Post on 08-Nov-2014
description
Dr.S.Yogananthan
Introduction
to
brand management
Introduction to brand
Functions
Characteristics
Relationships
Brand Identity & Image
Difference & Parity
Contents
What is a brand?
A name, a term
A symbol, a sign
“A name, term, sign, symbol or any other feature that identifies one seller’s product or service as distinct from those of other sellers” -The American Marketing Association
Brand can be
Logo – shortcut to remind
Colours
Shape
Letter
Images
Tunes
Phrases
Celebraties
Functions of Branding
Helps in Identification and gives distinctiveness to the product
Indirectly denotes quality and standard
Eliminates Imitation
Ensures legal right to the product (Trademark, patents, copyrights…)
Helps in advertising and packaging
Helps in price differentiation of the product
Characteristics of a Strong Brand
Brand name should describe its nature
Easy to remember and pronounce
Act as a stimulating trigger to customers
Brand portfolio and hierarchy should make sense
Brand should properly positioned
Brand should be consistent
Brand should be given continuous support and monitoring
Scope of Branding
To teach the customers the following:-
1. “Who the product”- name, other elements
2. “What the product does”
3. “Why the consumers should buy”
Brand relationships
Brand identity
framed by marketers
Brand image
in the mind of customers
Brand
the actual image of the
firm in customers’ minds
Brand relationships
Branding process
FIRM CUSTOMERS INTERACTIONS
A new definition based on Brand relationships: Brand is created in continuously developing brand relationships where the customer forms a differentiating image of a product or service based on all kinds of brand contacts that the customer is exposed to.
Brand Identity is what the owner wants to communicate to its potential costumers.
A unique set of associations in the minds of customers concerning what a brand stands for and
the implied promises the brand makes.
Image communicates expectations
Image is a filter influencing perceptions of the performance of the firm
Image is a function of expectations and experiences
Image has an internal impact on employees
The importance of image
Image and Identity
Brand identity Signals transmitted
Brand image
Sending Media Receiving
Competition And Noise
Contd..
BRAND IMAGE is a unique set of associations in the minds of customers concerning what a brand stands for and the implied promises the brand makes.
BRAND IDENTITY is the strategic goal for the unique set of associations that a brand should stand for. These associations also imply a potential promise to customers.
PERCEPTION GAP.
Brand Hierarchy
Brand Hierarchy is how an organization organizes the various named entities within its portfolio, and how they relate to each other.
The four general types of Hierarchy are:
1. Master brand : Maruti Suzuki
2. Brand/sub brand : Maruti
3. Endorsed brand : Maruti Esteem
4. Separate (stand-alone or independent) brands: LXi/ SXi
* http://www.interbrand.com/best_global_brands.aspx
Brand Positioning
Brand Positioning
“Positioning is how a product appears in relation to other products in the market” Brand positioning is all about identifying the optimal
location in our customers’ minds for our Brand vis-à-vis with our competitors
Proper positioning makes it easier to facilitate understanding of our Brand
Developing a Positioning Strategy
Positioning is not what you do with a product but what you do in the mind of the prospects.
Positioning requires determining the frame of reference by identifying
Target market
Competition
POP’s and POD’S
Category membership
Starting point in brand positioning is to determine Category Membership.
Category membership is product or set of products with a brand competes and which functions as close substitutes
Three main ways to determine category membership:-
Announcing category benefit Comparing to exemplars Relying on the product descriptors
Target Market
Consumer Aggregates
Current users
Potential users
Competitive users
Consumer Segments
Behavioral
Dem/psych/geo
Points of Difference & Parity
Difference
Strong, favorable, unique
Attribute or benefit
Parity
• Shared with other brands
• Important for brand extensions
POP’S
Point of Parity (POP)
Two Types
Category : attributes that are required to include your product as a member of that category.
Competitive: POP’s that negate your competitor's POD’s
POP’s should be “good enough” but POD’s should be superior
Choosing the differentiating strategy
Product differentiation
Personal differentiation
Channel differentiation
Image differentiation
Choosing the pop’s and pod’s
Relevance
Distinctiveness
Believability
Feasibility
Communicability
Sustainability
Proper Positioning
Clarifies what the Brand is all about
How it is both unique and similar to competitive brands
Why customers should purchase and use the Brand
5 Factors of Brand Positioning 1. Brand Attributes : What the brand delivers through features and
benefits to consumers. 2. Consumer Expectations : What consumers expect to receive from the
brand. 3. Competitor attributes: What the other brands in the market offer
through features and benefits to consumers. 4. Price : An easily quantifiable factor – Your prices vs. your competitors’
prices. 5. Consumer perceptions: The perceived quality and value of your brand
in consumer’s minds (i.e., does your brand offer the cheap solution, the good value for the money solution, the high-end, high-price tag solution, etc.?).
The Process of Positioning
Generally, the product positioning process involves:
Defining the market in which the product or brand will compete (who the relevant buyers are)
Identifying the attributes (also called dimensions) that define the product 'space'
Collecting information from a sample of customers about their perceptions of each product on the relevant attributes
Positioning- Toothpaste Four main segments:
Flavor and product appearance
Brightness of teeth
Decay Prevention
Low Price
Price Positioning
Flavor, Brightness
Decay Prevention
Brand Equity
What is a brand and how does branding work?
What is brand equity?
How is brand equity built, measured, and managed?
What are the important decisions in developing a branding strategy?
Chapter Questions
Identifying and establishing brand positioning
Planning and implementing brand marketing
Measuring and interpreting brand performance
Growing and sustaining brand value
Steps in Strategic Brand Management
Brand
9-32
A name, term, sign, symbol or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.
9-33
Attributes of Strong Brands
Excels at delivering desired benefits
Stays relevant
Priced to meet perceptions of value
Positioned properly
Communicates consistent brand messages
Uses multiple marketing activities
Understands consumer-brand relationship
9-34
The Role of Brands
Identify the maker
Simplify product handling
Organize accounting
Offer legal protection
9-35
The Role of Brands
Signify quality
Create barriers to entry
Serve as a competitive advantage
Secure price premium
Branding
9-36
Endowing products and Services with the power of a brand.
Brand Equity
9-37
The differential effect that Brand knowledge has on Consumer response to the marketing of that brand.
Advantages of Strong Brands
Improved perceptions of product performance
Greater loyalty
Less vulnerability to competitive marketing actions
Less vulnerability to crises
Larger margins
More inelastic consumer response
Greater trade cooperation
Increased marketing communications effectiveness
Possible licensing opportunities
9-39
Brand Promise
The marketer’s vision of what the brand must be and do for Consumers.
Brand Asset Valuator
Aaker Model
BRANDZ
Brand Resonance
Brand Equity Models
Differentiation—degree to which a brand as different from others
Service (Nordstrom);
Price (Costco);
Selection (Toys ‘R’ Us);
Performance (Nike);
Contemporary home fashion (IKEA);
Great Price (Payless Shoes).
BAV Key Components
Energy—sense of momentum
Frito Lay dug in and found that the bulk of their consumers had more money on the first of the month than they did at the end of the month. Armed with that information, they decided to sell bigger packs during that time and scale back to smaller packs during the middle days of the month.
BAV Key Components
Relevance—breadth of a brand’s appeal
The role brand plays in comparison to other decision criteria (such as price, availability)
The importance of a brand in the decision criterion
The importance of buying branded products
The likelihood customers will buy a branded product even if they incur extra costs or efforts
The importance of a branded product in the purchase decision
BAV Key Components
Esteem—how well the brand is regarded and respected
Perceived quality and related perceptions of brands (e.g., Starbucks has higher brand esteem than a convenience store coffee stand)
BAV Key Components
Knowledge—how familiar and intimate consumers are with the brand
For example, brand knowledge has a direct and positive effect on intention to adopt an online retailer.
BAV Key Components
Brand Knowledge
9-46
Knowledge
Thoughts
Experiences
Beliefs Images
Feelings
9-47
Secondary Sources of Brand Knowledge
Brand identity—unique set of brand associations that represent what the brand stands for and promises to customers (e.g., Ajax—industrial service company)
Aaker Model
Core identity elements—product scope, attributes,
quality/value, uses, users, country of origin, organizational attributes, brand personality, and symbols (e.g., Ajax has a spirit of excellence)
Aaker Model
Extended identity elements—add textual and guidance (e.g., Ajax is worldly but informal, confident and competent)
Aaker Model
Brand essence—communicate the brand identity in a compact and inspiring way (e.g., Ajax has a commitment to excellence)
Aaker Model
Aaker Model – Brand Identity
9-52
Brand-as-product Zerox
Brand-as-person Lee Iacocca (Chrysler)
Brand-as-symbol Mr. Clean
Brand-as-organization Saturn
Aaker Model – Brand Assets
9-53
Brand loyalty
Brand associations
Perceived quality
Brand awareness
Proprietary assets
Luxurious Car = success, wealth, only the best
9-54
The BRANDZ Model
Presence—Do I know about it?
Relevance—does something for me
Performance—can it deliver?
Advantage—better
than others
Bonding nothing better
9-55
Brand Resonance Pyramid
9-56
Drivers of Brand Equity
Brand Elements
Marketing Activities
Meaning Transference
Brand Elements
9-57
Elements Slogans
Brand names URLs
Logos
Symbols Characters
Brand Elements
9-58
Brand Element Choice Criteria
Memorable--recall and recognized
Meaningful--credible
Likeability--aesthetically appealing
Transferable--introduce new product
Adaptable--updatable
Protectable-- legality
9-60
Slogans
Like a good neighbor, State Farm is there
Just do it
Nothing runs like a Deere
We try harder We’ll pick you
up Nextel – Done Zoom Zoom This Bud’s for
you
Personalization—brand and its marketing are as
relevant as possible to as many customers as possible
Designing Holistic Marketing Activities
Integration—mixing and matching marketing activities to maximize their individual and collective effects (e.g., Olive Garden).
Designing Holistic Marketing Activities
Internalization—activities and processes that help
inform and inspire employees.
Designing Holistic Marketing Activities
Choose the right moment—turning points and ideal opportunities (e.g., British Petroleum repositioning to “Beyond Petroleum)
BP: Forget Your Brand Image and Concentrate on Your Brand's Soul Thu May 6, 2010
Internal Branding
Link internal and external marketing —
messages must match internal and external campaigns (e.g., IBM to become a leader in the used of internet technology)
Internal Branding
Bring the brand alive for employees —informative
and energizing (e.g., Miller Brewing tapped into heritage to generate pride and passion)
Internal Branding
9-67
Measuring Brand Equity
Brand Audits—assess health of brand, uncover sources of brand equity, ways to improve
Brand Tracking—baseline information about brands and marketing information
Brand Valuation—estimation of total financial value of the brand
Brand 2006 Brand Value (Billions)
Coca-Cola $67.00
Microsoft $56.93
IBM $56.20
GE $48.91
Intel $38.32
Nokia $30.13
Toyota $27.94
Disney $27.85
McDonald’s $27.50
Mercedes-Benz $22.13
The 10 Most Valuable Brands
9-69
Managing Brand Equity
Brand Reinforcement—meaning of the brand
Brand Revitalization—retain same or create new positioning
Brand Crises
Market segmentation—divide into mutually exclusive
segments
Financial analysis—earnings attributed to the intangible assets of the business
Role of branding—degree that the brand directly influences drivers of demand
Brand strength—likelihood that the brand will realize forecast earnings
Brand value calculation—net present value of the forecast brand earnings; discounted by the brand discount rate
Interbrand’s Steps in Calculating Brand Equity
9-71
Devising a Branding Strategy
Develop new brand elements
Apply existing brand elements
Use a combination of old and new
Brand line—all products Brand mix—set of all brand lines made available to
buyers
Branding Terms
Brand extension—established brand used to introduce a new brand (Hershey Kisses)
Sub-brand—combine a new brand with an existing brand (American Express Blue Cards)
Parent brand—existing brand that give birth to a brand extension or sub-brand
Family brand—parent brand that is associated with multiple products through extensions (Kraft)
Line extension—parent brand covers a new product within a product categories it currently serves (Dannon yogurt introduced new favors)
Honda automobiles, motorcycles, snow- blowers)
Branded variants—specific brand lines supplied to specific retailers or distribution channels (low and high end cameras)
Licensed product—brand names that had been licensed to other manufacturers to make the product (franchises)
Brand dilution—occurs when consumers no longer associate a brand with a specific product or highly similar products and
start thinking less of the brand
Brand portfolio—set of all brands and brand lines a particular firm offers for sale in a particular category or market segment
Apple
iPod
iMac MacBook Apple TV
iPhone
iPod Touch
iPod nano
iPod Classic
iPod shuffle
MacBook
MacBook Pro
eMac
iMac
Mac mini
9-83
Brand Naming Individual names (e.g., General Mills—Bisquick, Gold Meal Flour)
Blanket family names (e.g., Heinz, General Electric)
Separate family names (e.g., Sears uses Kenmore, Craftsman)
Corporate name combined with individual product names (e.g., Kellogg’s Rice Krispies, Raisin Brain)
Increasing shelf presence and retailer dependence in
the store
Attracting consumers seeking variety
Increasing internal competition within the firm
Yielding economies of scale in advertising, sales, merchandising, and distribution
Reasons for Brand Portfolios
Flankers—fighter brand (e.g., Protector and Gamble markets Luvs diapers in a way that flanks Pampers (flagship)
Brand Roles in a Brand Portfolio
Cash cows—capitalizing on existing brand
equity (e.g., Gillette still sells older Trac II, even though market newer Mach III and Fusion brands of razors)
Brand Roles in a Brand Portfolio
Low-end, entry-level—traffic builders (e.g., BMW 3-series automobiles to bring in new customers to the franchise)
Brand Roles in a Brand Portfolio
High-end prestige—add prestige and credibility to the entire portfolio (e.g., Corvette sport cars help improve the image of other Chevrolet cars)
Brand Roles in a Brand Portfolio
The American Marketing Association defines a
________ as “a name, term, sign, symbol, or design, or
a combination of them, intended to identify the goods or
services of one seller or group of sellers and to
differentiate them from those of competitors.”
A. holistic product concept
B. product concept
C. service concept
D. Brand
E. brand image
Study Question 1
Consumers learn about brands through
________ and product marketing
programs.
A. the mass media
B. past experiences with the product
C. the sales force
D. shopping bots
E. independent information sources
Study Question 2
The premise of ________ models is that the
power of a brand lies in what customers have
seen, read, learned, thought, and felt about the
brand over time.
A. product-based brand equity
B. service-based brand equity
C. functional-based brand equity
D. mission-driven brand equity
E. customer-based brand equity
Study Question 3
________ can be defined as the differential
effect that brand knowledge has on consumer
response to the marketing of that brand.
A. Mission-driven brand equity
B. Customer-based brand equity
C. Product-driven brand equity
D. Service-driven brand equity
E. Function-based brand equity
Study Question 4
When a consumer expresses thoughts,
feelings, images, experiences, beliefs, and
so on that become associated with the
brand, the consumer is expressing brand
________.
A. Knowledge
B. Loyalty
C. Behavior
D. Preference
E. equity
Study Question 5
Philip Kotler & Kevin Keller, Brand Management, 9th
chapter, 13th edition.
Reference