UNIT 3

Brand & Brand

Management

By Pooja Patidar
Assistant Professor
Content
• Concept
• Decision
• Elements and brand portfolio
• The role of Brands
• The brand equity concept
• Brand Equity Models: Aaker Model, BRANDZ
• Brand Resonance
• Building Brand Equity
• Brand Identity and Brand Image
• Brand portfolios and market segmentation,
Introduction

Brands have been around for many years. They existed silently. Managers
thought about branding once the product was developed, priced, and packaged.

Branding was an after decision-not much significant for the marketers who felt
that the product was more important. The tangible aspects caught more
attention.

Branding meant passively assigning names to pre-manufactured products. But in

the last two decades the brands have got out of their slumber. They are the hot
spots in total marketing process. Among the manager’s chief concerns, brands
reign at the top.

Brands are not universally acknowledged as drivers of financial performance of a

company. Not any more are they cynosures of marketing people; they
constantly figure in financial strategy and valuations.

When brands are so important, branding becomes even more important.

The star brands which rule the roost in the global markets
are the objects of desire for marketers who still lack
powerful brands. Brands like Marlboro, Sony, Kodak, Coca
Cola, BMW leave the managers drooling.

These brands are outcomes of careful and well crafted

branding strategies. To achieve this end, the managers
need to approach branding cautiously and with dedication.

But the process of branding cannot be approached correctly

if confusion surrounds the concept of brand. The need is to
confront the critical issue: What is a brand and what it is
not.
Concept of Brand

The concept of brand in its present form is recent. Creating brand is

the ultimate aim of marketing endeavour. The AMA (American
Marketing Association) defines it as: “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.” There are three
aspects of this definition. Firstly, it focuses on ‘What’, of the brand.
Secondly, it emphasises on what the brand ‘does’. A brand can be
any combination of name, symbol, logo or trade mark. Brands do
not have fixed lifetimes. Under the trade mark law, the users are
granted exclusive rights to use brand names in perpetuity. The
economists view of branding “various brands of a certain article
which in fact are almost exactly alike may be sold as different
qualities under names and labels, which will induce rich and
snobbish buyers to divide themselves from poorer buyers.”
CHARACTERISTICS OF GOOD BRAND NAME :

1. Different : They hold a clear and defendable point of difference

in the market.
2. Authentic : Are relatable and authentic in their relationships.
3. Attractive : They are aspirational and draw others towards
them.
4. Dependable : They deliver their promise time after time after
time.
5. Clear : They are simple, clear and deliver a well defined
message.
6. Loved : They are loved by their own people and those that seek
to interact with them.
7. Worthy : They have worth. Good brands build value back into
the organisation.
8. Accountable : They can be held accountable. They can be
• BRAND DEFINITION
•
The American Marketing Association defines
a brand as “A name, term, design, symbol, or any
other feature that identifies one seller’s good or
service as distinct from those of other sellers. The
legal term for brand is trademark. A brand may
identify one item, a family of items, or all items of
that seller. If used for the firm as a whole, the
preferred term is trade name.”
• BRAND ELEMENTS
1. Name
• The word or words used to identify a company, product, service, or
concept.
• It must be :Descriptive - function (Japan Airlines) , Compounds - combo
(Redbull), Classical - Latin based (Meritor) , Arbitrary - no apparent tie
(Apple), Fanciful - coined (Avanade)

2. Logo:
• The visual trademark that identifies a brand.
• It must be : Simple , Distinctive , Versatile , Appropriate.

Logo design
• It is an important area of graphic design, and one of the most difficult
to perfect.
• The logo (ideogram) is the image embodying an organization. Because
logos are meant to represent companies' brands or corporate identities
and foster their immediate customer recognition, it is counter
Logo color
• It is a key element in logo design and plays an
important role in brand differentiation.
• It is considered important to brand recognition and
logo design, it shouldn't conflict with logo
functionality, and it needs to be remembered that
color connotations and associations are not
consistent across all social and cultural groups.
• For example, in the United States, red, white, and
blue are often used in logos for companies that want
to project patriotic feelings but other countries will
have different sets of colors that evoke national
pride.
Logo design process :

• Designing a good logo may require involvement from the

marketing team and the design agency (if the process
is outsourced), or graphic design contest platform (if it
is crowd sourced).
• It requires a clear idea about the concept and values of the
brand as well as understanding of the consumer or target
group.
• Broad steps in the logo design process might be
formulating the concept, doing an initial design, finalizing
the logo concept, deciding the theme colors and format
involved.
3. Tagline or catchphrase:

• Advertising slogans are short, memorable groups of

words used in advertising campaigns.
• The advertising phrases or taglines are means of
drawing attention to one distinctive feature (an
aspect of a product). The purpose is to emphasize a
phrase that an entity wishes to be remembered
by;Particularly, for marketing a specific corporate
image; Or, connection to a business
product or consumer base.
• THE DECISIONS :

1. Individual branding vs family branding:

Individual branding
• Also called individual product branding, flanker brands or multi
branding, is the marketing strategy of giving each product in
a portfolio its own unique brand name.
• The advantage of individual branding is that each product has an
image and identity that is unique. This facilitates
the positioning of each product, by allowing a firm to position its
brands differently.
• Examples of individual product branding include Procter &
Gamble, which markets multiple brands such as Pampers,
and Unilever, which markets individual brands such
as Dove. Mobile phone companies often use flanker brands to
offer the same service plans to different markets. For
example, Bell Mobility Virgin Mobile brand as a flanker to market
Family branding,
• Corporate branding, and umbrella branding is in
which the products in a product line are given a
single overarching brand name.
• All products use the same means of identification
and have no additional brand names or symbols
attached.
• Umbrella branding does not mean that the whole
product portfolio of a firm will fall under one brand
name as company can go for different approaches of
branding for different product lines.
2. Brand Extension
• Brand extension or brand stretching is
a marketing strategy in which a firm marketing a product
with a well-developed image uses the same brand name in a
different product category. The new product is called
a spin-off. Organizations use this strategy to increase and
leverage brand equity .

3. Brand Positioning

Brand positioning refers to “target consumer’s” reason to

buy your brand in preference to others. It is ensures that all
brand activity has a common aim; is guided, directed and
delivered by the brand’s benefits/reasons to buy; and it
focusses at all points of contact with the consumer.
• STEPS IN BRAND DECISION:

Step 1: Problem and Opportunity Recognition.

Step 2: Information Search.
Step 3: Evaluation of Choices.
Step 4: Behaviour and Action.
Step 5: Review of Buying Decision .

• 3 Approaches to make brand decision :

1. Cognitive Model :
• Recognise problem or opportunity >> Search for information >> Evaluate choices >>
Make buying decision >> Review.

2. Experimental model :
• Recognise problem or opportunity >>Evaluate feelings of benefits and choices >> Make
buying decision >> Review.

3.Habit / Repeat Model :

• Recognise problem or opportunity >> Make buying decision >> Review.
• IMPORTANCE OF BRANDING :

1. Branding is a great way to promote this recognition

because people are busy and tend to adhere to familiarity.
2. If consumers recognize a brand that they have previously
used and they remember being satisfied with it, then they
are more likely to choose that product or service again.
3. Delivers the message clearly.
4. Confirms your credibility.
5. Connects your target prospects emotionally.
6. Motivates the buyer.
7. Concretes User Loyalty.
Role of Brands

• A brand is a distinguishing name and/or

symbol(such as a logo trademark,or package
design) intended to identify the goods or
services of either one seller or a group of
sellers and to differentiate those goods and
services from those of competitors.
• Role of Brand

1. Branding promotes recognition.

• People tend to do business with companies they are familiar
with. If your branding is consistent and easy to recognize, it can
help people feel more at ease purchasing your products or
services. Customers will recognize the company, product, service
and status through brand.

2. Your brand helps set you apart from the competition.

• In today's global market, it is critical to stand apart from the
crowd. You are no longer competing on a local stage, your
organization now competes in the global economy. How do you
stand out from the thousands or millions of similar organizations
around the world? A brand protects both the consumer and the
producer from competitors who would attempt to provide
3. Your brand tells people about your business DNA.
• Your full brand experience, from the visual elements like the logo
to the way that your phones are answered, tell your customer
about the kind of company that you are Are all of these points of
entry telling the right story?

4. Your brand provides motivation and direction for your staff.

• A clear brand strategy provides the clarity that your staff needs to
be successful. It tells them how to act, how to win, and how to
meet the organization's goals.

5. A strong brand generates referrals.

• People love to tell others about the brands they like. People wear
brands, eat brands, listen to brands, and they're constantly telling
others about the brands they love. On the flip side, you can't tell
someone about a brand you can't remember. A strong brand is
critical to generating referrals or viral traffic.
6. A strong brand helps customers know what to expect.
• A brand that is consistent and clear puts the customer at ease, because
they know exactly what to expect each and every time they experience
the brand.

7. Your brand represents you and your promise to your customer.

• It is important to remember that your brand represents you...you are
the brand, your staff is the brand, your marketing materials are the
brand. What do they say about you, and what do they say about what
you're going to deliver (promise) to the customer?

8. Your brand helps you create clarity and stay focused.

• It's very easy to wander around from idea to idea with nothing to guide
you...it doesn't take long to be a long way from your original goals or
plans. A clear brand strategy helps you stay focused on your mission
and vision as an organization. Your brand can help you be strategic and
will guide your marketing efforts saving time and money. A brand
reduces the primacy of price upon the purchase decision.
9. Your brand helps you connect with your customers
emotionally.
• A good brand connects with people at an emotional level, they
feel good when they buy the brand. Purchasing is an emotional
experience and having a strong brand helps people feel good at
an emotional level when they engage with the company.

10. A strong brand provides your business value.

• A strong brand will provide value to your organization well
beyond your physical assets. Think about the brands that you
purchase from (Coca-Cola, Wrangler, Apple, Ford) are these
companies really worth their equipment, their products, their
warehouses, or factories? No, these companies are worth much
more than their physical assets. Their brand has created a value
that far exceeds their physical value. A well established brand
adds towards the overall value of the firm while calculating its
net worth.
• What Is Brand Equity?

• Brand equity is the value premium that a company generates

from a product with a recognizable name, when compared to a
generic equivalent.
• Companies can build their brand equity with their products by
making those products memorable, easily recognizable, and
superior in quality and reliability. Mass marketing campaigns
also help to create and strengthen brand equity.
• When a company has positive brand equity, customers willingly
pay a high price for its products, even though they could get
the same thing from a competitor for less. Customers, in effect,
pay a price premium to do business with a firm they know and
admire.
• Because the company with brand equity does not incur a higher
expense than its competitors to produce the product and bring it
to market, the difference in price goes to their margin. The firm's
• What is Brand Equity?
• This term came up in the marketing literature in 1980. This
multidimensional concept has different meanings from the context of
Accounts, Marketing, and Consumer.
▫ Accounting Context: It is a total value of a brand as a separable
asset, when evaluated for selling. It is also called Brand Value. It is
quantifiable.

▫ Marketing Context: It is the description of consumer’s associations

and beliefs about the brand. It is non-quantifiable. Brand equity is
tailored according to the needs and demands of the consumer.

▫ Consumer-based Context: It is a measure of consumers’

attachment to a brand. It is also called brand strength or loyalty. It
is quantifiable.

• As per Amber and Styles (1996), Brand Equity is a store of profits

which can be realized in future.
• Why does Brand Equity Matter?
• For brand management, the brand equity is vital as it
establishes and fosters the customer loyalty towards the
brand, and directly influences the business growth may
it be a well-established or a new business.
There can be two motivations to study brand equity:
▫ Finance-based motivation: You can estimate the
brand value more precisely for accounting purposes,
such as to evaluate the brand as an asset for the
purpose of reflecting in the balance sheet, or in case
of merging or acquiring a business.

▫ Strategy-based motivation: You can study brand

equity to improve productivity of marketing.
• Understanding Brand Equity
• Brand equity has a few basic components:

• Consumer perception
• Negative or positive effects
• The resulting value
• The Importance of Consumer Perception and
Its Effects
Foremost is consumer perception, which includes
both knowledge of and experience with a brand
and its products. Consumer perception relates
directly to brand equity. The perception that a
consumer segment has of a brand results in either
positive or negative effects for the company.

If the perception is positive, the organization, its

products, and its financials can benefit. Brand
equity builds. If the perception is negative, the
opposite is true.
• Resulting Value
• These effects can turn into either tangible or
intangible value. If the effect is positive, tangible
value is realized as increases in revenue or profits.
Intangible value is realized in marketing as
awareness or goodwill.

• If the effects are negative, the tangible or intangible

value is also negative. For example, if consumers
prefer a generic product over a branded one, the
brand is said to have negative brand equity. Such
willingness to ignore the branded product might
exist if a company has a major product recall or
• Brand Equity's Effect on Profit Margins
• The importance of brand equity's potential to
boost profits and increase profit margins is
demonstrated by the effort that certain companies
make to support the high quality of their products.
a. Higher Prices
b. Higher Sales Volume
c. Customer Retention
• Examples of Brand Equity
• Tylenol
Manufactured since 1955, first by McNeil and then by subsidiaries of Johnson
& Johnson, Tylenol is a first-line treatment for mild to moderate pain.
Tylenol has been able to grow its market with the creation of additional
products that emphasize the brand: Tylenol Extra Strength, Tylenol Cold &
Flu, Children's Tylenol, and Tylenol Sinus Congestion & Pain.

• Costco
Started in 1995, Costco's Kirkland Signature brand has maintained positive
growth and represents solid profit margins as well as a growing portion of
the company's overall sales. This is an example of consumers forsaking more
expensive products from well-known companies and flocking to Costco's
typically lower priced products because of their high quality and value.
Kirkland Signature encompasses hundreds of items, including clothing, coffee,
laundry detergent, food, and beverages. Costco also provides members with
exclusive access to cheaper gasoline at its private gas stations.
• Starbucks
Recognized as one of the most admired companies in the world by
Fortune magazine in 2023, Starbucks is held in high regard for
its pledge to social responsibility. With 38,038 stores operating
around the globe, Starbucks remains the premier roaster and
retailer of Arabica coffee beans and specialty coffees.

• Coca-Cola
With profit margins from 23-32%, Coca-Cola is often rated the
most valuable soda brand in the world. However, the company
brand itself represents more than just products. It's symbolic of
positive experiences and relationships, a proud history involving
consumers, and even of the United States itself. Also recognized
for its unique marketing campaigns, the Coca-Cola Corporation
has had a global impact on consumer engagement.
• What Are the Elements of Brand Equity?
The elements of brand equity include:

• Brand awareness: The extent to which consumers are

familiar with and recognize a brand.
• Brand loyalty: The degree to which consumers
consistently choose a specific brand over others.
• Brand image: The perception of attributes that consumers
have of a brand, such as quality, reliability, and uniqueness.
• Brand associations: The emotional or psychological
associations that consumers connect with a brand, such as
feelings of trust, reliability, or nostalgia.
• Brand value: The perceived benefits and overall value that
consumers attribute to a brand.
• Brand Equity Models

1. Keller’s brand equity model

• Because brand equity as a single concept is subtle, nuanced
and difficult to quantify, it’s best approached in measurable
stages, using a model. The best-known CBBE model is the
Keller Model, devised by Professor of Marketing Kevin Lane
Keller and originally published in his mighty Strategic
Brand Management.
• The Keller model is a pyramid shape and shows businesses
how to build from a strong foundation of brand identity
upwards towards the holy grail of brand equity ‘resonance’.
This is where customers are in a sufficiently positive
relationship with a brand to be advocates for it.
• Working up to the resonance level affords a brand opportunities to recognise
and capitalise on its customers’ loyalties and attitudes – whether they are
positive or negative. Hearing about negative experiences help a brand
understand how their customers feel about their product, so they can flip them
into positive experiences.

• By dividing CBBE into Keller’s four levels, marketers can understand what their
customers want and need before they’ve even bought the product, or maybe
even before they know they want it.

• The iPad is a stunning example of this CBBE: from the robust foundation of
Apple’s brand identity, the iPad was developed to look great, be easy to use, do
everything its customers wanted, and more. Customers loved it and any glitches
that attracted negative responses were quickly patched.

• Before long, iPad users were extolling its virtues and their customer loyalty, and
the iPad is now ubiquitous in stores, health centres, schools, offices and homes.
It’s a classic example of something we didn’t know we needed or wanted until
we saw one. Now we can’t do without it.
How the four levels of Keller’s CBBE pyramid work:
• Level 1: Brand Identity (who are you?)
We can add to this question: ‘and what makes you unique?’ This is how
customers look at your brand and distinguish it from others. It’s the
most important level and must be strong to support the rest of the
pyramid above it. Its role is twofold:

▫ To identify your USP (unique selling point) in the marketplace

▫ To let customers know who you are
▫ It explores the words and images buyers associate with when they
hear a particular brand name. Brand identity quantifies the breadth
and depth of customer awareness of a brand.

• What brand managers can do in Level 1:

▫ Identify your USP – why would you choose your brand over the competition?
▫ Conduct market research to identify the wants and needs of your target
audience
▫ Target your customers with channeled ad campaigns (social media, Google)
• Level 2: Brand Meaning (what are you?)
Once customers become aware of your brand, they’ll want to know more
about your product. They’ll question its features, looks and style,
reliability, durability, customer experience and value for money, to find
its brand meaning. It’s important to deliver quality and reliability every
time, to create positive brand associations in the customers’ minds. For
the purposes of brand reputation, Level 2 is split into two categories:

• Brand performance (rational): This either builds a brand, or breaks

it. It covers product functionality, reliability, durability, and price as well
as customer service and satisfaction. It’s ‘it does what it says on the tin’
territory and when it performs well, customer opinion will be positive.
• Brand imagery (emotional): different, but equally important, imagery
meets the customers’ social and psychological needs. What does the
brand appear to be to customers? Volvo appears Scandi-chic, family-
orientated, safe and eco-responsible; Cushelle soft, homely and cozy.
• What brand managers can do in Level 2:
▫ Check that your product or service is living up to
its advertised promises by analyzing negative
reviews, negative comments, refunds and returns
▫ Fix the negatives!
▫ Exceed expectations by giving customers value
add-ons such as freebies or anniversary discounts
▫ Make sure your advertising and imagery truly
reflects the product experience – it doesn’t over-
promise and under-deliver.
▫ Be prepared to develop packaging, logo, consistent
visual advertising and customer service.
• Level 3: Brand Response (What are the feelings for the brand?)
On this level of Keller’s model, judgment and feelings can be hard to
separate and are intensely personal for each individual customer.
▫ One customer may judge the brand irrelevant to them, whereas
another will find it completely relevant.
▫ Another may make their own value comparison against another
product, harshly or fairly.
And add to the mix actual interaction and perceived reputation and you
can see how hard it can be to quantify how customers feel about a
brand and how much they trust it.

• What brand managers can do in Level 3:

▫ Track your customer feedback across social media channels and other data
sources to identify pain points and areas of customer dissatisfaction
▫ Fix things that flag up as negative
▫ Run brand perception surveys
▫ Give special offers and discounts to strengthen customers’ emotional bond
with your brand
• Level 4: Brand Resonance (a strong relationship)
The apex of Keller’s CBBE model is resonance, when a
customer is:

▫ Loyal to a brand
▫ Considers it superior
▫ Will buy no other
▫ May join a brand community, such as a social media
group or club
▫ Advocates its merits to others

Many things resonate with customers: lifetime experience,

customer service, products and value. A good measure for
resonance is the Net Promoter Score that asks one simple
• What brand managers can do in Level 4:
▫ Everything you can to keep loyal customers at the top of the pyramid!
▫ Treat Level 4 customers as a community of VIPs – offer quality extras,
such as exclusive rewards, free gifts, member-only events and
discounts, preferential upgrades or shipping
▫ Find out why customers reached the resonance level
▫ Don’t rest on your laurels – keep improving that customer experience
that led to customers reaching resonance

• Keller’s model is deceptively beautiful in its simplicity; building

customer-based brand equity is, in reality, a long and hard road.
When you start at the bottom with a great brand identity, then
get customers to know your brand and your business gradually,
you’ll create a brand that people will like, trust and which will
ultimately be successful.
• Aaker’s Brand Equity Model
• David Aaker defines brand equity as a set of assets and liabilities
linked to a brand that add value to or subtract value from the
product or service under that brand. He developed a brand
equity model (also called Five Assets Model) in which he
identifies five brand equity components:
• Brand Loyalty
• The following factors depict the extent to which customers are
loyal to a brand:
•  Reduced Costs: Maintaining loyal customers is cheaper
than charming new ones.

•  Trade Leverage: The loyal customers generate steady

source of revenue.

•  Bringing New Customers: Existing customers boost brand

awareness and can bring new customers.

•  Competitive Threats Response Time: Loyal customers

take time to switch to a new product or service offered by
other brand. Hence this buys time for the company to
respond to competitive threats.
 Brand identity

• Brand identity is like a human identification document. As

an individual, you have a photo, home address, phone
number, fingerprints, and more that set you apart from
other people.
• In a similar manner, a company needs to have a unique set
of visual elements or graphic representations to set itself
apart from the rest of the crowd.
• Memorable brand identity includes a vast array of things
like brand colors, social media channels and posts, a
website, a logo, and much more. It also includes
the fonts used, business card designs, etc.
• Brand vs. brand identity
• A brand is different from a brand identity as it is
based on the emotional connection your target
audience develops with the company. It is all
about how you make the customer feel when they
see your brand’s visual identity.
• Brand assets
• Brand assets are the aspects that make up a
brand identity such as logos, videos, photos,
taglines, slogans, sounds, and other visual
elements.
• For example, Apple has a unique logo of the half-
bitten fruit, a gray color palette, and a distinctive
typography. People take the Apple logo as a status
symbol and stand in long queues just to get their
hands on that specific brand.
Typography or font
Examples of Colour
palettes
Tone and
messaging
• brand identity examples
• 1. Coca-Cola
• Tagline: Real magic.
• This is a classic example of how getting your brand identity
right can lead to massive success. While Coca-Cola has made
adjustments through the years, they never lost the classic
elements that make the brand memorable and recognizable.
• The basic red and white color palette and distinct
typography in their logo work perfectly together and have
come together to create one of the most iconic logos of all
time. No matter where in the world you live, you know it’s
Coca-Cola when you see it and you know exactly what
they’re selling.
• Coca-Cola dominates the market with a globally recognized
brand that brings a smile to people’s faces.
• 2. McDonald’s
• Tagline: We love to see you smile.
• Like Coca-Cola, McDonald’s is a globally recognized brand that
inspires confidence no matter where you run into its golden arches.
• This fast-food giant sticks to a simple red and yellow color palette
that is memorable and easily recognizable worldwide. Their iconic
M, also dubbed the golden arches, has stood the test of time and is
recognized by consumers of all ages.
• While they are easy to recognize, they also do a great job adapting
their brand identity to target different audiences. The simple color
palette and iconic M are used alongside characters like Ronald
McDonald and the Hamburglar to market to children (Happy
Meals) and diverse markets that can have dietary restrictions and
cultural differences. Even so, they are a pillar of consistency,
making consumers feel safe and welcome when stepping into any
of their locations.
• What is brand image?
• Brand image is the customer’s perception of your
brand based on their interactions. It can evolve
over time and doesn’t necessarily involve a
customer making a purchase or using your
product or service. Since customers can have
different opinions of your brand, it’s important to
work hard to maintain a consistent brand image
• Why a positive brand image is important
• Today, many consumers (especially millennials and
Generation Z) don’t buy your product or service
simply because you have the best option, but because
of what you stand for.
• In fact, a Harvard Business Review study found that
64% of consumers say that shared values is the
primary reason they have a relationship with a brand.
That was, by and large, the biggest driver, and only
13% cited frequent interactions as the primary reason
for a relationship. That means that, while you must
interact with your customers, the quality of your
interactions matters more than the quantity for brand
• How to build a strong brand image
▫ Determine your mission, vision, and values
▫ Create a brand positioning statement
▫ Create a brand personality/brand identity
▫ Identify your key audiences using persona market
research
• Brand awareness: how known is the brand to the public? Like
the Keller model, this is the starting point of building brand
equity.
• Brand loyalty: how loyal are people to the brand? Loyalty is
hard for competitors to copy, so it gives a brand time to respond
to competition.
• Perceived quality: is the brand known or expected to deliver
good quality products? Quality above features will give a product
the edge with consumers – for a while, until they begin to
demand the features.
• Brand associations: what do people feel when they see the
brand? The cognitive, split-second reaction to seeing the brand
on adverts, during the buying process, the ‘feel-good factor’, the
number of available brand extensions and differentiations.
• Patents, IP and trading partners: brands with higher
accumulated proprietary rights have a competitive edge against