Chapter 8

Brand Management and Intellectual Property Rights

Chapter Index

S. No Reference No Particulars Slide

From-To

1 Learning Objectives 3

2 Topic 1 Concept of Brand 4-16

3 Topic 2 Developing Branding Strategy 17-20

4 Topic 3 Concept of Brand Equity 21-22

5 Topic 4 Intellectual Property Rights 23-24

Learning Objectives

• Explain the concept of brand

• Describe the process of developing a branding strategy

• Discuss the concept of brand equity

• State the importance of intellectual property rights

Concept of Brand

A brand refers to a name, given to a product/service to provide it an identity.

Processes of Brand Management

Creating the promise

Making the promise

Keeping the promise

Branding is a practice that is implemented to distinguish the offerings of

one producer from those of others as well as increasing the profitability or

financial value of organisations.

Brand recognises the origin or the producer of any offering and permits

customers to judge the performance of the offering

related with a particular manufacturer or

distributors.

Brand provide legal protection for an

organisation against the special features of their

offerings in terms of registered trademarks,

patent rights, copyrights and proprietary designs for the protection of packaging.

Brands ensure a significant level of quality and it gives

customers a satisfaction that they have invested in right products or services.

It makes them buy the product again and thus

brings brand loyalty.

Brand loyalty brings certainty and security to an

organisation about a certain amount of demand for a defined time period.

Role of Brand

Scope of Branding

Branding helps in preparing a mental structure according to which customers

organise their information about the offering in a way that makes them to take a

purchase decision.

Branding can be done with any:

Physical good (Liril soap, Lakme cosmetics, Mercedes car),

Service (SBI bank, Kingfisher Airlines, Blue Dart courier service),

Store (Reebok, Big Bazaar, Pantaloons, Globus),

Person (Amitabh Bachchan, Sachin Tendulkar, Karina Kapoor, Dan

Brown),

Place (the city of Varanasi, the state of Himachal Pradesh, the country

India),

Organisation (UNICEF, Red Cross)

Idea (blood donation, freedom of speech, family planning).

Brand Image

Brand image can be developed through metaphorical and non-metaphorical ways.

Brand image refers to a term that evokes images and perceptions

related with style, class, modernity, quality and so on.

Metaphors such as ‘Alto is hot’ and

‘Rin is White’ create metaphorical

images in the minds of customers;

Non-metaphorical brand image

creators could be quality, delivery

and aftersales services.

Another aspect of brand image is its corporate logo which is a symbol

that is used to identify any organisation and its brands and conveys a

corporate image.

(a) Easily recognisable

(b) Familiar

(c) Provoke a consensual meaning among the target market

(d) Evoke positive feelings

Brand names should

meet four tests:

Brand Attributes

Attributes are established through images, activities or assumptions and help

in creating brand identity.

Relevancy Consistency

Proper positioning Sustainable

Credibility Inspirational

Uniqueness Appealing

Brand

Attributes

Brand Identity

Fu

nct

ion

s of

Bra

nd

Iden

tity

Strengthen the impact of messages conveyed by an

organisation to its customers.

Pave the way for new customer relationships.

Play an important role in the success of a brand.

Brand Personality

Brand personality means conveying personality traits of human beings to any brand

in such a way that it could help them in gaining differentiation.

Giving human traits to a brand image or a brand identity is known as brand

personality.

Brand personality helps in developing brand equity by setting the brand attitude.

Brand personality is the factor that generates differentiation among various brands

precisely when they are similar in numerous attributes.

Brand strategy is developed through brand personality, which leads to strategy

implementation. A customer can easily associate himself with the brand personality.

Brand Awareness

Aided Awareness

It refers to mentioning the product category from where a customer is expected to recognise a particular brand from the lists of brands shown.

Immediate Brand Recall

It refers to the first brand that a customer recalls from his mind by mentioning the product category.

Brand Awareness refers to the degree to which customers exactly associate a product

with the specific brand. It includes both brand recognition as well as brand recall.

Types of Brand Awareness

Brand Association

Brand associations are images and symbols that are associated with a brand

or with the benefits that the brand provides.

Brand association refers to anything which is deeply instilled in the minds of

customers with relation to the brand.

Brand associations can be formed on the following basis:

• Customer’s contact with the

organisation and its personnel

• Advertisements

• Publicities

• Price at which the brand is sold

• Celebrity endorsements

• Quality of the offerings

• Offerings offered by competitors

• Product category in which the

brand fits

• Point of purchase (POP) displays

or merchandising

Loyal Customers

Satisfied Buyers

Shifters

Swithches

Brand Loyalty

Brand loyalty refers to the extent to which a customer is trustful to

a particular brand.

Brand Loyalty Pyramid

Brand Position Strategy

Kotler defines positioning as the act of designing the company’s offering and image

to occupy a distinctive place in the minds of the target market.

Brand positioning presents a medium for any organisation to depict to its

customers what it wants to gain and what it means to them.

Brand positioning can be defined as an activity of creating a brand offer in such a

way that it occupies a distinctive place and value in the minds of target customers.

Brand positioning involves creating a proper brand image by identifying and

defining points of similarity and differences to discover accurate brand identity.

Brand positioning also gives reasons to customers for buying and using specific

brands.

Points of Difference

Points of Parity

• Point-of-difference (PODs) refers to the attributes or benefits with which a

customer can strongly associate a brand.

• With PODs, the brand shows clear superiority in comparison to other brands.

• Point-of-Parity (POP) refers to associations that are not necessarily unique to a

specific brand but are common with other brands. These associations can be

categorised in two forms, which are:

Category points-of-parity: It refers to associations that a customer identifies

as an essential part to a genuine and reliable offering within a particular

product category.

Competitive points-of-parity: It refers to associations that are designed to

contradict the points-of-difference of competitors. Points of Difference

Brand Repositioning

A brand is repositioned when its current positioning

statement fails to provide desirable results.

Steps that help to ensure the success of the brand

Ensure relevance of customers’ reference

Secure customers’ permission for repositioning

Deliver brand’s new positioning

When an established brand is used by an organisation to introduce a new product, it is

known as brand extension.

Brand extension can be further

generalised into two categories.

Developing Branding Strategy

An organisation generally has three choices to brand a new product, which are as follows:

New brand elements can be developed for the new product.

Some of the existing brand elements can be used for the new product.

Combination of new and existing brand elements can be used for the new product.

Line extension Category extension

General Strategies in Deciding Brand Names

Branding Decisions

Branded House

An organisation

follows branded

house strategy when it positions its

corporate name as a

brand.

Blanket Family

Branding

This strategy is simple and economically

beneficial because a

company uses the same

name for their all products. This strategy helps a new

product to get recognised

easily in the market.

House of brands

Under this strategy,

rather than featuring one

main corporate

brand, sub-brands are featured or promoted.

Individual Branding

In individual branding, the

individual name is used

for an individual

product offered by a

single company in the market.

Endorsed Brand

Under this branding strategy

products and offerings are promoted as

separate brands, but

they are supported by

the Masterbrand or corporate

brand.

Sub Brands

Under the sub-brand

strategy, both the

Masterbrand and sub

brands are considered as

co-drivers, however, the sub-brands are never positioned

more strongly than the

Masterbrand.

Co-Branding

Utilisation of two or more

brands to name a new

product is known as co-

branding.

Ingredient

co-branding

Composite

co-branding Types of Co-

Branding

Brand Portfolios

Brand portfolio comprises all brands and sub-brands that are attached to product

market offerings.

Increasing the visibility of the products on shelf.

Increasing healthy competition within the organisation.

Attracting customers who desire variety and present threat to

switch to another brand if they get the versatility over there.

Bringing economies of scale in advertising, sales and other

promotional and distributional cost.

Marketers

uses brand

portfolio for

Brand equity is brand power resulting from the goodwill that a brand has earned over a period of time.

Brand equity helps an organisation to achieve higher sales volume and more profit.

Brand equity is created through marketing campaigns.

An organisation can utilise its brand equity to launch new products.

Concept of Brand Equity

Building Brand Equity

Brand equity refers to a set of assets such as loyal customers, name

awareness, perceived quality and associations that are linked to a brand

and provide value to the product/service being offered.

Brand equity creates value for both the customers and the organisation.

Brand equity helps customers in interpreting, processing and storing

information about product and brand.

Brand equity also provides value to the organisations by generating marginal

cash flow.

Intellectual Property Rights

Copyrights

Industrial Property

Intellectual property rights are rights given to a person for a certain period of

time to provide them exclusivity over the use of creations of their minds.

A copyright means legal monopoly that provides protection to published or

unpublished creative (literary, artistic, musical, etc.) work and grants the creator

of such creative work the sole right to publish and sell that work.

Industrial property rights mean intangible intellectual property rights which are

related to any industry. Industrial property can be divided into two main areas,

which are:

• Protection of distinctive signs

• Protected for stimulating innovation, design and the creation of technology

Trademark

Patent

• A trademark means a sign, phrase or other symbol that is easily recognisable

and can be used to differentiate a business’ goods or services from those of

other traders.

• By using a registered trade mark, a business can protect its brand by

restricting other businesses from using its name or logo.

• Trademarks can also be licensed to other companies for a specified period of

time from which crossover brands can be created.

• A patent means a government license which provides the assignee exclusive

rights to a process, design or new invention for a specified period of time.

• In India, the Indian Patent Office grants licenses for patents which are

administered by the Office of the Controller General of Patents, Designs &

Trade Marks (CGPDTM).