MKT Module 6: Brand Management and Product Development
1. Brand Management
A brand reputation is developed by desigh a history of superior product
design and service design.
A brand is a “set of associations linked to a name, mark or symbol associated
with a product or service a brand is much like a reputation”. A rep for
reliability (Honda), exclusive, fashionable styling (coach), cool, simple design
(Apple), cheap (Walmart).
A brand that builds brand reputation, premium price, brand loyalty and brand
equity (the value of a brand name to its owner).
Brand equity is the value of brand name, its worth as an asset to the company.
In accounting called “goodwill” because it is the measure of goodwill and
The accumulated effects of years of customeroriented design and technology
excellence in innovation is what brand management is about.
Creates a strong, favorable and somewhat unique brand image.
Reputation is the result of a history superior product and/or service
innovation, not advertising.
Customer appreciated innovation is key to brand building: innovation that
minimizes the hype and lets the product performance do the talking.
Brand equity is generated by carminative, clever innovation in product quality
or product value.
• Brand Loyalty
The following are some categories of brand loyalty that very in strength:
o Emotional Loyalty: strong, Unique, memorable, reinforcement
experiences create strong emotional bonds with brands. Example
inclue hospital that saves a childs life, a fragrance given by ones
o Identity Loyalty: strong, The brand reputation is used in part as an
expression of self, to bolster self esteem, personal reputation, and to
manage impressions. Brand becomes part of the extended self. Ex:
Rolex, Starbucks, Apple. This loyalty resists attack.
o Differentiation loyalty: Brand loyalty is based on perceived superior
features and attributes. Ex Honda. This perception may be outdated
because of a lack of customer search. If a competitor comes out with
superior features loyalty may be lost. This loyalty also leads to low
o Convenience Loyalty: is based on buying convenience. Examples:
Cola sold by a favored food outlet. Frito Lay sancks are available at
most convenient stores. Customers keep repeat purchasing the brand,
but only because it is the only one conveniently available at most
convenient stores. It is not rally loyalty at all.
• Leveraging brand reputation A strong brand reputation built in a primary market helps a brand when it
enters secondary product markets with what is called a brand extention.
Results in high enduring loyalty and cooperation.
Another way of extending a brand reputation is to license the brand to another
manufacturer and earn a royalty (commission on sales).
• Brand Mismanagement
could be because of incompetent brand management.
Brands mismanaged and die or almost die
• Brand name, logo, and trademark tactics
A good brand name, trademark or logo for a new product should have four
o It should attract attention (Yahoo!)
o It should be memorable (Starbuck, Google)
o It should help communicate the positioning/benefit of the product
(Easy Off oven cleaner)
o It should distinguish the product from competing brands (Healthy
buyers choose products based on their perceptions of the benefits. A brand or
logo works best if the target customer understands the link between the logo
and the benefit.
Brand names and logos can help form memory associations. Names that are
short, easy to pronounce, and distinctive are more memorable.
2. Product Development Best Practice
First two steps in product development is identify a consumer need and learn
about the market
Listen to the customer, what the customer needs
Communicate with the customers
Needs good use in Product development and channel management
Understanding customer product use and benefits sought, best practice in
design best practice in funding the project, best practice in maximizing the
distribution reach and selling to the distribution channel, and best practice in
minimizing the opportunities for me too rivals through pa