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Summary Brand Management MNM3710
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MNM3710Brand Management
Chapter One
Understanding brands and branding
1.1 Brand Elements
- Brand elements are the characteristics that identify and differentiate the different components of a
brand from other brands
- Examples of brand elements include brand names, logos, symbols, characters, slogans, jingles and
packaging.
- Brand elements to make you aware of the characteristics, or elements, which are unique to a brand
1.1.1 Choosing brand elements
- Memorability, meaningfulness and likeability are build brands and transferability, adaptability and
protectability are defensive in nature.
- Memorability: To facilitate or recall or recognise a product, there must be a high level of brand
awareness and memory
- Meaningfulness: This may vary in description and persuasive content, and may take on all kinds of
meanings
- Likability: Can be chosen that are rich in visual and verbal imagery and should be fun and
interesting, which make them attractive
- Transferability: In terms of both product category and geographic sense. Name is easier to transfer if
it is less specific
- Adaptability: Refers to the changes in consumer values and opinions and relates to the brand name
and to keep trendy
- Protectability: Refers to both the legal and competitive sense of protecting the brand domestically
and internationally
1.1.2 Themes in brand elements
Brand description Explanation
Legal instrument A mark of ownership
Mark Recognised name, term, design or symbol
Organisation Recognisable corporate name and image
Indicator Representative characteristics or value associated with a brand
Risk reduction Brand as a contract with consumer
Identity system Holistic, coherent and integrated
Image Image in memory of user is brand reality
Value system Brand values in line with relevant consumer values
Brand is symbolic device with a personality that overshadows functional use
Personality
for user
Expansion of brand personality and a portrayal of relationship between
Relationship
consumer and product
The non-functional advantages that, together with functional advantages,
Added value
help to differentiate brands
Developing entity Brand concept changes corresponding to the development of the brand
1.2 Definition of a brand
- It is name, term, sign, symbol or design or combination of them, intended to identify the goods and
services of one seller or group of sellers and to differentiate them from those of the competition
- It is a strategic asset and owned by consumers
- Characteristics are intrinsic and extrinsic
- Intrinsic: when the properties change the product changes. Occurs when all branded articles
are of a product class or for certain articles only.
- Extrinsic: makes it easier for consumer to distinguish products from each other. They are not
considered part of intrinsic attributes (brand, packaging, price)
,- Brand is social construct - they are formed by society and are common in holding value and connect
with people
- Brand name is part that can be vocalised
- Brand mark cannot be verbalised, such as symbol, design or unique packaging
- Trademark is the brand or part of the brand that legally belongs exclusively to the seller indicated
with ™ and a registered brand with ®
1.2.1 Types of brands
- Generic brands: those whose names are used like a common name, entered the market was a
leader and now common. E.g.: Lip ice
- Manufacturer brands: also known as national brands, made and owned by manufacturer. ego: Coca-
Cola company
- Distributors brands: also known as private brands/labels or supermarket label. e.g.: Pick ’n pay no-
name brand
- Online brands: well-known online brand and online sites. Yahoo, Google, Facebook
1.2.3 Brands as strategic assets
- Drive future cash through effective market application
- Add value to customers and are a key driver of business results and managed for long-term
- Brand strategy should be a concept that drives business and an integrated marketing idea to brand-
based strategy and is important to selecting and maintaining strategic direction
- Brand serves as strategic reference points as they identify, give dimension, signify and stable
interaction between supply and demand
- Brands capture a business idea, link marketing actions to stakeholder, customers, employees and
investors
- Strong brands can rise competitive price wars, sustaining a premium as margins decrease
- Strong brands are key drivers if business value
- Accelerating consumer acceptance: new product is easily accepted when the brand is
trusted
- Changing perceptions: consumers are prepared to pay more for a desired brand
- Increasing business certainty: investor decisions are based on performance beyond 3-4
years
- Sustainable revenues: when consumers are less trusting, strong brands drive sales and
retain customers
- Sustaining margins: when competitors want to cut prices but sustain a premium
- Sustaining confidence in the future: strong brands proclaim they are still worth investing in
1.2.3 Brands from the perspective of society
- Brand identity
- Is the unique set of functional and mental associations the brands aspire to create and
maintain
- Represents what the brand should stand for in the minds of consumers and the promise
they make
- Refers to the strategic goal for the brand and inspirational from the brand owners
- Brand image
- Is what currently residing in the mind of consumers
- What the brand stands for, its promises, its experience and the interaction with the brand
- Brand image is in collaboration with the brand’s identity
1.3 Orientations to brand building
- Total value chain orientation
- Brand is a product of the nature and behaviour of its total value chain
- Implementation in production and distribution influences how it develops, performs and its
perceived
- Total stakeholder orientation
- Brand image is the product of all stakeholder’s impressions
- Society includes consumers, employees, suppliers, unions, media, strategic partners
- Stakeholders decide what the brand presents and if they deliver on their promises then they
consider all business dimensions
,1.3.1 Purpose of brand building
A. Develop and share a particular purpose
- Brand is not defined by its form, but by its purpose
- People buy brands not products
- Purpose defines the brands identity ad captures the brand reason to exist, promise to stakeholders
- Brand should have an identity based on specific purpose that’s guides its brand building, defines
relationships and position in the marketplace
B. Develop a purpose that is unique
- If a brand is unique it has a powerful reason to exist
- If it can promise and deliver on elements that cannot brand cannot
- It about how the product is positioned in the consumers mind
C. Ensure the brand purpose is served in all business or organisation does
- Brand building is a holistic concept and involves total value chain and all the stakeholders
- If the brand is unique and delivers on its promise and believed in then all stakeholder should
experience this
D. Satisfy wants and needs by building long-term relationships
- Satisfaction means adding value to the lives of stakeholders
- This makes the brand meaningful and easier to build long-term relationships
- Brands that satisfy wants and needs through relationships hold a value of guarantee
- If satisfaction in consistent, brand delivers on their promise and performance
E. Build sustainable relationships by never taking more than one gives
- By building relationships business can sustain the relationship they have built
- Holistic approach is essential
- Future generations must be respected to build long-term relationships
- Brands keep in mind the future when building relationships
- Sustainability requires brands meets the needs of the present without compromising its relationships
with future generations
- Brand must keep balance between economic growth, environmental protection and social equity
, Chapter Two
Components of branding
2.1. Concept of brand equity
- Inherent vale of a brand is given by its brand equity
- Brand is an intangible asset which is difficult to measure
- Value of a brand can be quantified, with allocating a price to the intangible asset through brand
valuation
- Brand equity is market-based intangible asset that can be leveraged to improve the performance of
an organization.
- Aaker defined brand equity: a set of assets (and liabilities) linked to a brand’s name and symbol that
adds to (or subtracts from) the value provided by a product or service to a firm and/or that firm’s
customers
- Keller defined brand equity: the positive differential effect that knowing the brand name has on
customer response to the marketing of the brand
- Depends on the customers experiences over time and their perceptions of marketing activity of the
firm
- Amble defined brand equity as what is in people’s heads about the brand
- Financial value: is an intangible asset accrued by a company, brand associations which consumer
value accrues
- Provides value to the organisations by enhancing the efficiency and effectiveness of marketing
programmes, brand loyalty, prices and margins, brand extensions, trade leverage and competitive
advantage
2.1.1 AAKER MODEL OF BRAND EQUITY
- Identifies 5 major asset categories
- Brand awareness: is the strengths of the brand presence in the minds of consumers,
measured by recall and recognition
- Brand loyalty: refers to the willingness of customer to repurchase the same brand
- Perceived quality: this is the “reason to buy” of many customers, and they are willing to pay
a price for the brand
- Brand association: are attributes that consumer related to the brand
- Other proprietary brand assets: channel relationships and patents that can build a
competitive advantage
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