BRAND MANAGEMENT ASSIGNMENTBRAND AND BRAND MANAGEMENT REVIEW \ Compiled by: Dwiky Rahardian C1K012030 MINISTRY OF EDUCATION DEPARTMENT JENDERAL SOEDIRMAN UNIVERSITY ECONOMICS AND BUSINESS FACULTY MAJORING IN INTERNATIONAL MANAGEMENT PROGRAM 2015 whenever a marketer creates a new name. then. and abstract images. there is no need for a brand. Brand Elements There are kind of brand elements: name. Companies Make Products and Consumers Make Brands A product is made by a company and can be purchased by a consumer in exchange for money while brands are built through consumer perceptions. places. and Carnation evaporated milk. When Amazon launched the Kindle e-reader device. symbol.” we find Apple computers. symbol. and Beautyrest mattresses. natural. Shell gasoline. it didn’t take long for competitors to . Toyota’s product is cars. like Mustang automobiles. intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition. In the category of “other. or prestigious. and names based on animals or birds. expectations. Mop & Glo floor cleaner. Its umbrella brand is Toyota and each product has its own more specific brand name to distinguish the various Toyota-manufactured product lines from one another. For example. In creating a brand. like Lexus automobiles. Pentium microprocessors. and Greyhound buses. Definition of Brand According to the American Marketing Association (AMA). like Lean Cuisine. These 4 elements will identifies a product and distinguishes it from others. or symbol for a new product. he or she has created a brand. Products Can Be Copied and Replaced but Brands Are Unique A product can be copied by competitors at anytime. or a combination of them. marketers have many choices about the number and nature of the brand elements they use to identify their products. and Visteon auto supplies. and experiences with all products or services under a brand umbrella. names based on places. like Estée Lauder cosmetics. Without a product. Differentiation between Brand and Product There are several fundamental differences between a brand and a product (or a service): 1. Dove soap. package design. 2. and Ticketron. Brand names themselves come in many different forms. logo. Porsche automobiles. a brand is a “name. Some brand names use words with inherent product meaning. like Sante Fe cologne. like DieHard auto batteries. and Orville Redenbacher popcorn. Ocean Spray 100% Juice Blends. Not just names but other brand elements like logos and symbols also can be based on people. Other names are made up and include prefixes and suffixes that sound scientific. or suggesting important attributes or benefits. things. logo. term.BRAND AND BRAND MANAGEMENT 1. There are brand names based on people’s names.” Technically speaking. or design. sign. and emotions that consumers develop for those brands through previous experiences with them. That’s why the 3 steps to brand building include consistency. However. Consider Google as an example.come out with their own branded versions of an e-reader product. expectations. and restraint. most observers agree that brand equity consists of the marketing effects uniquely attributable to a brand. people are quick to try those products because they trust the Google brand. Despite the many different views. brand equity explains why different outcomes result from the marketing of a . and believe in it. consumers began to trust that the Google brand could deliver faster and better information online. Today. Products Are Instantly Meaningful but Brands Become Meaningful over Time When you launch a new product. confusingly. The Brand Equity Concept One of the most popular and potentially important marketing concepts to arise in the 1980s was brand equity. 2. however. build trust with it. most people buy their music in digital format and listen to it on their iPods. VHS players have become obsolete. Its emergence. The bad news is that. has meant both good news and bad news to marketers. a product can be replaced with a competitor’s product if consumers believe the two products offer the same features and benefits. vinyl records. and CDs. the concept has been defined a number of different ways for a number of different purposes. branding is all about endowing products and services with the power of brand equity. Fundamentally. Through those experiences. the brand associated with each e-reader device offers unique value based on the perceptions. but no one buys Elvis music on cassettes anymore. it’s easy to make that product instantly meaningful and useful to consumers because it serves a specific function for them. When Google first hit the Internet scene it offered a simple product — a search engine. It takes time and effort to convince consumers to believe in your brand. That product was instantly meaningful to consumers because it helped them find information online quickly. Similarly. when Google launches a new product (like Google+ recently). The Elvis Presley brand is timeless. However. cassettes. a brand is meaningless until consumers have a chance to experience it. That is. The same thing happened to 8-track tapes. No common viewpoint has emerged about how to conceptualize and measure brand equity. The good news is that brand equity has elevated the importance of the brand in marketing strategy and provided focus for managerial interest and research activity. Today. Products with low emotional involvement are typically easily replaced. persistence. 4. Products Can Become Obsolete but Brands Can Be Timeless Remember VHS players? With the introduction of DVD players and more recently DVR devices and streaming video services. 3. the Google brand didn’t become meaningful to consumers until people had a chance to use the Google search engine product and see for themselves that it really was a better search engine. However. marketer can create a promotional strategy that utilizes both promotional advertising and inventive approaches. Branding is all about creating differences. Brand Extension : This type of extension differs from a line extension in that it consist of extending the products or services brand into a new category. but the drawback is the potential for costly mistakes. or co-brand products. That is the view we take in this book. 2. Without such celebrity associations. The process of strategic brand management basically involves 4 steps: 1. a. consider the auctions sales in Figure 1-11. . A brand identity can be pictured in the form of a map with concentric circles. A brand extension has the benefits of real growth opportunity. b.branded product or service than if it were not branded. Most marketing observers also agree with the following basic principles of branding and brand equity: Differences in outcomes arise from the “added value” endowed to a product as a result of past marketing activity for the brand. Brand equity provides a common denominator for interpreting marketing strategies and assessing the value of a brand. marketers should define what they want their brand to represent(brand identity). Once marketer have a clear idea of the brand’s identity. Line Extension : Adding a new form of a product or service is generally regarded as the easiest extension. This value can be created for a brand in many different ways. but is likely to generate low incremental revenue. Leveraging Brands Marketers want to achieve a return on their investment. Strategic Brand Management Process It's very important to understand the various aspects in the process of strategic brand management. place. it is doubtful that any of these items would cost more than a few hundred dollars at a flea market. Using a 4 P’s framework (product. Marketers may choose to leverage some of the brand’s established equity to create line extension. they can use marketing tool to build the brand. There are many different ways in which the value of a brand can be manifested or exploited to benefit the firm (in terms of greater proceeds or lower costs or both). promotion). brand extension. As a stark example of the transformational power of branding. 3. Building Brand As a first step. with the core defining elements of the brand in the center and secondary elements of the brand in an outer circle. price. and one vital decision is how to best utilize their brand assets. Identifying and Measuring Brands The questions of identifying brands considers: What does the brand mean to customers? What product associations do customers have and their attitudes toward the brand? A marketer should also consider the nonproduct associations that accompany the brand. However. A good marketing strategy will consider whether co-branding is appropriate for particular situations. . Protecting the Brand The area of strategic brand management has historically been shortchanged. 3. 4. it is not taking it’s rightful place as a key element of strategic brand management.c. the entire protection needed. protection come from legal teams whose work with trademark remains an element of protecting the brand but is. being forgotten as the brand building bandwagon took off. For ex. Traditionally. Co-Branded Products : This method of leveraging brands consist of an alliance of complimentary brands. by no means. This can often take the form of ingredient branding. What colors are associated with the brand? What is the brand’s personality and what are the perceptions of the brand’s country of origin? Monitoring customer’s impression of all these important elements of the brand plays an important role in brand management.