Chapter Nine Strategic Brand Management

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Chapter NineStrategic Brand Management
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Definition of a Brand
A brand is a combination of name, symbol, term or
design that identifies product. Brands have two
parts brand name and the brand mark. Brand Name
is that part of the brand that can be spoken
including words, letters or numbers Brand Mark
the part that cannot be spoken, including
symbols, figures or a design
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Strategic Role of Brands

• For buyers
• Reduce customer search cost
• Reduce buyers perceived risk
• Reduction of social psychological risk

• For sellers Facilitate
• Repeat purchases
• Ease of introducing new products
• Premium pricing
• Market segmentation
• Brand loyalty
• Recognition
• Preference
• Insistence

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Challenges faced by Brand Managers
How to respond to price and Other competitive
pressures Fragmentation of Markets and
Media Addition of line extensions Bias Against
Innovation Pressure to Invest Elsewhere Short-Te
rm Pressures
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Marketings Role in Product Brand Strategy

• Market sensing
• Identifying the characteristics and performance
  features of products
• Guiding target market and program-positioning
  strategies

TM 5-1
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Brand Equity
Define Brand Equity

• Brand equity stems from four elements
• Awareness
• Loyalty
• Quality
• Association

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Specific Product
Product line Branding
Private Branding
Basis of Identification
Combination Branding
Corporate Name
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Strategies for Improving Product Performance
Product improvement
Alter marketing strategy
Product line Strategy
Cost reduction
Add new product(s)
Eliminate specific product(s)
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Leveraging Alternatives
BRAND EXTENSIONS
LINE EXTENSIONS
Another Product Class
Horizontal Extension
Vertical Extension
Co- Branding
Up from Core Brand
Down from Core Brand