2 Challenges in Building Strong Brands Definitiona 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 competitorsProductAnything is valuable to a customer because it can satisfy his/her needBrandA company-specific identity the brand gives to the company’s product
4 Strategic Role of Brands For BuyersAssist customers to identify and locate products efficiently and promptly.Assist to reduce the perceived risk that buyers take when they purchase a product by providing an assurance of quality.Assist to reduce the social and psychological risks associated with buying, owning and/or using the product, by being able to transfer psychological benefits such as prestige and status.
5 Strategic Role of Brands For SellersAssist companies to enhance financial viability through repeat purchases because the customer can identify and re-identify the products compared to its competitors.Assist to launch new products because the customers’ previous buying experience allows them to be familiar with the brand and become very accepting of these ‘branded’ products.Become a point of reference so that promotion of these brands becomes effective.
6 Strategic Role of Brands For SellersFacilitate market segmentation by communicating a clear message to its target audience that this brand is intended for whom and whom it is not.Promote premium pricing by differentiating themselves from its competitors.Nurture brand loyalty, particularly in product categories where loyal buying is a known characteristic of buying behavior.
7 Brand Equity Definition What affect Brand Equity a set of brand assets and liabilities linked to a brand, its name, and symbol that add or subtract from the value provided by a product or service to a firm and/or to that firm’s customersWhat affect Brand Equitybrand loyalty,name awareness,perceived quality,brand associations andproprietary brand assets.
8 Brand Equity Strong brand equity provides the following advantages: Increases cash flow by the brand increasing sales and expanding market share, allowing for premium pricing, and even redoing promotional costs.Facilities a more regular and steady income stream.Allows for a brand to be sold or leased.
9 Brand IdentityBrands bring to us a whole range of communication, learning, history, feelings about a product or company with just a simple name and logo.Brand’s identity means “the sum of all the ways a brand chooses to identify itself to all publics”. Another way of putting it is “How marketers want the brand to be perceived”.
10 Brand ImageBrand image is defined as “the set of beliefs held about a particular brand” or “the perception of the brand by the publics”“the key to answer the question of how the consumer chooses among alternative brands”.
11 Managing BrandsTop brands in many product categories are at least 50 percent more profitable than their nearest competitors.The superior performances of these well-establish brands can be said to be the result of:Marketing proficiency/skills.Product quality.Strong brand preference developed through years of successful advertising.
14 Product improvement strategies Additions to the product lineCost reductionProduct improvementMarket strategy alterationProduct eliminationEnvironmental effects of products
15 Strategy for Brand Strength Brand-building strategies: build, maintain, and manage brand equity.Brand revitalization: important mature brands that still have positive impact on a company’s overall strategy do require revitalization.Strategic brand vulnerabilities: managers need to be aware of their brands’ vulnerabilities.
16 Brand Leveraging Strategy Line extension: consist of offering additional products in the same product class or category as the core brand.Stretching the brand vertically: means stretching the product line either upwards, downwards, or even both ways.Brand extension: get benefits from customer’s familiarity with an existing brand name in a product class to launch a new product line in another product class.
17 Brand Leveraging Strategy Co-branding: is when two established brands of different companies are working together to promote their products.Licensing: involves “selling” the core brand name to another company for use on a non-competing product.Overleveraging: because of the huge costs in brand building, managers may be under intense pressure to leverage their brands over a large number of products.