Brand Management
Topic 1: The past, present and future
The past
Once upon a time
- Undifferentiable by seller/manufacturer
- Often sold loose
- Quality highly variable
- In competitive markets we have many manufacturers/sellers for the same commodity
Question: how do I get a buyer to prefer and buy my commodity?
→ differentiate it from competition and make it more attractive
→ how? By branding your commodity
Brand: a name, term, sign, symbol, design or combination of them, intended to identify the
goods and services of one seller or group of sellers and and to differentiate themselves from
those of competition
In practice: a brand creates a certain amount of meaning, reputation, preference, and so on… in
the eyes of the customer.
→ Philosophy: “Companies produce products”
→ Nike (old way): Focused on pushing product performance and “Just Do It” through TV ads
and celebrity endorsements.
The present:
In the old world, brands were afraid of the centre of customer journey how people are.
Changing perspectives:
- from organizations point of view
- physical product
- To the customer point of view
- psychological product
Brand = a product, but one that adds other dimensions that differentiate it in some way from
other products designed to satisfy the needs
These valued differences can be:
- Rational and tangible, but are often intangible, emotional and symbolic
→ Philosophy: “People buy brands”
→ Nike (new way): Builds brand through consumer identity and community, e.g., Nike Run
Club, personalized products, and social movement campaigns like “Dream Crazy.”
Brands are more and more intangibles that have become the key source of corporate value.
,Brand values = the connection between when people are looking to purchase a brand is the
same as what the brand shows over the years?
Consumers value brands not just for their functional attributes but also for the sensory pleasure
and potential self-expression they may experience when buying and using the brand. These
so-called brand values might include concepts like …
● brand quality, brand credibility, brand likeability, brand authenticity, brand transparency,
brand status, and brand sustainability.
The present: product versus brand
Product = anything that can be offered to a market for attention, acquisition use or consumption
Branded product = a product that has been given a name for identification purpose
Brand = a product, but one that adds other dimensions that differentiate it in some way from
other products designed to satisfy (the same) needs
Product → Branded product Branded product → Brand
(physical product perspective) (psychological product perspective)
• Tangible: can be touched by customer • Intangible: lives in customer’s mind
• Can be copied • Unique
• Can be outdated • Potentially timeless
• Involves transactions • Forms basis of connections
- Differentiation - Relevance
- Attributes - Personality
- Promise - Relationship
- Static - Dynamic
- Mass - Individual
- awareness - meaningfulness
Why are brands important for … ?
1. Consumers 2. Producers
● Identification of product .. and source ● Means of legally protecting unique
● Assignment of responsibility to features
product maker ● Signal of quality level (e.g., “made by )
● Risk reducer (different kinds of risk) ● Means of endowing products with
● Search cost reducer (e.g., heuristic) unique associations
● Bond / pact with maker of product ● Source of competitive advantage
● Symbolic device (barriers of entry)
● Signal of quality ● Source of financial returns
,The present: importance
CBBE = customer based brand equity
(1.) Differential effect that (2.) Brand knowledge has on (3.) consumer response to the marketing
of that brand
- A brand has positive customer-based brand equity when customers react more favorably
to a product and the way it is marketed when the brand is identified than when it is not
(e.g., when it is attributed to a fictitiously named or unnamed version of the product)
→ People pay more for Coca Cola vs Pepsi, even though in a blind taste test people mostly
prefer Pepsi.
Brand Equity = the commercial value that derives from consumer perception of the brand name
of a particular product or service, rather than from the product or service itself.
- Differences in outcomes arise from “added value” as a result of past marketing activities
for the brand
- Brand equity provides a common denominator for interpreting marketing strategies and
assessing the value of a brand
- Value can be manifested in different ways e.g., greater proceeds (gains) a/o lower costs
(pains)
- This value can be created in many different ways
→ Example: Apple’s strong brand equity lets it charge premium prices (higher gains) while
spending less effort convincing customers to trust its products (lower costs).
Brand Management Goals:
- Consumer-based brand equity (CBBE)
- Build, sustain and leverage positive, strong, active, unique meanings of the brand
- Financial-based brand equity (FBBE)
- … to enable the brand to earn more in the short and long run
Can everything be branded?
1. Physical goods
- (FMCG) fast moving packaged consumer goods: almost 100% of all products are
branded
- B2B products: Creating a positive image and reputation for a company as a whole (e.g.,
Boeing)
- High-tech products: Financial success no
longer driven by product innovation or latest
product specifications and features alone
(e.g., Intel)
2. Services
- Address potential intangibility and variability
problems
- Brand symbols to make abstract nature more
concrete
, 3. Retailers and distributors
- Generate consumer interest, patronage and loyalty in a store and
- Learn consumers to expect certain brands and products from a store
✓ Private label brands (e.g., Albert Heijn, Tesco)
4. Online Products and Services
- Improving customer associations because unique product attributes of the brand
(convenience, price, etc.) are not enough (e.g., Google vs Googol)
5. People and organizations
6. Sports, Arts, and entertainment (Walt Disney, F1)
7. Geographic Locations
8. Ideas and causes
The future
Why do some brands fail?
Some marketers failed to take into account the changing market conditions and continued to
operate with a business as usual attitude or were inappropriate in their response
→ Xerox and also Olivetti // → Nokia and also Blackberry
Key challenges:
1. Savvy customers - it’s difficult to persuade the more experienced consumers with
traditional communications
→ A traveler books a hotel only after checking TripAdvisor or Booking.com reviews, ignoring
glossy hotel ads.
2. Brand proliferation - Too many similar products confuse customers and dilute loyalty.
→ a shopper faces 20+ yogurt brands, making it hard for one brand to stand out.
3. Media fragmentation - Firms spend more on nontraditional and new forms of
communication – Increase expenditures on promotion, decrease expenditures on
advertising
→ A brand invests in expensive TV commercials, but younger audiences are on TikTok
4. Increased costs - customers expect constant innovation and promotions
→ Smartphone brands like Samsung must spend heavily on R&D and discounts just to keep up
with Apple and Chinese competitors.
5. Increased competition → more difficult to differentiate. Consumers often go for
cheaper option (private label)
→ Shoppers at Lidl or Aldi buy private-label cereal instead of Kellogg’s because it’s cheaper but
“good enough.”
6. Greater accountability – customers demand value, while companies face pressure for
quick results.
→ A new CMO in a global brand has only a few years to prove ROI, focusing on short-term
campaigns instead of long-term brand building.
Topic 1: The past, present and future
The past
Once upon a time
- Undifferentiable by seller/manufacturer
- Often sold loose
- Quality highly variable
- In competitive markets we have many manufacturers/sellers for the same commodity
Question: how do I get a buyer to prefer and buy my commodity?
→ differentiate it from competition and make it more attractive
→ how? By branding your commodity
Brand: a name, term, sign, symbol, design or combination of them, intended to identify the
goods and services of one seller or group of sellers and and to differentiate themselves from
those of competition
In practice: a brand creates a certain amount of meaning, reputation, preference, and so on… in
the eyes of the customer.
→ Philosophy: “Companies produce products”
→ Nike (old way): Focused on pushing product performance and “Just Do It” through TV ads
and celebrity endorsements.
The present:
In the old world, brands were afraid of the centre of customer journey how people are.
Changing perspectives:
- from organizations point of view
- physical product
- To the customer point of view
- psychological product
Brand = a product, but one that adds other dimensions that differentiate it in some way from
other products designed to satisfy the needs
These valued differences can be:
- Rational and tangible, but are often intangible, emotional and symbolic
→ Philosophy: “People buy brands”
→ Nike (new way): Builds brand through consumer identity and community, e.g., Nike Run
Club, personalized products, and social movement campaigns like “Dream Crazy.”
Brands are more and more intangibles that have become the key source of corporate value.
,Brand values = the connection between when people are looking to purchase a brand is the
same as what the brand shows over the years?
Consumers value brands not just for their functional attributes but also for the sensory pleasure
and potential self-expression they may experience when buying and using the brand. These
so-called brand values might include concepts like …
● brand quality, brand credibility, brand likeability, brand authenticity, brand transparency,
brand status, and brand sustainability.
The present: product versus brand
Product = anything that can be offered to a market for attention, acquisition use or consumption
Branded product = a product that has been given a name for identification purpose
Brand = a product, but one that adds other dimensions that differentiate it in some way from
other products designed to satisfy (the same) needs
Product → Branded product Branded product → Brand
(physical product perspective) (psychological product perspective)
• Tangible: can be touched by customer • Intangible: lives in customer’s mind
• Can be copied • Unique
• Can be outdated • Potentially timeless
• Involves transactions • Forms basis of connections
- Differentiation - Relevance
- Attributes - Personality
- Promise - Relationship
- Static - Dynamic
- Mass - Individual
- awareness - meaningfulness
Why are brands important for … ?
1. Consumers 2. Producers
● Identification of product .. and source ● Means of legally protecting unique
● Assignment of responsibility to features
product maker ● Signal of quality level (e.g., “made by )
● Risk reducer (different kinds of risk) ● Means of endowing products with
● Search cost reducer (e.g., heuristic) unique associations
● Bond / pact with maker of product ● Source of competitive advantage
● Symbolic device (barriers of entry)
● Signal of quality ● Source of financial returns
,The present: importance
CBBE = customer based brand equity
(1.) Differential effect that (2.) Brand knowledge has on (3.) consumer response to the marketing
of that brand
- A brand has positive customer-based brand equity when customers react more favorably
to a product and the way it is marketed when the brand is identified than when it is not
(e.g., when it is attributed to a fictitiously named or unnamed version of the product)
→ People pay more for Coca Cola vs Pepsi, even though in a blind taste test people mostly
prefer Pepsi.
Brand Equity = the commercial value that derives from consumer perception of the brand name
of a particular product or service, rather than from the product or service itself.
- Differences in outcomes arise from “added value” as a result of past marketing activities
for the brand
- Brand equity provides a common denominator for interpreting marketing strategies and
assessing the value of a brand
- Value can be manifested in different ways e.g., greater proceeds (gains) a/o lower costs
(pains)
- This value can be created in many different ways
→ Example: Apple’s strong brand equity lets it charge premium prices (higher gains) while
spending less effort convincing customers to trust its products (lower costs).
Brand Management Goals:
- Consumer-based brand equity (CBBE)
- Build, sustain and leverage positive, strong, active, unique meanings of the brand
- Financial-based brand equity (FBBE)
- … to enable the brand to earn more in the short and long run
Can everything be branded?
1. Physical goods
- (FMCG) fast moving packaged consumer goods: almost 100% of all products are
branded
- B2B products: Creating a positive image and reputation for a company as a whole (e.g.,
Boeing)
- High-tech products: Financial success no
longer driven by product innovation or latest
product specifications and features alone
(e.g., Intel)
2. Services
- Address potential intangibility and variability
problems
- Brand symbols to make abstract nature more
concrete
, 3. Retailers and distributors
- Generate consumer interest, patronage and loyalty in a store and
- Learn consumers to expect certain brands and products from a store
✓ Private label brands (e.g., Albert Heijn, Tesco)
4. Online Products and Services
- Improving customer associations because unique product attributes of the brand
(convenience, price, etc.) are not enough (e.g., Google vs Googol)
5. People and organizations
6. Sports, Arts, and entertainment (Walt Disney, F1)
7. Geographic Locations
8. Ideas and causes
The future
Why do some brands fail?
Some marketers failed to take into account the changing market conditions and continued to
operate with a business as usual attitude or were inappropriate in their response
→ Xerox and also Olivetti // → Nokia and also Blackberry
Key challenges:
1. Savvy customers - it’s difficult to persuade the more experienced consumers with
traditional communications
→ A traveler books a hotel only after checking TripAdvisor or Booking.com reviews, ignoring
glossy hotel ads.
2. Brand proliferation - Too many similar products confuse customers and dilute loyalty.
→ a shopper faces 20+ yogurt brands, making it hard for one brand to stand out.
3. Media fragmentation - Firms spend more on nontraditional and new forms of
communication – Increase expenditures on promotion, decrease expenditures on
advertising
→ A brand invests in expensive TV commercials, but younger audiences are on TikTok
4. Increased costs - customers expect constant innovation and promotions
→ Smartphone brands like Samsung must spend heavily on R&D and discounts just to keep up
with Apple and Chinese competitors.
5. Increased competition → more difficult to differentiate. Consumers often go for
cheaper option (private label)
→ Shoppers at Lidl or Aldi buy private-label cereal instead of Kellogg’s because it’s cheaper but
“good enough.”
6. Greater accountability – customers demand value, while companies face pressure for
quick results.
→ A new CMO in a global brand has only a few years to prove ROI, focusing on short-term
campaigns instead of long-term brand building.
