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“ Brand Management”
MK542E

Introduction to Contemporary Brand Management

Dr. Dildar Hussain

Associate Professor
Rennes School of Business

Office No. 327

[email protected]

Chapter Overview
Overview

Introduction to contemporary brand management

Functions of brands

What branding means to customers

What brands means to the manufacturer/the producer/the brand owner

Learning Objectives

Understand meaning, function, and importance of brands

Explain the role of brands from different perspectives i.e., consumer, company and the society

Understand components of a brand and different types of brands

Discuss advantages and disadvantages of brands

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Introduction / Importance of Brand Management -1

Shifting consumer trends

Have become more sophisticated

Shift towards hedonic and symbolic consumption

Self-concept and self-image have become increasingly important

Resulted in increased focus on creation of brand meanings and customer-brand relationships

Information technology and the Internet

Rise of information technology and the Internet

New ways of promoting and experiencing brands

Competitive offerings of online brands versus non online brands

At the same time it has become a threat to brands; rumors, false information, propaganda
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Introduction / Importance of Brand Management -2

Social and environnemental issues

Growing importance of ecology and environmental issues

Clear effects on creating brand loyalty and shaping

corporate culture

Cultural diversity and global mobility

Strong impact of global mobility on brand management

Important to identify, capture, develop and retain niche markets

Culturally diverse markets – acceptability and rejection of brands

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Definition of Brands - 1

Definition of Brands - 2

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Definition of Brands -3

A name, symbol, design or mark that enhances the

value of a product beyond its functional purposes
(Furquhar, 1989)

Definition of Brands - 4
Products

Attributes (Coke has a curvy glass bottle)

Uses (apple computers are great for graphical applications)

Quality/ value (Marks & Spencer delivers quality products)

Functional benefits (Tesco provides extra value)

In addition to above a brand includes

User imagery (those who wear designer clothes)

Country of origin (Audi has German craftsmanship)

Organizational association (3M is an innovative company)

Brand personality (Credit Lynonnais is a brand expressing integrity)

Self-expressive (Nike is sporty)

Emotional benefits (Maserati makes it drive feel sporty and sophisticated)

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Importance of Brands

A brand creates more favorable view of product, relative

to others in the market

Branding is even more important for durable products

For marketing managers

Difficult to compete merely on products

Products and services are relatively easy to imitate

Building on-going relationship between the company and the customer

Premium pricing

For consumers

Branding is an important value-added aspect of products or services

It often serves to denote a certain quality or characteristics

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Differentiation is crucial

Functions of Brands
Efficiency of information

Facilitate information process by providing information regarding

manufacturer and the origin of the product

Help customers to repeatedly find trusted brands

Reduction of Risk

Help customers to reduce risk of wrong purchase

Monetary risk, functional risk, social risk, etc.

Provide reassurance regarding negative effects of purchase

Image benefit creation

Brands are a way to emotional and self-expressive needs

Feeling safe in a Volvo

Comfortable and “at home” at Starbucks

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Brand Relationships -1
Brands can be viewed as relationships

It is the promise a company makes to its current and future customers

Relationship is based on trust, fulfillment of promises and common values

Relationships change as needs change

Buyers can become footloose

Find new interests

Become bored with their usual habits

Brands can

Stagnate and focus on new customers

Change in their essence

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Brand Relationships -2
Brand relationship is also fragile

Brands can suffer chronic damage through

Failure to deliver promises

Unreliability

Failure to deliver on specifications

Implicit specifications also need to be taken care of

Quality and implicit service promise

Involvement of distribution channels

Surviving over longer periods of time though quality and innovations

Examples of selling same products for more than 100 years through marketing

https://www.youtube.com/watch?v=Tz-47sI-AYM
1_1_NewCoke.mp4

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Metaphors of Branding

Metaphors are the basic frames or orientations we have towards

the world around us

Shape the way we engage with the world

Are a good way to learn about customer emotions

To understand a negative feeling towards a brand, advertisement or scent, it is important to

discover whether shame, guilt, or some other thing is creating the adverse or negative feeling

Provide the basic foundation for the brand stories

Deep metaphors are shared by the customers who may be very different on the
surface

Coke studio; Michelin tire container

http://www.youtube.com/watch?v=mGFe07Ro7r0 1_2_Michelin.mp4

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Brand Components
Brand identity

Strategic goal for a brand

Aspirational from brand owner’s point of view

Brand image

What currently resides in the minds of consumers

Brand position

The process by which companies try to create an image or identity in the minds of consumers

Also relative and competitive comparison in a given market

Brand equity

An asset to the firm

Preference in the marketplace, adding value to products and services, charging premium
pricing

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Types of Brands
Generic Brands

Names used like common names

Hoover, Paracetamol

Manufacturer's or national brands

Made by manufacturer

Coca Cola, Pepsi, Toyota,

Private or Supermarket brands

Many manufacturers produce for retailers who put their own

names on the products

Tesco’s cola, Carrefour brands

Captive Brands

National brands exclusively sold by a retail chain e.g., Marks & Spencer

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Branding Decisions - 1

Brand strategy

Whether to brand a product or not

Nature of the product, types of the outlets, perceived advantages and costs of branding

Whether to add or maintain brands with the company’s portfolio

Whether to create new brands or use existing brand elements

(symbols, colors, packaging, etc.)

Brand naming

Selecting a name

Needs to be relevant to both product and audience

Should be able to generate favorable associations

Different types of brand names (Initialism, descriptive, suggestive, free-standing, Founders,

etc. )
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Branding Decisions - 2

Brand sponsorship

Whether the company should manufacture the brand itself

Whether to use a private label/brand

Or to combine both

Brand portfolio

Concerns a multi-product company

Mostly FMCGs like Nestlé operating in a multi-product market

e.g., coffee, baby products, chocolates, etc.

Must be managed in a way that each brand is distinct, has differentiated value and unique
image

These products may also be competing with each other

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Branding Decisions - 3

Brand positioning / repositioning

Attaching a permanent meaning and relevance to the product in the minds of consumers

It determines what kind of value the brand will deliver

Repositioning is an effort to redefine its value to customers

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Branding in the Internet Age -1

Information technology implications

Branding used to be a welcome effect

Decreased role of traditional channels i.e., point-of-sale,

promotions, local media, etc.

Branding has become the key

It allows a company to focus on fewer marketing points (relationships and branding)

The companies on social media are exposed to unwanted situations

Online branding

First, companies thought that new brands need to created for the “dotcom” age

Now, realized that it may be too expensive hence old and trusted ones need to be adapted to
the new environment

Consumers are more willing to engage in ecommerce with known brands

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Branding in the Internet Age - 2

Online brands versus offline brands

Operating only in virtual environment

Operating only in physical environment

Operating in both

Brand management is almost same

The internet can prove a very powerful tool for building brands

It can transmit information, impart experiential associations and leverage on other brand
building programs

Increased market transparency

Ease of access to information and much more

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Marketing Ethics and Sustainability of Brands

Key challenges

Environment and social responsibility through marketing

and brand ethics

Growing importance in creating brand loyalty and corporate culture

Marketing versus sustainability i.e., selling more versus consume less

Some solutions

Marketing needs to move away from the traditional approach of considering volume increase
as the only route to great profitability

It needs to focus on what matters to consumers and how companies perform on these
attributes

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Take Home Message

Definition of brands

Importance of brands

Functions of brands

Brand components

Brand decisions

http://www.youtube.com/watch?v=k5016fh7TgQ&feature=related

1_3_Summary.mp4

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Case Study

Managing a brand: An Indian perspective

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[email protected]

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