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MARKETING MANAGEMENT - Brand Decision

Brand Decision

   Posted On :  18.06.2018 09:22 pm

Many consumers products their basic feature, need attractive packing and a ‘brand name’.

Brand Decision

Many consumers products their basic feature, need attractive packing and a ‘brand name’. A brand is a symbol or a mark that helps customers in instant recall, differentiating it thereby roam the competing products of a similar nature.
 
What is the brand? too often even marketing professional don’t have an answer and to many have their ‘own’ answer. Which makes life very confusing! We’ve trawled though our resources to find some of the best definitions: the dictionary of business and management defines a brand Asia name, sign or symbol used to identify items or services of the seller(s) and to differentiate the from goods of competitors
 
Signs and symbols are parts of what a brand is, but to us this is a very incomplete definition. Walter Land or one of the greats of the advertising industry, said: “ simply put, a brand is a promise. By identifying and authenticating a products or service it delivers a pledge f satisfaction and quality. In his book, ‘ building strong brand’ David Aaker suggests the brand is a ‘mental box’ and gives s definition of brand equity as : ‘a set of assets (or liabilities) linked to a brand’s name and symbol that adds to (or subtracts from) the value provided by a product or service. According to the American marketing association, “A brand name is a part consisting of a word, letter, groups of words or letters to identify the goods or services of a seller or a group of seller and to differentiate them from those of the competitors.”
 
David Ogilvy defined a brand are not necessarily positive! Building from this idea of a ‘mental box’ a more poetic definition might be : these are all great definitions, but we believe the best is this : “a brand is a collection of perceptions in the mind of the consumer. A brand is the most valuable real-state in the world, a corner of the consumer’s mind” . Why is the best? Well, first of all it is easy to remember, which is always useful! But it is also best because it works to remind us of some key point:

1.This definition make it absolutely clear that a brand is very different from a product’ or service. A brand is intangible and exists in the mind of the consumer.
 
This identification helps us understand the idea of brand loyalty and the ‘loyalty ladder’. Different people have different perceptions of a product or service, which places then at different point of loyalty ladder. A brand mark is a symbol or a design used for the purpose of identification. For example: Air India’s MAHARAJA. The legal version of a brand mark is the ‘trade mark’ e.g., Ashok Masala and Good Health Atta.
 
A brand is given legal protection from being used by others because it is capable of exclusive approbation. A brand distinguishes a product or service from similar offerings on the basis of names are: LUX, LIRIL, REXONA, EVITA, PROTEX, HAMAM AND LE SANSI in case of toilet soaps; SUR, ARIEL, and NIRMA in case of detergents and NIVEA, FEM, OIL OF OLEY, CHARMIS AND VASELINE in case of vanishing creams.
 
Building Brands in the new economy –Heidi and Don Schultz urge companies to:
 
1. Clarify the corporation’s basic values and build the corporate brand.
 
2. Use brand managers to carry out the tactical work.
 
3. Develop a more comprehensive brand-building plan.
 
4. Define the brand’s basic essence to be delivered wherever it is sold.
 
5. Use the brand-value proposition as the key driver of the company’s strategy, operations, services, and product development.
 
6. Measure their brand-building effectiveness, not by the old measures of awareness, recognition, and recall, but by a more comprehensive set of measures including customer-perceived value, customer satisfaction, customer share of wallet, customer retention, and customer advocacy

Brand preference

 
Aaker’s five levels of customer attitude:
 
1. The customer will change brands, especially for price reasons. No brand

2. loyalty.
 
3. Customer is satisfied. No reason to change brands.
 
4. Customer is satisfied and would incur cost by changing brand.
 
5. Customer values the brand and sees it as a friend.
 
6. Customer is devoted to the brand.

Branding Decision: To Brand or Not to Brand?

An Overview of Branding Decisions



Brands provide a strong competitive advantage to the companies owning them and hence they are increasingly becoming important tradable assets.
 
In 1993, Coca-Cola paid about Rs.175 crore to buy Thums-up, Limca, Citra and Gold Spot brands. In 1994 Godrej soaps paid Rs.12 crore to acquire the Rs.67 crore translectra.
 
In 1995, Smithkline Beecham paid Rs.42 crore to acquire the Crocin brand from Duphar Interfan. In 1997, Knoll Pharma sold Coldarin and Burnol for Rs.34 crore Ranbaxy paid Rs.80 crore to Gufic Labs for Mox, Zole Excel and Suprimox. In 1997, Hindustan Lever paid Rs.110 crore for Lakme’s basket of brands and only Rs.29 crore for Lakme’s two plants.

In 1999, Marico industries bought parachute and Suffola brands from Bombay oil industries for Rs.30 crore. The Gramophone company of India acquired Sangeetha, a leading audio producer of classical and devotional songs in the South. Acquiring a brand is a better, superior option over purchasing the entire operations of the company owing them for 3 months.
 
The buyer buys only the brand name. The brand name could be used to sell anything, which comes under the established brand personality. For example, the Burnol brand name could be used to sell an antiseptic like Dettol. Buying a brand provides a ready-made market. Apparently, Ranbaxy bought Mox because its own brand in the name family, Amoxycillin was not doing too well. Buying a brand saves a lot of brand building time and cost. Drug companies are known to recoup the cost of acquiring a brand in less than four years.

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