Week2 Branding
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Transcript of Week2 Branding
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Chapter 3
Brands and Stakeholder Relationships
Key Points:
What does it mean to say that a brand is more thana product?
Explain the three steps in building a brand.
What are the key factors in creating brandrelationships?
What is brand equity and how is it affected by
brand relationships?
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Marketing evolved from Economics
During 20th century, focus on exchange through
manipulating the price, promotion, distribution of
ideas, goods and services to satisfy customers and
organisational objectives Rational Consumer not swayed by image or
intangibles
Must constantly innovate, improve product quality
Brands = identification to distinguish your product
from competitors
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But now..
70% of tangible (physical) innovations
are copied by competitors within 1year
Physical attributes get you in to a marketbut are not sustainable competitive
advantage
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What brand means
A perception resulting from experiences with,
and information about, a company or a line of
products
Exists only in peoples hearts and minds
Differentiates products from competitors
Makes a promise to customers
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Brand value
Nike versus New Balance
Coke versus Cott
Laurier versus Laurentian
http://www.wlu.ca/~wwwsbe/sbe2000/index.htmlhttp://localhost/var/www/apps/conversion/tmp/scratch_9/http://www.newbalance.com/aboutus/nbindex.html -
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Brand value
You believe one brand performs better
You trust the performance claims
You buy benefits not products
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Branding
Process of creating a brand image that
engages the hearts and minds of customers
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Branding
Really, at its core, branding is simply marking
something and saying, This is from me.Karl-Heinz Kalbfell, Global Head of Brand
and Product Strategy, BMW Group
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Intangible Attributes
Intangibles are important in brand building:
Harder for competitors to copy
More likely to involve consumers emotionally
Emotion triggers brain 3000x faster than rational
thought
More consistent with how consumers choose
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Brand more than a logo
Not just a name (McDonalds)
Not just symbol (golden arches)
More than identificationHow you feel and what you think when
you see the name/symbol
No brand = commodity
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New Brand definitions...
A perception of an integrated bundle of
information and experiences that distinguishes
a company and/or its product offerings from
the competition.
The sum of a customers experiences with a
product and/or company.
Tom Duncan
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New Brand definitions...
The visual, emotional and cultural image
that surrounds your association or
organization and its products and services.
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Where does a Brand come from?
Customers form perceptions from:
Cues
Signals
Other types of communication messages
Experiences
Both products and companies areconsidered brands
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Cues
Attributes provide cues to supportperceptions you want to create
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What Does a Brand Do?
Saves consumers time
Creates trust or level of expectation
Provides psychological attributes
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Brand Loyalty
What loyalty cards do you use?
What role do they play in the MC program?
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Brand Building
Building a brand is all about conveying
proof points that whatever product you pitch
is worth my attention and my hard-earned dollar
as a consumer and as a business owner.Steven Cody, Managing Partner, PepperCom
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The Brand Promise
Essence of a brand is a promise
Brand management = managing customerexpectations
Dont make promises you cant deliver
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The Coca-Cola Promise
The Coca-Cola company exists to benefit andrefresh everyone it touches.
The basic proposition of our business is simple, solid andtimeless. When we bring refreshment, value, joy and fun toour stakeholders, then we successfully nurture and protectour brands, particularly Coca-Cola. That is the key tofulfilling our ultimate obligation to provide consistently
attractive returns to the owners of our business.
http://www2.coca-cola.com/ourcompany/ourpromise.html
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Employee Marketing
Employees ultimately deliver the brand
promise every day
If corporate culture is the brand.
Then employee marketing is the branding
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Brand Equity
Two basic components determine a company ora brands value:
Physical net assets, e.g. plants, equipment,and land
Brand equitythe intangible value of a
company beyond its physical net assets
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Interbrands
Most Valuable Brands
July 28, 2006 Rankings
1. Coca-Cola $67,000
2. Microsoft 56,927
3. IBM 56,201
4. GE 48,907
5. Intel 32,319
6. Nokia 30,131
7. Toyota 27,941
8. Disney 27,8489. McDonalds 27,501
10. Mercedes 21,795
Source: www.interbrand.com/best_brands
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Canadas Most Valuable Brands
1 RBC $3,989.6
2 TD Canada Trust 3,167.9
3 Petro-Canada 3,064.0
4 Bell 2,914.9
5 Shoppers Drug Mart 2,830.6
6 Tim Hortons 1,878.2
7 BMO 1,854.6
8 Canadian Tire 1,634.2
9 Scotiabank 1,378.7
10 Telus 1,079.3
Source: www.interbrand.com/best_canadian_brands_06.asp
Rank Brand 2006 Brand Value CAD$M
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How are Brands Evaluated?
Calculate overall brand sales
Project net earnings
Deduct projected earnings from tangible assets
Use market research to isolate brand fromremaining intangible assets (e.g.patents, customerlists, etc.)
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Testing Brand Value
Conjoint Analysis
Statistical method that captures trade-offs:
service vs. price vs. features vs. brand name
Dollarmetric Scale
AMC unidentified modelasked what would
customers pay for it Identical TV sets examined by consumers
Vs.
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Five Elements of Brand Equity
Brand-name awareness
Brand associations
Perceived quality
Proprietary brand assets
Brand loyalty
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Steps in Building a Brand (V1)
1. Select a name and symbol
2. Create awareness and brand identity
3. Position the brand
4. Create a brand image
5. Create trust/build a relationshipfrom Duncan first edition
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Steps in Building a Brand (V2)
1. Select desired brand position
2. Develop brand identification
3. Create a brand imagefrom Duncan second edition
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1. Positioning
Defined by consumers
on important attributes
Place in mind relativeto competing products
Position happens -
planned or not
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Positioning
G
Against a
Competitor
Usage
Occasions
Away from
Competitors
ProductAttributes
ProductClass
Benefits
Offered
Users
BD
C
G
F
A
E
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Positioning MapLuxury Automobile Market
High Price
BMW750iL
ToyotaSupra
Nissan
300ZX
MercedesBenz 400EPorsche
Audi 325iCabriolet
Low Price
SedanSports Car
Jaguar XJSAudi Quattro
NissanInfiniti
ToyotaLexus
CadillacAllante
Ferrari
LotusTurbo Esprit
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2. Develop Brand Identification
Choose brand name
Has to be memorable
How to do this?
Benefit description
Association
Distinctive
Pronounceable
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2. Develop Brand Identification
Choose brand symbol
An effective logo:
Communicates brand image and positioning
Is simple, distinctive, and relevant
Often legally protected as trademarks
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3. Create Brand Image
An impression created by brand messages
and experiences and assimilated into a
perception or impression of the brand
E.g. Marlboro Man
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Brand Icons of the 20thCentury
1. The Marlboro Man2. Ronald McDonald
3. The Green Giant
4. Betty Crocker5. The Energizer Bunny
6. The Pillsbury Doughboy
7. Aunt Jemima
8. The Michelin Man
9. Tony the Tiger
10. Elsie the Cow
Rankings based on an Advertising Age survey
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Branding Strategies
Ways of maximizing the communication
impact of brands
Critical elements include:
Brand Extensions
Multi-tier branding
Co-branding
Ingredient branding
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Brand Personality
Anthropomorphism - giving humancharacteristics to inanimate objects
If the brand were a person, what kind of
person would it be?E.g. Mercedes vs Miata Male or Female?
Young or Old?
How would it dress?
What music would it listen to?
Where would you see it?
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Y&R Brand Asset Valuator
Proprietary 2-part model
part 1 - strength of the brand image
part 2 - brand personality scale
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Y&R Brand Asset Valuator
Differentiation
Relevance
Esteem
Knowledge
Brand
Strength
BrandStatus
BRAND
IMAGE
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Brand Personality Scale
Sincerity
Excitement
Sophistication
Competence
Ruggedness
Brand
Personality
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Is it on Brand?
Would our brand say that?Would our brand do that?
Is it consistent with our brand image and
personality?
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Communication Style Guide
Graphic Standards Manual
Gives direction for the appropriate use of the brand
or corporate identity symbols such as the logo, color
palette, and other stylistic details
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Consumers modify your brands
In the old days, the successful communication of apersonality through advertising gave the brandstable meaning. Now consumers are more proactive
in reshaping brands.Michael Solomon (Auburn)
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Successful Brands
are visiblehave clarity
are relevant
have longevity
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Brand mantra
3 words that capture the brands essence
Nike: Authentic athletic performance.
Disney: Fun family entertainment.