BRAND VALUE

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1 Strength of Brand Association Strength –function of amount or quantity of processing and nature or quality of processing the information. 1. Personal relevance of the information 2. Consistency over a time

Transcript of BRAND VALUE

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Strength of Brand Association

Strength –function of amount or quantity of processing and nature or quality of processing the information.

1. Personal relevance of the information2. Consistency over a time

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Brand Attributes-descriptive features that characterize a product or service

Brand benefits –personal values and meaning that consumers attach to the product or service attributes

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Favorability of Brand AssociationsDesirable to consumers

Successfully delivered by the product

Conveyed by the support marketing program-brand- highly convenient, reliable, effective, efficient, colorful.

and the length of time

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Desirability- three factors1. Relevant2. Distinctive3. BelievableFirm- able to deliver on the desired

association.Cost or investment necessary

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Deliverability-three factors

1. Actual or potential ability of the product to perform

2. Current or future prospects of communicating that performance

3. Sustainability of the actual and communicated performance over time.

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Uniqueness of Brand Associations

Sustainable competitive advantage-unique selling proposition

Communicated explicitly- direct comparisonsHighlighted implicitly

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Product related or product non-related attributes/benefits

Product category attitudesUnique meaningful -points of difference-

“reason why”Points of parity- “no reason why not”

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Brand PositioningDefine competitive frame of

referenceTarget marketNature of competition

Define desired brand knowledge structuresPoints-of-parity

necessarycompetitive

Points-of-differencestrong, favorable, and unique brand associations

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Issues in Implementing Brand Positioning

Establishing Category MembershipIdentifying & Choosing POP’s & POD’sCommunicating & Establishing POP’s

& POD’sSustaining & Evolving POD’s & POP’s

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Establishing Category Membership

Product descriptorExemplar comparisonsCommunicating category

membership

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POD (Point of Difference)Strong, favorable, unique brand associationsMay be any kind of attribute or benefit

Two types of PODsAttribute Based

Functional, performance related differences

Image BasedAffective, experiential, brand image related

differences

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POP (Point of Parity)Associations that are shared with other brands

Two typesCategory: attributes that are required to include

your product as a member of that categoryCompetitive: POP that negate your competitors

PODsPOPs can be “good enough”, but PODs

should be “superior

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Identifying & Choosing POP’s & POD’sDesirability criteria (consumer

perspective)Personally relevantDistinctive & superiorBelievable & credible

Deliverability criteria (firm perspective)Feasible ProfitablePre-emptive, defensible & difficult to

attack

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How do I decide on my PODs and POPs?POPs

Analysis of categoryWhat attributes do all of my competitors have? I probably need to have those, or my competitors automatically have

a PODPOPs get you included in category

PODs are more difficult Don’t use PODs that are product centric (dominate competition)

but customer centric (uniquely address need of customer)

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Major Challenges in Positioning

Find compelling & impactful points-of-difference (MacMillan & McGrath, HBR, ‘97)How do people become aware of their need for your

product and service?How do consumers find your offering?How do consumers make their final selection?How do consumers order and purchase your product

or service?What happens when your product or service is

delivered?How is your product installed?How is your product or service paid for?

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Major Challenges in Positioning

Find compelling & impactful points-of-difference (cont.) How is your product stored?How is your product moved around?What is the consumer really using your product for?What do consumers need help with when they use

your product?What about returns or exchanges?How is your product repaired or serviced?What happens when your product is disposed of or

no longer used?

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Communicating & Establishing POP’s & POD’sCreate POP’s and POD’s in the

face of attribute & benefit trade-offsPrice & qualityConvenience & qualityTaste & low caloriesEfficacy & mildnessPower & safetyUbiquity & prestigeComprehensiveness (variety) & simplicityStrength & refinement

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Strategies to Reconcile Attribute & Benefit Trade-Offs

Establish separate marketing programs

Leverage secondary association (e.g., co-brand)

Re-define the relationship from negative to positive

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Sustaining & EvolvingPOP’s & POD’s

Core Brand Values &Core Brand Proposition

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Brand Mantras

A brand mantra is an articulation of the “heart and soul” of the brand. Brand mantras are short three to five word

phrases that capture the irrefutable essence or spirit of the brand positioning and brand values.

NikeAuthentic Athletic Performance

DisneyFun Family Entertainment

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Principles a la Keller: What makes a good Principle?

Three componentsEmotional component (Comfortable)Descriptive modifier (Casual)Brand function (clothing)

Other ExamplesNike: Authentic, Athletic PerformanceFun Family Entertainment

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BRAND MANTRAEmotional Descriptive Brand

Modifier Modifier FunctionNikeAuthentic Athletic Performance

Disney Fun Family Entertainment

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The Brand Function describes the service, type or benefit.

The Descriptive Modifier is the answer to ‘not just any kind’ of function,

Emotional Modifier describes the qualitative nature of how the brand provides the benefit.

Nike has described their mantra of ‘Authentic Athletic Performance’ as the ‘intellectual guard rails’ to keep the brand on track.

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Reasons for a Brand Mantra

It forces to articulate what the brand is all about – if we can’t do it, then how can we expect our customers to?

It allows a foundation from which to have structured dialogue with the customers in ongoing research –

It guides the conversation, such as the Discussion Guide for focus groups – what is it that we should be talking about? .

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It facilitates NPD by defining the boundaries for the brand.

Ensures continuity for new staff. Guides the communication Adds depth to the brandPotential stakeholders that there is more

to the brand than what they see

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The future?:Internal brandingLiving the brand…

It is key to align promises with performance through:The products (quality…)The company (corporate branding)The channels (branding on POS)The employees (internal branding)

⇨ All have to live up the brand’s promise

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Core Brand Values

Set of abstract concepts or phrases that characterize the 5-10 most important dimensions of the mental map of a brand.

Relate to points-of-parity and points-of-difference

Mental Map Core Brand Values Brand Mantra

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Brand Mental Map Build-up

Your Brand

funfriendly

store

flashlights

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This mental map shows the range of associations for Nike. Some associations are product specific while others are not.

Brands typically have many associations, but only three to five arethe primary drivers of brand equity.

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Core associations for Nike include: innovative technology, high quality/stylish products, joy and celebration of sports, maximum performance, self empowerment and inspiring, locally and regionally involved, and globally responsible.

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When compared to Reebok, comfort and stylishness are points of parity while technology and empowerment are points of difference.

Compared to Adidas, performance and quality are points

of parity while technology and empowerment are points of difference.