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Brand and Innovation Management

Presented By

Article

Understanding The Interplay Between

Brand And Innovation Management:
Findings And Future Research Directions
Tim Oliver Brexendorf1 & Barry Bayus2 & Kevin Lane Keller3
Received: 21 February 2015 /Accepted: 20 April 2015 /Published online: 14 May 2015

Contents of Presentation
Introduction to

brand
Brand Equity

Article: Brand And Innovation

Management
Future Research Directions
Conclusion

Introduction
Brand
A brand is a name, term, sign, symbol or design,
or a combination of them, intended to identify the
goods or services of one seller or group of sellers and
to differentiate them from those of competitors.
What does a brand do:
Identify the maker
Reduce risk
Organize inventory and accounting
Offer legal protection
Signify quality
Create barriers to entry
Secure a competitive advantage
Secure price premium
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Introduction
What is Brand Equity
Brand equitythe added value
endowed on products and services,
reflected in how customers think, feel,
and act with respect to the brand, as well
as in the prices, market share, and
profitability the brand commands for the
firm.

Article

Introduction
Changing Marketplace
Innovation (New Product)
Cost of Innovation, Risk of Failure, short

product life cycle

Consumer make difficult choices
Brands are cues consumer use to evaluate
product performance
Brand and Innovation are inter-related

Article

A Conceptual Framework
Brands provide strategic focus and guidance to
innovations
Brands support the introduction and adoption of
Innovations
Successful innovations improve brand
perceptions, attitude, and usage

Article

Brands provide strategic focus and

guidance to innovations
Branding gives that strategic focus and guidance
to the development of new product innovations by
helping to:
(1) identify brand potential,
(2) define brand boundaries and cohesiveness, and
(3) optimize brand timing and sequence of market
entry.

Article
Future Research Directions
How can the long-term new product potential of a brand
be more reliably assessed?
How should a brand be most effectively managed as a
growth platform for innovations?
What is the effect of different types of brand and
product portfolios on successful product launch
strategies?
What are successful branding strategies to launch
different types of innovation, e.g., incremental new
products (INPs) versus radical new products (RNPs)?
How are consumer perceptions of the risks and rewards
associated with a new product influenced by the product
category (e.g., consumer products versus durable
consumer goods/industrial goods) and other factors?
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Article

Brands support the introduction

and adoption of innovations
(1) Introduction of innovations (Ownership,
communication effectiveness, mitigating negative
effects)
(2) Adoption of innovations(trial probability,
Intrinsic and Extrinsic considerations))

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Article
Future Research Directions
In what ways do improved brand perceptions positively affect
customers new product and service adoption behavior?
Which consumer characteristics or other factors facilitate
acceptance of incongruent extensions with the parent brand
category?
What are the effects of incrementally new products (INPs) and
radically new products (RNPs) supported by brands with different
levels of equity in the consumer adoption process?
In what ways does the brand facilitate adoption of simplifying
innovations (innovations that make using a product easier) versus
amplifying innovations (innovations that enhance the degree of
what can be done with a product)?
How does brand equity influence the retailers new product
innovation acceptance decisions?
How does the breadth of a firms brand portfolio influence its new
product development processes?
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Article
Successful innovations improve

brand perceptions, attitude, and

usage
(1) Brand credibility (Expertise, trustworthiness,
likability, beneficial for low quality brand)
(2) Brand innovativeness (brand personality,
brand positioning, brand equity)

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Article

Future Research Directions

Are there any downsides of innovation for brand

equity? Can innovation ever lead to consumer
confusion, frustration, or mistrust?
What is the impact of new product preannouncements on brand perceptions?
How do various launch strategies strengthen
brand equity?
In how far do more or less design driven brands
facilitate new product introductions?

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Conclusion
Brand and innovation management have
become important management priorities for
many firms. Branding and innovation
management are interwoven, intertwined,
and stay in a complex interrelationship to
each other. Yet, despite decades of research
and a large body of potential generalizations
in both branding and innovation, the
interdependency of both still needs more
concerted study..

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Thanks
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