Brand Management_3

LEVELS OF PRODUCT


1. The core benefit level
Fundamental Need / Basic wants

2. The generic product level
Basic attributes / Characteristics absolutely necessary

3. The expected product level
Buyer, normally expect and agree when they want to buy

4. The augmented product level
Additional Product attributes / benefits which distinguishes
The product from the competitors

5. The potential product level
The transformation that a product might ultimately
undergo in the future



What is Branding?

American Marketing Association defines Brand as “ a name, term, sign, symbols, or designs, or a combination of them, indented to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition”

Hence the BRAND is the product, but one that adds other dimensions that differentiate it in some way from other products designed to satisfy the same need.

Brand is one which resides in the mind of the customer

Branding is giving LABEL to the product and provide MEANING to the product

It creates BONDING between Customer and the Brand

From Economic perspective – Brand allows consumers to lower search costs for the products – Both Internal and External



CHALLENGES TO BRAND BUILDING
 Savvy customers
 More complex brand families and portfolios
 Maturing markets
 More sophisticated and increasing competition
 Difficulty in differentiating
 Decreasing brand loyalty in many categories
 Growth of private labels
 Increasing trade power
 Fragmenting media coverage
 Eroding traditional media effectiveness
 Emerging new communication options
 Increasing promotional expenditures
 Decreasing advertising expenditures
 Increasing cost of product introduction and support
 Short –term performance orientation
 Increasing job turnover




ROLE THAT BRAND PLAYS

Consumers
 Identification of source of product
 Assignment of responsibility to product maker
 Risk reducer a
 Search cost reducer
 Promise, bond, or pact with maker of product
 Symbolic device
 Signal of quality

Manufacturers
 Means of identification to simplify handling or tracing
 Means of legally protecting unique features
 Signal of quality level to satisfied customers
 Means of endowing products with unique associations
 Source of competitive advantage
 Source of financial returns



Risk in using product – Brand reduces the Risk
Functional risk: The product does not perform up to expectation

Physical risk: The product poses a threat to the physical well-being or health of the user or others

Financial risk: The product is not worth the price paid

Social risk: The product results in embarrassment from others

Psychological risk: The product affects the mental well-being of the user

Time risk: The failure of the product results in an opportunity cost of finding another satisfactory product.