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CHAPTER1 BRANDS BRANDMANAGEMENT KevinLaneKellerTuckSchoolofBusinessDartmouthCollege 1 1 Whatisabrand FortheAmericanMarketingAssociation AMA abrandisa name term sign symbol ordesign oracombinationofthem intendedtoidentifythegoodsandservicesofonesellerorgroupofsellersandtodifferentiatethemfromthoseofcompetition Thesedifferentcomponentsofabrandthatidentifyanddifferentiateitarebrandelements 1 2 Whatisabrand Manypracticingmanagersrefertoabrandasmorethanthat assomethingthathasactuallycreatedacertainamountofawareness reputation prominence andsooninthemarketplace WecanmakeadistinctionbetweentheAMAdefinitionofa brand withasmallbandtheindustry sconceptofa Brand withacapitalb 1 3 Brandsvs Products Aproductisanythingwecanoffertoamarketforattention acquisition use orconsumptionthatmightsatisfyaneedorwant Aproductmaybeaphysicalgood aservice aretailoutlet aperson anorganization aplace orevenanidea 1 4 FiveLevelsofMeaningforaProduct Thecorebenefitlevelisthefundamentalneedorwantthatconsumerssatisfybyconsumingtheproductorservice Thegenericproductlevelisabasicversionoftheproductcontainingonlythoseattributesorcharacteristicsabsolutelynecessaryforitsfunctioningbutwithnodistinguishingfeatures Thisisbasicallyastripped down no frillsversionoftheproductthatadequatelyperformstheproductfunction Theexpectedproductlevelisasetofattributesorcharacteristicsthatbuyersnormallyexpectandagreetowhentheypurchaseaproduct Theaugmentedproductlevelincludesadditionalproductattributes benefits orrelatedservicesthatdistinguishtheproductfromcompetitors Thepotentialproductlevelincludesalltheaugmentationsandtransformationsthataproductmightultimatelyundergointhefuture 1 5 Abrandisthereforemorethanaproduct asitcanhavedimensionsthatdifferentiateitinsomewayfromotherproductsdesignedtosatisfythesameneed 1 6 Somebrandscreatecompetitiveadvantageswithproductperformance otherbrandscreatecompetitiveadvantagesthroughnon product relatedmeans 1 7 Whydobrandsmatter Whatfunctionsdobrandsperformthatmakethemsovaluabletomarketers 1 8 ImportanceofBrandstoConsumers IdentificationofthesourceoftheproductAssignmentofresponsibilitytoproductmakerRiskreducerSearchcostreducerPromise bond orpactwithproductmakerSymbolicdeviceSignalofquality 1 9 ReducingtheRisksinProductDecisions Consumersmayperceivemanydifferenttypesofrisksinbuyingandconsumingaproduct Functionalrisk Theproductdoesnotperformuptoexpectations Physicalrisk Theproductposesathreattothephysicalwell beingorhealthoftheuserorothers Financialrisk Theproductisnotworththepricepaid Socialrisk Theproductresultsinembarrassmentfromothers Psychologicalrisk Theproductaffectsthementalwell beingoftheuser Timerisk Thefailureoftheproductresultsinanopportunitycostoffindinganothersatisfactoryproduct 1 10 ImportanceofBrandstoFirms Tofirms brandsrepresentenormouslyvaluablepiecesoflegalproperty capableofinfluencingconsumerbehavior beingboughtandsold andprovidingthesecurityofsustainedfuturerevenues 1 11 ImportanceofBrandstoFirms IdentificationtosimplifyhandlingortracingLegallyprotectinguniquefeaturesSignalofqualitylevelEndowingproductswithuniqueassociationsSourceofcompetitiveadvantageSourceoffinancialreturns 1 12 Caneverythingbebranded Ultimatelyabrandissomethingthatresidesinthemindsofconsumers Thekeytobrandingisthatconsumersperceivedifferencesamongbrandsinaproductcategory Evencommoditiescanbebranded Coffee MaxwellHouse bathsoap Ivory flour GoldMedal beer Budweiser salt Morton oatmeal Quaker pickles Vlasic bananas Chiquita chickens Perdue pineapples Dole andevenwater Perrier 1 13 AnExampleofBrandingaCommodity DeBeersGroupaddedthephrase ADiamondIsForever 1 14 Whatisbranded PhysicalgoodsServicesRetailersanddistributorsOnlineproductsandservicesPeopleandorganizationsSports arts andentertainmentGeographiclocationsIdeasandcauses 1 15 SourceofBrandsStrength Therealcausesofenduringmarketleadershiparevisionandwill Enduringmarketleadershavearevolutionaryandinspiringvisionofthemassmarket andtheyexhibitanindomitablewilltorealizethatvision Theypersistunderadversity innovaterelentlessly commitfinancialresources andleverageassetstorealizetheirvision GeraldJ TellisandPeterN Golder FirsttoMarket FirsttoFail RealCausesofEnduringMarketLeadership MITSloanManagementReview 1January1996 1 16 ImportanceofBrandManagement Thebottomlineisthatanybrand nomatterhowstrongatonepointintime isvulnerable andsusceptibletopoorbrandmanagement 1 17 Whatarethestrongestbrands 18 TopTenGlobalBrands 1 19 BrandingChallengesandOpportunities SavvycustomersBrandproliferationMediafragmentationIncreasedcompetitionIncreasedcostsGreateraccountability 1 20 TheBrandEquityConcept NocommonviewpointonhowitshouldbeconceptualizedandmeasuredItstressestheimportanceofbrandroleinmarketingstrategies Brandequityisdefinedintermsofthemarketingeffectsuniquelyattributabletothebrand Brandequityrelatestothefactthatdifferentoutcomesresultinthemarketingofaproductorservicebecauseofitsbrandname ascomparedtoifthesameproductorservicedidnothavethatname 1 21 StrategicBrandManagement Itinvolvesthedesignandimplementationofmarketingprogramsandactivitiestobuild measure andmanagebrandequity TheStrategicBrandManagementProcessisdefinedasinvolvingfourmainsteps 1 Identifyingandestablishingbrandpositioningandvalues2 Planningandimplementingbrandmarketingprograms3 Measuringandinterpretingbrandperformance4 Growingandsustainingbrandequity 1 22 StrategicBrandManagementProcess MentalmapsCompetitiveframeofreferencePoints of parityandpoints of differenceCorebrandvaluesBrandmantra Mixingandma

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