FUNDAMENTALS OF BRAND

Presented by : RAHIM JABBAR

JAKARTA August, 2005

1

POINTS OF DISCUSSION
Session -1 & 2 (09:15 to 10:30): 75 minutes

A Review of the Marketing Concepts Basic Concepts of the Brand:

What is a Brand? Brief History of Brands A Brand versus a Commodity Benefits of Brands

The Components of A Brand

Product/Service as the Basis Name as the Identifier and Relater Packaging as the Presenter Messages as the Narrator Price as the Proxy of Value
A Brand will surely have a certain position
2

POINTS OF DISCUSSION (2)

Session -3 & 4 (10:50 to 12:20): 90 minutes

Positioning for a Brand:

The Concept of Positioning Factors to be Considered The Anchor of Brand Creation The Promise, Attributes, Benefits and Values Consumer and Competitor Analysis to Explore Values Brand Development for Target Segment Brand Positioning Statement

Managing the Brand

Managing Brand Equity Reaching the End Consumers Communications & Advertising Components of A Winning Offer Managing the Process of Consumer-Brand Linkage Operational Aspects of Brand Equity
3

Key Points

Participants & Learning Objectives

As a result of this overview, participants are expected to be able to:
Explain:
What a definition of a brand is What the components of a brand are The concept of positioning for a brand

Apply insights from knowledge on brand to develop a competitive positioning for a brand

A REVIEW OF THE MARKETING CONCEPTS

WHAT IS THE BUSINESS ?

The Owners of Capital/ Resources

RETURN On INVESTMENT

INVEST

The Firms

INPUTS Men Money Materials Machine Moments (Time)

The Business Processes

THROUGHPUTS OUTPUTS Products Goods Services

The Transaction/ Exchanges

TARGET MARKET

THE RETURNS

Copyright Rahim Jabbar /2002

WHAT IS THE ESSENCE/NATURE OF THE TRANSACTION PROCESS?

PRODUCTS/ SERVICES THAT PROVIDES

VALUES

TO THE

CONSUMERS/ CUSTOMERS

SATISFACTION

TRANSACTION
THE FIRM THE

OFFERING S

THE MONEY

THE EXCHANGE PROCESS

INCOME/ EARNING

Marketing is tasked to manage the economic transactions with the customers/consumers

7

Copyright Rahim Jabbar/1999

MAIN POINTS OF THE MARKETING CONCEPTS (1)

1. Marketing is a major element of the core business processes of creating value added through inducing and stimulating transactions/exchanges 2. Business transaction can only be realized through offering product/service (=the offer) as a means of exchanging values between the consumers/customers/clients and the firms/companies. 3. Consumers/customers/clients will consider any offer (be it product or service) as bringing values to them if the offer helps them achieve their goals , satisfy their wants and fulfill their needs

MAIN POINTS OF THE MARKETING CONCEPTS (2)

4. Values, therefore can be seen as special meanings attached to a particular consumption occasion of using or consuming a product or the event of receiving a particular service. (This is a pragmatic/utilitarian use of the word value) 5. At this point, marketers have two options: go with the product as a commodity wrap the values offered by the product through branding 6. Branding is a strategic option for marketing a product or service. Branding is a means of wrapping the values surrounding the product or service.

MAIN POINTS OF THE MARKETING CONCEPTS (3)

7. The task of marketing function is to find and create consumers/ customers/clients by transforming individual persons or groups of people from being lay people in the streets into obtaining some added values at consuming the offers/using the product or becoming recipients of the services ( to become consumers/ customers/clients). 8. After this transformation, the task is to manage the relationship (Customer/Consumer Relationship Management). 9. Managerially, the marketing process consists of development, creation, and activation of the marketing mix for the offer (product or service) destined for a specific target in mind.

10

MAIN POINTS OF THE MARKETING CONCEPTS (4)

10. These days rarely do we find a single product for a single market (a single product-market category). The overwhelming majority of categories comprise of multi-products targeted at a variety of different groups of consumers/customers/clients. (Each group is conveniently called a segment of the market).
11. Due to the above reasons, the development of any offer (be it product or service) should go through the process of S.T.P. (Segmentation, Targeting and Positioning)

11

MAIN POINTS OF THE MARKETING CONCEPTS (5)

12. Segmentation is the way you partition the market based on certain approach. Segmenting the market would facilitate in choosing the specific part of the market you want to target. 13. Targeting is the process matching your product/offer to specific part of the market. 14. Positioning is the way you differentiate your product/offer from same product category targeted to the same segment.

12

BASIC CONCEPTS OF THE BRAND

13

BRIEF HISTORY OF MARKS/ TRADE MARKS / BRAND (1)

As far back as 4,000 years ago, there are ample evidences that craftsmen from China, India and Persia used either their signature or symbols to identify their products.

Roman pottery-makers used more than 100 different marks to distinguish their work, the famous being the Fortis (which means strong) mark. Those craftsmen are believed to have used marks for: An advertisement A guarantee of quality
Source: WIPO Publication; Intellectual Property, A Power Tool for Economic Growth, (2000)

14

BRIEF HISTORY OF MARKS/ TRADE MARK/BRANDS (2)

In the Middle Ages, the use of marks became associated with skilled trades. Marks were used to show that a product was made by a member of a guild known to have experience in the trade. (In French marque deposee = the mark was registered with a trade guild). In modern times, trademarks have become identifiers of products business assets.

As branding has become a pivotal marketing concept, today, trademark has become almost synonymous with brand.
Source: WIPO Publication; Intellectual Property, A Power Tool for Economic Growth, (2000)

15

WHAT IS A BRAND?
A name, term, sign, symbol or design or a combination of these, that is intended to identify the goods and services of one business or group of businesses and to differentiate them from those of competitors Brand : a mixture of tangible and intangible attributes symbolized in a trademark, which, if properly managed, creates influence and generates value (Interbrand, a leading brand consultancy)
A

brand is a relationship that secures future earnings by securing customer loyalty

(Interbrand, a leading brand consultancy)

16

A BRAND VERSUS A COMMODITY

A brand starts with a name used to identify and differentiate an object c. q. product/ commodity or service and ends up with expected inflows of income, generated by values imparted.
Commodity
Undifferentiated products High levels of substitutability almost zero switching costs

Brand
Based on point of difference Can build up consumer loyalty higher switching costs

Competing on price basis

Generally lower margin Profits come from volume

Is able to command a premium over average/normal price

May gain higher profitability Profits are determined by effective branding and efficient marketing activities
17

BENEFITS OF BRANDS (1)

Economic benefits for the consumers

Brands facilitate consumer decision making and choice

Provides information Reduces search costs Reduces risks (psychological and financial) Simplifies decision making

Brands transform consumption experience

Provide predictable quality Provides comfort of reassurance Provides a badge with social impact

Sources : Excerpted from various sources and business experiences

18

BENEFITS OF BRANDS (2)

For the enterprises: Strategic business benefits: An established brand benefits the business, because it can Increase sales volume Cement consumer loyalty Assist in response to competitors pressure Increase revenues and profitability Expand and maintain market share Help introduce new products Gain royalties through licensing program Provide foundation for franchises Support strategic partnership and marketing alliance Justify corporate valuation in financial transactions Raise awareness of charitable causes Signal compliance with safety requirements Show fulfillment of technical specifications Show inter-operability of technical system
Source: WIPO Publication; Intellectual Property, A Power Tool for Economic Growth, (2000)

19

ADDED VALUES GENERATED BY BRAND

OBJECT

NAME

MEANINGS & ASSOCIATIONS

VALUE - ADDED GENERATED BY BRAND Badge of Origin Promise of Performance The value of re - assurance Replicability TRANSFORMATION EXPERIENCE Subject experience of using a brand : promotive/de-motive effects of brand on physical product characteristics

Authenticity

Inner Directed

Sources : Excerpted from various sources and business experiences

Differentiation/ Brand Personality A relevant emotional metaphor linked with social dimensions

Outer Directed

20

COMPONENTS OF A BRAND

21

THE BRANDS :
COMPONENTS OF A BRAND
Should be matching

THE IDENTIFIER/ RELATOR Brand Name/ Logo

THE PRESENTER The Packaging

THE BASIS The Product/ Service THE NARRATOR The Message/ Communication/ Advert. THE PROXY OF VALUE The Price

Should be matching to each other Copyright Rahim Jabbar/1999

22

THE BRANDS: PRODUCT/SERVICE AS THE BASIS

HABITS AND USAGE DATA/INFO

Uses/ Usages

USERS

Benefits

Attributes

THE PRODUCT

VALUES
Choice Criteri a Overall Performance Measure

Dimensions of Product Performance Copyright Rahim Jabbar/1999

Specific Positives/ Negatives

Physical attributes

Process attributes

Effect attributes

23 Benefit attributes

Page 7

THE BRANDS : NAME AS THE IDENTIFIER AND RELATOR

The BRAND NAME

Sound/ rhyming

Associations

Meanings

Shape of Fonts

Symbols

Sociocultural context

A Impacting Affective & Cognitive aspects of human Commonality of association -> CORE C Impacting consumer perception

Copyright Rahim Jabbar/1999

24

THE BRANDS : PACKAGING AS THE PRESENTER

The PACKAGING Materials

Attributes

Shape Associations Logo/ Icon

Colour

Symbols

Sociocultural context

Impacting Human Mood

Impacting consumer perceptio n

Impacting cognitive & affective aspects of human beings

25
Copyright Rahim Jabbar/1999

THE BRANDS : MESSAGES, COMMUNICATION & ADVERTISING AS THE NARRATOR What to say and How to say it to Whom with What Expected Effects

WHO

SAYS

WHAT

IN

WHAT CHANNEL

TO

WHOM

WITH

WHAT EFFECTS

MARKETERS/ COMPANY PRODUCING THE PRODUCT/ PROVIDING THE SERVICE

PREFERENCE MESSAGE S ABOUT THE BRAND ABOVE THE LINE BELOW THE LINE THE TARGET MARKET OTHERWISE

Source: Adapted from Harold Laswell (1948)

26

THE BRANDS : PRICE = VALUE PROXY PRICING OPTIONS BASED ON VALUE PERCEPTION
Differentiation Hybrid

High

Focused Differentiation

Perceived Added Value

Low price

Low

Low price Low added value

1
8
Price

7
High
27

Low
Source: The Strategy Clock: Bowmans Strategy Options

A BRAND WILL SURELY HAVE A CERTAIN POSITION

Currently, market for each product category is inundated with overwhelming number of similar offerings. Differentiation in terms of product functionality is so minimal in such a way that the consumers are faced with a sea of indiscernible offerings. As such, the poor consumers are faced with almost insurmountable choices. Within such a market context, a brand is meant to name a product for the purpose of identification and differentiation. Therefore, it is vitally critical for a brand to be well-positioned in the consumer minds . This mind position will be eventually reflected in the market position in terms of unique identity and competitive differentiation.
28

THE POSITIONING FOR A BRAND

29

Positioning : The Concept

Positioning is what you do to the mind of the prospects. That is how you position your product/brand in the mind of the prospect. Therefore, to be effective, Positioning has to be done with the target (consumers/market) in mind The marketer should understand : What explains their behaviour (what motivates them; what benefits are sought). The degree to which his/her product/brand satisfy the targets needs (Brand Health Indicator/Brand Equity Monitor) The degree to which the competitors products/brands satisfy the targets needs (Customer Satisfaction Monitor, Competitive Brand Mapping, etc.)

Source: Adapted from Al Ries & Jack Trout, Positioning, the Battle for Your Mind (1989)

30

Positioning : Factors to be Considered

Positioning is to find a position of your offer ( in the mind of the prospect) that is THE BEST for it and THE MOST APPROPRIATE FOR THE TARGET MARKET Factors to be considered, therefore, should be : the product/service itself (What makes it so unique? What can make it distinctive ?). The followings can be explored : a. Technical innovation (GSM, G-4 ) b. Improved Performance (Corolla Altis) c. Perceived Superiority (Intel Computer Microchip) d. New benefits (Sony Walkman, G-4 Phone)

Source: Adapted from Al Ries & Jack Trout, Positioning, the Battle for Your Mind (1989)

31

Positioning : Factors to be Considered (2)

Positioning is to find a position of your offer ( in the mind of the prospect) that is THE BEST for it and THE MOST APPROPRIATE FOR THE TARGET MARKET Factors to be considered, therefore, should be : the Company that makes it (What makes the Company so special?). Examples :Baygon --> Bayer guarantees Quality) Consumer Preference : Citibank, the House of Money. The Competitive Environment. The followings can be explored : a. Market segmentation (AMEX Card) b. Re-classifying competitors (BMW vs. Mercedes) c. Price/Value (Promag vs. Mylanta)

Source: Adapted from Al Ries & Jack Trout, Positioning, the Battle for Your Mind (1989)

32

Brand Positioning: The Anchor of Brand Creation

Brand positioning is the anchor of brand creation Creation of a brand is based on the concept of what it will stand for the clues to its existence the promise (that can be supported and reinforced) Authenticity should become the foundation of a brand (It is the justification that the brand can deliver its promise)

33

Brand Positioning: The Promise, Attributes, Benefits and Values

The mix of attributes that carry benefits (which constitute values to the target consumers) should be able to create a strong impact at the first point of contact. The brands promise and its supporting benefits delivered through the mix of attributes should be captured in attentioncatching messages. Tag-line is a short phrase to help communicate and support the brands positioning.

34

POSITIONING : The Process of Developing Competitive Positioning

SEGMENTATION
DEFINE MARKET POTENTIAL Define the market Define the potential (est. no. consumers & their consumption/ usage and their total spending) DEVELOP CRITERIA FOR SEGMENTATION Behavior based Needs based Product related MAP AVAILABLE SEGMENTS Quantify the sizes (volume & value) Products/Brands used by segment

TARGETING
ANALYZE EACH SEGMENT BY ATTRACTIVENES Size (Volume/Value) Growth FIND GAPS IN THE SEGMENT Needs vs. current products Under-served segment MATCH GAPS WITH YOUR PRODUCT Differentiation opportunities DEVELOP MOST APPROPRIATE STRATEGY: Differentiate mass market Niche market Growth market

POSITIONING
PERCEPTUAL POSITIONING Identify relevant set of competitive products Identify the set of determinant attributes /benefits Research target customers evaluation on relevant attributes/ benefits about all products Map product positions (locations) DETERMINE CUSTOMERSS PREFERENCE Mix /combination of attributes/benefits SELECT THE MOST COMPETITIVE POSITIONING

35

POSITIONING : Analysis of Target Consumers and Competitors to Explore Competitive Values

Competitive Advantages (based on effectiveness standard) Specific target segments
VALUES: : SPECIAL MEANINGS ATTACHED TO SPECIFIC CONSUMPTION OCCASIONS/ EVENTS. (PRAGMATIC & SUBJECTIVE APPLICATION OF VALUES)

Need structure Values & benefits Demand dynamics

CONSUMERS:

Consumer Insights

DIFFERENTIATE COMPETITIVELY!!!
(Envisaged) COMPANYS BRAND : (Current) COMPETITORS BRANDS :
Key differentiated value dimensions Salient attributes

COST COMPARISON

Key differentiated mix of values that are competitive Salient attributes required

Comparative Advantages (based on efficiency standard)

Source: Adapted from Kenichi Ohmae , The Mind of the Strategist (1982)

36

Positioning: An Example of Brand Position Map

Class Pride Distinctive look

Mercedes

B.M.W.

Conservative Somewhat older

Mitsubishi

Honda. Toyota.

Sporty Fun Young

Practical Fuel Economy Affordable 37

Positioning

All about identifying the optimal place of a brand, considering its competitors, in the consumers mind Maximizing company potential benefit The compass that guides marketing strategy

38

Positioning
THE POSITIONING STATEMENT SHOULD DRAW ON THE STRONGEST ASPECTS OF BENEFITS OFFERED BY THE BRAND Clarifies what brand is all about Uniqueness/Point of Difference Why consumers should BUY & USE (Addresses their needs better than competition)

39

Positioning
WHO are you going to give this positioning to? WHO are you going to market your product to? WHAT do they want and need What CONSUMER INSIGHT is your positioning based on?

40

Positioning
State the thought you wish to implant in your targets mind: TO (core target audience), (Brand Name), IS THE (frame of reference) THAT (owned benefit) BECAUSE (support or reason to believe)

41

Positioning
An Example: TO oral health concerned adults, XYZ IS THE only brand of therapeutic toothpaste THAT kills germs that cause bad breath, plaque and gingivitis.

42

THE POSITIONING: POSITIONING, BRAND DEVELOPMENT AND TARGET SEGMENT

Direct the development of the offer

THE IDENTIFIER/ RELATOR Brand Name/ Logo

THE PRESENTER The Packaging THE BASIS The Product/ Service Selected POSITION within TARGET SEGMENT THE PROXY OF VALUE The Price

THE SELECTED POSITIONING THE NARRATOR The Message/ Communication/ Advert.

Correct for the product

Correct for the target segment

Copyright Rahim Jabbar/2002

BRAND CONCEPT
43

Brand Positioning Statement(1): Basic Questions to Develop the Message Content and Communication Strategy
1. Brand Vision : What is the ultimate goal you have in mind for your brand? It is a dream supported by belief (that it can and will be achieved sometime in the future) and commitment (namely a pledge to achieve and realize). Further questions revolve around: Who to serve? Where? How? What to expect? How to approach it in general terms. Vision will serve as an enabler to realize a quantum leap (a dramatic improvement, without risking too much), when it is further supported by persistence (i.e. refuse to surrender) and enthusiasm (i.e. strong interest consistently maintained)

44

Brand Positioning Statement (2): Basic Questions to Develop the Message Content and Communication Strategy
2. Brand Mission
It is a statement of conception on where the company/ brand to be throughout time. Questions to ask: What role will it play in the market? (How many roles are there? What are they ?) What role will it play in the Companys portfolio?. (How many roles are there? What are they ?)

45

Brand Positioning Statement (3): Basic Questions to Develop the Message Content and Communication Strategy
3. Basic Positioning How you want it to be seen comparatively among the offers claiming the same/similar benefits? (targeted to the same segment)

Acid tests are : * Is it clear ? (unmistakable v.s. the others?) * Is it correct ? (for the brand ? for the market? for the target group?) * Is it competitive ? (better than the others ? able to challenge market leaders/major players in the category/ segment/sub-segment ?)

46

Brand Positioning (4): Basic Questions to Develop the Message Content and Communication Strategy
4. Consumer end benefits What will it do for me ? (Functionally ? Emotionally ? Socially ? etc.) 5. Reasons why What make/will make the consumers believe that it will give the end benefits stated ? 6. Proofs Why should your brand delivers its promise ?

7. Support benefits What other benefits I get? (The consumer questions)

47

MANAGING THE BRAND

48

MANAGING THE BRAND

NAME/ LOGO The Identifier & Relator PRODUCT/ SERVICE The Basis/ Foundation CORE MESSAGES The Narrator

PACKAGING

The Presenter

TARGET MARKET
PRICE Proxy of Value

Copyright: Rahim Jabbar, 2004

49

MANAGING THE BRAND

BRAND MANAGEMENT: Managing brand covers developing, rejuvenating, extending, marketing the brand (that includes distributing and advertising to the target market). Managing a brand also means managing the process of consumer-brand linkage form being unaware to become loyal users (maximizing switchers-in and minimizing out-switchers The objective of brand management is to develop, create and strengthen equity of the brand. (Brand equity is the ability of a brand to gain market share, through first having a a reasonable share of heart and share of mind).
50

Copyright: Rahim Jabbar, 2004

MANAGING THE BRAND REACHING THE END-CUSTOMERS

MANUFACTURER/SUPPLIER

DIRECT

INDIRECT

DIRECT SALES

DIRECT MARKETING

SPECIALIZED RETAIL STORE

DISTRIBUTORS THE INTERNET WHOLESALER WHOLESALER

FACE-TO FACE

TELEMARKETING

WHOLLY OWNED

FRANCHISE

RETAILERS

RETAILERS

RETAILERS

END CUSTOMERS
Source: Capon & Gilbert : Marketing Management for the 21st Century

51

MANAGING THE BRAND: BRAND COMMUNICATION

Soft-Sell vs Hard-Sell

* Hard-Sell : How does brand communication persuade people to buy ?

Messages

Transmission/ Transportation

Persuasion & play - back

Transformed Behaviour

Buying

* Soft-Sell : How does communication add values through symbols that carry specific meanings ?

Messages

Myths/ Rituals

Modified shared culture

Attitudinal change

Behavioural change

Buying

Symbols Meanings

Values

52

MANAGING THE BRAND: COMMUNICATION & ADVERTISING

WHO

SAYS

WHAT

IN

WHAT CHANNEL

TO

WHOM

WITH

WHAT EFFECTS

PREFERENCE MARKETERS THE OFFER ABOVE THE LINE BELOW THE LINE

THE TARGET

OTHERWISE

EXPOSES

The Essence of Marketing Communication Process

DISPLAY ADVERTISE

PROMOTE

Copyright Rahim Jabbar/1999

53

MANAGING THE BRANDS:

The Objectives of Advertising, Promotion and Merchandising (APM)

1.To create awareness of the product/brand 2.To create desire for the product/brand (Stress customer benefits & their values) 3.To influence customer attitudes to the product (e.g.caring,etc) 4.To create brand loyalty 5.To persuade customers to buy

6.To persuade the customers to visit the outlets, compared to others

7.To remind customers to buy 8.To inform the market about the product/brand

9.To provide re-assurance about the product/brand

10.To be always ethical
Source: Adapted from Brauns Mission Statement as quoted by Bruce & Jevnaker, Management of Design Alliances, Sustaining Competitive Advantage, Wiley, 1998 . (The two statements within brackets are the writers addition)

54

MANAGING THE BRANDS:

Managing the Process of Consumer-Brand Linkage Advertising
Rejecting the Brand

Non-Users of product or service

Users of competitive brand

Aware of your brand

Intereste d

SWITCHERS IN Reinforcement of preference

Habit formation: development of preference

Inclusion in the evoked set

TOP BRAND Loyalty

STOP AFTER A PERIOD OF LOYALTY

Regular users

Sporadic purchasers

Trial purchasers

Stop

Stop

Stop after trial

55

Source; Adapted after Giep & Franzen

SWITCHERS AWAY

MANAGING THE BRAND: COMPONENTS OF A WINNING OFFER

Cultura l needs
Social needs COMMUN ICATION APPEAL
MEASURE OF DEGREE OF FIT BETWEEN CONSUMERS NEEDS AND THE OFFER

TARGET CONSUMERS
Psychological needs

Perceived PERFOR MANCE Product PERFORM -ANCE

Compet itive PREFE RENC E

Physiological needs

Actual PERFOR MANCE PRICE

Compet itive PRICE/ VALU E RATIO

Winning OFFER (BRAND/ PRODUCT)

LEVEL OF

DISTRIBUTION AVAILABILITY
PUS H

EXPOSURE
SHARE OF VOICE

AUDIB -ILITY SHARE OF VISUAL MATERIALS VISIBILIT Y

Compet itive PREV ALENCE

SHARE OF SHELF SPACE

Copyright Rahim Jabbar/1999

VISUAL/ AESTHETI C APPEAL

56

(6%)

Advertising Quality
Qualitative research results Take out

MANAGING THE BRAND : Operational Aspects of Brand Equity

Advertising Effects
Brand trial & re-purchase Switching in and out

Advertising weight
Brand Support Expenditure Share of voices (Spend)

(28%) (94%)

Consumer Pull
(95%)
Brand Image

(63%)

Perceived Quality
Actual Quality / CPT

Brand Performance Volume growth Share/share development Loyalty

Value Price
Price differentials

(72%) (5%)

Brand Equity

Spontaneous Awareness

(99%)

(100%)

Advertising Awareness Brand Awareness

Awareness Effects
(50%) (1%)

Targets: Marketing Consumer Profile Volume &Share Targets: Financials NTO and margins

Aided Awareness
Source of Awareness

Numeric Distribution
Numeric Distribution By channel

(82%)

Operational Effects (Push)

(37%)

Distribution Effects

Weighted Distribution
(18%)
Sales per distribution points Source: A study on a fast moving consumer product market in Malaysia (1985-1995)

(50%)

57

KEY POINTS

58

KEY POINTS
THE ORIGIN OF BRANDS Business is about creating value added through economic transactions. Marketing is tasked to manage the economic transaction between a business with its consumers/customers/clients. As far back as four millennia ago, craftsmen from Persia, China and India in marketing their products used their signatures or symbols as the marks to identify and differentiate their products.

As marketing became a stronger now the strongest key driver of business, trade-marks were gradually transformed to be synonymous with brands.
59

KEY POINTS (Continued-1)

THE DEFINITION OF BRAND Brand is defined as a name, symbol or design, or combination of those elements used to identify and differentiate a product or service of a company and those of competitors. Brand is a competitive weaponry.

THE BENEFITS OF BRANDS

Brands bring benefits to both the business and the consumers: Brands facilitate consumer decision making and choice. Brands transform consumption experiences. For the business, brands can cement consumer loyalty that will generate more sales and revenues.

60

KEY POINTS (Continued-2)

THE COMPONENTS OF A BRAND A product or service is the basis for a brand. The second component of a brand is its name and logo that become the identifiers of the brand. The third component is its packaging that functions as its external presenter. The fourth component is the messages or stories created around the brand that play the roles of its narrator or purveyor. The fifth component is its price which is the proxy of its value. All components should be in harmony to each other. THE POSITION FOR A BRAND As a brand is the identifier and differentiator for a product, a brand should be aimed to occupy certain territory in the consumers minds. The particular/specific territory occupied by a brand in the consumers minds is called the position of the brand.
61

KEY POINTS (Continued-3)

POSITIONING A BRAND So, positioning a brand is what you do to the mind of the prospective consumers. Positioning is about finding the best for the product/service and the most appropriate for the target market. (It is all in the consumers mind!) The process of developing a competitive position for a brand starts with the segmentation of the market, followed by targeting ( selecting a particular segment) to whom a brand is to be positioned (positioning). In order to explore competitive values to be wrapped in the brand to be positioned, we should analyze the target consumers ( consumer insights) and the competitors brands.( competitors mapping)
62

KEY POINTS (Continued-4)

POSITIONING A BRAND (Continued) Therefore, positioning a brand is about identifying the optimal place within the competitive set in the consumers minds. The positioning statement should draw on the strongest benefits offered by the brand. Positioning statement should clarify what the brand is all about. It should clearly state the brands uniqueness and point-ofdifference (P.O.D.) . The statement should also explain why the consumers should BUY and USE the brand: Who are you going to give this positioning to? Who are you going to market your product to? What do they want and need? What consumer insights is your positioning based on?
63

KEY POINTS (Continued-5)

MANAGING THE BRAND Managing a brand covers : developing, rejuvenating, extending, and marketing the brand (that includes distributing and advertising it to the target market). Managing a brand also means managing the process of consumer-brand linkage form being unaware to become loyal users (maximizing switchers-in and minimizing out-switchers) The objective of brand management is to develop, create and and strengthen the equity of the brand. Brand equity is the ability of a brand to gain market share , through first having a reasonable share of mind and share of hearts.
64

References (1)
Capon, Noel and James M. Hulbert, Marketing Management in the 21st Century, Prentice Hall, 2001 Davidson, Hugh, Even More Offensive Marketing, Penguin Books, 1997 Hiam, Alexander and Charles D. Schewe, The Portable MBA in Marketing, John Wiley & Sons, Inc., 1992 Jabbar, Rahim, Approaches towards Segmentation, Targeting & Positioning, 2002, (unpublished) Business Week, 2001, The 100 Most Valuable Global Brands WIPO, Intellectual Property, A Power Tool for Economic Growth, 2002, internet edition, accessed 2nd August 2005 through: http://www.wipo/int/about_wipo/gen/wipo.dgo/wipo_pub_888/ html.
65

References (2) Kennedy,Carol, Managing with the Gurus, Top level Guidance on 20 management techniques, Century Business Book, 1996 Cowley, Don, Ed. Understanding Brands, Kogan Page 1991 Aaker, David A. Managing Brand Equity The Free Press,1991 Temporal, Paul, Branding in Asia, 2001 Knapp, Duane E, The Brand Mindset, The Mc-Graw Hill Companies Inc., 2000 Upshaw, Lynn B., Building Brand Identity, John Wiley & Sons Inc., 1995. Arnold, David, The Handbook of Brand Management, Century Business, 1992. Woodruff, Robert & Gardial, Sarah F., Understanding Customer Values & Satisfaction, Blackwell Business, 2000.
66