Submitted by

Abhishek Pal

14PGDM134

Question A .

Discuss the concept of “brand”? Discuss the concepts of brand identity and brand image. How are they different?

Ans A.

Brands are intangible assets that can build shareholder value. The exact value of a brand cannot be determined exactly unless it becomes the subject of a specific business transaction. It reflects a firm’s true value and is a source of sustained competitive advantage. Brands provide added value to both, firm and consumer which is conceptualised as ‘brand equity’. From the firm’s perspective, a successful brand enables to maintain high level of consumer acceptance in competitive times whereas from the consumer’s perspective, a brand provides a visible representation of difference between products. Brands allow consumers to shop with confidence in an increasingly complex world. A brand can signify product quality as well as aid consumers in differentiating the product from competitive offerings. Through its branding strategies, an organisation can convey a certain image for its brand but the consumers may evaluate the message through the prism of their own subjectivity. This communication between the company and its consumers is examined in terms of brand identity and brand image.

Brand Identity

Brand identity originates from the company i.e. a company is responsible for creating a differentiated product with unique features. It is the way in which the company seeks to identify itself. A brand identity is formed by number of effective promotional and managerial activities. The marketing mix strategy – the four P’s – play an important role in establishing a brands identity.

According to Harris and de Chernatony, brand identity is made of the following components:

I. Brand vision: The core purpose for a brand’s existence.II. Brand culture:A set of values that, along with brand vision, provides direction and guidance.

III. Positioning: Emphasise characteristics and benefits that make the brand unique.IV. Personality: Represents emotional characteristics of the brandV. Relationships: Vision and culture are responsible for the evolution of relationships between

employees, consumers and other stakeholders.VI. Presentations: Styles that are developed to present the brand identity.

Brand identity can also be explained in terms of the ‘brand concept’. The brand concept is based on the consumer needs that a brand can satisfy. Park et al identifies three types of consumer needs:

I. Functional needs: Designed to solve externally generated consumption needs. Consumers will be motivated to buy and use functional brands in situations where the product is viewed as addressing utilitarian needs.

II. Symbolic needs: Designedto associate the individual with a desired group, role or self-image. Brands with a symbolic concept facilitate the communication of symbolic meaning to the individual and to others.

III. Experiential needs: Designed tofulfil an internally generate need for stimulation and/or variety. The primary motivation for selecting certain products is the enjoyment that is derived by consumers from consumption of these products.

Brand Image

Brand image relates to the consumer’s perception of the brand i.e. the set of beliefs held about a particular brand. According to Herog, brand image is the sum total of impressions that consumers receive from many sources, all of which combine to form a brand personality. It is also described as the way in which a particular brand is positioned in the market i.e. how the consumer perceives the product. Also, it is the understanding consumers derive from the total set of brand related activities engaged by the firm.

In all, brand image is a consumer constructed notion of the brand based on subjective perceptions of a set of associations by the consumer.

Keller outlined three dimensions of brand association as:

I. Attributes: Can be both, specific and abstract or product related and non-product related.II. Benefits: Consumer perception of the needs (functional, symbolic and experiential) that are

being satisfied.III. Attitudes: Consumers’ overall evaluations of a brand. The tri component model consists of

three components: a. Cognitive: Consumers knowledge/belief about the brand.b. Affective: Relates to emotions and feelings.c. Conative: Describes the likelihood or tendency of the consumer to take specific

actions with respect to the brand.

Difference between brand identity and Brand image

Brand identity and Brand image are related but distinct concepts. Both are essential components of a strong brand.

BRAND IDENTITY BRAND IMAGE

Source/company focused Receiver/target audience focused

Created by the company Created by perceptions of the consumer

Encoded by the ‘brand originator’ i.e. company

Decoded by ‘brand receiver’ i.e. consumer

Identity is sent Image is received/perceived

Ques:2What are some of the examples mentioned in the Nandan article with respect to changing communications environment for brand marketing? Provide some other examples.

Answer:Some of the examples mentioned in Nandan article are:

Hyper-competition leading to “undifferentiation”- In this case due to the availability of

multiple brands competing for the same consumer money in the market, saturation level is

reached. So reverse branding takes place, i.e. brand becomes commodities.

Time compression, multi-tasking and shorter brand life span- In today’s world people

engage in several tasks simultaneously. Time has become the scarcest commodity with the

life span of the brands also decreasing. Brands have to innovate with time as the consumer

might get bored and move on to another brand.

Fragmentation of Media-The world of mass media is undergoing transformation. The

influence of news channels has reduced due to increase in channels and magazines. The

decline of mass media has been further intensified by the rise of internet.

Growth of consumer generated information sources- Consumers now seek product and

brand information from other consumers. CGM has far reaching implications for marketing

communications and brand loyalty. Consumers share any information related to the brand

to a large number of people. So now the company has to manage all the CGM activities

related to their brand and hence construct a feedback system to solve any query of the

consumer.

Behavioural Targeting-It is a new type of marketing strategy in which the consumer is

targeted according to the time he or she spends on a particular website or the ads which

they click on. So only those ads are targeted at him which cater to his behavior.