Lecture 1: Introducing Brand and Branding

Six Steps on How to Manage a Brand

1. Assess (How the brand is perceived in the market)

2. Plan (How the brand should be perceived)

3. Create (Relationship between the brand and consumers/customers)

4. Align (With the culture of the organization)

5. Link (to the business objectives and strategies)

6. Understand (the meaning of the brand)

A brand only has meaning if consumers recognise the brand. If not, the business has to employ strategies to create or reinforce brand awareness

What is a Brand

“A brand is a name, term, symbol, design or combination of these elements that should identify goods or services of a company and differentiate them from competitors (AMA)”

Other definitions

“A brand is the consumer perception and interpretation of a cluster of associated attributes, benefits, and values (Batey)"

“A brand is a bundle of meanings (McCraken)”

“Brand are units of social consumption (Zaltman)"

Difference Between Brand and Product

• You buy a product for what it does, you buy a brand for what it means

• A product sits on retailers’ shelves, a brand exists in consumers’ minds

• A product can become outdated, a brand is timeless

• A product can be copied buy a competitor, a brand is unique

“A product becomes a brand when the physical product is augmented by something else - images, symbols, perceptions, feelings - to produce an integral idea greater than the sum of its parts (Batey)”

What is Branding

“Branding means more than just giving a brand name and signalling to the outside world that such product or service has been stamped with the mark and imprint of an organization. branding, though is not about being on top of something, but within something (Kapferer).”

History of Branding

• Branding was originally referred to as a piece of burning wood (Scandinavia)

• Branding evolved to owners marking their livestock to identify them

Summarised Timeline of Branding

What Led to Rise of brands

• Mass Production

• Expansion of Transportation

• Mass-communication

• consumer purchasing power

• Intensified competition and market saturation

Three Stages of Branding

• The commodity stage

• Differentiation though branding

• Brand as an icon: building a relationship with customers

What Distinguishes a Brand

“What distinguishes a brand from an unbranded commodity counterpart and gives it its equity is the sum total of consumers’ perception and feelings about the product’s attributes, about how it performs, about the brand name and about that company associated with producing it (Al Achenbum)”

Equity Defined

Equity is the sum of the consumers’ and feelings about the product’s attributes

Brand Associations & Brand Image

Each of these are concerned with perception

Brand Association

• A brand association is anything linked in memory to a brand (Aaker)

Brand Image

• A brand image is a set of associations, usually organized in some meaningful way (Aaker)

Why People Consume Brands

• Based on symbolic representation, shared values, meanings

• Based in our identities or the identity we wish to project or communicate to others

• Brands can take a unique meaning that supports our daily lives or even enhances our lives

Meanings of Brands

“Consumers view a brand as an important part of the product, and branding can add value to a product. Customers attach meaning to brands and develop relationships. Brands have meanings well beyond a product’s physical attributes (Kotler).”

Social Psychology of Brands Diagram

Who Makes the Brand

• Popular Culture

• Company

• Influencers

• Consumers

Brand Dimensions

• Brands as an asset

• Brand as a strategy

• Brand as a corporate culture

• Brand as cultural phenomenon

• Brand as consumer identity

Brand as A Strategy

• Vision

• Mission

• Values

• Personality

• Logo & Visual Identity

• Portfolio & Architecture

Brand as Consumer Identity

• Extended self

• Brand communities

• Brand relationships

• Brand love, brand loyalty

Two Facets of a Brand

For consumers

• identification of product source

• assignment responsibility to the product-maker

• Risk-reducer

• Search cost reducer

• promise, bond or pact with product-maker

• symbolic device

• signal of quality

For manufacturers

• means of identification to simplify handling or tracing

• means of legally protecting unique features

• signal of quality level

• means of endowing products with unique associations

• source of competitive advantage

• source of financial return

• aids communication

• facilitates product extensions/licensing

Summary

What are brands for

• a sign of quality

• away to differentiate yourself in a crowded market

• a sign of dependability in a global world

• a sense of belonging

• a financial instrument