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Brand Management

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Brand Management (MKT624)
Lesson 31
With channels concluded, we now move on to the concept of co-branding, which in present
day's marketing world seems to be getting considerable importance. What is co-branding and
how it works is briefly discussed here! The discussion then transcends into the area of
communication and spreads over the lecture. Forms of communication and all those variables
that make a communication campaign effective are discussed.
If a brand is not strong enough on its own to exert control on the channel, it joins hands with
another brand that offers synergy by operating within the same market space. It can take
different shapes and forms.
Two brands join hands (this is known as bundling) to create one brand by using the strong
expressions of both, thereby capitalizing on the strengths of both. This practice saves many
risks and launch costs etc. An example could be a famous yogurt brand "Novelty" joining
hands with an ice cream brand "Hi-cream" to introduce ice cream yogurt by the name of
"Novel-Cream". This brand is seeking an entry into a chain of restaurants to sell ice cream
yogurt or shakes by the given new name "Novel-Cream" that is a contraction of the two brand
names. Two brands get bundled into one new and independent brand that draws strength from
the two parent brands.
Ingredient co-branding
It is where one becomes the ingredient of another. "Intel inside" is a classic example of this
concept mentioned in more text books than one. The objective is to draw strength from each
other, offer customer value, and exert control of the selling channel. The simple philosophy is
what can be done by two is more effective than can be done by one.
Regardless of the mechanics of co-branding, companies pair their products in some kind of a
marketing collaborative effort. This could take the following shapes:
·  A product bearing names of two companies, one more prominent than the other.
·  A product bearing names of two brands, of course one more prominent than the other.
·  A product having one brand name created out of two names.
·  Two brands distributed by one company.
·  Two brands promoted through one common channel that originally partnered with one
of the brands ­ hotels could be promoted by airlines through travel agents, who
originally partnered with airlines.
·  One brand cooperating with another to promote its loyalty program. Banks could
promote their credit cards by offering loyalty points redeemable at gasoline stations.
In other words, strategic alliances are made public, because doing so is important to have
competitive edge. Co-branding takes place either when the two brands need more strength than
they have or when one of the brands is weak and wants to take advantage from the strength of
the other. You can imagine a weak or a weaker brand having access to an established channels
system to which it could not otherwise reach. Under such circumstances, the weaker brand has
to offer some kind of value to the stronger brand to qualify for the partnership!
Brand Management (MKT624)
Example 1
A sachet of biscuits or powdered milk with a pack of tea could be cited as examples
from the local market. This kind of co-branding has taken place in the recent past ­
2005 and 2006. The main source brand that leveraged biscuits and powdered milk was
Example 2
Unilever has started selling its ice cream brand (Carte D'or) imported from Turkey
through KFC outlets in Karachi. The company plans to roll out to other markets soon. It
has chosen a channel compatible with its brand that sells by the scoop and not as
packaged ice cream. Anyone walking into a KFC joint cannot ignore the ice cream.
The importance of marketing communications cannot be overemphasized. Without an effective
communications program, a marketing strategy does not stand good chances of success.
Actually, it will fail. An effective program is designed to make the customers aware of the
brand, communicate its benefits, remind them of the same and make them take an action in
terms of sales1.
Communication strategies bring brand positioning to life. Unless we communicate the intended
position, the chances of it making a home in consumers' mind are remote. A well positioned
product with an attractive customer value and a strong channel system will not achieve full
marketing success without a good communication program.
Therefore, successful communication strategies stem from four basic strategic factors and then
support these very factors all along the strategic process2.
·  Corporate vision
·  Brand vision
·  Brand picture
·  Brand positioning
Forms of communications
It takes on many different forms and goes beyond advertising and promotions as mentioned
1. Advertising
2. Promotions
a) Consumer promotions
b) Trade promotions
3. Event marketing and corporate sponsorships
4. Public relations
5. Direct marketing (phone, fax and e-mail, catalogs, and internet)
6. Internal communication with newsletters
Advertising and Promotions
The first two tools i.e. advertising and promotions are most widely used and, hence, considered
to be the most vital. But, they are also used interchangeably or meaning the same thing, at
times. They do not mean the same, nor should they be used one for the other. Both have
different meanings that ought to be understood before we proceed further.
Brand Management (MKT624)
Advertising is an all paid-for persuasive communication in the main media of
television, press, cinema, and radio4. This is what we generally mean by advertising. It
is known as "above-the-line".
Promotion covers activities designed to increase sales by offering an inducement, such
as extra product, free gifts, sampling, and competitions etc5. Promotions are generally
termed as "below-the-line" and can be split into two different forms:
o Trade promotions
o Consumer promotions
Trade promos are aimed at the trade to entice them into stocking more, giving our brand
more space, and sell more. Consumer promos are aimed at consumers, designed to
encourage them to buy more and use more.
With the help of advertising, you create a pull, that is, you pull the customer toward the
brand; with promotions you push the product towards the consumer. The pull and push
form a convincing basis of registering higher sales as the conventional wisdom goes.
Having understood the basic difference between advertising and promotions, let's now discuss
what communications are all about.
·  The first and foremost job of any marketing communication is to create awareness of a
·  Second, marketing communication is meant to reinforce the message to maintain
·  Third, the job of marketing communication is to motivate target customers to take
action and buy.
Objectives of communication
With three basic jobs done by communications, we can elaborate the fundamental objectives of
a marketing communication as follows6:
·  Build Awareness - to a level that target customers do understand the important
information about a brand.
·  Reinforce the message - to sustain a desired level of retention with respect to image,
key benefits, and name recognition over time. Make sure that brand picture does not get
·  Stimulate action: - to motivate target customers to take action in relatively a short time.
Different experts present the concept of objective-fulfillment in different ways with the same
essence. Scot Davis makes understanding of it simple by giving it the acronym "AUTHOR" in
the following way7:
·  A for awareness
·  U for understanding
·  T for trial
·  H for happiness
·  O for only one
·  R for referral and recommendation
To ease your understanding of the concept, let's take a look at another model in comparison
with the above to look into the commonality of essence. The essence of the concept is all about
understanding how customers register a campaign and what level of responses are generated on
their part by that campaign.
Brand Management (MKT624)
Figure 39
What model 1 explains is a hierarchy of responses to a campaign. A similar hierarchy is
expressed by another author as model 2, which also explains the same concept by contracting
the hierarchical levels to four instead of six as propounded by Davis. The next lecture goes into
the details of the importance of arousing all hierarchical responses to create the desired impact
of communication campaigns.
1. Roger J. Best: "Market-Based Management ­ Strategies for Growing Customer Value
and Profitability"; Prentice Hall (300-301)
2. Scot M. Davis: "Brand Asset Management ­ Driving Profitable Growth through Your
Brands"; Jossey-Bas, a Wiley Imprint (153)
3. Scot M. Davis: "Brand Asset Management ­ Driving Profitable Growth through Your
Brands"; Jossey-Bas, a Wiley Imprint (154)
4. Geoffrey Randall: "Branding ­ A Practical Guide To Planning Your Strategy"; Kogan
Page (66)
5. Geoffrey Randall: "Branding ­ A Practical Guide To Planning Your Strategy"; Kogan
Page (66)
6. Roger J. Best: "Market-Based Management ­ Strategies for Growing Customer Value
and Profitability"; Prentice Hall (300-301)
7. Scot M. Davis: "Brand Asset Management ­ Driving Profitable Growth through Your
Brands"; Jossey-Bas, a Wiley Imprint (154-155)
Table of Contents:
  1. UNDERSTANDING BRANDS – INTRODUCTION:Functions of Brand Management, Sales forecast, Brand plan
  2. INTRODUCTION:Brand Value and Power, Generate Profits and Build Brand Equity
  3. BRAND MANIFESTATIONS/ FUNDAMENTALS:Brand identity, Communication, Differentiation
  4. BRAND MANIFESTATIONS/ FUNDAMENTALS:Layers/levels of brands, Commitment of top management
  5. BRAND CHALLENGES:Consumer Revolt, Media Cost and Fragmentation, Vision
  6. STRATEGIC BRAND MANAGEMENT:Setting Objectives, Crafting a Strategy, The Brand Mission
  7. BRAND VISION:Consensus among management, Vision Statement of a Fast Food Company, Glossary of terms
  8. BUILDING BRAND VISION:Seek senior management’s input, Determine the financial contribution gap
  9. BUILDING BRAND VISION:Collect industry data and create a brand vision starter, BRAND PICTURE,
  10. BRAND PICTURE:Brand Value Pyramid, Importance of being at pinnacle, From pinnacle to bottom
  11. BRAND PERSONA:Need-based segmentation research, Personality traits through research
  12. BRAND CONTRACT:The need to stay contemporary, Summary
  13. BRAND CONTRACT:How to create a brand contract?, Brand contract principles, Understand customers’ perspective
  14. BRAND CONTRACT:Translate into standards, Fulfill Good Promises, Uncover Bad Promises
  15. BRAND BASED CUSTOMER MODEL:Identify your competitors, Compare your brand with competition
  16. BRAND BASED CUSTOMER MODEL:POSITIONING, Product era, Image Era, An important factor
  17. POSITIONING:Strong Positioning, Understanding of components through an example
  18. POSITIONING:Clarity about target market, Clarity about point of difference
  19. POSITIONING – GUIDING PRINCIPLES:Uniqueness, Credibility, Fit
  20. POSITIONING – GUIDING PRINCIPLES:Communicating the actual positioning, Evaluation criteria, Coining the message
  21. BRAND EXTENSION:Leveraging, Leveraging, Line Extension in detail, Positive side of line extension
  22. LINE EXTENSION:Reaction to negative side of extensions, Immediate actions for better managing line extensions
  23. BRAND EXTENSION/ DIVERSIFICATION:Why extend/diversify the brand,
  24. POSITIONING – THE BASE OF EXTENSION:Extending your target market, Consistency with brand vision
  25. DEVELOPING THE MODEL OF BRAND EXTENSION:Limitations, Multi-brand portfolio, The question of portfolio size
  26. BRAND PORTFOLIO:Segment variance, Constraints, Developing the model – multi-brand portfolio
  27. BRAND ARCHITECTURE:Branding strategies, Drawbacks of the product brand strategy, The umbrella brand strategy
  28. BRAND ARCHITECTURE:Source brand strategy, Endorsing brand strategy, What strategy to choose?
  29. CHANNELS OF DISTRIBUTION:Components of channel performance, Value thru product benefits
  30. CREATING VALUE:Value thru cost-efficiency, Members’ relationship with brand, Power defined
  31. CO BRANDING:Bundling, Forms of communications, Advertising and Promotions
  32. CUSTOMER RESPONSE HIERARCHY:Brand-based strategy, Methods of appropriations
  33. ADVERTISING:Developing advertising, Major responsibilities
  34. ADVERTISING:Message Frequency and Customer Awareness, Message Reinforcement
  35. SALES PROMOTIONS:Involvement of sales staff, Effects of promotions, Duration should be short
  36. OTHER COMMUNICATION TOOLS:Public relations, Event marketing, Foundations of one-to-one relationship
  37. PRICING:Strong umbrella lets you charge premium, Factors that drive loyalty
  38. PRICING:Market-based pricing, Cost-based pricing
  39. RETURN ON BRAND INVESTMENT – ROBI:Brand dynamics, On the relevance dimension
  40. BRAND DYNAMICS:On the dimension of knowledge, The importance of measures
  41. BRAND – BASED ORGANIZATION:Benefits, Not just marketing but whole culture, Tools to effective communication
  42. SERVICE BRANDS:The difference, Hard side of service selling, Solutions
  43. BRAND PLANNING:Corporate strategy and brands, Brand chartering, Brand planning process
  44. BRAND PLANNING PROCESS:Driver for change (continued), Brand analysis
  45. BRAND PLAN:Objectives, Need, Source of volume, Media strategy, Management strategy