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Transcript of Branding101
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BRAND MANAGEMENTCourtesy of:
Prof. Kevin L. KellerAmos Tuck School of Business
Dartmouth College, USA
Adrian [email protected]
www.monoranu.rohttp://twitter.com/monoranu
http://youtube.com/monoranuhttp://facebook.com/monoranu
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What is a Brand?
• A brand is a name, term, sign, symbol, or design which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.
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New Branding Challenges
• Brands are important as ever– Consumer need for simplification– Consumer need for risk reduction
• Brand management is as difficult as ever– Savvy consumers– Increased competition– Decreased effectiveness of traditional
marketing tools and emergence of new marketing tools
– Complex brand and product portfolios
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The Customer/Brand Challenge
• In this difficult environment, marketers must have a keen understanding of:– customers– brands– the relationship between the two– creating brand equity*
*Brand equity refers to the marketing effects or outcomes that accrue to a product with its brand name compared with those that would accrue if the same product did not have the brand name – Kevin Lane Keller – 2003.
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The Key to Branding
• For branding strategies to be successful, consumers must be convinced that there are meaningful differences among brands in the product or service category.
• Consumer must not think that all brands in the category are the same.
• PERCEPTION = VALUE
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Strategic Brand Management
• Strategic brand management involves the design and implementation of marketing programs and activities to build, measure, and manage brand equity.
• The strategic brand management process is defined as involving four main steps:1) Identifying and establishing brand positioning and values2) Planning and implementing brand marketing programs3) Measuring and interpreting brand performance4) Growing and sustaining brand equity
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Strategic Brand Management Process
Mental mapsCompetitive frame of referencePoints-of-parity and points-of-differenceCore brand valuesBrand mantra
Mixing and matching of brand elementsIntegrating brand marketing activitiesLeveraging of secondary associations
Brand Value ChainBrand auditsBrand trackingBrand equity management system
Brand-product matrixBrand portfolios and hierarchiesBrand expansion strategiesBrand reinforcement and revitalization
KEY CONCEPTSSTEPS
Grow and SustainBrand Equity
Identify and EstablishBrand Positioning and Values
Plan and Implement Brand Marketing Programs
Measure and InterpretBrand Performance
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Bookmark, Read, Acknowledge!
http://darkmattermatters.com/brand-positioning-tips/
Chris Grams
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The Concept of Brand Equity
• The brand equity concept stresses the importance of the brand in marketing strategies.
• Brand equity is defined in terms of the marketing effects uniquely attributable to the brand.– Brand equity relates to the fact that different outcomes
result in the marketing of a product or service because of its brand name, as compared to if the same product or service did not have that name.
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The Concept of Customer-Based Brand
Equity• Customer-based brand equity
– Differential effect– Customer brand knowledge– Customer response to brand marketinghttp://mktg.uni-svishtov.bg/ivm/resources/CustomerBasedbrandEquityModel.pdf
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Determinants of Customer-Based Brand
Equity
– Customer is aware of and familiar with the brand
– Customer holds some strong, favorable, and unique brand associations in memory
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Building Customer-Based Brand Equity
• Brand knowledge structures depend on . . .
– The initial choices for the brand elements
– The supporting marketing program and the manner by which the brand is integrated into it
– Other associations indirectly transferred to the brand by linking it to some other entities
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Brand Elements• A variety of brand elements can be chosen
that inherently enhance brand awareness or facilitate the formation of strong, favorable, and unique brand associations:
– Brand Name– Logo– Symbol
– Character
– Packaging
– Slogan
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Brand Elements Choice Criteria:General Considerations
• Memorable– Easily Recognized– Easily Recalled
• Meaningful– Credible &
Suggestive– Rich Visual & Verbal
Imagery
• Appealing– Fun & Interesting– Aesthetics
• Adaptable– Flexible &
Updateable
• Protectable– Legally– Competitively
• Transferrable– Within & Across
Product Categories– Across Geographical
Boundaries & Cultures
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Benefits of Customer-Based Brand
Equity• Enjoy greater brand loyalty, usage, and
affinity• Command larger price premiums• Receive greater trade cooperation &
support• Increase marketing communication
effectiveness• Yield licensing opportunities• Support brand extensions.
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Customer-Based Brand Equity
as a “Bridge”• Customer-based brand equity
represents the “added value” endowed to a product as a result of past investments in the marketing of a brand.
• Customer-based brand equity provides direction and focus to future marketing activities
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Motivation forCustomer-Based Brand Equity
Model
• Marketers know strong brands are important but aren’t always sure how to build one.
• CBBE model was designed to be …– comprehensive – cohesive – well-grounded – up-to-date– actionable
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Rationale of Customer-Based Brand Equity
Model
• Basic premise: Power of a brand resides in the minds of customers
• Challenge is to ensure customers have the right types of experiences with products & services and their marketing programs to create the right brand knowledge structures:– Thoughts– Feelings– Images– Perceptions– Attitudes
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Building Customer-Based Brand
Equity
• Building a strong brand involves a series of steps as part of a “branding ladder”
• A strong brand is also characterized by a logically constructed set of brand “building blocks.”– Identifies areas of strength and weakness– Provides guidance to marketing activities
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Consumer-Based Brand Equity Framework
BrandKnowledge
BrandKnowledge
Brand Recognition
Brand Recognition
Brand Recall
Brand Recall
Non-Product-Related(e.g., Price, Packaging,
User and Usage Imagery)
Non-Product-Related(e.g., Price, Packaging,
User and Usage Imagery)
Product-Related(e.g., color, size, design features)
Product-Related(e.g., color, size, design features)
FunctionalFunctional
SymbolicSymbolic
ExperientialExperiential
AttributesAttributes
BenefitsBenefits
OverallEvaluation(Attitude)
OverallEvaluation(Attitude)
Types ofBrand Associations
Types ofBrand Associations
Favorability, Strength, and
Uniqueness of Brand Association
Favorability, Strength, and
Uniqueness of Brand Association
BrandAwareness
BrandAwareness
BrandImage
BrandImage
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CUSTOMER-BASED BRAND EQUITY PYRAMID
RESONANCE
SALIENCE
JUDGMENTS FEELINGS
PERFORMANCE IMAGERY
4. RELATIONSHIPS =
What about you & me?
4. RELATIONSHIPS =
What about you & me?
3. RESPONSE =
What about you?
3. RESPONSE =
What about you?
2. MEANING =
What are you?
2. MEANING =
What are you?
1. IDENTITY =
Who are you?
1. IDENTITY =
Who are you?
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Salience Dimensions
• Depth of brand awareness– Ease of recognition & recall– Strength & clarity of category
membership
• Breadth of brand awareness– Purchase consideration– Consumption consideration
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Performance Dimensions
• Primary characteristics & supplementary features
• Product reliability, durability, and serviceability
• Service effectiveness, efficiency, and empathy
• Style and design
• Price
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Imagery Dimensions
• User profiles– Demographic & psychographic characteristics– Actual or aspirational– Group perceptions -- popularity
• Purchase & usage situations– Type of channel, specific stores, ease of purchase– Time (day, week, month, year, etc.), location, and context of
usage
• Personality & values– Sincerity, excitement, competence, sophistication, &
ruggedness
• History, heritage, & experiences– Nostalgia– Memories
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Judgment Dimensions
• Brand quality– Value– Satisfaction
• Brand credibility– Expertise– Trustworthiness– Likability
• Brand consideration– Relevance
• Brand superiority– Differentiation
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Feelings Dimensions
• Warmth• Fun• Excitement• Security• Social approval• Self-respect
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Resonance Dimensions
• Behavioral loyalty– Frequency and amount of repeat purchases
• Attitudinal attachment– Love brand (favorite possessions; “a little pleasure”)– Proud of brand
• Sense of community– Kinship (the state of having common characteristics or a
common origin)– Affiliation
• Active engagement– Seek information– Join club– Visit web site, chat rooms
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Customer-Based Brand Equity Model
Consumer-BrandResonance
Brand Salience
Consumer Judgments
Consumer Feelings
BrandPerformance
BrandImagery
INTENSE, ACTIVE LOYALTY
INTENSE, ACTIVE LOYALTY
RATIONAL & EMOTIONAL REACTIONS
RATIONAL & EMOTIONAL REACTIONS
POINTS-OF-PARITY &
POINTS-OF-DIFFERENCE
POINTS-OF-PARITY &
POINTS-OF-DIFFERENCE
DEEP, BROAD BRAND
AWARENESS
DEEP, BROAD BRAND
AWARENESS
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Sub-Dimensions of CBBE Pyramid
LOYALTYATTACHMENTCOMMUNITYENGAGEMENT
QUALITY CREDIBILITYCONSIDERATIONSUPERIORITY
WARMTHFUNEXCITEMENTSECURITYSOCIAL APPROVALSELF-RESPECT
CATEGORY IDENTIFICATIONNEEDS SATISFIED
PRIMARY CHARACTERISTICS &SECONDARY FEATURES
PRODUCT RELIABILITY, DURABILITY & SERVICEABILITY
SERVICE EFFECTIVENESS, EFFICIENCY, & EMPATHY
STYLE AND DESIGN PRICE
USER PROFILESPURCHASE & USAGE
SITUATIONSPERSONALITY &
VALUESHISTORY, HERITAGE, & EXPERIENCES
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Brand Positioning
• Define competitive frame of reference– Target market– Nature of competition
• Define desired brand knowledge structures– Points-of-parity
• necessary• competitive
– Points-of-difference• strong, favorable, and unique brand associations
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Issues in Implementing Brand Positioning
• Establishing Category Membership• Identifying & Choosing POP’s & POD’s• Communicating & Establishing POP’s
& POD’s• Sustaining & Evolving POD’s & POP’s
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Establishing Category Membership
• Product descriptor• Exemplar comparisons
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Identifying & Choosing POP’s & POD’s
• Desirability criteria (consumer perspective)– Personally relevant– Distinctive & superior– Believable & credible
• Deliverability criteria (firm perspective)– Feasible – Profitable– Pre-emptive, defensible & difficult to
attack
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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’s• Create POP’s and POD’s in the
face of attribute & benefit trade-offs– Price & quality– Convenience & quality– Taste & low calories– Efficacy & mildness– Power & safety– Ubiquity & prestige– Comprehensiveness (variety) & simplicity– Strength & 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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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 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.
• Nike– Authentic Athletic Performance
• Disney– Fun Family Entertainment
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Integrating the BrandInto Supporting Marketing
Programs
• Product Strategy• Deliver tangible and
intangible benefits• Add value through
customer information
• Pricing Strategy• Understand
perceptions of value• Balance price, cost, &
quality
• Communication Strategy• Mix & match
communication options
• Channel Strategy• Blend channel “push”
with consumer “pull”• Develop & brand direct
marketing options
Supporting marketing mix should be designed to enhance awareness and establish desired brand image.
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Personalizing Marketing
• Relationship Marketing – provide more holistic, personalized brand experiences to create stronger consumer ties– Mass customization– CRM– After-marketing & loyalty programs
• Examples– Experiential Marketing– Permission Marketing– One-to-One Marketing
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Experiential Marketing
• Employ multiple touch points & multiple senses
• Often involves special events, contests, promotions, sampling, on-line activities, etc.
• Combine brand education & entertainment
• Distinctive and relevant
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Permission Marketing (Seth Godin)
• Permission marketing “encourages consumers to participate in a long-term interactive marketing campaign in which they are rewarded in some way for paying attention to increasingly relevant messages.”– Anticipated– Personal– Relevant
• Permission marketing can be contrasted to interruption marketing
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5 Steps in Permission Marketing
• Must offer overt, obvious, and clearly delivered incentive to prospect to volunteer
• Must offer a curriculum over time, teaching the consumer about the product or service
• Must reinforce the incentive over time• Must increase the level of permission the
marketer receives from the customer• Must leverage permission to generate
profits
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10 Questions to Evaluate Permission Marketing
Program• What’s the bait?• What does an incremental permission cost?• How deep is the permission that so granted?• How much does incremental frequency cost?• What’s the active response rate to communications?• What are the issues regarding compression?• Is the company treating the permission as an asset?• How is the permission being leveraged?• How is the permission level being increased?• What is the expected lifetime of one permission?
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One-to-One Marketing:Competitive Rationale
• Consumers help to add value by providing information
• Firm adds value by generating rewarding experiences with consumers– Creates switching costs for consumers– Reduces transaction costs for consumers– Maximizes utility for consumers
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One-to-One Marketing:Consumer Differentiation
• Treat different consumers differently– Different needs– Different values to firm
• current• future (life-time value)
• Devote more marketing effort on most valuable consumers (and customers)
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One-to-One Marketing:Five Key Steps
• Identify consumers, individually and addressably
• Differentiate them, by value and needs
• Interact with them more cost-efficiently and effectively
• Customize some aspect of the firm’s behavior
• Brand the relationship
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Buzz Marketing(Emanuel Rosen)
• Keep it simple – Simple messages spread across social networks more easily.
• Tell us what’s new – The message must be relevant and newsworthy for people to want to tell others about it.
• Don’t make claims you can’t support – Making false claims will kill buzz or, worse, lead to negative buzz.
• Ask your customers to articulate what’s special about your product or service – If customers can explain why they like the product or service, they can then communicate this to others.
• Start measuring buzz – This can help determine which strategies generate the most buzz.
• Listen to the buzz – Monitoring consumer reaction can yield insights such as how to improve the product or service.
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Personalizing Marketing• All of these approaches are a means to create
deeper, richer, and more favorable brand associations
• Relationship marketing has become a powerful brand-building force – can slip through consumer radar– may creatively create unique associations– may reinforce brand imagery and feelings
• Nevertheless, there is still a need for the control and predictability of traditional marketing activities
• Models of brand equity can help to provide direction and focus to the marketing programs