies the brand. Tagline or Catchphrase: "The Quicker Picker Upper" is associated with Bounty paper towels. "Can you hear me now" is an important part of the Verizon brand. Graphics: The dynamic ribbon is a trademarked part of Coca-Cola's brand. Shapes: The distinctive shapes of the Coca-Cola bottle and of the Volkswagen Beetle are trademarked elements of those brands. Colors: Owens-Corning is the only brand of fiberglass insulation that can be pink. Sounds: A unique tune or set of notes can denote a brand. NBC's chimes are a famous example, ICICI, Britania. Scents: The rose-jasmine-musk scent of Chanel No. 5 is trademarked. Tastes: Kentucky Fried Chicken has trademarked its special recipe of eleven herbs and spices for fried chicken. Movements: Lamborghini has trademarked the upward motion of its car doors.

Brand Elements

Brand Elements

Brand Equity

Customer based brand equity model

Brand Equity
1) Brand Equity Perspective Brand equity can be viewed from several different perspectives. The hard-line perspective is that of financial outcomes which examine price premium. That is, how much more will a consumer pay for a product or service that is branded over a product or service that is generic? A softer perspective is that of brand extension where consideration is given to the value that a brand lends to the introduction of other products, or considers the reverse dynamic of the impact of a new product or service on the existing brand. This following steps address a third perspective - customer-based.

Brand Equity
2)Determine Brand Equity Research Goals Brand equity market research falls into one of three camps: Tracking, exploring change, and/or extending brand power. Market research that focuses on tracking makes comparison among competitive brands or products against a benchmark. When exploring change is the research goal, customer brand attitude is tapped regarding branding decisions that might result in repositioning or renaming products or services. A deeper examination of extending brand power is carried out when substantive additions to a brand are considered. Each of these research goals requires a different tact.

Brand Equity
3)Understand Customer Brand Attitude A customer-based perspective in the measurement of brand equity focuses on the experiences that consumers have with a brand. The stronger the brand, the stronger the customer's attitude toward the products or services associated with the brand. When customers experience product or service, they gauge overall brand quality and tend to infer certain brand attributes. If these experience measures are positive and endure over time, brand loyalty typically results. Today, customers can -- and do -- easily communicate the strength of their brand attitude to others.

Brand Equity
4) Identify Brand Equity Components to Measure Brand awareness, brand reach, and brand image association are aspects of brand equity that may not be closely associated with consumer experience. These measures of brand equity may reflect the impact of traditional advertising campaigns, and the influence of social or interactive media. Brand awareness is an indicator of how branding efforts spotlight a product or service. Brand reach indicates how far and wide that spotlight shines. And brand image association reveals what the brand promises and what it stands for in the eyes of consumers.

Brand Equity
5) Measure Perceived Brand Differentiation Product differentiation is a lynchpin for brand loyalty, confidence in a brand, and the potential for brand switching. Customer perceptions about brand differentiation tend to be strongest when actual product or service experience has occurred, but certainly brand differentiation is not immune to the influence of advertising. Differentiation may float on product or brand recommendations in social media rather than any personal experiences with a brand. Because differentiation is so susceptible to social influence, it lends itself to measurement across multiple media channels.

Brand Equity
6)Qualitative and Quantitative Approaches to Brand Equity Data Ideally, brand equity measurement will include both qualitative and quantitative approaches. Focus groups can provide a good forum for exploring customer perceptions and motivation. Conjoint analysis can reveal key consumer decision-making processes. Effective measurement of brand equity is critical to the development of brand strategy and ultimately supports return-on-investment analysis. Which brings us full circle, back to the financial outcomes perspective on brand equity

Brand Equity-Conjoint Analysis

Conjoint Analysis Conjoint analysis segregates different elements of a product or service in such a way that researchers can measure what is of value to consumers. In addition, conjoint analysis permits researchers to test various combinations of these elements with potential consumers in order to identify the optimal combination.

Brand Equity-Conjoint Analysis

What the Market Will Bear and Bare

Pricing decisions can be strongly supported by a welladministered conjoint analysis of a product or a service. Customers vary widely in response to prices. They typically do not trust pricing that appears too low and consider it an indicator of inferior quality. Pricing that seems too high tends to trigger a comparison mode in customers, who then focus on weighing all the many attributes of various products or services in order to get the best value for their money. This is clearly a scene that businesses seek to avoid; market research has demonstrated that too many choices confuse consumers to the point that they may avoid making a decision (a purchase) altogether.

Brand Relationship Spectrum

Brand Relationship Spectrum

Brand Management is a classic example of markets have changed into consumer-driven markets. Today, brand managers face a lot of market fragmentation, market realities, and competition. The Brand Managers are under pressure to leverage upon the brand assets because of higher costs of creating new brands, although this is dependent upon your brand strategy. Originally, branding has started with names, and symbols. It then moved on to providing unique experiences to consumers in every way they can. Today, branding is no more about a logo or a name, it is about the complete unique experience in many ways. So it gave rise to a completely new subject called Brand Management and all the complexities of handling the dynamics of branding.

Brand Relationship Spectrum

Brand Managers adopt different marketing and branding strategies and unknowingly started creating a lot of line extensions, flanker brands, brand extensions, endorsed brands and sub brands. This led to a new area of Brand Management called Brand Architecture, which studies the relationships and structures among all these flamboyant extensions. For example, companies like P&G and Unilever operate in so many categories and they have many brands under each category where the whole spectrum becomes very difficult to comprehend and manage.

Brand Relationship Spectrum

Brand Architecture gives you a clarity of the relationships, structures, and positioning so that we can leverage upon any new opportunities, and missed opportunities. It is all about what level of associations should we have. For example, if Toyota decides to endorse the brand Lexus, what should it say: Toyota Lexus, or Lexus by Toyota. Could you see the difference in the level of association in both the cases with the corporate brand. Toyota Lexus has a higher level of support from Toyota than saying Lexus by Toyota.

Brand Relationship Spectrum

Now, consider that your company has acquired another brand. Now, every brand has a a different identity and position in the market. Though, you must have considered all that in your strategic acquisition, it is all a different ball game of how you will integrate that brand in your company, and what level of association will you choose. It all depends on your corporate, marketing, and branding strategies.

Brand Relationship Spectrum

 The Aaker Model of Brand Relationship has categorized brand relationships into four buckets: 1. House of Brands - Not Connected - Shadow Endorser Tide (P&G) 2. Endorsed Brands - Token Endorsement Grape Nuts from Post, Universal Pictures, A Sony Company, Dockers, LS & Co - Linked name McVeggie, McMuffin, Nestea, - Strong Endorsement Courtyard by Marriot, Friends and Family by MCI, Obsession by Calvin klein

Brand Relationship Spectrum

3. SubBrands - Co-Drivers Gillette Mach3, Sony Trinitron, DuPont StainMaster (subbrand and master brand both are very strong) - MasterBrand as Driver HP DeskJet, Dell Dimension (when subbrand is not very strong and masterbrand drives more) 4. Branded House - Different Identity GE Capital, GE Appliance - Same Identity Virgin, BMW