Find papers

MKM 212

Branding

TU BBM · Semester 7 · BBM curriculum effective from 2021

Requirement
elective
Credits
3
Study Guide
7 units available

Chapter notes

Authoritative study guide across 7 syllabus units

Open a unit to read its study notes.

Unit 1: Introduction to Branding· 6 LHs· ~7 marks

Suggest correction

Difficulty: ★★★ | High-yield focus: Master definitions of Brand, Brand vs Product, and Strategic Brand Management in Part 1. Key exam mastery: Diagram the 4-Stage Strategic Brand Management Process, contrast Brand vs Product in Part 3, and solve the Brand Price Premium Economic Valuation ladder in Part 4.

Part 1: Core Concepts (2 Marks)

  • ★ Brand: A name, term, sign, symbol, design, or combination of them, intended to identify the goods and services of one seller and to differentiate them from competitors (Kotler & Keller).
  • ★ Brand vs Product: A product is anything offered to a market for attention, acquisition, use, or consumption that satisfies a need; a brand is more than a product because it has dimensions that differentiate it in some way from other products designed to satisfy the same need.
  • Search Cost Reduction: The cognitive benefit a brand delivers to consumers by simplifying purchase decisions and guaranteeing consistent perceived quality.

Part 2: Structural Frameworks (10 Marks)

The 4 Steps of the Strategic Brand Management Process (Kevin Lane Keller)

  1. Identifying and Developing Brand Plans: Defining brand positioning, mental maps, core brand associations, and brand mantras.
  2. Designing and Implementing Brand Marketing Programs: Choosing brand elements (logos, packaging) and integrating them into marketing activities.
  3. Measuring and Interpreting Brand Performance: Conducting brand audits, tracking studies, and constructing brand equity management systems.
  4. Growing and Sustaining Brand Equity: Defining brand architecture, managing brand extensions, and revitalizing declining brands over time.

Part 3: Distinction Tables

Basis of Comparison Product Brand
Origin & Creation Manufactured in a factory; tangible physical features and functions. Created in the mind of the consumer through perception and experiences.
Replicability Easily duplicated or reverse-engineered by competitors. Unique, legally trademarked, and difficult for competitors to copy.
Timelessness Products become obsolete over technological lifecycles. Successful brands can endure indefinitely (e.g. Coca-Cola for over a century).

Part 4: Worked Problems & Exam Traps

★ Economic Measurement of Brand Price Premium

Problem: A consumer foods company in Nepal manufactures branded packaged tea (“Himalayan Gold”) alongside an unbranded generic bulk tea with identical physical tea leaf quality:

  • Retail Price of Branded Tea: NPR 450 per 500g box
  • Retail Price of Unbranded Generic Tea: NPR 300 per 500g box
  • Annual Sales Volume of Branded Tea: 800,000 boxes
  • Annual Marketing, Packaging, and Brand Advertising Spend: NPR 40,000,000 Calculate: (1) Brand Price Premium per unit, (2) Total gross price premium revenue generated, (3) Net Brand Equity Economic Value after advertising, and (4) Return on Brand Investment (ROBI).

Solution:

  1. Unit Brand Price Premium:

    Price Premium=Branded Price−Generic Price=450−300=NPR 150 per box\text{Price Premium} = \text{Branded Price} - \text{Generic Price} = 450 - 300 = \text{NPR } 150 \text{ per box}

  2. Total Gross Brand Price Premium Revenue:

    Gross Premium Value=800,000 boxes×NPR 150=NPR 120,000,000\text{Gross Premium Value} = 800,000 \text{ boxes} \times \text{NPR } 150 = \text{NPR } 120,000,000

  3. Net Brand Economic Value:

    Net Brand Value=Gross Premium Value−Brand Marketing Spend\text{Net Brand Value} = \text{Gross Premium Value} - \text{Brand Marketing Spend}
    Net Brand Value=120,000,000−40,000,000=NPR 80,000,000 per year\text{Net Brand Value} = 120,000,000 - 40,000,000 = \text{NPR } 80,000,000 \text{ per year}

  4. Return on Brand Investment (ROBI):

    ROBI=Net Brand ValueBrand Marketing Spend×100=80,000,00040,000,000×100=200.00%\text{ROBI} = \frac{\text{Net Brand Value}}{\text{Brand Marketing Spend}} \times 100 = \frac{80,000,000}{40,000,000} \times 100 = 200.00\%
    Evaluation: The brand equity generates NPR 2.00 of net economic profit for every NPR 1.00 invested in brand advertising.

TU Exam Trap: A brand is not merely a logo or visual trademark. A trademark is the legal protection; a brand is the total sum of all mental associations, feelings, and promises residing in consumer memory.

Students lose marks here because they describe a brand as a visual graphic logo rather than an emotional and perceptual asset.